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- Dow Slips in Cautious Trade After Fed Holds Rates Steady:<\/strong> The Dow Jones Industrial Average fell 44.14 points, or 0.10%, to close at 42,171.66 after the Federal Reserve left its benchmark rate unchanged. While the Fed maintained its projection of two rate reductions in 2025, it also cut its GDP forecast to 1.4% and raised the core inflation outlook to 3.1%, pointing to stagflation risks. Chair Powell emphasised that the impact of Trump\u2019s tariffs on inflation remains uncertain.<\/li>\n\n\n\n
- S&P 500 Ends Flat as Investors Digest Mixed Fed Outlook:<\/strong> The S&P 500 dipped 0.03% to settle at 5,980.87, barely budging as markets weighed the Fed\u2019s dovish long-term stance against its cautious short-term messaging.\u00a0<\/li>\n\n\n\n
- Nasdaq Climbs Modestly Despite Rate and Conflict Jitters:<\/strong> The Nasdaq Composite rose 0.13% to finish at 19,546.27, supported by gains in select tech and crypto-linked stocks. Optimism over future rate cuts and speculation of easing Middle East tensions offered limited support.\u00a0<\/li>\n\n\n\n
- Europe Ends Lower Amid Geopolitical Caution and Central Bank Moves:<\/strong> European markets ended Wednesday lower, with the Stoxx 600 down 0.34% as investors remained wary of intensifying Israel-Iran tensions and the Fed\u2019s revised economic projections. France\u2019s CAC 40 shed 0.3% while Germany\u2019s DAX lost around 0.5%, under pressure from declining healthcare and energy names. The UK\u2019s FTSE 100 managed a marginal 0.11% gain, supported by resilience in bank stocks. Italy\u2019s FTSE MIB inched up 0.1% ahead of the Fed\u2019s update. UK May inflation came in at 3.4%, in line with expectations, but the Office for National Statistics acknowledged an error in the April reading that previously overstated the figure. Core inflation also eased to 3.5% from 3.8%, driven by weaker transport prices. Separately, Sweden\u2019s central bank cut rates by 25 basis points to 2.00%, citing slower inflation, although it warned of persistent geopolitical risks.<\/li>\n\n\n\n
- Asia Mixed as Trump\u2019s War Talk and Israel-Iran Conflict Rattle Markets:<\/strong> Asia-Pacific markets delivered a fragmented performance as geopolitical risks and policy uncertainty weighed on sentiment. Japan\u2019s Nikkei 225 rose 0.9% to 38,885.15, helped by resilient domestic stocks, while the Topix advanced 0.77%. South Korea\u2019s Kospi gained 0.74%, with the Kosdaq up 0.53%, as semiconductor shares rebounded. However, Hong Kong\u2019s Hang Seng dropped 1.12% to 23,710.69, underperforming the region as China-exposed names struggled. Mainland China\u2019s CSI 300 edged up 0.12% to 3,874.97. Australia\u2019s ASX 200 fell 0.12% as weak commodity sentiment and policy concerns persisted. Japan\u2019s May exports declined 1.7% year-on-year, beating expectations for a 3.8% drop and helping cushion sentiment.\u00a0<\/li>\n\n\n\n
- Oil Holds Steady as Trump Signals Iran May Seek Talks:<\/strong> Oil prices were little changed after a sharp surge earlier in the week. US crude rose 0.4% to $75.14 a barrel and Brent settled at $76.70, up 0.25%. Traders balanced Trump\u2019s comments that Iran may be ready to negotiate with lingering fears of escalation. Volatility remained elevated after a 4% jump on Tuesday, reflecting deep uncertainty surrounding the Israel-Iran conflict and possible US involvement.<\/li>\n\n\n\n
- Treasury Yields Flat as Fed Offers No Surprises:<\/strong> The 10-year Treasury yield held steady at 4.391%, while the 2-year fell slightly to 3.939% after the Fed\u2019s decision. Although policymakers kept rates unchanged, their upward revision of inflation projections and trimmed growth forecasts introduced new caution into the bond market. Housing data added pressure, with May starts falling 9.8% to a five-year low.\u00a0<\/li>\n\n\n\n
- Housing Starts Hit Pandemic Lows While Jobless Claims Stabilise:<\/strong> US housing starts dropped to 1.256 million in May, the weakest level since May 2020 and well below expectations. Building permits also declined to 1.393 million. Despite the softness in housing, initial jobless claims edged down 5,000 to 245,000, suggesting the labour market remains resilient even as broader economic indicators weaken.<\/li>\n<\/ul>\n\n\n\n
FX Today:<\/strong><\/p>\n\n\n\n
![\"\"](\"https:\/\/www.infinox.com\/global\/wp-content\/uploads\/sites\/5\/2025\/06\/Currency-Strenght-19Jun25.png\")
<\/figure>\n\n\n\n- \n
- EUR\/USD Holds Support After Three-Day Drop:<\/strong> The EUR\/USD pair closed at 1.1470 on Wednesday, declining 0.08% after failing to hold earlier gains above 1.1500. The euro slipped for a third consecutive session, but price action remained confined within a narrow range between 1.1530 and 1.1460. Despite the recent pullback, the pair continues to hold above the key support zone near 1.1400. The 50-day SMA at 1.1350 remains a critical level, with no signs of breakdown so far. If the pair stays above 1.1420, a fresh test of resistance around 1.1600 could unfold. However, if bearish momentum accelerates, a drop toward 1.1320 may follow.\u00a0<\/li>\n\n\n\n
- GBP\/USD Slips Toward 50-Day Average After Failing to Hold Gains:<\/strong> The GBP\/USD pair closed at 1.3409 on Wednesday, falling 0.15% after retreating from an intraday high of 1.3477. The session ended near the day\u2019s low of 1.3399, marking the third consecutive daily decline for the pound. Sellers took control after the pair failed to sustain momentum above the 1.3450 zone, with price action now testing support near the rising 50-day SMA at 1.3379. Below this, the 1.3350 area could offer additional support, while the 100-day and 200-day SMAs at 1.3066 and 1.2926 continue to reinforce the broader bullish trend. If the pair rebounds from current levels, resistance is seen at 1.3470, followed by the more significant 1.3600\u20131.3700 range.\u00a0<\/li>\n\n\n\n
- USD\/JPY Struggles Below Resistance as Momentum Cools:<\/strong> The USD\/JPY pair settled at 145.12 on Wednesday, easing 0.09% after trading between a session high of 145.44 and a low of 144.33. While short-term structure remains constructive above the 50-day SMA at 143.98, the 100-day and 200-day SMAs at 147.03 and 149.41 still loom overhead. If buyers can secure a close above 145.50, the next upside target lies near 146.80. Otherwise, the risk of a pullback toward 144.00 or even 142.80 increases, especially if momentum continues to fade near resistance.<\/li>\n\n\n\n
- AUD\/USD Consolidates Beneath Resistance After Steady Climb:<\/strong> The AUD\/USD pair closed at 0.6504, rising 0.45% after touching a high of 0.6537 and a low of 0.6468. The pair printed a positive session and continues to trade just below the 0.6550 resistance zone, where recent rallies have stalled. The current move marks a more than 3% rebound from early June lows near 0.6290, and price remains supported by the 50-day SMA at 0.6429 and the 100-day SMA at 0.6354. The 200-day average, also near 0.6429, adds further reinforcement to this support band. A daily close above 0.6550 would be needed to unlock upside targets at 0.6620 and potentially 0.6660. On the downside, initial support lies at 0.6450, followed by the 0.6400 area.\u00a0<\/li>\n\n\n\n
- Gold Retreats After Failing to Hold Above $3,400:<\/strong> Gold settled at $3,367 on Wednesday, falling 0.65% after reaching an intraday high of $3,400 and a low of $3,362. The metal posted a bearish daily candle with a long upper shadow, reflecting strong resistance at the $3,400 level for the second time this month. Despite the decline, gold remains in an overall bullish trend, trading well above its 50-day SMA at $3,301. The 100-day and 200-day SMAs, located at $3,120 and $2,884 respectively, continue to support the broader upward structure. Immediate support is now seen at $3,360, followed by stronger demand around $3,320 and the $3,300 zone. If price fails to hold above $3,360, a retest of the 50-day SMA could occur. A successful break above $3,400 would be needed to resume the uptrend toward the $3,460\u2013$3,480 range.<\/li>\n<\/ul>\n\n\n\n
Market Movers:<\/strong><\/p>\n\n\n\n
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- Mastercard Leads S&P 500 Decliners on Stablecoin Concerns:<\/strong> Mastercard (MA) fell over 5% on Wednesday, leading losses in the S&P 500, as investors reacted to comments from White House crypto advisor Sacks suggesting stablecoin legislation could accelerate adoption.<\/li>\n\n\n\n
- Visa Drops as Digital Payments Face Pressure from Crypto Shift:<\/strong> Visa (V) lost more than 4%, posting one of the steepest declines in the Dow Jones Industrial Average, as sentiment turned bearish across the digital payments sector.\u00a0<\/li>\n\n\n\n
- Bitdeer Slides After Convertible Note Offering Announcement:<\/strong> Bitdeer Technologies (BTDR) sank over 6% after the company disclosed a private placement offering of $300 million in convertible senior notes due 2031.\u00a0<\/li>\n\n\n\n
- Coinbase Surges on Stablecoin Partnership with Nodal Clear:<\/strong> Coinbase Global (COIN) rallied more than 16%, leading gainers in the S&P 500, after announcing a partnership with Nodal Clear to use USDC as collateral in US futures trading.\u00a0<\/li>\n\n\n\n
- Wells Fargo Rises on Bullish Analyst Target:<\/strong> Wells Fargo & Co (WFC) climbed more than 3% after Raymond James raised its price target on the bank from $78 to $84, citing improved capital return prospects and valuation support.<\/li>\n<\/ul>\n\n\n\n
Markets ended mixed on Wednesday as investors processed a cautious Fed, persistent inflation concerns, and the lingering impact of geopolitical tensions. The central bank\u2019s steady hand and Powell\u2019s message of patience offered little immediate clarity, while weak housing data and ongoing tariff effects stirred stagflation worries. Oil steadied on hopes for diplomacy, and Treasury yields barely moved, reinforcing a wait-and-see mood. Meanwhile, stock-specific moves drove sector rotations, with crypto, banks, and semiconductors outperforming. Attention now turns to Friday\u2019s reaction and any further developments on interest rates, Iran, or tariffs.<\/p>\n","protected":false},"excerpt":{"rendered":"
Wall Street ended mixed on Wednesday after the Federal Reserve kept interest rates unchanged but flagged persistent inflation and trimmed its economic growth outlook, reinforcing a cautious stance on future rate cuts. While the Fed still projected two cuts this year, Chair Jerome Powell emphasised a wait-and-see approach, especially in light of inflation risks stemmingContinue Reading<\/a><\/p>\n","protected":false},"author":28,"featured_media":21915,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[110,1,112],"tags":[140,138,136],"class_list":["post-21913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-espresso-morning-call","category-ix-intel","category-market-news","tag-international-news","tag-market-updates","tag-whats-new"],"acf":[],"aioseo_notices":[],"lang":"en","translations":{"en":21913,"zh_cn":21919,"zh_tw":21921,"vi":21923,"th":21926},"pll_sync_post":[],"_links":{"self":[{"href":"https:\/\/www.infinox.com\/global\/wp-json\/wp\/v2\/posts\/21913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.infinox.com\/global\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.infinox.com\/global\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.infinox.com\/global\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/www.infinox.com\/global\/wp-json\/wp\/v2\/comments?post=21913"}],"version-history":[{"count":0,"href":"https:\/\/www.infinox.com\/global\/wp-json\/wp\/v2\/posts\/21913\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.infinox.com\/global\/wp-json\/wp\/v2\/media\/21915"}],"wp:attachment":[{"href":"https:\/\/www.infinox.com\/global\/wp-json\/wp\/v2\/media?parent=21913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.infinox.com\/global\/wp-json\/wp\/v2\/categories?post=21913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.infinox.com\/global\/wp-json\/wp\/v2\/tags?post=21913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
- Visa Drops as Digital Payments Face Pressure from Crypto Shift:<\/strong> Visa (V) lost more than 4%, posting one of the steepest declines in the Dow Jones Industrial Average, as sentiment turned bearish across the digital payments sector.\u00a0<\/li>\n\n\n\n
- GBP\/USD Slips Toward 50-Day Average After Failing to Hold Gains:<\/strong> The GBP\/USD pair closed at 1.3409 on Wednesday, falling 0.15% after retreating from an intraday high of 1.3477. The session ended near the day\u2019s low of 1.3399, marking the third consecutive daily decline for the pound. Sellers took control after the pair failed to sustain momentum above the 1.3450 zone, with price action now testing support near the rising 50-day SMA at 1.3379. Below this, the 1.3350 area could offer additional support, while the 100-day and 200-day SMAs at 1.3066 and 1.2926 continue to reinforce the broader bullish trend. If the pair rebounds from current levels, resistance is seen at 1.3470, followed by the more significant 1.3600\u20131.3700 range.\u00a0<\/li>\n\n\n\n
- S&P 500 Ends Flat as Investors Digest Mixed Fed Outlook:<\/strong> The S&P 500 dipped 0.03% to settle at 5,980.87, barely budging as markets weighed the Fed\u2019s dovish long-term stance against its cautious short-term messaging.\u00a0<\/li>\n\n\n\n