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Market Review

US:

US stocks closed higher on Monday, the first trading session of June, as markets shrugged off mounting global trade tensions. The S&P 500 rose 0.41% to end at 5,935.94, while the Nasdaq Composite gained 0.67% to finish at 19,242.61.

Asia:

Asian shares opened cautiously on Tuesday following a rebound in major US technology stocks that lifted the S&P 500 by 0.4%, despite June historically being one of the quietest months for gains. India: India's benchmark equity indices closed lower for the second consecutive session on Monday, dragged down by shares of HDFC Bank and Reliance Industries. Market is expected to open on a flattish note and likely to witness range bound move during the day.

Global Economy:

China’s factory activity in May shrank for the first time in eight months, indicating U.S. tariffs are now starting to directly hurt the manufacturing superpower. The Caixin/S&P Global manufacturing PMI fell to 48.3 in May from 50.4 in April, missing analysts’ expectations in a Reuters poll and marking the first contraction since September last year. It was also the lowest reading in 32 months. The 50-mark separates growth from contraction. U.S. liquefied natural gas exports fell in May due to plant outages and maintenance at the country’s largest export facility, preliminary LSEG ship tracking data show. The U.S. is the world’s largest LNG exporter and monthly changes in production can impact global LNG prices. In May the U.S. exported 8.9 million metric tons of LNG, down from a record 9.3 MT in April. During May all U.S. plants experienced short periods of lower output when compared to April, the LSEG data showed, and Cheniere Energy confirmed that its 30 MT per annum (mtpa) Sabine Pass facility in Texas, the biggest in the nation, was undergoing maintenance work.

Commodities:

Oil prices rose in early Asia trade on Tuesday on concerns about supply, with Iran set to reject a U.S. nuclear deal proposal that would be key to easing sanctions on the major oil producer, and with production in Canada hit by wildfires. Gold edged up to hit a near four-week high on Tuesday, as a weaker dollar and rising uncertainty over the U.S.-China trade deal boosted demand for the safe-haven asset.

Currency:

The dollar fell to a six-week low on Tuesday on signs of fragility in the U.S. economy because of damage from the trade war President Donald Trump's administration is waging.

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