Natural gas prices fell to a five-week low. The Mexican peso is trading at a ten-month high

At the end of Thursday, the Dow Jones Index (US30) rose by 0.94%. The S&P 500 Index (US500) rose by 0.01% and reached a new all-time high. The Nasdaq (US100) Technology Index closed higher by 0.97%. The US stocks rose on Thursday thanks to easing geopolitical tensions, strong performance by tech giants, and growing expectations of interest rate cuts. Meanwhile, fresh economic data showed that the US economy contracted more than expected in the first quarter, by 0.5% on an annualized basis, while the trade deficit unexpectedly widened due to a decline in exports.

The Mexican peso strengthened to 18.86 per dollar, reaching a ten-month high, despite the Bank of Mexico cutting its rate by 50 basis points to 8%. Global investors are shifting to high-yielding emerging market assets after the Fed’s signals of patience pushed the Dollar Index to two-year lows, while Mexico’s real interest rate outlook remains one of the most attractive in the G20, given core inflation of 4.5% year-on-year and core CPI of 4.2%.

European stock markets were mostly higher on Thursday. Germany’s DAX (DE40) rose by 0.64%, France’s CAC 40 (FR40) closed down 0.01%, the Spanish IBEX35 (ES35) added 0.03%, and the British FTSE 100 (UK100) closed positive 0.19%. On Thursday, European stocks showed mixed dynamics, holding on to the losses of the previous session, as markets continued to assess the prospects for fiscal and monetary policy in the EU’s largest economies. Defense companies continued yesterday’s growth as investors continued to assess their earnings growth after NATO countries agreed to increase defense spending to 5% of GDP by 2035.

The US natural gas prices (XNG/USD) fell to $3.42/MMBtu, a five-week low, under pressure from rising production and a larger-than-expected increase in storage inventories. According to the EIA, US utilities added 96 billion cubic feet of gas to storage for the week ending June 20, marking the 10th consecutive week of above-average injections.

Asian markets were mostly lower yesterday. Japan’s Nikkei 225 (JP225) rose by 1.65%, China’s FTSE China A50 (CHA50) fell by 0.34%, Hong Kong’s Hang Seng (HK50) lost 0.61%, and Australia’s ASX 200 (AU200) showed a negative result of 0.10%.

Core consumer prices in Tokyo in June 2025 were 3.1% year-on-year, down from May’s 3.6% growth and below market expectations of 3.3%. This is the first slowdown in core inflation since February, although the figure still significantly exceeds the Bank of Japan’s 2% target, supporting expectations of further interest rate hikes. Bank of Japan Governor Kazuo Ueda recently signaled that the Central Bank may continue to raise rates if sustained wage growth supports consumer spending.

On Thursday, the New Zealand dollar rose to $0.606, continuing its rally for the fifth consecutive day and reaching its highest level since October 2024, helped by the general weakening of the US dollar and the recovery of global risk appetite. New Zealand’s Consumer Confidence Index rose in June, although some of its components remain weak and the index is still in pessimistic territory.