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10 June 2026

US stocks ended a choppy session mostly lower on Tuesday, amid renewed volatility in AI-tech/semiconductor shares ahead of today’s CPI data. The S&P 500 dipped 0.3%, while the tech-heavy Nasdaq dropped 1.0%.

US Treasuries rose on lower oil prices as investors awaited CPI data. 10-year yields dipped 4bp to 4.52%.

European stocks traded mostly lower on Tuesday. The Euro Stoxx 50 slid 0.2%. The German DAX fell 0.7% and the French CAC closed little changed (+0.1%). In the UK, the FTSE 100 lost 1.4%.

European government bonds rose amid lower energy prices. 10-year German bund yields edged down 2bp to 3.04%, as 10-year French bond yields fell 3bp to 3.81%. In the UK, 10-year gilt yields fell 4bp to 4.90%.

Asian stock markets ended mostly higher on Tuesday, amid hopes of de-escalation of Middle East tensions and as tech shares rebounded from an AI-led selloff. Korea’s Kospi surged 8.2% while Japan’s Nikkei 225 gained 2.2%. China’s Shanghai Composite rose 1.3%, led by gains in tech shares boosted by AI demand optimism and the government plan to fund data centre buildout, while Hong Kong’s Hang Seng was down 0.4%. Elsewhere, India’s Sensex ended 0.5% higher. Indonesia’s JCI rallied 7.6%, following recent losses, after the central bank delivered a surprise rate hike to shore up the IDR.

Crude oil prices declined on Tuesday. WTI crude for July delivery settled 3.4% lower at USD88.2 a barrel.

In the US, the NFIB's business confidence index fell to 95.3 in May, from 95.9 in April. Labuor market indicators softened, and more firms raised selling prices and planned future price increases.

In China, both exports and imports beat expectations in May, driven by continued strength in AI-related tech and new energy products boosted by strong price gains. Commodity imports were mixed, with volume gains in copper and continued slides in crude oil and refined petroleum products. The trade surplus widened to USD105bn in May from USD85bn in April.

Bank Indonesia (BI) surprised the market with a 25bp policy rate hike in an off-cycle meeting, following a 50bp hike in May. The central bank cited the need to further strengthen policy efforts to stabilize the IDR and pre-emptively keep inflation within its 1.5-3.5% target in 2026-27. BI also introduced further FX stabilisation measures aimed at encouraging foreign portfolio inflows by raising yields and offering various incentives.

In the US, higher energy prices likely lifted headline CPI inflation to 4.2% yoy in May, from 3.8% yoy in April, potentially spilling over to core goods prices.

China’s headline CPI inflation should remain above 1.0% yoy in May amid higher energy prices and a steady core reading, while PPI could accelerate more notably.  

The Bank of Canada is expected to keep its policy rate at 2.25% given a technical recession and benign underlying inflation.