External background. The S&P 500 gained 0.23%, extending the series of gains to four consecutive sessions. At the moment, the leading US index is at its historical highs, supported by the technology sector. The producer price index unexpectedly dropped by 0.2% compared to last month, which is the largest decrease in seven months, which once again confirms the decrease in inflationary pressure. The annual result was 2.2%. Of the individual stocks, one can note the growth of Tesla shares after Elon Musk said that shareholders supported his compensation package. Broadcom jumped by 12.3% on the announcement of successful results for the first quarter and a 10-to-1 split in shares. Adobe's quotes soared by 14.8% on the postmarket, also after a successful report and increased expectations in the second quarter. In Europe, the leading indexes showed a decline. The Stoxx 600 fell 1.3% and the German DAX fell 2% amid weakness in eurozone bonds after the news that they would not be included in the key global sovereign debt indices. Uncertainty is also present in the political picture of France. In Asian markets, Hong Kong's Hang Seng is down 0.5% in the morning and is testing its 50-day moving average. Kospi and Nikkei 225 are in a slight plus. The picture on the commodity market is neutral, with oil and copper showing a slight increase in the morning after a decline yesterday.
Bonds. US 10-year yields have fallen to lows since April 1. A successful auction with high demand for 30-year U.S. government bonds worth $22 billion was a factor in the price increase.
The KASE index. KASE grew by 0.8% yesterday, recovering half of the losses it suffered during 3 days of continuous decline. Most stocks rose, which dropped hints of a downward exit from the sideways trend.
Index shares. Kaspi had the biggest growth yesterday. It is noteworthy that stocks and ADS are now moving in stable currency equilibrium and are priced the same on both the NYSE and KASE. Kaztransoil shares increased by 2.1%, but on the chart they only played back the losses of the last three days. In the area of 860-865, the securities have a strong resistance level, the breakdown of which will dramatically increase the attractiveness of the securities. Meanwhile, there was no similar positive dynamics among the GDR as among the securities on KASE. Kazatomprom declined by 0.6%, but still remains above the support level of $39.4.
Currency. The dollar has been declining for the last 2 trading sessions, but is rising again today to 451 tenge. Yesterday, Bank of America's letters to its clients became known, where the investment bank informed that it could not recommend tenge for carry-trading against the dollar or euro at the moment. "The June reduction in net currency sales by the Oil Fund seems to indicate the limits of the tolerance of the National Bank of Kazakhstan for the strengthening of the tenge," the report says. On the other hand, BofA does not see any risks of strong strengthening or weakening of the tenge due to the limited volatility of the USDKZT pair. Yesterday, the dollar index DXY rose, which is probably reflected today in the growth of the dollar against the tenge.
Key market news
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