{"id":63706,"date":"2026-06-24T23:08:18","date_gmt":"2026-06-25T03:08:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-braced-for-us-pce-data-as-venezuela-declares-state-of-emergency\/63706\/"},"modified":"2026-06-24T23:08:18","modified_gmt":"2026-06-25T03:08:18","slug":"global-markets-braced-for-us-pce-data-as-venezuela-declares-state-of-emergency","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-braced-for-us-pce-data-as-venezuela-declares-state-of-emergency\/63706\/","title":{"rendered":"Global Markets Braced for US PCE Data as Venezuela Declares State of Emergency"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US PCE inflation data<\/strong> looms with headline expectations of <strong>4.1% YoY<\/strong>, fueling bets for a <strong>Federal Reserve<\/strong> rate hike as early as July.<\/li>\n<li><strong>Venezuela<\/strong> has declared a <strong>state of emergency<\/strong> following back-to-back earthquakes of magnitude <strong>7.2 and 7.5<\/strong>, with the US State Department mobilizing immediate disaster assistance.<\/li>\n<li><strong>Southbound Stock Connect<\/strong> flows hit a record <strong>US$152 billion<\/strong> as a surge in Hong Kong IPO activity attracts massive mainland Chinese capital.<\/li>\n<li><strong>Shanghai tin futures<\/strong> plunged over <strong>3%<\/strong>, breaking the <strong>380,000 yuan<\/strong> threshold amid a broader sell-off in base metals and a surging US Dollar.<\/li>\n<li><strong>Asian currencies<\/strong>, led by the <strong>Thai Baht<\/strong>, have slumped to one-year lows as markets price in &quot;high-for-longer&quot; US interest rates under a hawkish Fed leadership.<\/li>\n<\/ul>\n<h2>US Inflation and Currency Volatility<\/h2>\n<p>The <strong>British Pound<\/strong> (<a href=\"\/stock\/GBP\">GBP<\/a>) managed to hold gains above the <strong>1.3150<\/strong> level against the <strong>US Dollar<\/strong> (<a href=\"\/stock\/USD\">USD<\/a>) as traders positioned themselves ahead of critical <strong>Personal Consumption Expenditures (PCE)<\/strong> data. Analysts expect the headline PCE to rise to <strong>4.1% YoY<\/strong> for May, up from 3.8% in April, which could reinforce the Federal Reserve&#39;s hawkish stance. Market probability for a July rate hike has surged to <strong>34.2%<\/strong>, up from just 8.5% a week ago, according to the <strong>CME FedWatch Tool<\/strong>.<\/p>\n<p>In Asia, the <strong>Thai Baht<\/strong> (<a href=\"\/stock\/THB\">THB<\/a>) depreciated past the <strong>33.00<\/strong> per dollar mark, reaching its weakest level since May 2025. This downward pressure is mirrored across the region, with the <strong>Japanese Yen<\/strong> (<a href=\"\/stock\/JPY\">JPY<\/a>) falling past <strong>161 per dollar<\/strong>. Investors are increasingly favoring the Greenback as <strong>Fed Chair Kevin Warsh<\/strong> maintains a focus on price stability, suggesting that US yields will remain elevated compared to Asian counterparts.<\/p>\n<h2>Humanitarian Crisis in Venezuela<\/h2>\n<p>The <strong>US State Department<\/strong> is actively coordinating with Venezuelan authorities after a &quot;doublet&quot; earthquake event devastated the region west of Caracas. Deputy Secretary of State <strong>Christopher Landau<\/strong> confirmed that Washington is mobilizing search and rescue teams and medical supplies to assist the South American nation. The <strong>US Geological Survey (USGS)<\/strong> warned that casualties could be high, with early estimates suggesting significant widespread damage to infrastructure and residential buildings.<\/p>\n<h2>Asian Market Shifts and Commodity Slump<\/h2>\n<p>Hong Kong&#39;s financial hub is seeing a massive influx of liquidity, with <strong>Southbound Stock Connect<\/strong> turnover soaring <strong>84% year-on-year<\/strong>. This record <strong>US$152 billion<\/strong> flow is being driven by a renewed <strong>IPO boom<\/strong> on the <strong>Hong Kong Exchanges and Clearing<\/strong> (<a href=\"\/stock\/HKXCF\">HKXCF<\/a>), which now accounts for approximately <strong>24%<\/strong> of the city&#39;s total market turnover. Mainland investors are aggressively seeking exposure to new listings as the regulatory environment for tech firms stabilizes.<\/p>\n<p>Conversely, the commodities sector is facing a sharp correction, with <strong>Shanghai tin futures<\/strong> dropping more than <strong>3%<\/strong> to reach <strong>383,450 yuan\/mt<\/strong>. The decline was triggered by a &quot;funding stampede&quot; as short positions dominated the market following a 13-month high in the <strong>US Dollar Index (DXY)<\/strong>. Other base metals, including copper and aluminum, also saw significant losses as higher real rates dampened the outlook for industrial demand.<\/p>\n<h2>Japan&#39;s Economic Blueprint<\/h2>\n<p>The <strong>Japanese Government<\/strong> has released a draft economic blueprint urging the <strong>Bank of Japan (BoJ)<\/strong> to maintain policies that support private demand. While the government advocates for low borrowing costs to stimulate growth, hawkish BoJ board member <strong>Naoki Tamura<\/strong> called for interest rate hikes &quot;once every few months&quot; to reach a neutral rate of <strong>2%<\/strong>. This internal policy tension comes as nearly <strong>90% of economists<\/strong> now expect another rate hike from the BoJ by the end of 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US PCE inflation data looms with headline expectations of 4.1% YoY, fueling bets for a Federal Reserve rate 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