Investors queued up for US high-yield bond funds as rate cut hopes grow

US high-yield bond funds enjoyed the biggest inflows of the year in May, driven by the allure of higher yields, potential for price appreciation amid anticipated Federal Reserve rate cuts, and diminishing corporate credit risks.

According to LSEG Lipper data, US high-yield bond funds attracted USD 5 billion in inflows in May, the highest since December. From January to May this year, the total inflows reached USD 6.1 billion, marking the highest in three years.

“Combined with the attractive outright yields available, compared to 5 and 10-year averages, we are seeing investor confidence that strong corporate profits, together with an easing Fed, should provide an environment for default expectations to decrease,” said Chris Romanelli, portfolio manager at Loomis Sayles.

He also added that the expectations for Fed rate cuts have helped to fuel demand for floating rate credit which has increasingly been utilized in high yield bond funds.

S&P Global Ratings expects the US trailing 12-month speculative-grade corporate default rate to fall to 4.5% by March 2025, from 4.9% in April 2024.

Last month, the iShares iBoxx USD High Yield Corporate Bond ETF HYG led the pack with approximately USD 1.99 billion in inflows. Meanwhile, the iShares Broad USD High Yield Corporate Bond ETF and SPDR Portfolio High Yield Bond ETF garnered USD 1.09 billion and USD 537 million in net inflows, respectively.

According to the ICE BofA Global high-yield bond index, US high-yield bonds still offer over 310 basis points premium over 10-year US Treasury notes, buoying investor enthusiasm in these riskier junk bonds, amid fading recession fears and improved economic conditions.

Analysts expect that lower interest rates, stemming from potential Fed rate cuts, would benefit high-yield bond issuers by enhancing liquidity and easing the cash flow constraints that have intensified due to the Federal Reserve’s previous rate hikes.

However, the narrowing of yield spreads for high-yield bonds has deterred some investors from placing their money in high-yield bonds.

Mark Durbiano, head of the domestic high-yield group at Federated Hermes, said the biggest challenge for the high-yield bond market moving forward is historically tight credit spreads.

“Because we believe credit spreads are relatively close to all-time tights and reflect a “perfect landing” in the economy and inflation, we are reducing the overall risk in our high-yield portfolios,” he said.

“Although spreads are historically tight, especially in the higher quality portions of the index, a 7-7.5% carry provides a fairly decent cushion for spread widening compared to what we were accustomed to during most of the quantitative easing era,” said Adam Abbas, portfolio manager at Harris Associates.

“This makes the asset class attractive for those seeking absolute value and total returns.”

(Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by Josie Kao)

Gold hits two-week high; payrolls data in focus

Gold prices climbed to a two-week high on Thursday as weaker-than-expected US jobs data fanned hopes of a Federal Reserve interest rate cut later this year with the focus shifting to non-farm payrolls data due on Friday.

Spot gold was up 0.8% at USD 2,372.46 per ounce as of 1757 GMT.

US gold futures settled 0.6% higher at USD 2,390.90.

Data on Wednesday showed US private payrolls increased less than expected in May while data for the prior month was revised lower.

“Yesterday’s weaker ADP jobs number gave the bulls a little bit of confidence that maybe tomorrow’s (payroll) report won’t be stronger than expected, and that’s going to be friendly for the gold and silver markets,” said Jim Wyckoff, senior analyst at Kitco Metals.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion.

“If we were to see a much stronger than expected jobs report, the expectation would be then that the Fed may not be able to lower rates sooner than later” which could add some light pressure to the gold market, said David Meger, director of alternative investments and trading at High Ridge Futures.

The Fed will likely cut its key interest rate in September and once more this year, according to a majority of forecasters in a Reuters poll.

Gold prices are expected to hit another record high this year, despite a dip in physical demand, consultancy Metals Focus said.

Meanwhile, global stocks hit an all-time high and the euro rose after the European Central Bank cut interest rates for the first time in nearly five years, but also signaled that further moves could take a while.

Among other precious metals, spot silver rose 4.3% to USD 31.30 per ounce and platinum was up 1.6% at USD 1,007.70, while palladium rose 0.2% to USD 933.56.

(Reporting by Rahul Paswan in Bengaluru; Editing by Sriraj Kalluvila, Ravi Prakash Kumar, and Matthew Lewis)

Yields edge down before Friday’s US jobs report

Benchmark US 10-year Treasury yields dipped on Thursday as investors waited to see if Friday’s employment report for May would show cooling in the labor market as traders bet on Federal Reserve rate cuts later this year.

Bonds have rallied this week as investors price for the likelihood that the Fed could begin cutting rates as soon as September as the economy softens.

Inflation easing closer to the US central bank’s 2% annual target is key to when the Fed cuts and how many rate reductions are likely this year.

“The next month or two in terms of data is going to be very, very telling,” said Scott McIntyre, senior portfolio manager at HilltopSecurities Asset Management in Austin, Texas.

“We’re at this pivot point where investors are wondering whether the hot first quarter numbers are going to cool in the second quarter,” McIntyre said. “We’re just now getting numbers for May so that hasn’t been determined yet.”

Benchmark 10-year note yields were last down 1 basis point on the day at 4.281%. They got as low as 4.275% on Wednesday, the lowest since April 1.

Two-year note yields dipped 1 basis point to 4.720% and got as low as 4.718%, the lowest since May 16.

The inversion in the two-year, 10-year yield curve narrowed 1 basis point to minus 44 basis points.

Traders said that the absence of fresh Treasury supply had supported the market this week after some soft bond auctions last week.

However, investors have also positioned for softer jobs data on Friday, with the possibility that jobs gains will come in below the median economist forecast of 185,000 jobs.

April’s report showed that jobs growth slowed more than expected, with 175,000 jobs gains, the fewest in six months.

Economists at Goldman Sachs said on Thursday that they expect 160,000 job additions in May.

“When the labor market is tight, job growth tends to slow disproportionately during the spring hiring season and particularly in May – when the seasonal factors expect more hiring than is realistic with fewer workers available,” they said in a report.

Data this week has pointed to more balance in the labor market.

The ADP Employment Report on Wednesday showed that private payrolls increased by 152,000 jobs last month, below economists’ forecasts for 175,000 in jobs gains.

A survey on Tuesday also showed that job openings, a measure of labor demand, were down 296,000 to 8.059 million on the last day of April, the lowest level since February 2021.

Data on Thursday showed that the number of Americans filing new claims for unemployment benefits increased last week. US worker productivity also grew slightly less than previously estimated in the first quarter but exceeded market expectations, and unit labor costs rose by less than first thought.

Wage data in Friday’s jobs report will be closely watched as inflation remains the key focus for Fed policy.

“Average hourly earnings realistically are probably the most important component, I think, because that feeds into inflation, and inflation right now is priority one for the Fed,” McIntyre said.

Next week’s consumer price index (CPI) report for May will then be key to guiding near-term Fed expectations. Fed officials have stressed that they want to see several months of improving inflation before easing policy.

The consumer price inflation report will come on Wednesday, before the US central bank is due to complete a two-day policy meeting at which Fed officials will update their economic and interest rate projections.

(Reporting By Karen Brettell; Editing by Christina Fincher, Will Dunham and David Evans)

India rate decision rounds off wild week

An interest rate decision in India and Chinese trade figures are the main events for investors in Asia on Friday, rounding off a tumultuous week globally that saw an explosion of political volatility in the emerging world, heightened worries over US growth, and world stocks hitting new highs.

Asian markets go into Friday mostly on the front foot – the MSCI Asia ex-Japan index is up nearly 3% this week, the Hang Seng tech index is up almost 5% and, despite the political fireworks, Indian stocks are in the green.

Capital is flowing into emerging markets.

Japanese and Chinese stocks are struggling more, however. Expectations of tighter monetary policy and a stronger yen are capping the Nikkei, while economic gloom continues to weigh heavily on Chinese equities.

The Reserve Bank of India is widely expected to keep its key interest rate on hold at 6.50% on Friday, before cutting just once later in the year, probably in the fourth quarter, according to a Reuters poll.

With near-8% growth and above-trend inflation, there is little urgency for the RBI to begin cutting rates yet. Nor is there much incentive to move before the Fed, especially with the rupee languishing around record lows.

But with the Bank of Canada and European Central Bank lowering rates this week, following the Swiss National Bank, the global ‘higher for longer’ mantra may be losing its oomph.

US rates traders are now fully pricing in 50 basis points of easing from the Fed this year – one quarter-point cut likely coming in September, before the Presidential election, and two by the Dec. 17 to 18 policy meeting.

The 2-year US Treasury yield has now fallen six days in a row. That’s the longest uninterrupted decline going back to late last year, according to Tradeweb data, or back to March 2020, according to Reuters/Refinitiv indicative pricing.

The one G7 central bank going the other way is the Bank of Japan. Governor Kazuo Ueda said the central bank should reduce its huge bond purchases as it moves toward an exit from massive monetary stimulus, reinforcing his resolve to steadily scale back its nearly USD 5-trillion balance sheet.

The remarks keep alive expectations the central bank could embark on a full-fledged tapering of its bond-buying as early as its policy meeting next week.

But having driven yields higher this year, Japanese Government Bond bears have gone into retreat as global yields have fallen – the two-year and 10-year JGB yields have slipped every day this week.

China’s trade data, meanwhile, will be closely watched for signs that activity is picking up after months of disappointing numbers. Exports are seen rebounding strongly, rising 6.0% year-on-year, but import growth is expected to halve to 4.2%.

Here are key developments that could provide more direction to markets on Friday:

– India interest rate decision

– China trade (May)

– Japan household spending (April)

(Reporting by Jamie McGeever; Editing by Josie Kao)

Nvidia overtakes Apple as No. 2 most valuable company

Nvidia’s rallied to record highs on Wednesday, with the artificial intelligence chipmaker’s valuation breaching the USD 3 trillion mark and overtaking Apple to become the world’s second most valuable company.

Nvidia is preparing to split its stock ten-for-one, effective on June 7, a move that could increase its appeal to individual investors.

The surge in Nvidia’s market value above Apple’s marks a shift in Silicon Valley, which the company co-founded by Steve Jobs has dominated since it launched the iPhone in 2007.

Nvidia’s stock rose 5.2% to end the day at USD 1,224.40, valuing the company at USD 3.012 trillion. Apple’s market capitalization was last at USD 3.003 trillion after its stock climbed 0.8%.

Microsoft, based in Redmond, Washington, remained the world’s most valuable company at USD 3.15 trillion after its shares climbed 1.9%.

“Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI,” said Jake Dollarhide, chief executive officer at Longbow Asset Management.

“It may be a foregone conclusion that Nvidia will overtake Microsoft as well. There’s a lot of retail money that’s piling in on what they see as a straight shot up.”

Nvidia’s stock has surged 147% so far in 2024, with demand for its top-of-the-line processors far outstripping supply as Microsoft, Meta Platforms, and Google-owner Alphabet race to build out their AI computing capabilities and dominate the emerging technology.

It has rallied nearly 30% just since May 22, when Nvidia issued its latest stellar revenue forecast.

Nvidia added nearly USD 150 million in market capitalization on Wednesday, more than the entire value of AT&T.

Optimism about AI lifted chip stocks broadly on Wednesday, with the PHLX chip index surging 4.5%. Super Micro Computer, which sells AI optimized servers built with Nvidia chips, climbed 4%.

Nvidia CEO Jensen Huang this week was the subject of wall-to-wall coverage on Taiwanese television and was mobbed by attendees when he visited the Computex tech trade fair in Taipei, where he was born before moving to the United States.

While Nvidia rides a wave of AI enthusiasm on Wall Street, Apple is struggling with weak demand for iPhones and tough competition in China, the world’s biggest smartphone market.

Some investors also view Apple as lagging other technology heavyweights as they rush to build AI features into their products and services.

Analysts’ projections for Nvidia’s future earnings have outpaced its stellar stock gains. Nvidia is trading at 39 times expected earnings, making it less expensive on that basis than a year ago, when it traded at over 70 times expected earnings, LSEG data showed.

(Reporting by Noel Randewich in Oaklnad, Calif.; Additional reporting by Sinead Carew in New York; Editing by Nick Zieminski and Richard Chang)

Unwinding of hugely popular currency trade rocks markets

LONDON – A sharp drop in Mexico’s currency after a landslide election result has shaken foreign exchange markets as far as Hungary and Turkey this week, leaving investors asking whether the unwinding of hugely popular “carry trades” will continue.

A carry trade involves investors borrowing in currencies that have low interest rates, such as the Japanese yen or Swiss franc, and buying higher-yielding ones such as the Mexican peso or, recently, the US dollar. It has boomed in popularity as interest rates have diverged around the world and market volatility has stayed low.

Yet the peso’s dramatic fall against the yen this week – it dropped 4.4% on Monday in its biggest daily decline since the COVID-19 crisis – is a sign that investors have been rapidly backing out of some of their favorite, and most lucrative, trades.

Pockets of volatility remained on Wednesday, with the yen falling sharply against the dollar, leaving investors to consider whether the old approach is still viable.

“The generalized rise in emerging market FX volatility … has prompted de-leveraging in carry around the world,” said Chris Turner, head of global markets at lender ING. “Where do we go from here?”

ELECTION SHOCKS

The news that Claudia Sheinbaum was set to win by a landslide in Mexico’s presidential election caused the peso to tumble, with markets spooked by possible constitutional reforms and impact on the US trade relationship.

India’s rupee also stumbled on Tuesday as it became clear that business-friendly Prime Minister Narendra Modi would lose his majority.

The twin drops caused wild swings across emerging markets, knocking other favored currencies such as Hungary’s forint HUF= and the Turkish lira. Low-yielding “funding currencies” like the yen and peso rallied, while the euro and dollar bounced around in the ripples.

Volatility is a big threat to carry trades. A rise in the currency in which investors borrow, or a fall in the one in which they invest, can wipe out gains from yield differentials.

“My sense is participants have in large part liquidated these trades and moved to flat,” said Neil Jones, a senior FX sales executive at TJM Europe. “The market is likely still holding core long-term carry trades, but certainly far reduced from 48 hours prior.”

Yet some spy an opportunity. “With the peso-yen cross having fallen 6.3% in two days, we ask if the shakeout has largely played out and if this is a time to re-engage,” said Chris Weston, head of research at Pepperstone. “That trade feels aggressive, but let’s see how Japanese traders play the yen moves today.”

MOVING PARTS

Investors will have to gauge a whole host of factors when deciding whether to return to carry trade strategies. ING’s Turner said markets will be keeping a close eye on Sheinbaum’s policies and the path of the US dollar, the main driver of global currencies.

“In Mexico, it seems local authorities are already trying to calm investors over possible fiscal concerns,” he said. “And internationally, we think the scope for slightly lower US rates and a softer dollar can support the risk environment, lower volatility, and limit a further sell-off in the carry trade.”

Also of major concern is the yen’s likely path. Another factor driving the Japanese currency higher this week has been speculation that the Bank of Japan could raise interest rates in July, with officials warning that they are watching moves in the yen closely.

Intervention remains a threat, after Japanese authorities spent USD 62 billion propping up the currency around a month ago. A rally in the yen – which has languished at 34-year lows this year – could spell more problems for the carry trade.

(Reporting by Harry Robertson; Editing by Amanda Cooper and Christina Fincher)

Yields drop as traders bets on softer jobs growth

Benchmark US 10-year Treasury yields fell to a two-month low on Wednesday after a report pointed to weaker-than-expected jobs growth ahead of Friday’s highly anticipated government employment report for May.

Yields have tumbled this week as softening economic data boosts expectations that the Federal Reserve will make two 25 basis point cuts this year.

Now the market is positioned for nonfarm payrolls on Friday to come in below economists’ projections for 185,000 jobs gains.

Traders say that the so-called whisper number, an unofficial forecast, is for employers to add around 120,000 jobs.

Economists’ projections are also widely dispersed and include some expectations around the 110,000 to 130,000 area, said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott in Philadelphia.

This “seems like a more likely landing point after a little bit of softness we’ve had in hiring during the week,” LeBas said.

The ADP Employment Report on Wednesday showed that private payrolls increased by 152,000 jobs last month, below economists’ forecasts for 175,000 in jobs gains.

A survey on Tuesday also showed that job openings, a measure of labor demand, were down 296,000 to 8.059 million on the last day of April, the lowest level since February 2021.

Benchmark 10-year note yields were last down 5 basis points at 4.289% and got as low as 4.287%, the lowest since April 1.

Two-year note yields fell 4 basis points to 4.731% and reached 4.726%, the lowest since May 16.

The inversion in the two-year, 10-year yield curve was little changed on the day at minus 44 basis points.

Yields briefly bounced on Wednesday after the Institute for Supply Management said its non-manufacturing purchasing managers index rose to 53.8 last month from 49.4 in April.

The ISM’s business activity index shot up 10.3 points, the largest rise since March 2021, and reached 61.2, the highest level since November 2022.

The business activity is “really driving that whole index higher,” said Ellis Phifer, managing director of fixed-income research at Raymond James in Memphis, Tennessee.

“It’s just a little bit of a fly in the ointment when we’re looking at data that’s been coming in a little bit softer than expected, especially ahead of the nonfarm payrolls coming up on Friday,” he said.

This week’s bond rally has also been driven by relief over an absence of new bond supply, after some Treasury auctions last week saw soft demand.

“This week has really just been about a lack of supply in the interest rate markets compounding a little bit of negativity on the economy,” said LeBas.

Next week’s consumer price index (CPI) for May will also be key in guiding Fed expectations in the near-term. It will come on Wednesday morning before the Fed is due to complete its two-day policy meeting, when Fed officials will update their economic and interest rate projections.

(Reporting By Karen Brettell, Editing by Franklin Paul, Nick Zieminski, and Chizu Nomiyama)

Gold rises, yields retreat after softer US jobs data

Gold prices gained over 1% on Wednesday as bond yields fell after weaker-than-expected US private payrolls data bolstered expectations that the Federal Reserve would cut interest rates later this year.

Spot gold was up 1.2% at USD 2,355.49 per ounce, as of 1830 GMT, after a 1% fall in the previous session. US gold futures settled 1.2% higher at USD 2,375.50.

Benchmark US Treasury yields fell to their lowest since April 5 after data showed US private payrolls increased less than expected in May.

A weak labor number adds fuel to the fire that the Fed may have to cut rates before year-end, boosting gold’s appeal, said Bob Haberkorn, senior market strategist at RJO Futures. Lower interest rates decrease the opportunity cost of holding non-yielding gold.

According to the CME FedWatch Tool, traders now see about a 71% chance of a Fed rate cut by September, versus below 50% last week.

The non-farm payrolls report scheduled for Friday is highly awaited by traders as it will have the potential to influence gold prices, analysts said.

“If we see the US Payrolls drop significantly on Friday, the market will be a lot more comfortable in thinking that the Federal Reserve could start cutting (interest rates) in sometime in late summer September,” said Bart Melek, head of commodity strategies at TD Securities.

On the physical front, net purchases of gold by global central banks rose to 33 metric tons in April from a revised net buying of 3 tons in March, the World Gold Council (WGC) said, signaling the sector’s continuing strong appetite for the metal despite high prices.

Among other precious metals, spot silver rose 1.7% to USD 29.99 per ounce, platinum was up 0.6% at USD 993.45 per ounce and palladium gained 1.7% to USD 931.18 per ounce.

(Reporting by Rahul Paswan in Bengaluru; Editing by Ravi Prakash Kumar and Vijay Kishore)

S&P 500, Nasdaq close at record highs as data supports Fed easing

NEW YORK – The S&P 500 and Nasdaq indexes hit record closing highs on Wednesday, powered mainly by technology stocks as markets digested economic data that could support a much-expected start to the Federal Reserve’s policy easing cycle.

Technology stocks led advances among the 11 S&P 500 sectors, followed by equities in communications and industrials sectors. Consumer staples stocks were the biggest losers.

The May private payrolls report on Wednesday was the latest data to suggest an easing in labor market tightness that could propel the Fed to begin cutting rates this year. A report on Tuesday showed job openings fell in April to the fewest in more than three years.

“We’re seeing the economic data starting to ease up a little bit and the repercussions for that is that you’re seeing the pressure on rates come off the boil a little bit mixed in with the potential for weaker economic data, which is a pretty good recipe for the bond market,” said Jack Janasiewicz, a portfolio manager at Natixis Investment Managers Solutions in Boston.

Traders now see a nearly 69% chance of a September rate reduction, according to the CME’s FedWatch tool. Expectations had hovered around 50% last week.

US 10-year Treasury yields fell to a two-month low on Wednesday after a report pointed to weaker-than-expected job growth ahead of Friday’s highly anticipated government employment report for May.

The Dow Jones Industrial Average rose 96.04 points, or 0.25%, to 38,807.33, the S&P 500 gained 62.69 points, or 1.18%, to 5,354.03 and the Nasdaq Composite gained 330.86 points, or 1.96%, to 17,187.91.

The S&P 500’s previous record-high close was 5,321.41 on May 21, and the Nasdaq’s previous record close was 17,019.88 on May 28.

Chip stocks leaped 4.5%, buoyed by gains to Nvidia and Taiwan Semiconductor Manufacturing.

Nvidia’s market valuation hit the USD 3 trillion mark for the first time as the chipmaker overtook Apple to become the world’s second-most valuable company.

Hewlett Packard Enterprise rose 10.7% after forecasting third-quarter revenue above Street expectations, helped by upbeat demand for its AI servers.

Dollar Tree slipped 4.9% after a disappointing quarterly profit forecast. The budget retailer said it would explore options that include a potential sale or spinoff of Family Dollar.

Intel gained 2.5% after buyout firm Apollo Global Management agreed to purchase a 49% equity interest for USD 11 billion in a joint venture related to the chipmaker’s Ireland manufacturing unit.

CrowdStrike Holdings jumped 11.9% after forecasting second-quarter revenue above estimates when markets closed on Tuesday.

Advancing issues outnumbered decliners by a 2.39-to-1 ratio on the NYSE. On the Nasdaq, 2,759 stocks rose and 1,492 fell as advancing issues outnumbered decliners by a 1.85-to-1 ratio.

The S&P 500 posted 24 new 52-week highs and 9 new lows while the Nasdaq Composite recorded 62 new highs and 116 new lows.

The total volume of shares traded across US exchanges was about 10.8 billion, compared with the 12.6 billion average over the last 20 trading days.

(Reporting by Chibuike Oguh in New York; Additional reporting by Lisa Mattackal, Saqib Ahmed, and Johann M Cherian in Bengaluru. Editing by Pooja Desai and Matthew Lewis)

Markets roar back, China trade too?

So much for ‘bad news is bad news’.

After struggling for days to take advantage of tumbling US bond yields, pushed lower by increasingly gloomy signals on the US growth outlook, Wall Street snapped back on Wednesday, surging over 1% and pushing the S&P 500 and Nasdaq to new highs.

Nvidia is a USD 3 trillion company, US futures are pointing to another rally at the open on Thursday and volatility is sinking. Bad news – and there was another dose of it on Wednesday in the form of soft private sector job growth – no longer seems to be bad news.

That’s the backdrop to the Asian open on Thursday, and it is worth highlighting because the drip feed of soft US economic data recently had begun to cast an increasingly dark shadow over markets and sour investor sentiment.

Throw in this week’s political and market volatility from the general elections in India, Mexico and South Africa, and the strength of Wednesday’s rally is perhaps doubly surprising.

That said, a much stronger-than-expected reading on Wednesday of US service sector activity in May can be seen as ‘good news’. But if equity investors seized on that, why did bond yields fall across the curve?

To be sure, the global interest rate picture is looking more risk-friendly. The Bank of Canada cut rates on Wednesday and the European Central Bank is expected to do so on Thursday.

The 2-year US Treasury yield has fallen more than 25 basis points in the last week, and is now down five days in a row – its longest stretch of down days this year. The 10-year yield is down 35 basis points in five days.

The Asian economy on Thursday sees the release of unemployment data from the Philippines, trade and housing market figures data from Australia, the latest reading of inflation from Taiwan, and Chinese trade data for May.

China’s trade data will be closely watched for signs that activity is picking up after months of disappointing numbers. Exports are seen rebounding strongly, rising 6.0% year-on-year, but import growth is expected to halve to 4.2%.

The combination of a powerful rally on Wall Street, falling volatility, lower bond yields and a fairly steady dollar should be a positive one for investors in Asia on Thursday.

Indian stocks jumped more than 3% on Wednesday, recovering half of Tuesday’s slump. The NSE Nifty 50 index and S&P BSE Sensex are now higher than they were on Friday, before the volatility sparked by the election exit polls and final results.

Japanese equities, meanwhile, look set to bounce back from two down days in row after the yen on Wednesday registered its biggest fall against the dollar in over a month.

Here are key developments that could provide more direction to markets on Thursday:

– China trade (May)

– Australia trade (April)

– Taiwan inflation (May)

(Reporting by Jamie McGeever; Editing by Josie Kao)

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