Markets rally following a strong lead from the overnight US session, US yield higher, USD strengthens, Fed speak reiterates recent higher CPI only temporary; Korea adjusts MSB offerings.
- Early equities trade higher tracking an overnight rebound in the US markets. No major economic data left little fresh catalyst, so markets tracked US session.
- USD regained favor after yesterday’s weakness, though any gains were subdued without fresh incentive
- Leak of Fed Chair Powell comments for testimony later today, did not indicate any new wording on outlook and inflation
- BTC lower as China continues to crack down on mining and trading.
- Hong Kong medical names stronger on report that Govt would start centralized purchasing
- Japan shipping names higher after Mitsui OSK raised its guidance after the close yesterday
- Phase 1 trade deal between US and China, may be hitting a snag, as China imports the smallest amount of US goods in May since October.
- HK Lam defends impending shutting down of Apple Daily, denying any accusations it was a move against democracy
- BOK in it’s financial stability report notes, South Korea is facing larger mid- to long-term financial risks than before pandemic with real estate in particular "significantly overpriced" - Looking ahead: US Fed Chair Powell testimony to Congress.
-ASX 200 opened 0.0%
- (NZ) New Zealand Q2 Westpac Consumer Confidence: 107.1 v 105.2 prior (highest since Q4 2019)
- (NZ) New Zealand Housing Min Woods launches NZ$1.0B fund for new housing infrastructure, invitation for expressions of interest released on June 30
- SOL.AU To merge with Milton via scheme of arrangement; Offer implies A$6/shr
- (AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$271.8B v A$266.8B prior (record high)
- (AU) Australia sells A$150M v A$150M indicated in 2.50% Sept 2030 indexed bonds, avg yield -0.5512% v -0.6452% prior, bid to cover 2.51x v 3.61x prior
- (AU) Australia total weekly payroll jobs change for May 22nd to Jun 5th: -0.9% v +0.3% prior; Wages -1.6% v +0.6% prior.
-Nikkei 225 opened +1.8%
- (JP) Japan Industry Body: May Crude Steel Output 8.42Mt, +7.7% m/m, +42.2% y/y
- 9984.JP Hyundai Motor acquires 80% stake in US robotics firm Boston Dynamics for $880M - 7201.JP CEO: Won't provide dividend forecasts due to uncertainties on chip supplies; Apr and May financial performance outperforming expectations - shareholder meeting
- 9104.JP Raises FY21/22 Net guidance to ¥210B; Maintains Op ¥28B; Raises Rev ¥1.08T (Prior net ¥90B; Rev ¥1.06T) (yesterday after the close)
- (JP) Japan MoF sells ¥2.5T v ¥2.5T indicated in 0.005% (prior 0.0%) 5-year JGBs; avg yield -0.0970% v -0.0970% prior, bid to cover 3.79x v 3.30x prior.
-Kospi opened +0.2% - (KR) South Korea May PPI Y/Y: 6.4% v 5.6% prior (7th consecutive rise)
- (KR) Bank of Korea (BOK) to reduce 2-year MSB issuance to KRW3.5T from 5.5T, to begin issuance of 3-year MSB at ~KRW1.3T per month - (KR) South Korea Party Official: Extra budget could total KRW33-35T
- (KR) Bank of Korea (BOK) financial stability report: South Korea faces larger mid to long term financial risks; Property prices overpriced relative to economy
- (KR) North Korea Kim Yo Jong (leader Kim's sister): US Has wrong expectation of North Korea; US may interpret the situation to seek a comfort for itself - party meeting.
-Hang Seng opened +0.3%; Shanghai Composite opened +0.3%
- (CN) China PBOC sets Yuan reference rate: 6.4613 v 6.4546 prior
- (HK) Hong Kong Chief Exec Lam: Authorities action against Apple Daily newspaper is not a targeted attack on press freedom
- (CN) Follow Up: China CBIRC draft rules on connected transactions in banks and insurers, banks and insurers cannot cover up transactions in related parties or split up transactions into smaller ones to avoid the need for regulatory approvals
- (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v Net inject CNY10B prior
- (CN) China May purchases of US goods totaled $10B (lowest since Oct 2020) - press.
Other - OLAM.SG Reports Q1 (S$) Net 155.6M v 179.1M y/y; Rev 8.8B v 7.7B y/y; Prices 481M rights issue at S$1.25/shr.
- (US) Fed Chair Powell: inflation has increased notably in recent months but expected to drop back towards Fed's goals - prepared congressional testimony
- (US) Fed's Kaplan (non-voter; hawkish): recent SEP is the result of Fed policymakers reacting to a dramatically improved economic outlook
- (US) Said that President Biden is considering a 1-month extension on eviction moratorium – Press
- AMZN New Antitrust bill could require company from favoring own services, potentially sell logistics business – press
- (US) SEMI May North America-based Manufacturers of Semi Equipment Billings: $3.59B, +4.7% m/m and +53.1% y/y (update).
- (UK) UK has formally started talks to join 11 nation trans Pacific trading bloc
- (UK) Ministers to relax travel restrictions starting in Aug, citizens who have had both doses of the Covid-19 vaccine can start more quarantine free travel - UK press.
***Levels as of 01:15ET/06:15BST***
- Hang Seng -0.1%; Shanghai Composite +0.8%; Kospi +0.8%; Nikkei225 +3.0%; ASX 200 +1.7%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.1%, Dax 0.0%; FTSE100 -0.0% - EUR 1.1921-1.1901; JPY 110.47-110.22; AUD 0.7546-0.7512; NZD 0.6995-0.6971
- Commodity Futures: Gold +0.2% at $1,786/oz; Crude Oil -0.0% at $73.11/brl; Copper +0.5% at $4.19/lb.
- Source TradeTheNews.com