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Markets Update: Corporate Earnings: Nikkei Takes the Lead Once More as China Banks Lag Behind; NZ Inflation Expectations Drop and Turkish Election Results Foreshadow Potential TRY Market Volatility
Today's important market events:
[GBP] GDP (MoM - Mar) - 08:00 CEST
lower than expected at -0.3, and previous 0.0%.
[GBP] Manufacturing Production (MoM - Mar) - 08:00 CEST
higher than expected at 0.7%, and previous 0.1%.
The scheduled meeting between US President Biden and congressional leaders has been postponed to next week. Despite the delay, US House Speaker McCarthy has assured that the debt talks have not fallen apart.
Meanwhile, in the Asia Pacific region, stocks saw a mostly downward trend due to a busy schedule of earnings releases and the subdued performance in the US. On the other hand, European equity futures suggest a slightly higher opening, with the Euro Stoxx 50 up by 0.4% following a 0.1% increase in the cash market yesterday. The DXY held onto its 102 status, while support for the EUR/USD remained at 1.09. However, the NZD was lagging behind following softer inflation expectations in New Zealand.
Australia and New Zealand:
- The ASX 200 opened 0.2% lower at 7,240.
- The foreign minister of China, Qin Gang, is expected to visit Australia in July according to the Hong Kong press.
- New Zealand's finance minister, Grant Robertson, has stated that this is not the time for inflationary tax cuts.
- New Zealand's manufacturing PMI for April was 49.1, up from 48.1 in the previous month.
- Net migration in New Zealand for March was +12.1K, up from +11.7K in the previous month.
- New Zealand's Q2 Inflation Expectation Survey showed a 2.8% 2-year outlook, which is within the Reserve Bank of New Zealand's 1-3% inflation band range for the first time since 2021.
China and Hong Kong:
- The Hang Seng opened 0.5% higher at 19,850.
- The Shanghai Composite opened 0.2% lower at 3,304.
China/Hong Kong
- (HK) Hang Seng opens +0.5% at 19,850
- (CN) Shanghai Composite opens -0.2% at 3,304
- (CN) China PBOC Open Market Operation (OMO): Sells CNY2.0B v CNY2.0B prior in 7-day reverse repo; Net drains CNY1.0B v drains CNY31.0B prior
- (CN) China PBOC sets Yuan reference rate: 6.9481 v 6.9101 prior [weakest CNY fix since Mar 10th]
- (CN) China inflation expected to rebound in H2, cites analysts [follows softer than expected inflation data in Apr] - Shanghai Securities News
- (US) US official: Expect US-China engagements in coming months after Sullivan and Wang Yi had eight hours of meetings in Austria over last two days
- (CN) White House National Security Advisor Sullivan met with China’s top diplomat Wang Yi; Discussed stabilizing China-US relations - Chinese media (update)
Japan
- (JP) Nikkei 225 opens +0.2% at 29,199
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 50bps; Opens window to buy unlimited amount of 10-year JGBs at 0.50% [as expected]
- (JP) Japan Apr M2 Money Supply Y/Y: 2.5% v 2.6% prior [lowest since late 2019]; M3 Money Supply Y/Y: 2.1% v 2.1% prior
- (JP) Japan Apr Eco Watchers Current Survey: 55.7 v 54.1e; Outlook Survey: 54.6 v 55.1e (yesterday afternoon)
South Korea
- (KR) Kospi opens -0.1% at 2,487
- (KR) Former BOK official Cho Dong-Chul [previously seen as dovish] said the Bank of Korea should leave rates unchanged – US financial press
- (KR) South Korea Vice Fin Min: South Korea sees better than expected current account data for April
- (KR) South Korea Mar M2 Money Supply M/M: -0.2% v 0.3% prior
Other Asia
- (MY) Malaysia Q1 Current Account (MYR): 4.3B v 21.5Be
- (MY) Malaysia Q1 GDP Q/Q: 0.9% v 1.9%e; Y/Y: % v 5.1%e
North America
- (US) APR PPI FINAL DEMAND M/M: 0.2% V 0.3%E; Y/Y: 2.3% V 2.5%E (lowest annual pace since Jan 2021)
- (US) INITIAL JOBLESS CLAIMS: 264K V 245KE (highest since Oct 2021); CONTINUING CLAIMS: 1.813M V 1.820ME
- (US) Fed’s Kashkari (voter): Inflation has eased but still well above target; Wage growth has softened somewhat but jobs market remains strong
- (US) FDIC announces plan to replenish bank insurance fund where banks with over $50B in assets will pay over 95% of the fees
Europe
- (UK) BANK OF ENGLAND (BOE) RAISES BANK RATE BY 25BPS TO 4.50%; AS EXPECTED; Sees further rate hikes needed if signs that high inflation will be longer lasting (in line with prior decision)
- (EU) ECB chief Lagarde: Fight against inflation is not over; reiterates view that inflation has been too high - comments ahead of G7 meeting in Japan
Looking ahead, significant events include the release of UK GDP, US Export/Import Prices, Uni. of Michigan (Prelim.), as well as appearances from Treasury Secretary Yellen, Fed's Bullard & Dalv, BoE's Pill, and ECB's de Guindos.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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