General Trend:

  • Overall markets are trading lower, tracking late US session, absorbing Fed rate hike and increased expectations for future policy moves
  • USD lower in the session, after several days of strength; bond yields also tracking slightly lower
  • Trade tensions remain front and center as talk circulates that Trump will meet with advisers tomorrow in order to decided on China tariffs
  • Australia employment changed registered lower than expected; though unemployment rate fell 0.1%; A$ weakened 0.2% on the data
  • China data came in softer than expected, though NBS affirmed 2018 GDP of 6.5%. Also noted Cannot rule out possibility that China’s firms rush to export in anticipation of trade war with US
  • KRW opened for trade much lower against the dollar
  • BOJ reduced purchases of 3-5 year JGBs

Headlines/Economic Data

Japan

  • Nikkei 225 opened -0.5%
  • Subaru, 7270.JP May delay release report on improper testing – Nikkei
  • (JP) Japan Investors Net Buying of Foreign Bonds: -¥488.5B v -¥1.66T prior week; Foreign Net Buying of Japan Stocks: -¥108.5B v -¥527.8B prior week
  • (JP) Japan PM Abe considering summit with N. Korea Kim Aug/Sept – Japan press
  • (JP) BoJ announcement related to daily bond buying operation: cuts 3-5-yr buying by ¥30B
- advertisement -

Korea

  • Kospi opened -0.7%
  • (KR) South Korea analysts trade between the Koreas could be profitable but will require large amounts of investment – Korean press
  • (KR) President Trump: Would love to have troops out of South Korea but its not an option right now; will talk to South Korea about them paying the US for troop presence
  • (KR) North Korea Kim said to have promised to destroy Tongchang-Ri ICBM site – Korean press
  • (KR) South Korea Vice Fin Min Ko: Do not expect large capital outflows due to rate gap with Fed; expects limited short term market impact from Fed
  • (KR) Bank of Korea (BOK) Gov Lee: Today’s Fed move will have limited impact on markets
  • (KR) Sec of State Pompeo: suspending war games with South Korea requires productive talks with the North; wants to see major disarmament from North Korea in two years
  • (KR) US Sec State Pompeo: South Korea President Moon said that South Korea will cooperate to implement agreement; Moon helped set foundation for Trump/Kim meeting

China/Hong Kong

  • Hang Seng opened -0.1%, Shanghai Composite -0.4%
  • (CN) Reportedly Pres Trump to meet with trade advisors tomorrow to decide whether to go ahead with China tariffs – press
  • (CN) China PBOC Adviser: Cut to RRR is still necessary; Expect 2018 M2 growth to be higher y/y – China press
  • (HK) Hong Kong Monetary Authority (HKMA) raises base rate 25bps to 2.25% (in line with Fed)
  • (HK) HKMA Chief Chan: HK$ rates will follow US rate normalization; HK banks will eventually raise prime rates
  • (CN) China PBoC Open Market Operation (OMO): Injects combined CNY150B in 7-day, 14-day and 28-day reverse repos v CNY130B prior: Net injects CNY70B v injects CNY70B prior;Leaves rates unchanged
  • (CN) China PBoC sets yuan reference rate at 6.3962 v 6.4156 prior
  • (CN) China PBOC Gov Yi Gang: China’s economy is shifting to high quality development era; to use RRR and relending tools to support SMEs – speaking at forum
  • (CN) CHINA MAY SURVEYED JOBLESS RATE: 4.8% V 4.9% PRIOR
  • (CN) CHINA MAY INDUSTRIAL PRODUCTION Y/Y: 6.8% V 7.0%E; YTD Y/Y: % V 6.9%E
  • (CN) China May Foreign Direct Investment (FDI) YTD y/y: 1.3% v 0.1% prior
  • (CN) CHINA MAY RETAIL SALES Y/Y: 8.5% V 9.6%E; YTD Y/Y: 9.5% V 9.7%E
  • (CN) China NBS Spokesperson: Confident of reaching 6.5% GDP in 2018. economy has continued with steady growth in H2
  • (CN) China Banking and Insurance Regulatory Commission (CBIRC) Chairman Shuqing: Overall default ratio is very low compared to other countries; to appropriately deal with bond defaults
  • (CN) China MOFCOM: China will push for a change in its exports pursuing size and speed to quality and efficiency
  • (CN) China Securities Regulatory Commission (CSRC): Overseas investors have an obvious tendency to hold yuan assets, explains yuan strength against backdrop of weakness in some other currencies
  • ZTE, 763.HK White House said to be working to prevent Congress from re-imposing penalties – US press

Australia/New Zealand

  • ASX 200 opened 0.0%
  • (AU) AUSTRALIA MAY EMPLOYMENT CHANGE: +12.0K V 19.0KE; UNEMPLOYMENT RATE: 5.4% V 5.5%E
  • FCG.NZ NZ Commerce Commission believes method for calculating estimate of risk in the cost of financing milk processing operations is too low; creating a higher calculated milk price than competitors – NZ press
  • Atlas Iron, [-19%], AGO.AU Gives update on North West Infrastructure: Got notice from WA Govt saying NWI does not have priority right to develop Stanley Point berths 3 &4 in Port Hedland
  • (AU) Australia Jun Consumer Inflation Expectation: 4.2% v 3.7% prior
  • (NZ) New Zealand sells NZ$200M v NZ$200M indicated in 2025 bonds; avg yield 2.6042%; bid to cover 2.13x

North America

  • (US) FOMC RAISES TARGET RATE RANGE BY 25BPS TO 1.75-2.00% (AS EXPECTED)
  • (US) FOMC UPDATED ECONOMIC FORECAST FOR JUNE MEETING (V. MAR): now forecasts 4 rate hikes in 2018; Raises Median forecast for end-2018 rate 2.375% (prior 2.125%)
  • FOXA Comcast makes all-cash $35/shr proposal to acquire Twenty-First Century Fox after spinoff of “New Fox”, values 21CF at $65B
  • (US) FCC Chairman Pai said to be planning to vote on limits of TV station ownership at July 12th meeting; not clear on how he will propose changing it

Europe

  • (UK) May RICS House Price Balance: -3% v -5%e

Levels as of 01:30ET

  • Hang Seng -0.9%; Shanghai Composite -0.3%; Kospi -1.3%; Nikkei225 -0.7%; ASX 200 -0.2%
  • Equity Futures: S&P500 +0.0%; Nasdaq100 -0.1%, Dax -0.1%; FTSE100 -0.2%
  • EUR 1.1788-1.1810; JPY 110.09-110.38; AUD 0.7553-0.7582;NZD 0.7016-0.7036
  • Aug Gold +0.2% at $1,303/oz; Jul Crude Oil -0.0% at $66.62/brl; Jul Copper -0.5% at $3.24/lb
Previous articleEUR/GBP Daily Outlook
Next articleECB Rate Decision In The Headlines
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.