US Session Highlights
(US) MAY ADP EMPLOYMENT CHANGE: +253K V +180KE; April revises marginally lower
(US) INITIAL JOBLESS CLAIMS: 248K V 238KE; CONTINUING CLAIMS: 1.92M V 1.92ME
(US) Fed’s Powell (moderate, voter): Appropriate to gradually raise rates; job creation has been on the upside
(US) MAY FINAL MARKIT MANUFACTURING PMI: 52.7 V 52.5E (lowest since Sept)
(US) MAY ISM MANUFACTURING: 54.9 V 54.8E; PRICES PAID: 60.5 V 67.0E
(US) APR CONSTRUCTION SPENDING M/M: -1.4% V 0.5%E
US markets on close: Dow +0.7%, S&P500 +0.8%, Nasdaq +0.8%
Best Sector in S&P500: Financials
Worst Sector in S&P500: Technology
Biggest gainers: SIG +9.0%; GT +7.2%; PDCO +6.7%
Biggest losers: HPE -6.9%; ADI -4.1%; EXR -2.2%
At the close: VIX 9.9 (-0.5pts); Treasuries: 2-yr 1.30% (flat), 10-yr 2.22% (+2bps), 30-yr 2.87% (+1bps)
US movers afterhours
LULU Reports Q1 $0.32 v $0.28e, R$520.3M v $513Me; Guides Q2 $0.33-0.35 v $0.41e, R$565-570M v $563Me; +16.1% afterhours
AVGO Reports Q2 $3.69 v $3.36e, R$4.20B v $4.11Be; Guides Q3 Rev $4.45B +/- $75M v $4.23Be, gross margin 63% +/- 1%; +4.2% afterhours
VMW Reports Q1 $0.99 v $0.96e, R$1.74B v $1.70Be; -2.0% afterhours
BOOT Reports Q4 $0.12 v $0.18e, R$163.0M v $165Me; -15.4% afterhours
RH Reports Q1 $0.05 v $0.04e, R$562M v $556Me; Guides Q2 $0.38-0.43 v $0.66e, R$595-610M v $574Me; -23.4% afterhours
Politics
(US) White House requests that US Supreme Court rules to restore the travel ban – press
(KR) According to the latest Gallup poll, Korea Pres Moon’s approval rating stands at 84% – press
Key economic data
(KR) SOUTH KOREA Q1 FINAL GDP Q/Q: 1.1% V 0.9%E; Y/Y: 2.9% V 2.7%E
(AU) AUSTRALIA APR HIA NEW HOME SALES M/M: +0.8% V -1.1% PRIOR
(ID) INDONESIA MAY CPI M/M: 0.4% V 0.4%E; Y/Y: 4.3% V 4.3%E; CPI CORE Y/Y: 3.2% V 3.3%E (highest annual reading since March 2016)
Asia Session Notable Observations, Speakers and Press
China
(CN) China’s economy will not see a ‘double dip’ – Chinese Press
(CN) China Central Leading Group on Financial and Economic Affairs exec: China high leverage ratio is a source of financial risk
Japan
(JP) Japan Center for Economic Research (JCER): Japan Apr GDP estimated at +0.04% m/m – Nikkei
(JP) Japan Chief Cabinet Sec Suga: Economy virtuous cycle moved markets on Nikkei Index mark
(JP) Japan Fin Min Aso: No comment on Debt-to-GDP goal in Japan’s economic plan – press
Korea
(KR) Fitch: South Korea banks’ profile improves as challenges ease
(KR) Bank of Korea Official: South Korea recovery seen improving going forward as consumer sentiment is rebounding quickly
Asian Equity Indices/Futures (01:00ET)
Nikkei +1.9%, Hang Seng +0.4%, Shanghai Composite -0.3%, ASX200 +0.8%, Kospi +1.0%
Equity Futures: S&P500 +0.2%; Nasdaq +0.3%, Dax +0.4%, FTSE100 +0.2%
FX ranges/Commodities/Fixed Income (01:00ET)
EUR 1.1210-1.1225; JPY 110.30-110.65; AUD 0.7370-0.7395; NZD 0.7060-0.7075
June Gold -0.5% at 1,260/oz; July Crude Oil -0.8% at $48.01/brl; July Copper -0.4% at $2.58/lb
(CN) PBOC to inject combined CNY50B v CNY100B prior
(CN) PBOC SETS YUAN MID POINT AT 6.8070 V 6.8090 PRIOR; 3rd straight firmer Yuan fix
(CN) China Finance Ministry auctions 3-month bills at 3.3839%
(AU) Australia MoF (AOFM) sells A$600M in 2.00% 2021 bonds; avg yield 1.8786%; bid-to-cover 4.63x
Asia equities notable movers
Australia
Virgin (VAH) +1.2%; Receives Australia’s ACCC approval of alliance with HNA
PMP Ltd (PMP) -4.6%; Cuts FY17 EBITDA guidance
Japan
Toshiba (6502) +4.0%; Western Digital said to plan new offer for chip unit; offer could be presented next week
Toyota Tsusho (8015) +3.5%; Fuel cell partnership
Toyota (7203) +1.2%; May US sales
Honda (7267) +1.9%; May US sales
Nintento (7974) +0.9%; To start paid online service for Switch
Hong Kong
Kwoon Chung Bus Holdings (306) +7.4%; Guides FY116/17
Grand Ming Group Holdings (1271) +3.5%; Reports FY16/17
Shandong Weigao Group Medical Polyme (1066) +2.3%; Connected transaction acquisition of ~HK$213M for properties
