US Session Highlights
(US) Goldman Economist Chain Store Sales w/e Jun 10th w/w: +1.1%; Y/Y: +0.5%
(US) MAY PPI FINAL DEMAND M/M: 0.0% V 0.0%E; Y/Y: 2.4% V 2.3%E; Ex Food and Energy M/M: 0.3% v 0.1%e; Y/Y: 2.1% v 1.9%e
(CA) Bank of Canada (BoC) Gov Poloz: Reiterates low interest rates have been used to offset shocks
With all eyes clearly on the outcome of the FOMC meeting tomorrow, equity markets gained strength again, as Techs recovered some lost ground from the past two days. Renewed interest in stocks took the S&P, the Dow, and the Russell 2000 to close at new all-time highs. A rate hike seems almost fully discounted; however, the market will be looking for signals from the meeting statement and Yellen’s speech post interest rate announcement. All S&P sectors made positive gains for the day; Materials and Energy were the out-performers, gaining 1.2% and 0.7% respectively, Technology gained 0.6%
US markets on close: Dow +0.4%, S&P500 +0.5%, Nasdaq +0.7%
Best Sector in S&P500: Materials
Worst Sector in S&P500: Telecom
Biggest gainers: FTR +8.5%; SWN +5.1%; CHK +.47%
Biggest losers: MYL -2.9%; FOXA -2.4%; YHOO -2.1%
At the close: VIX 10.4 (-1.0pts); Treasuries: 2-yr 1.36% (flat), 10-yr 2.21% (flat), 30-yr 2.86% (-1bps)
US movers afterhours
HRB Reports Q4 $3.76 v $3.51e, Rev $2.33B v $2.32Be; adj EBITDA $904M v $812M y/y; +10.6% afterhours
ALXN Names Paul J. Clancy CFO; effective July 10th (from BIIB); +3.7% afterhours
SQNS File to sell ADS shares through Canaccord; -5.9% afterhours
Politics
(US) White House spokesperson: Pres Trump has the right but no intention to fire Special Councel Mueller – press
Key economic data
(CN) CHINA MAY FIXED ASSETS EX RURAL YTD Y/Y: 8.6% (4-month low) V 8.8%E
(CN) CHINA MAY INDUSTRIAL PRODUCTION Y/Y: 6.5% V 6.4%E; YTD Y/Y: 6.7% V 6.6%E
(CN) CHINA MAY RETAIL SALES Y/Y: 10.7% V 10.7%E; YTD Y/Y: 10.3% V 10.3%E
(AU) AUSTRALIA JUNE WESTPAC CONSUMER CONFIDENCE INDEX: 96.2 V 98.0 PRIOR, M/M: -1.8% V -1.1% PRIOR (3rd straight decline)
(NZ) NEW ZEALAND Q1 CURRENT ACCOUNT BALANCE (NZ$): 0.24B V +1.00BE
Speakers and Press
China
(CN) China National Bureau of Stats (NBS): China economy remains stable in May with improvement
(CN) China May Power Consumption +5.1% y/y – Chinese Press
Japan
(JP) Japan reportedly seeking talks on North Korea with China and South Korea – Japan press
Australia
(AU) JPMorgan expects RBA interest rates to bottom at 1.00%, down from 1.50% current – press
Korea
(KR) South Korea foreign bond inflows rose by a net of KRW2.1T in May (5th straight rise) – FSS
Asian Equity Indices/Futures (00:30ET)
Nikkei flat, Hang Seng -0.3%, Shanghai Composite -0.6%, ASX200 +0.9%, Kospi -0.3%
Equity Futures: S&P500 -0.1%; Nasdaq -0.2%, Dax -0.1%, FTSE100 flat
FX ranges/Commodities/Fixed Income (00:30ET)
EUR 1.1205-1.1220; JPY 109.95-110.15; AUD 0.7530-0.7545; NZD 0.7200-0.7225
Aug Gold +0.2% at 1,272/oz; July Crude Oil -1.0% at $45.99/brl; July Copper flat at $2.60/lb
(US) Weekly API Oil Inventories: Crude: +2.8M v -4.6M prior (first build in 4 weeks)
(CN) PBOC SETS YUAN MID POINT AT 6.7939 V 6.7954 PRIOR
(CN) PBOC to inject combined CNY90B v CNY50B prior in 7-day, 14-day and 28-day reverse repos
(CN) China Finance Ministry sells 2-yr bonds at 3.620%; bid-to-cover 2.64x; Sells 5-yr bonds at 3.565%, bid-to-cover 3.76x
Asia equities notable movers
Australia
Capitol Health (CAJ) +20%; Sells NSW assets to I-MED radiology network for A$81.5M cash; Guides FY17 Radiology EBITDA at top of guided range ~A$21.5M
Melbourne IT (MLB) +2.2%; Affirms FY17 underlying EPS A$0.17-0.19; EBITDA A$37.5-41.5M – investor presentation
Vocus (VOC) +0.8%; Affirms FY17 underlying net ~A$160-165M; EBITDA ~A$365-375M; Rev ~A$1.8B – investor slides
Telstrea (TLS) flat; Confirms to cut 1,400 jobs as part of cost cutting efforts
Japan
Yamato Holdings (9064) +1.8%; said to plan 15% raise on parcel delivery fees – Nikkei
Honda (7267) +0.9%; Reportedly plans to add 2.2K jobs to speed Chinese SUV output – Nikkei
Toshiba (6502) -3.3%; Said to delay the submission of FY16 annual securities report by at least 1-month – Japan press
Hong Kong
NetDragon Websoft Holdings (777) +4.8%; Reports Q1 core segment profit CNY168.8M, +78.9% y/y
Skyworth Digital (751) +0.7%; Reports FY16 net HKD$1.31B, -39.6% y/y
China Sandi Holdings (910) -1.8%; Profit warning: Guides FY17 Net loss v profit HK$160.
