General trend
- Energy companies trade generally higher amid rise in oil prices and OPEC+ decision.
- S&P ASX 200 extends gain and outperforms on rise in Energy and Resources indices.
- Nikkei has moved higher after the lower open [Financials track rise in US names; Automakers also rise; Fast Retailing to report May sales after the market close].
- Shanghai Composite ended the morning session lower after opening flat.
- Hang Seng remained modestly lower during the morning session [Financial and Tech cos. trade generally lower].
- Lira (TRY) drops on comments from Turkey’s President.
- RBA Dep Gov Debelle is due to appear before Senate Economics Legislation Committee on Wed (Jun 2nd at 9 GMT).
- Companies due to report during the NY morning include Advance Auto Parts, Donaldson Company, Lands’ End.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened +0.3%.
- (AU) AUSTRALIA Q1 GDP Q/Q: 1.8% V 1.5%E; Y/Y: 1.1% V 0.6%E.
- (NZ) Reserve Bank of New Zealand (RBNZ) Head of Financial Markets Rayner: Based on our actions taken over the past year alone, our balance sheet will remain large for a long time.
- WOR.AU Remains on track to deliver improved H2, backlog increased to A$14.1B v A$13.5B in H1 FY21 – Investor Day.
- (AU) Reserve Bank of Australia (RBA) Official Jones: Encouraged by improved household and business balance sheets which could support a stronger post pandemic economic recovery.
- (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: strong dairy sector is helping to buffer the economy against the loss of tourism revenue – NZ press.
Japan
- Nikkei 225 opened -0.3%.
- (JP) Bank of Japan (BOJ) Adachi: Must be ready for a long battle to reach 2.0% CPI; Premature policy normalization could be costly.
- 8698.JP TradeStation Crypto unit unveils new low-price plan with reductions in taker fees of up to 50% and additional maker fees.
Korea
- Kospi opened +0.1%.
- (KR) SOUTH KOREA MAY CPI M/M: 0.1% V 0.1%E; Y/Y: 2.6% V 2.6%E (FASTEST SINCE APR 2012); CPI Core Y/Y: 1.5% v 1.3%e (Fastest since Nov 2018).
- (KR) South Korea sells 2-year Monetary Stabilization bonds (MSB): Avg yield 1.030% v 0.920% prior.
- (KR) Bank of Korea (BOK): Closely monitoring inflation trend; BOK Gov Lee to speak on Inflation and trends on June 24th.
China/Hong Kong
- Hang Seng opened +0.2%; Shanghai Composite opened 0.0%.
- (CN) China Vice Premier Liu He held talks with US Treasury Sec Yellen, both expressed willingness to maintain communications – Xinhua.
- (CN) Australia said to be considering actions against China for Wine tariffs with the WTO – Press.
- (CN) China PBOC sets Yuan reference rate: 6.3773 v 6.3572 prior.
- (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 CNY0B prior.
Other
- JBSS3.BR Follow Up: Has restarted several Pork and Poultry plants in US, Majority of plants to be operational Wednesday (Jun 2nd).
North America
- HPE Reports Q2 $0.46 v $0.42e, Rev $6.70B v $6.60Be.
- ZM Reports Q1 $1.32 v $0.97e, Rev $956.2M v $905Me.
- AAPL SCMP notes that despite trade tensions between US and China, Apple continues to add suppliers in China (higher than any other country, 15 of the newly named 52); Taiwan and US suppliers tied for second (7 each).
Europe
- (EU) EU has finalized agreement that cracks down on corporate tax avoidance, requiring multinationals to report profits and tax – FT.
- (UK) Japan Econ Min Nishimura: Started process for UK to join TPP.
Levels as of 01:15ET
- Hang Seng -0.6%; Shanghai Composite -0.6%; Kospi +0.1%; Nikkei225 +0.5%; ASX 200 +1.0%.
- Equity Futures: S&P500 +0.0%; Nasdaq100 +0.0%, Dax +0.1%; FTSE100 +0.1%.
- EUR 1.2227-1.2212; JPY 109.72-109.42 ;AUD 0.7773-0.7745; NZD 0.7272-0.7244.
- Commodity Futures: Gold -0.3% at $1,898/oz; Crude Oil +0.3% at $67.92/brl; Copper -0.3% at $4.64/lb.
