Trading Tuesday

Ranora Daily - Your daily source for reliable market analysis and news.

June 20, 2023

Market Data

Local

Global

*Data as of 6pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary

Asia and Australia

  • China lowered Loan Prime Rates in an effort to boost the economy: LPRs were lowered with 1y down 10 bp to 3.55% as expected, while 5y also down 10 bp to 4.20%.. China's delayed stimulus adds to worries over slowing economy

  • Australia higher following RBA minutes but the AUD was under pressure all day; RBA aiming for 4.5% unemployment rate to return inflation to target

  • Taiwan's May export orders fell 17.6% y/y to $45.7B, lower than April's 18.1% and consensus forecast of a 20% decrease

  • The 1-month Hong Kong interbank rate (Hibor) rose to 5.1%, its highest level in 14 years

  • Alibaba co-founder Joe Tsai to take over as chairman as Daniel Zhang steps aside to focus on cloud business

  • Warren Buffett increases stake to 8.5% in Japanese Trading Companies.

Europe, Middle East, Africa

  • Bank of Spain raises 2023 growth forecast to 2.3%, warns of risks

  • Two-year UK borrowing costs have edged out new highs after clearing the 5% handle for the first time in 15 years on Monday on BoE rate hike expectations.

  • UK inflation data due Wednesday, ahead of BoE decision on Thursday. Markets expecting headline to come in 8.4% y/y vs 8.7% prior, and core at 6.8% y/y vs 6.8% prior.

  • German PPI for May came in at the lowest in 2 years. Producer prices of industrial products were up 1.0% compared with May 2022, the Federal Statistical Office reported. That is the smallest increase since January 2021's rise of 0.9%.

  • Germany and Intel agree on chip plant subsidies worth €10B

  • Alsonside the BoE, Swiss National Bank (SNB) and Norges Bank also expected to hike rates by 0.25% to 1.75% and 3.50% respectively.

The Americas

  • US-China relations seemingly on a more stable footing following Secretary of State Blinken's visit to Beijing

  • Chair Powell will provide testimony and may face tough questions from Congress this week about possible further tightening

  • Pain trade/FOMO supported by nearly $40B of inflows to US equity funds in last three weeks, the best stretch since last October.

Investment Tip of The Day

Building and maintaining an emergency fund is crucial for financial security. Aim to save three to six months' worth of living expenses in a liquid and easily accessible account to cover unexpected financial setbacks.

Meme of the Day

Disclaimer: The information contained in this report is intended for informational purposes only and should not be considered as investment advice. The information is obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed