Trading Tuesday

Market Data

Local

Global

*Data as of 6pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary

Asia and Australia

• China banks' new loans issuance for May missed market expectations.

• PBOC Tuesday lowered 7D reverse repo rate 10 bps to 1.9% in move to aid economic recovery. This certainly gave the Chinese and Hong Kong markets a boost.

• India's May inflation rate fell to 4.25% y/y from 4.7% in April, lowest level in two years and vindicating RBI's decision to hold rates steady last week.

• China's Nio cuts prices, ends free battery swapping as sales slide

Europe, Middle East, Africa

• German ZEW economic sentiment survey improved in June to -8.5 versus consensus -13.1 and prior -10.7.

• UK labor market data surprised on the upside. May claimant count dropped 13.6K versus consensus for 21.4K gain. Number of people employed hit record high in latest quarter due to increases in both employees and self-employed workers.

• The unexpected tightening in today's UK labor market data has accelerated BoE rate hike bets. Terminal rate pricing now up to high of 5.7% by February 2024 versus ~5.5% prior to the data.

• Goldman Sachs noted that Investors have been cutting allocation to EU equities for weeks, in contrast with flows to EU bonds. Reasons reportedly weak sentiment, banking stress and China's softer patch following initial strong recovery from lockdown.

The Americas

• BofA June Global Fund Manager Survey says pain trade for risk assets still higher

• Hedge funds slash bearish bets and boost equity exposure ahead of US CPI, Fed rate decision

• NYC office occupancy above 50% for first time since pandemic

• Medtronic likely to spin off its patient-monitoring and respiratory-intervention operations as bidders lose interest

• Goldman Sachs and Morgan Stanley see investment banking revenues increasing in coming quarters

The Week Ahead:

• Tuesday: May CPI inflation data

• Wednesday: Price Producer Index (PPI); MBA mortgage applications; US Fed FOMC meeting

• Thursday: US initial weekly jobless claims; Retail sales data; Philadelphia Business outlook

• Friday: OPEX expirations; New York Fed services business activity; University of Michigan sentiment and inflation expectations

Investment Tip of The Day

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.