Trading Tuesday

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

June 06, 2023

Market Data

Local

Global

*Data as of 6pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary

Asia and Australia

  • Japan’s real wage growth falls for the 13th straight month by -3% and real household spending falls by -4.4% YoY. As long as real wages are not increasing and consumption is not increasing, it’s unlikely we see a policy change to tightening.

  • China continues to ease - Chinese authorities have asked its biggest banks to cut deposit rates for second time in 12M, marking significant ramp-up in efforts to boost economy.

  • China is likely to cut RRR, interest rates in H2 while monetary policy will continue to focus on structural policy tools for now

  • Japan crypto exchanges hit with tougher money laundering curbs

Europe, Middle East, Africa

  • ECB April Consumer Expectations Survey suggested inflation over next 12 months seen at 4.1% vs 5.0% prior.

  • Eurozone retail sales increased by 2.6% y/y in April below consensus forecast of 3.0% and below the previous reading of 3.3%.

  • German factory orders down for second month, adding to industry weakness

  • UK consumer spending slows in May amid high food prices

  • Construction activity a bright spot in UK economy with latest PMI data seeing activity increasing at fastest pace in three months at 51.6 versus consensus 51.1 and prior 51.5.

The Americas

  • Apple’s VR headset wasn’t too well received because of the price. At $3,499, the price tag is being seen as excessive. The launch date is next year. Apple also unveiled their iOS 7 and new 15-inch MacBook Air, the new Mac OS Sonoma, a new Journal app.

  • Property delinquencies are rising. Rark Hotel disclosed that, starting in June, the company ceased making payments towards the $725M non-recourse CMBS loan scheduled to mature in Nov-23, secured by two San Francisco hotels - the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc 55 San Francisco.

The Week Ahead:

  • Monday: US May ISM Services index comes in at 50.3; est 51.8.

  • Tuesday: IBD/TIPP economic optimism, API crude oil stock change

  • Wednesday: US trade deficit, EIA stocks change, consumer credit change

  • Thursday: Initial jobless claims, wholesale inventories

  • Friday: WASDE report

Investment Tip of The Day

Practice patience and avoid market timing: Trying to time the market is notoriously difficult and can lead to suboptimal investment results. Practice patience, focus on your long-term goals, and avoid making frequent changes to your investment strategy based on short-term market movements.

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.