Wealth Wednessday

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

June 28, 2023

Market Data

Local

Global

*Data as of 6pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary

Asia and Australia

  • Latest Bloomberg poll shows PBOC seen lowering the 1-year MLF rate 5 bp and seven-day reverse repo rate 10 bp in Q4.

  • Australian monthly inflation fell to 5.6% y/y in May from +6.8% in April, undershooting consensus for a 6.1% read. Inflation fell to lowest since April 2022, driven largely by drop in fuel prices.

  • Profits at industrial firms in China declined 18.8% y/y in Jan.- May, slower than 20.6% drop in first four months of 2023.Profits for May alone fell 12.6% y/y,versus a 18.2% y/y drop for April.

  • Japanese policymakers and business leaders appear far more sanguine about recent yen weakness than they were last year, a sign they see declines as temporary. There is some speculation of an intervention if the Yen falls too low but, at this point it’s still speculation.

  • Samsung beefs up chip foundry business as it looks to challenge TSMC.

Europe, Middle East, Africa

  • Hawkish members of the ECB Governing Council are looking towards a faster pace of balance sheet reduction to ensure it meets its inflation aim, even as it closes in on terminal rate.

  • Eurozone money supply data shows impact ECB tightening having on credit conditions. M3 money supply growth up 1.4% y/y in May versus consensus 1.5% and prior 1.9%.

  • Italian inflation cools to 14-month low. June Italian CPI cools to +6.7% y/y vs consensus of +6.7% and prior month reading of +8.0%. On the month, CPI in at +0.1% in June vs consensus +0.1% and prior +0.3%.

  • UBS to cut more than half of Credit Suisse workforce.

  • Meloni government picks ECB's Panetta as Bank of Italy Governor.

The Americas

  • Biden administration is considering new restrictions on exports of AI chips to China. Commerce Department could act as soon as early July to stop shipments of chips made by Nvidia and other chip makers to China.

  • Boeing says China has resumed ~90% of commercial operation of 737 MAX fleet as of the end of June.

  • Canadian CPI rose 3.4% y/y in May, roughly matching consensus and down from 4.4% in April. Marks lowest annual pace of headline inflation since June 2021.

  • Money-market funds exiting RRP and buying bills.

The Week Ahead:

U.S Economic Events

  • Tuesday

    • US June Consumer conference board comes in at 109.7; est: 104

    • US May new home sales come in at 763k; est: 675k

    • US May durable goods orders come in at +1.7%; est: -1.0%.

  • Wednesday

    • 8:30 am Advanced U.S. trade balance in goods

    • 9:30 am Fed Chair Powell speaks

  • Thursday

    • 2:30 am Fed Chair Powell speaks

    • 8:30 am Initial jobless claims

    • 10:00 am Pending home sales

  • Friday

    • 8:30 am PCE index

    • 8:30 am Core PCE index

    • 8:30 am PCE (year-over-year)

    • 8:30 am Core PCE (year-over-year)

    • 9:45 am Chicago Business Barometer

    • 10:00 am Consumer sentiment (final)

Investment Tip of The Day

Review and update your financial goals and milestones. As your circumstances change, it's important to adjust your goals to reflect new priorities and aspirations. Regularly revisit and refine your goals to stay on track.

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.