top of page

Breakfast Bites - Fri Jun 23, 2023

Rise and shine everyone. Happy Friday!

US Futures are trading lower across the board. The Yield Curve inverts further now to -1.02%. Copper and oil are lower while the US Dollar, Gold and Bitcoin are higher.

Japan’s Index pulled back -2.6% this morning after headline inflation drops but core inflation comes in hotter than expected.

We have PMI numbers coming in today from across Europe and in the US, and three Fed Speakers - Bullard, Bostic and Mester.

Asia and Australia

  • Asian equities ended sharply lower Friday on concerns central banks are set to extend their tightening cycle deeper into H2.

  • Japan saw a steep loss Friday that led to its first weekly loss in almost three months. Australia also down sharply for the second day in a row.

  • Japan’s Core CPI rose 3.2% y/y in May, compared to consensus 3.1% and follows 3.4% in the previous month. While slight moderation in core inflation was confirmed after surprising strength in April, ex-fresh food & energy prices accelerated further to 4.3% from 4.1% vs consensus 4.2%.

  • Japan’s flash manufacturing PMI was 49.8 in June, down from 50.6 in the previous month, marking a return to contraction since April.

  • Jack Ma plans to be more deeply involved at Alibaba with Eddie Wu as CEO

  • RBA terminal rate forecasts nudging higher with economists and markets projecting 2-3 more increases by end-2023.

  • Philippine central bank governor says bank has done enough to tame inflation, signals 2023 pause

Europe, Middle East, Africa

  • European equity markets lower. Oil/Gas, Banks and Basic Resources the worst performers, while Health Care, Telecom and Food/Beverage outperform.

  • Euro and bond yields fall sharply after weak PMIs from France and Germany. Single currency breaks $1.0900 and extends to $1.0850 region, its lowest level since 15-Jun. German Bund more than 10 bps lower at ~2.37%.

  • UK retail sales surprised to the upside in May, with a 0.3% increase versus consensus for a 0.2% drop and prior 0.5% gain.

  • Germany locks in more US Natural Gas in a move to shun Russia. Germany will purchase 2.25mn tonnes annually for 20 years. The amount is about 5% of Germany’s demand but, the companies did not disclose the price at which the gas would be sold.

  • The Turkish Lira took a dive of -5.3% yesterday after the Central Bank rate hike and continues to decline in today’s trading by -2.5%. The Turkish currency is headed for a 16th week of declines, its longest losing streak since 1999.

  • UK housebuilders extend losses to a second consecutive session, weighed by BoE's bigger-than-expected 50bps hike on Thursday.

The Americas

  • Demand for longer-dated Treasuries remains healthy as investors bet central banks will succeed in bringing down inflation

  • Fed's Barkin 'unconvinced' inflation in decline but will not prejduge July meeting

  • lululemon athletica unable to find buyer for Mirror

  • 3M reaches tentative $10.3B deal over US 'forever chemicals' claims

  • Ford preparing for new round of layoffs for US salaried workers

  • Regulators flag stricter capital rules to banks with over $100B in assets; borrowing at the Fed’s BTFP window increased again this week.


(news taken from Reuters, FT, Bloomberg; Calendar from Benzinga Pro)


bottom of page