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Breakfast Bites - Mon Apr 03, 2023

Rise and shine everyone.


Happy Monday.


The big news this morning is yesterday’s 1.6 million barrels per day oil production cut from OPEC. WTI Crude gapped up on the open to $81/bbl from $75/bbl on Friday. Prices are still holding $80.


Goldman Sachs raises its Brent forecast to $95/bbl in December of 2023 from $90.

Gold and the USD Index made a slight pullback but, Gold seems to be recovering, while Bitcoin is holding at $28,200. Long bonds are slightly weaker this morning.


US Futures are flat after the major rally on Friday.


The major economic release for the day is the ISM Manufacturing PMI at 10am ET.


Asia and Australia

  • Asian equities finished mixed Monday. Australia and Japan took the lead from Wall Street's positive end to Friday to advance. Greater China higher with Hang Seng flat post a rally into the close and mainland stocks higher. South Korea and India with modest losses.

  • China’s chip-related stocks rallied amid optimism they will benefit from Beijing's self-reliance push after Chinese authorities launched a probe into Micron (MU).

  • China: March Caixin manufacturing PMI 50.0 vs consensus 51.4 and 51.6 in prior month

Europe, Middle East, Africa

  • European markets mixed. Energy main outperformer after surprise >1M bpd cut by OPEC+. Banks also higher but Technology lower.

  • European Central Bank Executive Board member Fabio Panetta said company profit margins might be having a bigger impact on inflation than is generally acknowledged,

  • Saudi Arabia will implement a 500K bpd cut, while Russia said it would extend its 500K bpd production cut until year end. RBC analysts estimated an actual reduction of around 700K bpd despite the headline figure of 1.6M bpd given producers persistently undershooting quotas

The Americas

  • Tesla reported Q1 deliveries of 422.9K, up 4% from the prior Q and up 36% y/y. The print was just ahead of the 421.5K consensus though some takeaways noted it lagged buyside expectations. Tesla produced 440.8K vehicles in Q1, representing a 45% y/y increase. Takeaways highlighted the production-deliveries spread, which was ~17K in Q1 and 64K cumulatively over the past four quarters

  • Endeavor Group close to deal to acquire World Wrestling Entertainment. They are discussing a new publicly traded company with Endeavor owning 51% of the new group in a deal giving WWE an enterprise value of $9.3B


Calendar





(news taken from Reuters, FT, Bloomberg; Calendar from Trading Economics)

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