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Breakfast Bites - Mon Jul 03, 2023

Rise and shine everyone and Happy Monday.

We have a shorter trading day today with a holiday for the US Markets tomorrow.

After an epic close to the first half, US equity futures are trading flat this morning along side Bitcoin. Oil is stronger, Gold marginally higher and the Yield Curve remains inverted at 108bps.

We have a quiet week for earnings but, a solid week for economic data. Today we get the ISM Manufacturing data and the highlight for the week is the Jobs Data on Friday.

Asia and Australia

  • Asian markets broadly higher. Decent gains for Nikkei, Hang Seng and greater China.

  • China Caixin manufacturing PMI in expansion for second straight month, while growth slows; Caixin manufacturing PMI was 50.5 in June, versus consensus 50 and 50.9 in May, indicating a marginal expansion in factory activity.

  • BoJ’s Tankan Metrics: Headline business conditions index for large manufacturers was 5 in June, above consensus 3 and follows 1 in March. Broadly confirms the first improvement in seven quarters.

  • RBA decision will be a close call with economists split on whether central bank will hike by 25 bp or hold.

  • PBoC announcement places Pan Gongsheng in line to be next bank governor

  • China is on track to become world's top LNG importer in 2023.

Europe, Middle East, Africa

  • European equity markets higher - basic resources, energy and banks outperform; healthcare, travel/leisure lag

  • OPEC+ producers ****hold their monthly meeting as Saudi Arabia's voluntary production cut takes effect from this month. Saudis extend voluntary production cut to August

  • Eurozone final manufacturing PMI revised lower after Italian and Spanish updates; revised lower to 43.4 versus 47.7 consensus and prior 43.2.

  • EU gas prices rally in June despite consumption cuts, but shortages unlikely this winter

  • The UK labor market is still showing signs of tightness, which might make the BoE's inflation fight more difficult.

The Americas

  • Tesla announces record 466K deliveries in Q2, beating 445K estimates

  • Apple forced to make major cuts to Vision Pro headset production plans on manufacturing problems

  • Goldman Sachs in talks to move its Apple financial products business to American Express

  • 10Y Treasury pushing back toward 4% despite best bond investor sentiment in a decade

  • PE firms warn new US antitrust rules could delay deals


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


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