Breakfast Bites - Mon Jun 26, 2023

Rise and shine everyone and Happy Monday!

It’s a slow day for economic data and earnings in the US.

US equity futures are trading lower this morning despite opening green overnight. Gold is trading higher while Oil and Bitcoin remain muted. Longer term rates are down with the Yield Curve inversion still at 102bps.

Asia and Australia

• Asian equities closed mostly lower Monday. Mainland China markets down the most as they mark-to-market from last week's falls in Hong Kong, reaching five-month lows.

• Japan: Vice finance ministe rKanda told reporters Monday that yen depreciation vs dollar is "rapid and one-sided" while warning that "no options are ruled out" when asked about the possibility of FX intervention. The JPY gained some strength on that news.

• PBOC looks to support onshore yuan after last week's offshore weakening, setting the reference rate higher.

• GIC, HSBC, Blackstone bosses met China's sovereign fund as markets lose allure

Europe, Middle East, Africa

• European equity indexes lower Monday. STOXX 600 posted longest daily losing streak since mid-March last week

• Germany's Ifo institute said its Business Climate index fell to 88.4 in June vs consensus 90.7 and prior revised 91.5 from 91.7. Weaker-than-expected Chinese reopening, looming US recession and ongoing monetary policy tightening seen to be weighing on German sentiment.

• Greece's conservatives win election majority to secure second term

• German Bundesbank may need recapitalisation to cover bond-buying losses

• Russia instability brings geopolitical uncertainty back into focus

The Americas

• Market getting Fed's message as swaps traders have pushed out the expected cuts until next year.

• IBM nearing a deal to buy software company Apptio for ~$5B as part of push deeper into automation technology

• Goldman Sachs not likely to push CEO David Solomon out anytime soon; Goldman Sachs cutting ~125 managing directors globally amid deals slowdown

• Junk-rated companies still borrowing, but offering more protections for lenders via collateral, shorter maturities

Calendar

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