Rise and shine everyone. Happy Monday!
It’s a quiet day today with no major economic indicators or earnings. We have plenty of Fed speakers though this week - 4 today!
This week is a big week for retail earnings and we also get retail sales data. On Friday, we have a discussion between Fed Chair Powell and former Fed Chair Bernanke. That should be fun!
US equities are slightly higher this morning after a red close on Friday. Gold, Copper and Oil are all trading higher as well, as is Bitcoin. Bitcoin still remains below $28,000 though.
Asia and Australia
Asian equities tilting higher Monday. Japan set to close on another multi-month high as Topix nears highpoint last seen in 1990. Australia rose into the close as lithium prices soared, miners rallied. Mainland China markets lagging Hong Kong post PBOC's modest liquidity operation this morning.
PBOC added CNY125B in 1Y MLF funds against CNY100B maturing, resulting in a net CNY25B liquidity injection - something to watch as liquidity injected in overseas markets also buoy US markets.
China activity data on 16-May expected to reveal underlying economic weakness and potentially renew calls for more policy easing
Japan PM Kishida called for closer policy coordination with BOJ as he maintained that faster wage growth is his administration's top priority
Japan megabanks set to forecast hefty profits, avoid bond losses
India's wholesale price index fell for first time in nearly three years in April
Europe, Middle East, Africa
European equity markets higher.
Eurozone industrial production data underwhelms, with a 1.4% y/y fall in March versus consensus for 0.9% gain and prior 2.0% increase.
UK: Chancellor Hunt plans fast access to deposits in case of bank failure - this is the first we’re hearing about action against potential bank failures in the UK. Not good!
Germany's wholesale prices were down by 0.5% from a year earlier in April 2023, marking the first month of decline since December 2020.
Swedish inflation cools more than expected in April
The Americas
Bloomberg survey shows both institutional and retail investors are considering buying Gold if the US hits the debt ceiling.
Biden, McCarthy and other congressional leaders plan to meet Tuesday to discuss budget negotiations to avert default
Small cap stocks down 7% since early March as R2K underperformance offers another signal investors bracing for economic weakness; Apple is now bigger than the Russell2000.
Yellen says regulators will likely be open to more regional bank M&A given current stresses and earnings risks
Corporate earnings recession may be longest in seven years
Newcrest backs ~$18B takeover offer from Newmont
Calendars
(news taken from Reuters, FT, Bloomberg; Calendar from Trading Economics)
