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Breakfast Bites - Mon May 22, 2023

Rise and shine everyone.

Happy Monday!

The big news for today and quite possibly for this week will be ongoing debt ceiling negotiation talks.

US Futures are trading slightly lower, as is the US Dollar and Oil. Gold is trying to recover and Bitcoin remains below $27,000. US Treasuries firmer across the curve coming on the heels of last week's yield backup.

Asia and Australia

  • Asian equities ended mostly higher Monday. Japan's Nikkei closed above 31K after opening lower. Greater China higher, led by bargain hunters in Hong Kong.

  • China’s LPRs were unchanged for the ninth month in a row, with 1y at 3.65% and 5y at 4.30%, matching expectations. (LPR is the Loan Prime Rate)

  • Speaking after G7 summit, President Biden said he expects relations with China to improve "very shortly”

  • India court finds no proof of stock price manipulation at Adani companies

  • South Korea exports fall again in first 20 days of May amid ongoing chip slump

  • Japan core machinery orders fell 3.9% m/m in March against consensus for a 0.5% increase and February's 4.5% drop.

Europe, Middle East, Africa

  • European equity market mixed.

  • UK bond bears hunker down before big week for economic data. UK Inflation data expected on Wednesday.

  • Italy will not lose investment-grade status. Moody's currently assesses Italy at Baa1, just one notch above junk, with a negative outlook

  • Eurozone’s economic health may hinge on excess savings, wage gains and capex, suggests analysts at Berenberg

  • Greece election sees PM Kyriakos Mitsotakis' conservative party wins vote but falls short of majority

The Americas

  • President Biden and Speaker McCarthy set to meet or talks on averting US default as time runs short and key differences remain. Biden hints at 14th Amendment authority in weekend remarks

  • Nvidia highlights supercomputer progress in a possible challenge for leaders Intel and AMD

  • Minneapolis Fed's Kashkari says he is open to the idea of pausing rate hikes in June.

  • 3 Fed Speakers on the roster for today - Barkin, Bostic and Daly.

  • Morgan Stanley's Wilson warns recent rally not the start of a new bull market

  • Meta issued a $1.3B GDPR fine by Irish authorities.


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


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