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Breakfast Bites - Thu Jun 8, 2023

Rise and shine everyone

Markets are not cheery this morning. With both Australia and Canada doing surprise hike, there’s a gloom over the US Markets, figuratively and literally.

US Equity Futures are flat to lower. Gold, Oil and Bond Yields are trading higher. Bitcoin is trying to stage a slight recovery and US Dollar Index has pulled back marginally.

Asia and Australia

  • Asian equities struggled for direction Thursday and ended mixed. Greater China opened lower but pared losses to close slightly up, Japan posted its second consecutive down day.

  • China rate-cut expectations grow as signs of weak recovery mount

  • Reserve Bank of India’s MPC voted unanimously to keep repo rate unchanged at 6.5% for second successive meeting and kept its "withdrawal of accommodation" message.

  • Bank of Korea warns on easing monetary policy too early and putting pressure on the Won.

  • Japanese companies with a March reporting season are projecting dividends totaling JPY15.2T this year, which would be the third straight record.

  • Japan Q1 GDP upgrade bigger than expected, driven by private inventories. Q1 GDP growth was revised up to 2.7% q/q annualized from first preliminary estimate of 1.6%.

  • Taiwan exports sink again, marking ninth consecutive months of weakness and outlook remains bleak

Europe, Middle East, Africa

  • European equity markets firmer.

  • EU governments sell €27B debt, busiest week since 2020

  • Eurozone's Q1 GDP -0.1% qtr/qtr (expected 0.0%; last -0.1%); 1.0% yr/yr (expected 1.2%; last 1.8%).

  • Eurozone Q1 Employment Change 0.6% qtr/qtr, as expected (last 0.3%); 1.6% yr/yr (expected 1.7%; last 1.5%)

  • UK labor market shows signs of cooling. Starting salaries slipped to a 25-month low, although salary levels for new hires still running at a relatively sharp pace.

The Americas

  • Apple cuts Vision Pro sales target to 150K units vs previously discussed 1M units

  • Cardinal Health provides updated outlook at Investor Day; approves new share repurchase plan

  • US Treasury’s $1tn borrowing drive set to put banks under strain. Analysts fear scale of new issuance following debt ceiling fight will push up yields and suck cash out of deposits.

  • Signet Jewelers beats top and bottom line estimates but guides down on Q2 and FY2024 estimates. - Guide downs will be a common theme playing out particularly in retail


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

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