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Breakfast Bites - Tue May 16, 2023

Rise and shine everyone.

A few major events today - Home Depot reports before market open, President Biden and Speak McCarthy are scheduled to discuss the debt ceiling and US Retail Sales numbers will be out at 8:30am ET.

Home Depot just reported a marginal beat on EPS [$3.82 vs $3.80 est] but a miss on revenues [$37.26B vs $38.31B est.]. They also guided down on EPS by -7% to -13% and revenues -2% to -5%.

S&P futures down 0.1% in Tuesday morning trading after US equities finished mostly higher on Monday with upside leadership from a bounce in the banking sector. The US Dollar, Gold and Copper are all down this morning. Oil is slightly higher than yesterday’s open. Rates are also lower, along with Bitcoin, now at $27,042.

Asia and Australia

  • Asian markets ended mixed Tuesday as the region's rangebound trend continued. Mainland China markets were lower. Australia also closed lower alongside South Korea, India also down and Southeast Asia was mixed.

  • China activity data largely missed expectations on y/y basis, indicated slowdown on m/m terms with industrial production contracting 0.5% from March, retail sales rising just 0.5% m/m.

  • May meeting minutes note RBA debated pausing in May, but retained tightening bias given upside risks to inflation

  • Japan's Topix hit its highest level in almost 33 years Tuesday boosted by foreign investors, corporate governance improvements.

  • Australian consumer confidence slides following surprise May rate hike

Europe, Middle East, Africa

  • European equity markets mixed.

  • Eurozone avoids a recession in Q1. Eurostat and reported that Eurozone preliminary GDP Q/Q came out 0.1% vs 0.1% expected, equivalent to 1.3% y/y vs 1.3% expected.

  • German investor morale back in negative territory for the first time since December 2022

  • Signs that easing in the UK labor market is gathering pace with April claimant count jumping 46.7K versus consensus for 15.0K drop

The Americas

  • Yellen reiterates 1-Jun X-date, notes Treasury borrowing costs have risen substantially for securities maturing early June

  • US regulators step up oversight of financial system, probing banks over their interest rate risk and CRE exposure - Fed’s Barr testifies before the House Services Committee today.

  • BofA fund survey shows mood sours in May, with investors flocking to cash on rising recession, credit crunch fears

  • Buffett's Berkshire discloses stake in Capitol One, exits Bank of NY Mellon, US Bancorp, TSMC, RH

  • FTC to challenge Amgen's ~$28B deal to acquire Horizon Therapeutics

  • Wells Fargo agrees to pay $1B to settle class action shareholder lawsuit of misleading investors in 2016

  • SEC Chair Gensler says regulators not weighing ban on short selling


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


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