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Breakfast Bites - Tue May 23, 2023

Rise and shine everyone.

Market sentiment still seems to centered around the Debt Ceiling talks, where no tangible progress has been made.

Lowe’s reported this morning - The company beats by $0.22, beats on revs; lowers FY24 EPS below consensus, revs in-line.

S&P futures down 0.1% in Tuesday morning trading after US equities finished mostly higher on Monday. S&P closed just below the key 4,200 level. Dollar index up 0.2% with strength vs euro and sterling. Gold off 0.8%. Bitcoin futures up 1.8%. WTI crude little changed after gaining 0.5% on Monday.

Asia and Australia

  • Asian equities ended mixed Tuesday. Japan's benchmarks dropped sharply on news of chip-technology export restrictions, ending an eight-day positive run.

  • Japan manufacturing PMI returns to growth, services expands at fastest pace on record

  • RBNZ expected to raise official cash rate (OCR) by 25 bp to 5.50% at its 24-May meeting.

  • Singapore's April inflation unexpectedly rose to 5.7% y/y, slightly higher than March's 11-month low of 5.5%,

  • Samsung and SK Hynix May Benefit From China's Micron Ban

Europe, Middle East, Africa

  • European equity markets mostly lower.

  • Comments from ECB officials suggest that once the Governing Council decides that rates have reached their peak, they are likely to remain high for some time.

  • Eurozone flash Composite PMI declined by more than expected in May, to 53.3 vs 53.5 expected and 54.1 prior. Reason is the disappointing performance in manufacturing, which posted the 11th straight contraction at 44.6 vs 46 expected, the lowest since May 2020

  • BoE paper says QE portfolio may be cut in half to £400B

  • Latest UK PMI sees activity slow from April's one year high

The Americas

  • Biden and McCarthy met to discuss debt ceiling, talks described as "productive”; Yellen reiterates highly likely US will run out of cash as early as 1-Jun

  • Fed survey shows deterioration of consumer financial health from elevated inflation

  • JP Morgan raises NII guidance on First Republic acquisition

  • Activist investor pushes Yelp to explore strategic alternatives


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


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