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Rise and shine everyone
US Equity Futures are trading lower this morning after a strong bullish turnaround yesterday. Gold, Copper, Oil and Bitcoin are all trading lower. The Yield Curve inverts further from yesterday to -0.99%.
Fed’s stress test on banks is released today. Chair Powell and other central bank heads speak on a panel later today at Sintra conference, but nothing incremental expected on US monetary policy.
General Mills reports Q4 EPS $1.12 vs FactSet $1.07; Revenue $5.03B vs FactSet $5.18B; Increases quarterly dividend by 9.3% to $0.59 from $0.54. Shares are trading lower in the pre-market as an initial reaction.
Asia and Australia
Asian equities mostly higher Wednesday. Japan closed higher with both Topix and Nikkei up by 2%. Australia rallied too. Hang Seng logged some small gains, mainland China mostly lower. South Korean stocks underperformed.
Latest Bloomberg poll shows PBOC seen lowering the 1-year MLF rate 5 bp and seven-day reverse repo rate 10 bp in Q4.
Australian monthly inflation fell to 5.6% y/y in May from +6.8% in April, undershooting consensus for a 6.1% read. Inflation fell to lowest since April 2022, driven largely by drop in fuel prices.
Profits at industrial firms in China declined 18.8% y/y in Jan.- May, slower than 20.6% drop in first four months of 2023.Profits for May alone fell 12.6% y/y,versus a 18.2% y/y drop for April.
Japanese policymakers and business leaders appear far more sanguine about recent yen weakness than they were last year, a sign they see declines as temporary. There is some speculation of an intervention if the Yen falls too low but, at this point it’s still speculation.
Samsung beefs up chip foundry business as it looks to challenge TSMC
Europe, Middle East, Africa
European equity markets firmer.
Hawkish members of the ECB Governing Council are looking towards a faster pace of balance sheet reduction to ensure it meets its inflation aim, even as it closes in on terminal rate.
Eurozone money supply data shows impact ECB tightening having on credit conditions. M3 money supply growth up 1.4% y/y in May versus consensus 1.5% and prior 1.9%.
Italian inflation cools to 14-month low. June Italian CPI cools to +6.7% y/y vs consensus of +6.7% and prior month reading of +8.0%. On the month, CPI in at +0.1% in June vs consensus +0.1% and prior +0.3%.
UBS to cut more than half of Credit Suisse workforce
Meloni government picks ECB's Panetta as Bank of Italy Governor
The Americas
Biden administration is considering new restrictions on exports of AI chips to China. Commerce Department could act as soon as early July to stop shipments of chips made by Nvidia and other chip makers to China
Boeing says China has resumed ~90% of commercial operation of 737 MAX fleet as of the end of June
Canadian CPI rose 3.4% y/y in May, roughly matching consensus and down from 4.4% in April. Marks lowest annual pace of headline inflation since June 2021.
Money-market funds exiting RRP and buying bills
Calendars
(news taken from Reuters, FT, Bloomberg; Calendar from Benzinga Pro)
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