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Breakfast Bites - Wed May 17, 2023

Rise and shine everyone

The big news today is Target and TJX reporting before the open and Cisco after the close. We also have Tencent reporting in China.

Yesterday’s retail sales number came in positive in a surprising turn, driven by general merchandise purchase. They still came in below estimates, however. We will see what Target has to say about it this morning.

Debt Ceiling worries still loom over the market and there wasn’t much progress made yesterday. Mayhem and I will have a Twitter Spaces on Thursday at 12pm ET. Please join in with your questions. A recording will be available later.

S&P futures up 0.2% in Wednesday morning trading after US equities finished lower on Tuesday with the downturn accelerating into the close. The Dollar Index is firmer, Gold and Copper are trying to recover slightly, WTI Oil remains flat and Treasuries are mixed with the curve inverting a little more. Bitcoin declined falling below $27,000.

Asia and Australia

  • Asian markets mixed overnight with the Nikkei closing above the 30K for first time since September 2021, while Hong Kong slumped more than 2%.

  • Japan GDP grew at an annualized 1.6% pace in Q1, double consensus for a 0.8% lift and rebounding from Q4's downwardly revised 0.1% contraction.

  • China new home prices in 70 cities rose 0.4% in April m/m, fourth consecutive month of improvement, but slowdown from March's 0.5% growth

  • Australian Q1 wage price index rose 0.8% q/q, unchanged from prior quarter and below consensus for a 0.9% increase.

  • The Chinese Yuan slid past seven per dollar level in offshore market for first time in five months as China's economic data suggested post-Covid recovery is losing momentum and prompted calls for more policy easing.

Europe, Middle East, Africa

  • European equity markets mixed.

  • EU Q1 sees robust EPS beats driven by cyclicals, while real estate lags

  • June TLTRO maturity a headwind for the Euro and EZ equities with investors concerned about tightening liquidity conditions. Analysts note a total of €1.1T in outstanding TLTROs. June TLTRO maturity accounts for 43% of all outstanding TLTRO-III operations.

  • Eurozone CPI confirmed at 7.0% y/y in April versus flash 7.0% and prior 6.9%, while m/m reading up 0.6% versus flash 0.7%.

  • Nearly 6M Britons missed payments on bills, regulator says

The Americas

  • Biden, Congressional leaders express cautious optimism debt ceiling deal can be reached within days

  • ServiceNow unveils new generative AI features in partnership with Microsoft

  • Rising global demand, tight supplies for sour crude could complicate White House plan to refill SPR

  • Comcast CEO says company likely to sell 33% stake in Hulu to Disney at beginning of 2024


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


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