![]() Tesla China June deliveries up 20% from May Hong Kong shares trade lower as the Hang Seng Index continues to wind around its 200-day moving average. ![]() It was the weakest reading since January. The Caixin Services PMI for June was out at 53.9 overnight, far below the 56.2 expected and the 57.1 in May. China Caixin June Services PMI softer than expected Threads is expected to be released on Thursday and will allow users to retain followers from photo-sharing platform Instagram. ![]() Meta plans to launch a Twitter-rivalling microblogging app called Threads, days after Twitter boss Elon Musk attracted criticism by announcing a temporary cap on how many posts users can read on the social media site. What is going on? Meta’s Threads app could be a rival for Twitter Ten-year Treasury yields remain in an uptrend on their way to 4%, and two-year yields are rising towards 5% as markets push expectations for rate cuts further in the future. Today the focus is on the FOMC minutes, and tomorrow it will turn on jobs data with the JOLTS numbers and non-farm payrolls on Friday. However, weaker than expected data on growth might provoke drops on the longer part of the yield curve providing an even faster flattening. If inflation eases slowly and the economy remains resilient, long-term yields will continue to rise, with front-term yields soaring at a faster space, contributing to a further inversion of the yield curve. We expect the US yield curve to continue to flatten throughout summer. Hawkish FOMC minutes later today may however cause some bumps, and labor market data from the US remains key this week.īonds: FOMC minutes, US data to push further inversion (2YYM3, 10YM3, 30YM3) Our technical analyst Kim Cramer has noted a bottom and reversal pattern in Gold after it bounced from 1900, and focus remains on $2000. Gold prices re-tested the key $1930 level at the start of the week as dollar traded range-bounded due to the US holiday and manufacturing PMI release brought some inflation relief with the slide in prices paid component. China’s services PMI due today may be key for oil traders before focus shifts to FOMC minutes in the US session and labor market data in the rest of the week. Meanwhile, Russia’s cuts have little impact on the market given it could continue to export oil to continue its war in Ukraine. Oil prices gained in a thin trading session yesterday as traders contemplated further curbs in supply after the announcement that Saudi Arabia will extend its unilateral 1mb/d production cut into August. Crude oil: gains return as traders weigh Saudi output cuts USDJPY should also trade with high sensitivity to the direction in US treasury yields (higher yields = higher USDJPY) as the 145.00 round level has been a focus of late. For EURUSD, the range supports around 1.0850 are a focus for the risk of a capitulation lower if strong US data drives a USD rally. The incoming US data in the days ahead will likely provide the spark for the next USD move, with the long end of the US yield curve in focus as the 10-year Treasury yield benchmark trades at the upper end of the persistent range capped just ahead of the 4.00% level. Key local AUDUSD resistance comes in the 0.6700 area. The US dollar edged back to the strong side in the Asian session, with AUD tilting broadly lower as the Chinese renminbi once again came under pressure and metals priced fell. ![]() FX: Dollar edges stronger, AUD wilts in Asian session As in the US, we expect a quiet trading sesion with some focus on miners as copper and iron ore fell in the Asian session. STOXX 50 futures declined in yesterday’s low-volume trading session following China’s decision to introduce export controls on two critical raw materials, Gallium and Germanium, that are critical for semiconductor manufacturing and various military applications. European equities (EU50.I): focus on miners We expect a quiet trading session as the equity market is preparing for the Q2 earnings season that starts next week with earnings from JPMorgan Chase, Wells Fargo, and Citigroup on Friday. ![]() US equities are coming today after yesterday’s holiday with Chinese equities expressing negative sentiment as the PMI services slowed further from the month before highlighting that the Chinese economy is still not rebounding. What is our trading focus? US equities (US500.I and USNAS100.I): Waiting for Q2 earnings ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |