SOUTH KOREA: Country Wrap: Food Prices up Sharply According to Govt
- Food prices are climbing sharply in Korea as supply struggles to keep pace with rising demand, government officials and market observers said Thursday. While extreme weather conditions this summer — including torrential rains and heat waves — have disrupted the production of agricultural, livestock and fishery products, demand has surged following the distribution of government-issued voucher-based cash handouts, they added. (source Korea Times)
- The government will host large-scale domestic tourism and consumption events every month through the end of the year, aiming to turn the recent boost in spending driven by consumption vouchers into “real growth,” Finance Minister Koo Yun-cheol said Thursday. Koo, who also serves as deputy prime minister for economic affairs, added that the government will unveil a new economic growth strategy later this month, which will include key policy directions focused on artificial intelligence (AI) and other future growth engines. (source Korea Times)
- The Kospi is weaker today, but still above 3200 and one of the few regional bourses to poste losses of over 1% for the week.
- The Won is weaker today and failed to follow the strong week of gains of regional peers, only managing modest gains to be near 1,387.85
- Bonds have had a strong week with the KTB 10yr lower by -7bps for the week at 2.76% whilst the 2s10s curve remains at +40bps
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LOOK AHEAD: Eurozone Timeline of Key Events (Times BST)
| Date | Time | Country | Event |
| 09-Jul | 1145 | EU | ECB Lane At House of the Euro |
| 09-Jul | 1200 | EU | EC De Guindos Closing Remarks At Conference |
| 10-Jul | 0700 | DE | HICP (f) |
| 10-Jul | 0800 | EU | ECB Cipollone Digital Euro Lecture |
| 10-Jul | 0900 | IT | Industrial Production |
| 11-Jul | 0745 | FR | HICP (f) |
| 11-Jul | 1230 | EU | ECB Cipollone At Ukraine Recovery Conference |
| 15-Jul | 0800 | ES | HICP (f) |
| 15-Jul | 1000 | EU | Industrial Production |
| 15-Jul | 1000 | DE | ZEW Current Expectations Index |
| 16-Jul | 0900 | IT | HICP (f) |
| 16-Jul | 1000 | EU | Trade Balance |
| 17-Jul | 1000 | EU | HICP (f) |
| 17-Jul | ---- | EU | ECB Cipollone At G20 Meeting |
| 18-Jul | 0700 | DE | PPI |
| 18-Jul | 0900 | EU | EZ Current Account |
| 18-Jul | 1000 | EU | Construction Production |
| 18-Jul | ---- | EU | ECB Cipollone At G20 Meeting |
ASIA STOCKS: China's Bourses Reach YTD Highs
The rally today for China's mainland bourses saw the CSI 300 hit new highs for 2025. The release of weaker than expected PPI and ongoing weak CPI has seen investors speculating as to the possibility of further stimulatory measures to come from the government. As the July Politburo meeting approaches investors are thinking that this could be a meeting where further measures are enacted to support growth in the second half of the year.
- The Hang Seng was the long decliner of the China bourses, down -0.74% today whilst the CSI 300 gained +0.32%. The Shanghai Comp and the Shenzhen Comp rose by +0.30%.
- The KOSPI continues its good run, rising today by +0.58%.
- The FTSE Malay KLCI fell -0.18% whilst the Jakarta Composite rallied +0.40%.
- In Singapore the FTSE Straits Times was up +0.15% and the PSEi in the Philippines up +0.87%.
- The NIFTY 50 is doing very little today flat at the open having gained by +0.24%
EURUSD TECHS: Trend Structure Remains Bullish
- RES 4: 1.1979 2.0% 10-dma envelope
- RES 3: 1.1923 2.000 proj of the Feb 28 - Mar 18 - 27 price swing
- RES 2: 1.1851 High Sep 10 2021
- RES 1: 1.1829 High Jul 01 and the bull trigger
- PRICE: 1.1714 @ 06:10 BST Jul 9
- SUP 1: 1.1687 Low Jul7
- SUP 2: 1.1637 20-day EMA
- SUP 3: 1.1590 Low Jun 25
- SUP 4: 1.1458 50-day EMA
The latest pullback in EURUSD appears corrective. The trend condition is unchanged, it remains bullish - moving average studies continue to highlight a dominant medium-term uptrend. Note too that corrections have been shallow. This also reinforces the trend condition. A resumption of gains would signal scope for a climb to 1.1851, the Sep 10 2021 high. Key short-term support to watch lies at 1.1646, the 20-day EMA.
