US STOCKS: Rotation Out Of Tech Sees S&P Momentum Stall
Jul-02 01:00
The ESU5 overnight range was 6227.25 - 6261.50, Asia is currently trading around 6253. A subdued ses...
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JGBS: Little Changed, Capex Beats, US Tsys Bear-Steepen
Jun-02 00:48
In Tokyo morning trade, JGB futures are flat, +1 compared to settlement levels, after giving up overnight gains on Friday.
- Capital spending excluding software rose 6.9% from a year earlier, compared to the median estimate of +5.3%.
- Jibun Bank/S&P Global May Manufacturing PMI rises to 49.4 from 48.7 in April.
- 1Q Company Profits +3.8% y/y and Sales +4.3% y/y.
- Cash US tsys have bear-steepened, with yields flat to 3bps higher, in today’s Asia-Pac session.
- (MNI) The Federal Reserve should aim for a much smaller balance sheet in order to have a smaller footprint in financial markets and reduce the risk of inflationary bursts like the one experienced after Covid, former Fed Board Governor Kevin Warsh said Friday. The Fed's balance sheet "is trillions larger than it needs to be. We can't make this change overnight," said Warsh, who is seen as a leading candidate to replace Jerome Powell as Fed chair next year.
- Cash JGBs are flat to 1bp cheaper across benchmarks. The benchmark 10-year yield is 0.6bp higher at 1.507% versus the cycle high of 1.596%.
- Swap rates are flat to 1bp higher. Swap spreads are little changed.
ASIA: Vietnam's May PMI Rises, but Still in Contraction
Jun-02 00:38
- Vietnam's May PMI increased to +49.8 in May, from +45.6 in April.
- In signs that the pause in the trade way is having an impact, output was up to +51.5 from +45 in April and New Orders were higher than last month also.
- This was the second successive month of contraction and the and the fifth month out of sixth.
FOREX: USD Comes Under Pressure As US Equity Futures Start The Week Lower
Jun-02 00:37
US stocks have opened lower in Asia, ESM5 -0.30% and NQM5 -0.41%. This has seen the USD open the week under pressure and currencies like the NZD +0.40% and the AUD +0.35% are leading the charge. The BBDXY is trading around 1215 down 0.01%.
- Comments from China related to fresh trade frictions looks to have been the catalyst.
- CHINA ISSUES COMMENTS ON US" - BBG
"*CHINA SAYS US CONTINUES TO PROVOKE NEW TRADE FRICTIONS"
"*CHINA URGES US TO SAFEGUARD CONSENSUS REACHED IN GENEVA TALKS"
"*CHINA CONTINUES TO TAKE MEASURES TO SAFEGUARD INTERESTS"
