Asian stocks started the week higher after their U.S. peers chalked fresh records and China’s central bank moved to boost liquidity. Treasury yields stabilized after jumping Friday.
Shares in Japan outperformed and Hong Kong also rose. Australia advanced despite a prolonged lockdown in the largest city, Sydney, as virus cases continue to rise. U.S. futures fluctuated. The S&P 500 finished last week at all-time highs as investors continued to bet that global growth remains on track despite new Covid-19 variants.
Chinese assets found support after the central bank cut the amount of cash most banks must hold in reserve to buttress economic growth. Stocks gained, with the liquidity-sensitive ChiNext increasing as much as 4.3% to the highest since June 2015. Chinese dollar bondsclimbed as investment-grade spreads tightened. The offshore yuan edged higher.
Treasuries snapped an eight-session rally Friday that saw 10-year yields tumble as low as 1.25% in a volatile week. They will remain in focus amid new supply coming to the market this week, as well as key U.S. inflation data and Federal Reserve Chair Jerome Powell’s semi-annual appearance before Congress. The dollar inched up against major peers, while the Australian dollar underperformed amid Sydney’s curbs.
Nikkei +2.21% Hang Seng +0.59% CSI +1.35% Shanghai +0.78% Shenzen +2.01%
Eur$ 1.1865 CNH 6.4775 CNY 6.4741 JPY 110.17 GBP 1.3885 CHF 0.9146 RUB 74.4915 TRY 8.6620 WTI$ 74.37 -0.25% Gold 1,801.40 -0.38% BTC 34,250 +250 ETH 2,145 -3.5
S&P -0.17% Nasdaq -0.05% EuroStoxx -0.02% FTSE -0.24% Dax -0.08% SMI
Macro :
- FT : Lower bond yields are no longer good news for stocks - M. El-Erian (pdf attached)
- G-20 to Warn of Virus Risks Amid ‘Great Divergences’ in Recovery
- Banking Merger Frenzy May Meet an Early End After Biden Order
- Brussels targets aviation fuel tax in drive to reduce carbon emissions - FT (pdf attached)
- Bond Bulls Should Be Cheering the PBOC’s RRR Cut: China Today
Spacs :
- SPAC Bosses Turn to Clubby Deals to Seal IPOs in Chilly Market
- Former BP CEO Plans to List Energy Transition SPAC, Sky Reports
Keep an eye on :
- ADS GY : Authentic Brands Group Drops Out of Reebok Auction: NY Post (pdf attached)
- ACH NO : Aker Clean Hydrogen Says Shell Joins Aukra Hydrogen Hub Project
- AMP IM : Amplifon Agrees to Acquire Australia’s Bay Audio
- AMZN US : Reportedly FTC has opened a probe of the MGM Studios acquisition - TheInformation.com
- ATO FP : Atos Lowers 2021 Rev. Growth, Operating Margin Targets
- BAS GY : BASF Boosts Forecast Amid Tight Global Chemicals Market
- BAY GY : Bayer’s Kerendia Gets FDA OK for Kidney Disease From Diabetes
- BNTX US : BioNTech Could Develop New Covid Vaccine in 100 Days: Les Echos
- EVD GY : CTS Eventim Receives EU102m Corona Subsidies From Germany
- DMGT LN : Rothermeres Mull Offer to Take Daily Mail Private, Sky Says (1)
- DECB BB : Deceuninck Prel. 1H Rev. EU404m Vs. EU289m Y/Y
- DBAN GY : Deutsche Beteiligungs Sees EU26m Gain From Sale of Blikk Holding
- MF FP : Eurazeo Signs Agreement With Montagu to Sell Stake in Intech
- EUCAR FP : Head of auto hire group says there are not enough vehicles to meet demand from holidaymakers - FT (pdf)
- FLTR LN : Flutter to wait until 2022 to list FanDuel stake: Telegraph
- GALP PL : Galp 2Q Average Working Interest Production 128.4 Kboepd
- G IM : Blackstone Completes Sale of London Office Sale to Generali: FT
- PRX NA : Prosus Investor Unease Fails to Sway Vote on Share Swap
- RUI FP : Rubis to Buy Back Up to 1.5m Shares for Maximum Amount of EU60m
- S30 FP : France’s AMF: Analyst Intimidation by Companies Unacceptable
- SAN FP : Sanofi Says MenQuadfi Shows ‘Superior’ Response to Serogroup C
- TCM LN : Telit Communications Founder Opposes DBAY Deal: Mail (July 10)
- VOLVB SS : UAW Says Vote Scheduled on Volvo Offer, Strike Ongoing
- VOW NO : Vow Green Metals’ First Trading Day Will Be on or about July 12
- VOW3 GY : VW Extends CEO’s Contract Until 2025, Backing Aggressive EV Push
- VOW3 GY : Volkswagen 1H Operating-Profit Beat Sets Tone for Peers
- WIHL SS : Wihlborgs 1H Net Income SEK1.01B Vs. SEK708M Y/y
- XIOR BB : Xior Seeks Controlling Stake in SPS of Spain for About EU58.5m