Asian stocks climbed Thursday after the Federal Reserve paused monetary tightening and China’s central bank cut a key lending rate to support its struggling economy. Hong Kong’s benchmark index and Japanese equities advanced. Australian shares recovered after initially paring gains on strong jobs data that bolstered the case for further interest rate hikes from the central bank. The dollar rose while the offshore yuan extended losses and the yen dropped to the lowest level since November. The weakness in the Japanese currency prompted a warning from Chief Cabinet Secretary Hirokazu Matsuno that excessive movements weren’t desirable. Treasury yields ticked higher. Australia’s sovereign yield curve inverted for the first time since the financial crisis as policy-sensitive three-year rates surged on the employment figures. The S&P 500 had gained just 0.1% on Wednesday after Fed chief Jerome Powell said nearly all Fed officials expected it would be appropriate to raise interest rates “somewhat further” in 2023. The Nasdaq 100 rose 0.7%, bringing its gain since the start of the year to 37%. With a pause and hawkish outlook from the Fed widely anticipated, much of the focus in the Asian trading session is on China. The People’s Bank of China cutting its medium-term lending facility rate paves the way for banks to lower lending rates next week. The PBOC’s move also forms part of broader stimulus efforts to support real estate and domestic demand. Data showing retail sales slowed more than expected in May added to worries about further slowing in China. Industrial production was also lower but met consensus forecasts. Economic troubles in New Zealand were also rippling through markets Thursday, with the nation’s sovereign bond yields falling after gross domestic product data showed the country fell into a recession in the first quarter following an aggressive run of policy tightening. Oil extended a drop driven by a surprise jump in US crude stockpiles and the Fed’s hawkish outlook. US After Hours Relatively hushed after-hours session; POWW +11.8%, LEN +2.2% both up on earnings; TRUE +9.7% higher on restructuring; Crypto-related names edging lower in sympathy with tumbling Bitcoin price.
Nikkei +0,52% Hang Seng +0,83% CSI +0,54% Shanghai +0,09% Shenzen +0,55%
Eur$ 1,0813 CNH 7,1770 CNY 7,1698 JPY 141,19 GBP 1,2641 CHF 0,9036 RUB 83,9899 TRY 23,5791 WTI$ 68,03 Gold 1,935 BTC 25,045 ETH 1,652
S&P +0,01% Nasdaq -0,02% EuroStoxx -0,25% FTSE -0,28% Dax -0,27% SMI -0,01%
Macro :
- Powell Dances Between Pause and Hikes in Communication Two-Step
- China’s Central Bank Ramps Up Rate Cuts as Economy Weakens
- Erdogan Backs New Economic Team But Won’t Change Rates View
- Morgan Stanley’s Wilson Sees US Profit Recession Persisting
- Moelis Sees Signs M&A Market Is Improving, Plans More Hiring
- Macron Calls for French AI Innovation as EU Votes to Regulate
- BOE Rate Setter Calls for ‘Fundamental Revisit’ of UK-EU Trade
Keep an eye on :
- AOF GY : General Atlantic to Buy ~20% of Shares in Atoss Software
- ASC LN : Asos Keeps Expectations Unchanged
- BALYO FP : SoftBank Group Offers to Buy Balyo at €0.85/Shr
- BBVA SM : BBVA Issues €1b Preferred Contingently Convertible Securities
- BETSB SS : Betsson Buys betFIRST for EU120 Million
- CAVA US : Cava IPO Prices at $22/Share, Above $19-$20 Range
- CO FP : Casino Says Fimalac Considering Participating in Capital Raise
- CO FP : Daniel Kretinsky Could Boost Offer for Casino: Les Echos
- ELIMP NO : Elektroimportoren Offering of 5.2m Shares Prices at NOK23/Share
- ENSU NO : Ensurge Micropower Offers Shares at NOK0.10/Share
- FLS DC : FLSmidth to Sell Non-Core Activities Segment to Koch Solutions
- FRAS LN : Mike Ashley Raises Frasers Group Voting Rights to 72.46%
- BOSS GY : Hugo Boss Sees 2025 Ebit at Least EU600M, 2025 Sales of EU5B
- IBM US : IBM to Upgrade Quantum Computing After Processing Breakthrough
- JTC LN : JTC Agrees to Buy TC3 Group for Up to $270m
- MRK GY : Merck KGaA Granted FDA Orphan Drug Status for Cladribine
- MOBA NO : Morrow Bank Offering of 22.2m Shares Prices at NOK4.50/Share
- NHY NO : Elemental Alu Seeks to Buy 45.84% in Alumetal at PLN83.7 Apiece
- PARO FP : Partouche, Betsson in Pact For Online Casino Services in Belgium
- PHIA NA : Philips to Buy Back up to 7.1m Shares for Incentive Plans
- SIE GY : Siemens to Make €2 Billion Investment to Boost High-Tech Plants
- SWON SW : Bain Offers to Buy SoftwareOne for $3.2 Billion
- TSCO LN : UK’s Sunak Scraps Plan for Supermarket Price Cap: Telegraph
- TSLA US : Macron to Meet Elon Musk in Paris on Friday to Discuss Batteries
- HO FP : France’s Thales to Restart Production of Starstreak Missile: WSJ
- VACN SW : VAT Introduces Short Time Work for Some Employees in Switzerland
- VIV FP : Telecom Italia Appoints Pansa to Board, Rejects Carta