Stocks and US equity futures rose Monday amid scaled back bets on how aggressively the Federal Reserve will hike interest rates and as investors assessed Chinese pledges to shore up economic growth. A gauge of Asian shares added more than 1%, boosted by a jump in Chinese technology firms. S&P 500, Nasdaq 100 and European contracts pushed higher following a Wall Street rally Friday. Japan is shut for a holiday. China’s central bank has indicated it will step up implementation of prudent monetary policy. Its banking regulator has asked lenders to provide credit to eligible developers so they can complete unfinished residential properties. China faces rising Covid cases, hobbling lockdowns and property-sector woesthat now span a boycott of mortgage payments on some unfinished projects. The dollar slipped, with a gauge of the greenback’s strength down from a record high. Faster inflation bolstered New Zealand’s currency. Oil fell as the market digests slowing demand and whether supply will be increased after President Joe Biden’s visit to Saudi Arabia.
Treasuries won’t trade in Asia due to the Japan break. Treasury futures edged up. Inversions on parts of the yield curve are a sign the bond market views the Fed’s tightening cycle against inflation as still tough enough to risk recession. Investors continue to be whipsawed by concerns over inflation and the potential for a US recession. At the same time, equity valuations have fallen back from pandemic-era peaks. Data last week showing a drop in long-term US inflation expectations eased some fears that elevated price pressures are becoming entrenched. Strong retail sales underscored a resilient economy despite monetary tightening.
Traders are back to expecting a 75 basis points July Fed rate hike, after last week flirting with the prospect of a 100 basis points move to hammer inflation. Still, the outlook remains troubling for many investors. The International Monetary Fund will cut its global economic growth outlook “substantially” in its next update as nations run out of options to tackle worsening risks. BTC is trading at 21,300.
Nikkei +0,54% Hang Seng +2,58% CSI +1,15% Shanghai +1,49% Shenzen +1,48%
Eur$ 1,0091 CNH 6,7522 CNY 6,7466 JPY 138,33 GBP 1,1884 RUB 57 TRY 17,3540 WTI$ 97,95 Gold 1,714.43 BTC 21,400 +2% ETH 1,415+2,5%
S&P +0,51% Nasdaq +0,89% EuroStoxx +0,78% FTSE +0,56% Dax +0,70% SMI +0,63%
Macro :
- White House Anticipates More Saudi Arabia Oil: Resources Wrap
- ECB Seeks Credibility as Recession Nears: MLIV Pulse
- Germany Expects Regional Gas Emergencies This Winter: Bild
- Italy Stocks May Be Active With Draghi’s Government on the Brink
Keep an eye on :
- AIR FP : Delta to Announce 100 Boeing Max 10 Planes Deal, Reuters Reports
- AIR FP : Boeing CEO ‘Comfortable’ About FAA Approving 787 Deliveries: FT
- ARCAD NA : Arcadis to Buy IBI Group for C$19.50 Per Share in Cash
- DFDS DC : DFDS Boosts FY Ebitda Pre-Items Forecast, Beats Estimates
- DNO NO : DNO Got $264.6M Net From Kurdistan Regional Government in 2Q
- ERM LN : *ASTORG, EPIRIS AGREE TO BUY EUROMONEY FOR 1,461P/SHARE IN CASH
- EOAN GY : EON, Igneo in High Speed Broadband JV to Spur German Rollout
- FINGB SS : Fingerprint Cards Reduces Staff Due to China Mobile Market Slump
- FLOW NA : Flow Traders Starts Venture Capital Unit With EU50M Commitment
- FGP LN : Cites speculation that I Squared is improving its offer ahead of a bidding deadline next week - Times
- GAM SW : GAM Sees CHF264M Non-Cash Impairment After AuM Fall In 1H
- LSEG LN : LSE’s Hoggett to Head UK Capital Markets Task Force, Sky Says
- MOWI NO : Mowi Sees 2Q Ebit Rising From a Year Earlier to About EU320M
- NDA SS : Nordea Bank 2Q Net Interest Income Matches Estimates
- NEL NO : Nel Gets Order for 200MW of Alkaline Electrolyzer Equipment
- PCELL SS : PowerCell Signs MOU With ZeroAvia for Fuel Cell Stacks Delivery
- PRU LN : Malaysia Said to Set 2023 Cutoff for Foreign Insurer Stake Sales
- RATOB SS : Ratos 2Q EPS SEK1.83 Vs. SEK1.84 Y/y
- RLF SW : Relief Therapeutics Pact Partner Resubmitts ACER-001 to FDA
- RBREW DC : Royal Unibrew to Buy Amsterdam Brewery W/ EV of DKK250M
- RR/ LN : Rolls-Royce Plans Engine Tests with Hydrogen
- SAN SM : *SPAIN MULLS IMPOSING TAX ON BANK FEES, INTERESTS: EL PAIS
- SOLB BB : Solvay to Raise FY Outlook As Pricing Helps Overcome Inflation
- TEL NO : Telenor Grameenphone 2Q Operating Profit Rises to NOK1.74B
- TSCO LN : Amazon Targets Tesco With Clubcard Price Match in Expansion Push
- UN01 GY : German Regulator Says Gas Prices May Have Stalled, Bild Reports
- VOD LN : Vodafone Sells NZ Mobile Tower Assets to PE Firms for NZ$1.7B
- ZURN SW : Malaysia Said to Set 2023 Cutoff for Foreign Insurer Stake Sales