The dollar slid and Treasuries rose after Joe Biden ended his reelection campaign and endorsed Vice President Kamala Harris. Chinese bonds gained after the central bank cut a policy interest rate. The yield on China’s 10-year sovereign note dropped 2 basis points, after the People’s Bank of China reduced a short-term rate for the first time in almost a year to support growth. Foreign ownership reached a record 4.3 trillion yuan ($591 billion) in the world’s second-largest bond market last month, extending global investors’ buying spree to ten consecutive months. Chinese stocks declined, adding to regional losses from Japan to Australia amid weakness in the tech sector. Taiwan Semiconductor Manufacturing Co. fell as much as 3.3%. US equities futures edged up. China’s policy easing is “an acknowledgment that there’s immense economic downward pressure,” Michelle Lam, Greater China economist at Societe Generale SA, told Bloomberg TV. “It also signals that policymakers are determined to support the economy.” A Bloomberg gauge of the US currency’s strength shed 0.1%, while the 10-year Treasury yield dropped 2 basis points. The Mexican peso climbed, gold gained, Bitcoin rose to the highest in over a month. Investors have mulled for weeks a greater prospect that Donald Trump will win the November election following Biden’s weak debate performance, only for bets on a Trump win to accelerate last week following an assassination attempt on the Republican candidate a week ago. The question for investors is whether to stick with such trades now that Biden has dropped his bid for reelection. In China, banks cut their main benchmark lending rate for the first time since August 2023, ramping up support for economic growth following the PBOC’s rate reduction. President Xi Jinping had unveiled sweeping plans to bolster the finances of China’s indebted local governments as the ruling Communist Party announced its long-term blueprint for the world’s second-largest economy. Those are centered around shifting more revenue from the central to local coffers, such as by allowing regional governments to receive a larger share of consumption tax. The S&P 500 suffered its worst week since April last week, as tech shares fell ahead of earnings. Adding to the pressure was CrowdStrike Holdings Inc., the firm behind a massive IT failure that grounded flights and disrupted corporations around the world. Tesla Inc. and Alphabet Inc. will be the first of the “Magnificent Seven” to report earnings on Tuesday. Analysts will likely press Elon Musk’s electric-vehicle giant on the progress of its plans for robotaxis. And investors will delve into the details of Google’s parent revenue boost from artificial intelligence. Elsewhere this week, traders will be focused on economic activity data in Europe, US second quarter growth and a Bank of Canada rate decision. The runway toward a Federal Reserve interest-rate cut will come more into focus amid fresh signs inflation is abating. Economists expect the personal consumption expenditures price index minus food and energy — due on Friday — to have risen 0.1% in June. That would bring three-month annualized core inflation down to the slowest pace this year, and below the Fed’s 2% target.
Nikkei -1.15% Hang Seng +0.82% CSI -0.76% Shanghai -0.71% Shenzen +0.05%
Eur$ 1.0886 CNH 7.2951 CNY 7.2730 JPY 157.40 GBP 1.2916 CHF 0.8887 RUB 87.8996 TRY 33.0847 WTI$ 80.54 Gold 2,405 BTC 67,810 +0.10% ETH 3,508 +0.3%
S&P +0.24% Nasdaq +0.43% EuroStoxx +041% FTSE +0.44% Dax +0.26% SMI +0.21%
Macro :
- Biden Exits Race, Endorses Harris as She Shores Up Support
- China’s Central Bank Cuts Key Short-Term Rate to Buoy Economy
- Investors Remember ‘Stocks Can Go Down Too’ in Return to Hedging
- Lithium’s Prolonged Slump Shifts Focus to Miners’ Output Plans
Keep an eye on :
- Lithium’s Prolonged Slump Shifts Focus to Miners’ Output Plans
Keep an eye on :
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- ALM SM : Almirall 1H Normalized Net Income EU17.8M Vs. EU11.6M Y/y
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- ASSAB SS : Assa Abloy to Buy Skidata From Kudelski Group
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- SBUX US : Activist Elliott Takes Big Stake in Starbucks -- WSJ
- STLA US : Reportedly paid $190M in civil penalties in the US for failure to meet fuel efficiency rules in prior years, and owes more
- SF SS : Stillfront 2Q Sales Misses Estimates
- TTK GY : Takkt Cuts FY Adjusted Ebitda Margin Forecast
- TALK LN : TalkTalk to Meet Bondholders Next Week on Capital Injection: Sky
- TSLA US : Tesla, Rivian Shares Slip After Trump Vows to End EV ‘Mandate’
- TELL US : Woodside Agrees to Buy Tellurian for $1/Share Cash
- ULVR LN : Unilever Said to Start Sale Talks for £15 Billion Ice Cream Unit
- VAR GY : Porsche Eyes Widening Its Engagement In Battery Maker Varta (1)
- WDS AU : Woodside to Buy Tellurian and Driftwood LNG; $1 per Share
- X US : Nippon Steel Hires Pompeo to Help Clinch US Steel Sale
- ZH US : Zhihu Offers to Buy Back Class A Shares at Premium (Friday)
- ZURN SW : Zurich Could Weigh Move to Buy Italy’s Fineco, Messaggero Says