Asian equity markets are mostly higher, tracking 2nd day of gains on Wall st on Friday as investors bought the Trump political controversy dip. Energy sector is performing particularly well, with Crude Oil prices rising above $51/brl - a 1-month high - on chatter of OPEC supply cut extension. In FX, renewed risk-on flows translated into JPY weakness, as USD/JPY rose some 60pips from opening lows. Commodity currencies AUD and NZD are rangebound despite the jump in iron ore prices. GBP underperformed following UK press report citing Brexit min Davis threatening pullout out from Brexit negotiation if EU imposes a penalty as part of the deal. Separately, UK's Survation poll for the upcoming elections saw PM May and Conservatives' lead slip to single digits, shrinking in half. Over the weekend, US Pres Trump kicked off his Middle East trip with first stop in Saudi Arabia, where he signalled US is signing some $110B of military contracts as part of memorandum of intent to support Saudi defense. Saudi Oil Min Al-Falih also said OPEC and non-OPEC producers are on course to back an agreement extending the oil supply deal by a further nine months. Also of note in the region, Iranian Pres Rouhani defeated hard-line candidate Raisi by a wide margin in re-election for 2nd term. Japan trade surplus was smaller than expected on bigger than anticipated rise in imports than exports, though both were in positive territory for 5th and 4th month respectively. Shipments to Asia and China were up mid-teens again, while export growth to US and Europe grew low single digits.
Nikkei +0.33% Hang Seng +0.95% CSI -0.06% Shanghai -0.45%
Eur$ 1.1197 CNH 6.8795 CNY 6.8898 JPY 111.52 GBP 1.2999 CHF 0.9751 RUB 56.64 WTI$ 51.12 +0.87%
S&P +0.12% EuroStoxx+0.25% Dax +0.26% FTSE +0.42% SMI +0.39%
Macro :
- Comey Agrees to Testify Before Senate Committee, Senators Say
- Goldman Slashes Expectations for Tax Cut/Fiscal Policy Change
- Weidmann Says ECB Will Need to Act When Prices Rise: Standard
- Spanish Markets May Weaken as Rajoy Opponent Wins Party Vote
Keep an eye :
- AGN NA : Aegon to Divest Majority of U.S. Run-Off Businesses to Wilton Re
- AIR FP : Boeing, SaudiGulf Airlines to Negotiate Widebody Jet Purchase
- AF FP : Air France to Hire 500 Flight Attendants for Low Cost Unit: JDD
- SPR GY : Immoweb.be founder Rousseaux sells 14.5% stake to Axel Springer ( from 80 to 94.5%), C.Rousseaux Co. founder to retain 5.5%
- BA/ LN : BAE, Babcock Said to Lead U.K. Ship Deal Bids: Times (Earlier)
- BMPS IM : Paschi Recap Cut to EU8.3b Was Discussed: Messaggero
- CLN VX : Clariant and Huntsman to Combine in An All-Stock Transaction
- CSGN VX : Credit Suisse to Issue 72.9m Shares From Scrip Dividend Election
- DAI GY : Mercedes-Benz Recalls 5,818 S-Class Cars on Brake Software
- DBK GY : Deutsche Bank Reinforces its Operations in Geneva: L’Agefi
- EDF FP : EU Regulators Said Set to Approve EDF Bid for Areva Unit: Rtrs
- FCA IM : Plans to modify over 100K diesel trucks and SUVs as part of effort to resolve allegations that it installed software to cheat emissions standards
- INTU LN : Mall owner Intu faces FTSE 100 relegation on retail woes, Retail property owners are being hit by pessimism over the fortunes of their tenants FT
- BAER VX : Julius Baer Assets Under Mgt 356b Francs as of end April
- LHN VX : LafargeHolcim Appoints Sika’s Chief Executive Jenisch as New CEO
- LMT US : Saudi Arabia Agrees on Deal to Assemble 150 Lockheed Helicopters
- MC FP : LVMH’s Biver Says Must Give Responsibility to Others: SamW
- NOKIA FH : Nokia to Continue Making Acquisitions, Chairman Tells YLE
- RBOS GY : Bosch May Have to Cut Jobs If Diesel Crisis Worsens: Stuttgarter
- 9984 JP : SoftBank, Saudi Sovereign Fund to Start $100b Tech Fund: WSJ
- THIRD ENERGY : Third Energy Said to Seek to Raise Up to GBP250m in IPO: Times
- VIE FP : Veolia Wins EU886M Waste to Energy Contract in Mexico
- VOW3 GY : Audi Reaches Agreement to Solve Dispute With China Dealers
- VOW3 GY : Bavaria’s Seehofer Wants Incentives for Diesel Cars: Spiegel