Asian indices are mixed as thin trading persists for the 2nd day of Dragon Boat Festival day, with Shanghai, Taiwan, and Hong Kong all joining US markets for holiday break. Korea's Kospi is seeing some profit taking from recent record highs, Australia is marginally higher, while Nikkei225 is dragged down by USD/JPY retreat below 111. Modest risk-off is playing out in FX space going into key US PCE inflation data and China manufacturing PMIs this week, both of which have shown underwhelming prints over the past 2 months. EUR/USD is also under pressure, falling for the 4th straight session to 1.1120. Dovish remarks from ECB head Draghi justifying the current easy stance were compounded by escalating standoff between Greece and negotiations, as German press reported Athens may opt out of next payment without a debt deal. GBP/USD was also down slightly to fall below $1.28, with another poll showing Labour gaining on Conservatives heading into elections in just 10 days. Japan jobless rate remains at 23-year low 2.8%, though household spending continues to falter with its 14th consecutive month of decline. Recall the latest Labor Cash earnings data out of Japan saw the biggest decline in nearly 2 years, suggesting that tight labor market is not producing wage inflation. Former BOJ member Shirai notes this is largely to the structural rigidity in Japan society.
Nikkei +0.01% HAng Seng +0.24% CSI Closed Shanghai Closed
Eur$$ 1.1120 6.8312 CNY 6.8555 JPY 110.91 GBP 1.2815 CHF 0.9794 RUB 56.5684 WTI$ 49.81 +0.02%
S&P -0.06% EuroStoxx -0.14% Dax -0.13% FTSE -0.21% SMI -0.24%
Macro :
- Portuguese PM Plans Common Platform for Banks: Handelsblatt
- The Fed Is Going to Hike. That’s Bullish for Bonds: Macro View
- Government Policy May Not Meet Market Expectations, Bullard Says
- Ibovespa Drops on Brazil Outlook Cut as Temer Fights to Survive
- Italian Early Elections in Fall Are More Likely, Analysts Say
Keep an eye on :
- ABI BB : AB InBev Strategy Chief Kamenetzky Buys EU4.58m Stock Off-Market
- AIR FP : Aeroflot to Order Additional 14 Airbus A350-900: Interfax
- AF FP : Hop! Air France Pilot Union Calls for July 3-8 Strike: Echos
- AKZA NA : Elliott Fails to Get Court Backing to Oust Akzo Nobel Chairman
- ARYN VX : Aryzta 3Q Revenue EU975.2m, Aryzta Says Europe Improvement to Take Longer Than Expected
- BLT LN : BHP Supports Government Changes to Allow Carbon Capture Funding
- BMW GY : BMW Expects Supplier Bosch Will Pay for Production Disruption
- EDF FP : EDF Takeover of Areva Nuclear Unit Approved by European Union
- ELIOR FP : Elior 1H Net Rises 44% to EU58m, Nicolas Wertans Named CEO of Elior France
- GLEN LN : Glencore Sent Letter to Australian Authorities on Copper Costs
- GLEN LN : Glencore Says Australia Copper Sites Under Threat on Costs: AFR
- HMB SS : H&M Chairman Has Bought Another 2.9m Shares in Company
- IAG LN : British Airways: Heathrow, Gatwick Full Schedules Resume May 30
- IIA AV : Immofinanz 1Q Net Income From Continuing Ops EU101.7m
- LIN GY : Linde Group Said to Receive ~EU1B Order From Russia: Sueddeutsche
- RYA LN : Ryanair Sees 8% Rise in 2017/18 Net Income