Asian stocks struggled for traction, as investors weighed concerns about the health of the US economy against stronger expectations for early Federal Reserve policy easing. Shares declined in Japan, South Korea and Australia, while those in Hong Kong and mainland China gained. US equities futures were flat. The dollar stabilized after weakening against most of its major and Asian peers earlier. In the spotlight was India, where the country’s stocks, currency and bonds all dropped as euphoria around exit polls that predicted a landslide third term for Prime Minister Narendra Modi waned. Treasuries steadied in Asia after Monday’s rally following data that showed US factory activity shrank at a faster pace. The benchmark 10-year yields edged up two basis points at 4.41%, after sinking 11 basis points previously. Australian and New Zealand government debt rose. The mixed picture across asset classes suggests investors may be waiting for more US data, such as Friday’s crucial jobs figures, for more clues about the outlook of the world’s No. 1 economy and its central bank. While the latest soft US manufacturing data revived bets for the Fed to cut rates sooner, it also raised concerns about the potential drag on Asian economies. Swap contracts tied to upcoming meetings continue to fully price in a quarter-point rate cut in December, with the odds of a move as soon as September edging up to around 50% and November also given high odds.
The S&P 500 turned green in the final minutes of trading as a rally in big tech outweighed a plunge in energy producers. A technical issue at the New York Stock Exchange resulted in erroneous trading volatility halts earlier Monday. Back in Asia, Japan’s finance minister said the government’s intervention in the currency market a little over a month ago was effective to some extent, in the first official acknowledgment of the action after the ministry disclosed data indicating it spent a record amount to prop up the yen. The yen slipped on the commentary as investors assessed the commentary. In commodities, oil tumbled as OPEC+ rolled out a plan to restore some production to the market. Bitcoin briefly topped $70,000. Gold held its biggest advance in two weeks, after soft US data reignited optimism the Federal Reserve will cut rates this year. US After Hours FGEN +27.6% surging on a couple of announcements; HQY +4.6% up on earnings; GTLB -3.1% slips despite upbeat guidance.
Nikkei -0.37% Hang Seng +0.36% CSI +0.27% Shanghai -0.17% Shenzen -0.45%
Eur$ 1.0904 CNH 7.2570 CNY 7.2458 JPY 156.17 GBP 1.2802 CHF 0.8957 RUB 89.33 TRY 32.2059 WTI$ 73.34 -1.3% Gold 2,348 -1% BTC 68,938 ETH 3,760
S&P -0.02% Nasdaq -0.92% EuroStoxx -0.10% FTSE -0.19% Dax -0.23% SMI
Macro :
- Hedge Funds Sell Software Stocks as AI Splits Tech, Goldman Says
- JPMorgan’s Kolanovic Warns of Risks as Stock Prices Stay High
- UAE seeks ‘marriage’ with US over artificial intelligence deals
Keep an eye on :
Keep an eye on :
- AIR FP : Airbus in Talks to Sell More Than 100 Widebody Jets to China
- AAL LN : De Beers Casts Off Man-Made Diamonds as It Looks Beyond Anglo
- BA US : Boeing 737 Deliveries to China Still Halted Amid Restart Reports
- BCHN SW : Burckhardt FY Operating Profit Beats Estimates
- DTE GY : Germany’s KfW Sells Deutsche Telekom Shares at €22.13 (June 3)
- DTE GY : Germany’s KfW Sells Deutsche Telekom Shares at €22.13 (June 3)
- DTE GY : Deutsche Telekom Increases Second Buyback Tranche by €600M
- EBOX LN : Tritax EuroBox Confirms Hasn’t Received Brookfield Proposal
- EUROB GA : Eurobank Buys 26.1% Stake in Hellenic Bank for €275.7 Million
- ILMN US : Illumina Board Approves Spin-Off of Grail
- IPH FP : Innate Pharma Notes Positive Results From Tellomak Phase 2 Study
- IP US : International Paper Seeks to Reassure DS as Suzano Plots Bid
- MAERSKB DC : Maersk Boosts FY Underlying Ebitda Forecast, Beats Estimates
- NWL IM : New Princes Group Targets €5b Rev by 2030, Looks at Further M&A
- NVDA US : Intel CEO Fires Back at Nvidia in Battle for AI Chip Leadership
- OR FP : bareMinerals, Laura Mercier Owner Orveon Global Mulls M&A Options
- PSH NA : Ackman’s Pershing Square Targets Raising $25 Billion for US Fund
- PSH NA : Pershing Square Holdings May Net Performance +1.8%
- REN PL : Portuguese Electricity Demand Rose 2.1% in May, REN Says
- RMV LN : Rightmove Clients' Election Fate Mixed But Homebuyers Won't Fret
- ROTH FP : Edmond de Rothschild Gained Business From Credit Suisse Failure
- SAABB SS : Saab’s 385% Rally Looks Like It’s Running on Fumes, Analysts Say
- SGO FP : Saint-Gobain Closes Purchase of the Bailey Group of Companies
- SAN FP : Sanofi: Sarclisa Combo Cut Risk of Recurrence or Death in MM
- SHLF NO : Shelf Drilling Says Norway Didn’t Accept Application for Rig
- STLA US : Italy May New Car Sales Fall 6.62% Y/y
- STM FP : STMicro, Geely Sign Long-Term Silicon Carbide Supply Pact
- TRMDA DC : Torm Offering by Holder Oaktree Capital Management Closes
- 2330 TT : TSMC’s New Chairman Affirms Hopes of AI-Fueled 2024 Recovery
- VIE FP : Eiffage, Vinci & Veolia Win >€400M Water Treatment Contract
- VIV FP : Canal+ Mandatory Offer for MultiChoice Opens on June 5