Asian shares rose, extending a rally in global equities to a third day, as stronger economic data fueled optimism that central banks will avoid bringing on a recession while quelling inflation. Stock benchmarks in Japan and Australia advanced more than 1% on Monday while South Korea’s Kospi rose about 0.5%. Shares in Hong Kong rose following the release of Caixin’s services purchasing managers’ index for China which showed improvement in May. Oil trimmed an earlier jump. Crude pared its gain to around 1% after surging as high as 4.6% on Saudi Arabia’s pledge to make an extra 1 million barrel-a-day reduction in July, taking its production to the lowest level for several years. Asian energy shares rose. Contracts for the S&P 500 edged lower in Asia after US payroll data helped take the underlying measure to the cusp of a bull market. An MSCI Inc. gauge of equities across developed and emerging markets is at the highest since May last year, despite increasing worries about an economic slowdown in China and the prospect of higher interest rates in the US. Gains in the US on Friday were fueled by big tech, options positioning and bets for a Fed to hold rates unchanged this month, before a likely increase in July. The jobs report shaped wagers on the Fed, with signs of labor-market slackening in May despite a pickup in hiring. That bolstered the argument from Fed Chair Jerome Powell and other officials that they should take more time to assess incoming data and the evolving outlook before raising rates again. Two-year Treasury yields, which are more sensitive to imminent central bank moves, rose three basis points, adding to an increase of 16 basis points on Friday. Australia’s three-year yields jumped about 10 basis points. That came after the move in Treasuries and ahead of a central bank rates decision Tuesday. A gauge of dollar strength was fractionally higher, in part reflecting rising US yields. The euro, the pound and the Australian dollar moved lower while the yen weakened past 140 versus the greenback. Morgan Stanley sees the possibility of a 16% profit drop for the S&P 500 this year that would slam the brakes on a US equity rally. The prediction is one of the most bearish among those tracked by Bloomberg, and contrasts with bullish forecasts from the likes of Goldman Sachs Group Inc., which anticipates mild growth.
Nikkei +1.89% Hang Seng +0.14% CSI -0.67% Shanghai -0.16% Shenzen -0.35%
Eur$ 1.0696 CNH 7.1232 CNY 7.1105 JPY 140.03 GBP 1.2430 CHF 0.9102 RUB 81.0476 TRY 21.1194 WTI$ 72.68 +1.30% Gold 1,944.50 -0.18% BTC 26,835 -1.53% ETH 1,869 -1.85%
S&P -0.07% Nasdaq -0.31% EuroStoxx -0.18% FTSE +0.10% Dax -0.20% SMI +0.14%
Macro :
- EU in Deadlock Over Renewables as France and Germany Lock Horns
- EU Countries Reject Network Fee Push by Telecom Operators: Rtrs
- China Military Says It Tracked US Navy Through Taiwan Strait
- Biden Signs Debt-Limit Deal Into Law, Halting US Default Risk
- Strong Data Raise Questions Over Fed’s Skip Argument: In Play
- Morgan Stanley Sees Shock 16% US Profit Drop Killing Stock Rally
- Morgan Stanley’s Secker Says Europe Stocks to Fall 10% in Summer
- Gas Price Relief Eases Pressure on Europe’s Power Markets: BNEF
Keep an eye on :
- ABBN SW : EU Industrials Could Pivot to Integration, Capex From Large M&A
- AIR FP : Airbus heads towards 500-jet IndiGo order - https://bit.ly/43jjXWY
- AF FP : Air-France KLM Shops for Widebody Jets as Long-Haul Travel Grows
- AKELD SS : SBB’s New CEO Seen to Strengthen Hand of Property Mogul Akelius
- ASC LN : Asos Got £1.4 Billion Deal Approach Last Year, The Times Says
- CS FP : Axa IM to Buy French Film Studio Bry-Sur-Marne in €150M Deal: FT
- BARC LN : Barclays, Peers £125 Billion Hedge Rollover May Offer NII Upside
- BBB LN : Bigblu Broadband Says Performance is in Line With Expectations
- ALCOR FP : Novo Nordisk in Talks to Buy a Controlling Stake in Biocorp
- IAG LN : Summer Air Travel Will Be Better, But Still Challenges: IAG CEO
- CAT US : Caterpillar, Machinery Rally on Debt Deal, Fading Recession Fear
- DISH US : Dish Soars as an Amazon Deal Could Mean Big Upside: Street Wrap
- DISH US : Palo Alto Networks to Replace Dish Network in S&P 500
- DIS US : Walt Disney Sees $1.5b Charge for Direct-to-Consumer Content
- EVK GY : German Energy Policy a ‘Disaster’ for Industry, Evonik CEO Says
- INDV LN : Indivior to Pay $102.5m to Resolve Antitrust Claims
- MNK US : Mallinckrodt to Consider Repeat Bankruptcy, WSJ Says
- MANU US : Glazer Siblings to Keep Man U Stakes Under Ratcliffe Offer: FT
- MMV US : MultiMetaVerse Rises 114%: Chinese US Listings
- PANW US : Palo Alto Networks Set to Join the S&P 500 After Index Rebalance
- SALM NO : Goldman Sachs Asset Management to Buy 72% of Froy From SalMar
- SFL IM : LVMH Said Coming to the Rescue of Safilo’s Longarone Plant
- SU FP : EU Industrials Could Pivot to Integration, Capex From Large M&A
- SIE GY : EU Industrials Could Pivot to Integration, Capex From Large M&A
- UBSG SW : UBS Considers Delaying 2Q Results Until End-August: FT
- UBSG SW : UBS Plans to Complete Credit Suisse Takeover as Early as June 12
- VPLAYB SS : Viaplay Slashes 2023 Forecast, Replaces CEO (1)
- VT5 SW : VT5: Uncertainty in Veraison Capital’s Soft Sponsor Commitments