Jun 30 ,2024
Synopsis:
Asian markets set for mixed start to Monday trade. Futures pointing to opening gains in Japan, while Hong Kong and Australian futures weaker. US contracts edging higher. Australian bonds back under pressure with long-end yields up more than 10 bp. Euro strengthening following smaller-than-predicted victory by Le Pen's National Rally. Commodities steady following quiet Friday session for crude and gold. Bitcoin rebounding to one-week high.
China official manufacturing PMI shrunk in-line with expectations, weighed down by continued declines in new orders and exports. Accompanied by dissipation of pricing pressures amid soft demand. Non-manufacturing PMI below consensus as construction activity fell to lowest in eleven months. Data offers early signal that tepid domestic demand continued into June, underlining focus on upcoming Politburo meeting for fresh policy signals
Fallout from Biden's weak debate continued following drumbeat of calls for him to exit the race. While Trump now clear favorite to win election, Biden showed no signs of ending his campaign over weekend. In Europe, Marine Le Pen's National Rally on track to win first round of French general election, though short of absolute majority with margin of victory considered smaller than predicted. Election now moves to 7-Jul run-off to determine final outcome.
In-line US core PCE inflation put further momentum behind disinflation narrative though market had already priced this in to an extent following soft June CPI/PPI reports earlier in June. Odds of September cut and the year-end funds rate little changed following PCE. At the same time Fed officials maintaining guarded stance with Governor Bowman on Friday warning rate hikes on table if inflation does not moderate.
Pre-open Company News:
968.HK -- Xinyi Solar Holdings downgraded to underperform from hold at Daiwa
China Ministry of Agriculture: weekly wholesale livestock and poultry prices (21-Jun to 27-Jun) (28-Jun, timing uncertain)
Estimated weekend box office revenues in US, Canada $152.7M, +19.1% y/y - Box Office Mojo
China official manufacturing PMI steady as expected, nonmanufacturing index disappoints:
KGI Securities downgrades 1476.TT, 9910.TT
4188.JP -- Mitsubishi Chemical upgraded to buy from neutral at Mizuho Securities
LJ3.SP -- OUE Ltd to repurchase 84.0M shares under off-market equal access offer, representing maximum buyback amount
002241.CH -- GoerTek upgraded to outperform from underperform at CLSA
600276.CH -- Jiangsu Hengrui Pharmaceuticals receives NMPA approval for clinical trial of HRS-7249 for treatment of Hyperlipidemia
883.HK -- CNOOC commences production at Wushi 23-5 project
6113.JP -- AMADA Co. initiated outperform at Daiwa
LKE.AU -- Lake Resources NL issues operational update; to implement cost initiatives including reduction of more than 50% of global headcount
OSP.TB -- Osotspa Public upgraded to buy from sell at Thanachart Securities
600276.CH -- Jiangsu Hengrui Pharmaceuticals receives NMPA drug registration approval for Dapagliflozin Glucose tablets
On Deck:
Japan:
Economic:
08:50 JST: Tankan Large Manufacturing Index NSA; consensus
08:50 JST: Tankan Large Non-Manufacturing Index NSA; consensus
Earnings:
Nextage (3186.JP)
South Korea:
Economic:
11:00 KST: Trade Balance NSA; consensus +$5.8B
11:00 KST: Import NSA Y/Y; consensus (4.7%)
11:00 KST: Export NSA Y/Y; consensus +6.3%
Indonesia:
Economic:
11:00 SAST: CPI NSA Y/Y; consensus +2.8%
Market Data:
Gold (Aug 24): ($4.20) or (0.18%) to $2335.40
WTI Crude (Aug 24): +$0.13 or +0.16% to $81.67
$-¥: (0.04) or (0.02%) to 160.8160
$-KRW: (1.17) or (0.09%) to 1380.2800
A$-$: +0.00 or +0.12% to 0.6677
$-INR: +0.00 or +0.00% to 83.3636
$-CNY: (0.00) or (0.02%) to 7.2658
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