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Australia Futures indicate market opening +6pts ahead of the Private Sector Credit data. Queensland launching "Work In Paradise" scheme of one-off incentives and help with travel costs to attract leisure sector staff. Oil names weak following Oils decline on Friday but Gold higher.
Japan Nikkei 225 Futures opened +45pts @ 29,065 following the US close. Markets should trend higher but the pre market data, which is expected to be good could undermine that and there are still concerns about the impact of covid and the extended state of emergency which are likely to cap the upside.
S Korea Expect markets to open higher following the US with inflation fears eased. Pre market data mostly beat +VE the exception was Construction output.
Taiwan Expect market to open higher with continued buying in Tech and old economy stock especially Steel and Shipping although there are concerns that retail investors may take profit.
China Expect market to open to be impacted by the pre market Manufacturing and Non Manufacturing PMI. Concerns over the strength of the Yuan and inflation remain. Team China remains the wild card and as July 1 approaches I would expect to see more support.
HK ADR’s +22pts @ 29,146 with Chinese financial weak. Pre market Chinese data key but assuming its inline; expect an initial squeeze of recent shorts and with US and UK markets closed T/O is likely to be lighter than normal which could exaggerate moves. HK Property to see interest. E Commerce names also likely to see interest although the threat of more government legislation remains a concern.
UK Market closed Monday. Britain's retail sector will endure a "tsunami of closures" if the government does not extend a moratorium on aggressive debt enforcement (ends 1 July), industry lobby group the British Retail Consortium (BRC), said on Sunday.
US Market closed Monday but jobs report in focus along with ISM data on Manufacturing and Services. Some are concerned about the amount of liquidity in the system with more money being placed with the Fed putting pressure on Treasury Bills. Banks don’t want to hold cash as it hurts their leverage ratio’s.
Earnings winding down but a lot of Fed speakers.
FT reports US financial authorities are preparing to take a more active role in regulating the $1.5tn cryptocurrency market as concern grows that a lack of proper oversight risks harming savers and investors.
Vietnam said it had detected a new coronavirus variant that combines features of the variants first identified in India and the UK and is easily transmissible by air. -VE
Malaysia to close most factories and Shopping malls for two weeks from June 1
Nikkei 225 Futures opened +45pts @ 29,065 following the US close. Markets should trend higher but the pre market data, which is expected to be good could undermine that and there are still concerns about the impact of covid and the extended state of emergency which are likely to cap the upside.
Yen closed 109.81
Data pre market
Industrial Production Prelim Apr (March was +2.2% MoM (+3.4% YoY and F/cast is +3.5% MoM (+12% YoY)
Retail Sales Apr (March was +1.2% MoM (+5.2% YoY) and F/cast is +1.5% MoM (+12.3% YoY )
Later Consumer Confidence, Housing Starts and Construction Orders.
Tokyo reported 448 new covid cases Sunday (-91 DoD) Nationwide the number was 2,877
The government on Friday extended the COVID-19 state of emergency in Tokyo, Osaka and seven other prefectures by three weeks to June 20; just over a month before the Olympics begin in the capital as the pace of decline in infections remains slow. Commercial facilities in Tokyo, Osaka and other prefectures are stepping up preparations to resume operations on Tuesday, as the government hopes to strike a balance between curbing coronavirus infections and reviving the battered economy after extending the COVID-19 state of emergency to June 20. Slight +VE for Department Stores
Japan said on Friday it would consider sharing COVID-19 vaccines with other countries as a ruling party panel urged that part of its stock of AstraZeneca Plc doses be provided to Taiwan, which hailed the move and urged a swift decision. +VE for relations.
The Bank of Japan will consider climate change in its monetary policy discussions, Gov. Haruhiko Kuroda has said in his clearest signal yet that the central bank is looking to support the battle against global warming.
Total assets held by the Bank of Japan rose to 714.56 trillion yen ($6.5 trillion) in fiscal 2020, according to the central bank's data, quadrupling in eight years under Governor Haruhiko Kuroda's aggressive monetary easing and growing to 1.3 times the size of the country's economy.
Renesas Electronics Corp said it will raise 218.5 billion yen ($1.99 billion) through a new share issue to help the automotive semiconductors maker fund its planned $6 billion purchase of Dialog Semiconductor. +VE
Toyota Motor Corp said Friday its global sales in April doubled from a year earlier to 859,448 units, a record-high for the month, as auto demand continues to recover from a slump caused by the coronavirus pandemic. +VE but it has announced a plan to suspend operations at two plants in Japan for up to eight days in June, which will likely reduce output by 20,000 units amid the shortage of semiconductors.
Nissan Motor Co will partner with China-based battery maker Envision AESC group to build new battery plants for electric vehicles in Japan and United Kingdom and will invest over 200 billion yen ($1.82 billion), Nikkei reported on Friday. +VE
Nissan will carry out temporary work stoppages at three Mexican plants for several days in June because of production adjustments needed to manage a shortage of semiconductor chips, the company said on Friday. -VE
An Egyptian court on Saturday adjourned the case of a hulking cargo vessel that blocked the Suez Canal for nearly a week earlier this year. The move is to allow more time for negotiations aiming at resolving a financial dispute between the Suez Canal Authority and Shoei Kisen Kaisha Ltd, the vessel’s owner.
Honda Aircraft Co has unveiled its new upgraded aircraft, the HondaJet Elite S, at its first ever virtual product launch event themed "Innovation Continues: Elite S."
All Nippon Airways Co has been offering couples the chance to tie the knot in ceremonies aboard an aircraft it has been forced to ground as the coronavirus pandemic continues to hit international travel. The service, launched in late May, will be available until June 13 on the B-777 large passenger jet at Tokyo's Haneda airport. The company said that seven couples in all will have wedding ceremonies on board and it has finished accepting reservations.
Expect markets to open higher following the US with inflation fears eased. Pre market data mostly beat +VE the exception was Construction output.
Construction Output Apr -1.8% YoY vs -5.7% March (F/cast was +2%)
Industrial Production Apr +12.4% YoY vs +4.4% March revised from +4.7% (F/cast was +12%)
Industrial Production Apr -1.6% MoM vs -0.9% March revised from -0.8% ( F/cast was +0.2%)
Manufacturing Production Apr +13% vs +4.5% March (F/cast was +15%)
Retail Sales Apr +8.6% YoY vs +10.9% March (F/cast was +8.1% YoY)
Retail Sales Apr +2.3% MoM vs +2.3% March (F/cast was +1.2%).
KDCA reported 480 new covid cases Sunday (464 local infections)
South Korea's President Moon Jae-in said on Sunday at the P4G summit that the country will raise its goal for reducing greenhouse gas emissions and create a $5 million "Green New Deal" fund to help speed up developing countries' transitions to renewable energy.
The Financial Supervisory Service has been designated to man the main control tower overseeing the country’s burgeoning virtual asset market (crypto), putting an end to months of discussions on who would take charge, while major cryptocurrencies fell over the weekend. Ministry of Science and ICT will take the helm in leading the country’s blockchain technology industry and its development. Govt also to tax gains on crypto at 20%. It also decided to prevent cryptocurrency operators from being able to engage in transactions or brokerage services themselves in an effort to enhance transparent operation of cryptocurrency exchanges. -VE
The financial regulator is projected to lift its dividend cap (20% of net profits) placed on local banking groups next month, with the economy apparently on a fast track to recovery, industry watchers said Sunday. +VE Banks
Top shorts since the ban was lifted; in terms of value Samsung Electronics, HMM, LG Chem, Celltrion. In terms of volume Samsung Heavy Industry
Hyundai Motor Group will slash the number of combustion engine models in its line-up to free up resources to invest in electric vehicles (EVs), two people close to the South Korean automaker told Reuters. The move will result in a 50% reduction in models powered by fossil fuels, one of the people said, adding the strategy was approved by top management in March. It also announced it is seeking to sell an idle plant site in China to a local district government. Idle since April 2019. It still has 4 other plants in China.
Apple Korea has launched a trade-in program to attract current users of smartphones made by LG Electronics, industry sources said Friday. Apple is running a smartphone exchange program with three Korean mobile carriers, which pay 150,000 won ($135) to those who replace their LG phones with iPhones. People who have used LG’s 4G or 5G smartphones for more than a month are eligible to apply. They can exchange their LG smartphones for Apple’s iPhone 12 or iPhone 12 mini. -VE LG
Samsung Electronics Co. was the world's second-largest vendor of wearable devices in the first quarter of the year, an IDC report showed Friday, on the back of its wireless earbuds sales. Moving ahead of Xiaomi. Apple remains in lead position. The worldwide wearables market grew 34.4% on-year to reach 104.6 million units in the first three months of 2021, the highest for any first quarter. +VE for accessories supply chains.
Posco has taken another step forward in the secondary battery recycling business, as it landed a new partnership deal with Chinese cobalt supplier Huayou Cobalt (specializing in material refining and purification) on Friday. +VE
Naver, said Friday that it had a plan to cut its greenhouse gas emissions to zero by 2040. Key is using renewable energy at its data centres; which currently account for 99% of the firms total carbon emissions. +VE
SK Broadband has been making a host of new changes as part of its effort to speed up the environmental, social and corporate governance, or ESG, management, with a particular focus on reducing carbon emissions. +VE
Hyundai Engineering & Construction will begin presales of flats for a new high-rise apartment complex in Iksan, North Jeolla Province this month, the company said Sunday. +VE
GM Korea will be resuming operations of its key manufacturing plants here, months after a global semiconductor shortage sent them reeling and halted production.
Expect market to open higher with continued buying in Tech and old economy stock especially Steel and Shipping although there are concerns that retail investors may take profit.
Heavy rain over the weekend +VE for Chip makers as it may mean water restrictions are not enacted
No data due
CECC reported 355 new covid cases Sunday 266 were newly confirmed cases and 89 were from a backlog of test results confirmed over the last few days, the CECC said. With the latest adjustments, "the overall trend (of new cases) is flat, and that is not a very good sign. The outbreak is plateauing, but we haven't seen (the numbers) begin to fall," Slight -VE
The Taipei city government has rolled out its COVID-19 relief package, ranging from tax exemptions to cash handouts and loans with reduced interest rates, the city government said in a statement on Friday +VE.
Families registered as residents of New Taipei City whose average monthly household income is less than NT$39,000 (US$1,407) per person will be entitled to receive a one-time emergency living allowance of NT$10,000 per household, if they meet certain conditions, the city government said on Friday. +VE
The Taipei City Government held drills on Sunday to simulate the implementation of a level 4 COVID-19 alert, which simulated the closing of businesses, movement restrictions for people and vehicles, changed public transportation operations, and the sale of essential goods.
Taipower said that it generally expects a peak in July, but this month has been hotter and drier than normal, putting more strain on the grid. It reached a record high for a second day in a row yesterday, rising to 38.40 gigawatts (GW) as a combination of high temperatures, a strong economy and people working and learning from home pushed usage past a previous high in July last year. Solar power helped Taiwan through friday’s peak, adding more than 3,000 megawatts between 10:30am and 1:30pm, or 8 to 9 percent of the power in the grid, providing stability when it was needed most, he said. Taipower hopes that with the approach of a monsoon weather front, power demand will decrease as temperatures drop, but people must still conserve electricity this summer, Chang said. Slight -VE on threat of outages to manufacturers.
Six U.S. lawmakers introduced a bill Friday (May 28) to further improve Taiwan ties and rename the nation's representative office in Washington as the Taiwan Representative Office in the United States — which would likely spark trouble with China.
Hon Hai Precision said Friday that its production base located in Bac Giang, northern Vietnam, reopened the day after a brief suspension as a vaccination program launched for the Vietnamese province eased concerns over COVID-19 infections +VE.
Foxconn Technology Group is in talks to buy a stake in Malaysian technology firm Dagang NeXchange Bhd (DNeX) after losing to it in bidding for a semiconductor company, people familiar with the matter said. It could take a minority stake in DNeX and help to expand the business of its chipmaker, SilTerra Malaysia Sdn, one of the people said, asking not to be identified as the matter is private.
Phison Electronics Corp a supplier of NAND flash memory controllers and modules, rallied 1.63 percent Friday, snapping two straight losing sessions after it unveiled a NT$607.86 million (US$21.89 million) real-estate investment. The expansion plan reinforced Phison’s optimism about demand for memory chips as the Miaoli County-based company said it seeks to capture new growth opportunities after a “super boom cycle” in the semiconductor industry. +VE
Local life insurance companies’ cumulative hedging expenses and foreign-exchange losses rose 60 percent from March to NT$97.8 billion (US$3.52 billion) as of the end of last month amid rapid appreciation of the New Taiwan dollar against the US dollar, Financial Supervisory Commission data showed. -VE
CPC Corp, Taiwan (CPC) and Formosa Petrochemical Corp Sunday announced that they would raise gasoline prices by NT$0.2 per liter this week after prices rose NT$0.1 per liter last week. Diesel prices would increase by NT$0.3 per liter this week after prices were kept unchanged last week, the two companies said.
Expect market to open flat but key will be the pre market data will be a big influence. Concerns over the strength of the Yuan and inflation remain. Team China remains the wild card and as July 1 approaches I would expect to see more support.
Data due pre market
Manufacturing PMI May (Apr was 51.1 F/cast is 51.2)
Non Manufacturing PMI May (Apr was 54.9 F/cast is 54)
China confirmed 16 additional COVID-19 cases, including two local infections in Guangdong, reported by the National Health Commission. Guangdong is reported to be in high gear to quash coronavirus outbreak. Authorities ramp up screening for pathogen to contain cases as key political events loom. Infections raise questions for possible reopening of border with Hong Kong
The rapid appreciation of China's yuan against the US dollar may have overshot and will not be sustainable, a former central bank official said in an interview with state media Xinhua News yesterday. The PBOC-backed Financial News also warned yesterday of the potential factors that would lead to a depreciation of the yuan against the dollar, including policy changes by the US Federal Reserve, a strong revival of the US economy, control of the Covid-19 pandemic and bursting of US asset bubbles.
China is not on a mission to establish a “sphere of influence” through its cooperation with central and eastern European countries, Chinese Foreign Minister Wang Yi said after talks on the weekend with his Serbian and Polish counterparts. The meetings in Guiyang in southwestern Guizhou province are among several Wang will have with the foreign ministers of Ireland, Poland, Hungary and Serbia over three days. It is China’s first face-to-face engagement with the European countries in the wake of the stalled discussion in the European Parliament of its landmark investment deal with Beijing. I doubt many believe that statement -VE
Australia's Prime Minister Scott Morrison arrived in New Zealand on Sunday for high-level talks hours after the country's government chose to support Canberra in its dispute with China on barley tariffs, signalling good will to work on differences in how to approach Beijing.
Chinese financial watchdogs have called for tougher international oversight to stop big flows of hot money across borders in the aftermath of the coronavirus pandemic. Addressing the International Finance Forum in Beijing over the weekend, regulators also vowed to have zero tolerance for market manipulators.
US bars seafood imports from Chinese company Dalian Ocean Fishing over forced labour suspicions. Indonesian workers hired onto Dalian’s vessels have been subjected to physical violence, debt bondage and other abuses, the US says. This is the first such action by US customs against an entire fleet, as opposed to targeting individual vessels -VE
China is pressing the country’s largest online audio platform Ximalaya to drop plans to list in the United States and go for Hong Kong instead, three people with knowledge of the matter said, showing how the authorities are seeking to further tighten their grip over private media and internet businesses. Ximalaya, the country’s top podcast and audio app operator which aimed to go public in New York as soon as this month, has recently been pushed by China’s regulators, including the Cyberspace Administration of China (CAC), to withdraw the listing plans and go public in Hong Kong instead, they said. The privately-owned company, backed by tech majors Tencent, Xiaomi, Baidu and Sony Music Ent, is still in talks with the CAC, the sources said.
China’s Full Truck Alliance - which styles itself as the country’s ‘Uber for Trucks’ - has made public filings to list on the New York Stock Exchange and aims to raise up to $1.5 billion, sources with direct knowledge of the matter said.
Goldman Sachs said it no longer saw China as the center of commodities pricing, reasoning the pace of demand recovery in developed markets suggesting Beijing as a buyer has been crowded out by Western consumers. Believing demand is not about Chinese speculators or Chinese demand but developed market recovery. It said the immediate reason for the greater U.S. pricing power is the large U.S. fiscal stimulus that is absent in China, adding that China no longer benefits as much from its comparative advantage in low-cost labour and global trade. “This ultimately creates a weaker margin setting onshore. With scarcity starting to generate shortages and higher prices, the Chinese are the first consumers to be priced out”.
Beijing is looking into whether Sinopec Group, China National Offshore Oil Corp (CNOOC), Sinochem Group, ChemChina, and China North Industries Group - which together make up more than 60% of China’s total imports - have resold oil to other companies in the country. Also under examination is whether their imports have been processed at refineries under a tolling scheme that reduces the companies’ tax burden. The information request is part of a broader probe the Beijing began early this year into a growing domestic fuel surplus and lost tax revenues, partly because of unchecked flows of imported crude oil to refiners that are outside the country’s official quota system. -VE
China’s trial of Australian blogger Yang Hengjun on unspecified espionage charges has ended and the Beijing court deferred its verdict, Australian Foreign Minister Marise Payne said on Friday in what she called a “closed and opaque process”. “We consider this to be an instance of arbitrary detention of an Australian citizen,” she said. Yang’s lawyers, who include prominent Chinese human rights lawyer Mo Shaoping, have been forbidden from speaking to his family or the Australian government about details of the charges against him, or the nature of the evidence in the case. Chinese Foreign Ministry spokesman Zhao Lijian on Thursday accused Australia of meddling in China’s judicial sovereignty by seeking access to the court hearing. -VE for sentiment
Christopher Maier a nominee for a senior US Defence Department position has floated the idea of helping Taiwan
strengthen its ability to fight an irregular war, an idea seen as a prelude to providing more military support for Taiwan. During the same hearing, US Senator Josh Hawley also floated the idea of special operations forces aiding Taiwan, in a similar way American special forces helped Baltic nations strengthen their ability to resist Russian aggression.
China promises economic support for sanctions-hit neighbour North Korea. Foreign minister tells Pyongyang’s ambassador that Beijing will keep up strategic communication and boost cooperation. They also agree to strengthen coordination on the Korean peninsula situation, following last week’s Biden-Moon talksHONG KONG
ADR’s +22pts @ 29,146 with Chinese financial weak. Pre market Chinese data key but assuming its inline; expect an initial squeeze of recent shorts and with US and UK markets closed T/O is likely to be lighter than normal which could exaggerate moves. HK Property to see interest. E Commerce names also likely to see interest although the threat of more government legislation remains a concern.
No data due.
HK reported no new covid cases SundayShort Selling Friday 15.3% vs 17.5% Thursday
Top Shorts Country Garden (2007) 43%, Henderson Land (12) 38%, Bank Comm (3328) 37%, Petrochina (857) 36%, Sands China (1928) 35%, Shenzhou Int (2313) 33%, Haidilao (6862) 32%, Hengan (1044) 29%, Ping An (2318) 27%, BoC (3988) 27%, Mengniu Dairy (2319) 25%.BUYBACKS/INSIDER DEALING
FOSUN INTL (00656.HK) bought 1 million FOSUN PHARMA (02196.HK) shares on 25 May, at an average price of $59.9081 per share with the total amount involved being $59.908 million, according to HKEX News. After the purchase, FOSUN INTL's shareholding percentage rose from 13.87% to 14.05% .WATCH
MEITUAN-W (03690.HK) announced the results for the first quarter ended March 31, 2021. Loss expanded to RMB4.847 billion. Based on non-IFRS financial measures, the adjusted net loss amounted to RMB3.892 billion, meeting brokers' forecast Adjusted EBITDA was negative RMB2.383 billion.
The number of transacting users was up by 27 percent year-on-year to 569 million. The number of active merchants increased by 16.9 percent to 7.1 million.
New World Development (0017) received about 10,000 registrations of intent from potential buyers for the 182 flats in the first price list of the third phase of The Pavilia Farm atop Tai Wai Station as of 7pm on Sunday, making the batch nearly 54 times oversubscribed. The developer expects to launch sales over the weekend.
Henderson Land Development (0012) had sold 40 out of the 45 flats on offer at The Upper South in Ap Lei Chau as of 6.30pm yesterday.
Centaline Property Agency reported 21 secondary deals at 10 blue-chip housing estates over the past weekend, unchanged from last week.
MTR CORPORATION (00066.HK) announced special fare promotions to celebrate the commissioning of the TML full line. Passengers travelling on MTR domestic and cross-boundary journeys who enter or exit at Hin Keng, Kai Tak, Sung Wong Toi or To Kwa Wan stations can enjoy a fare discount. Adult Octopus holders can save $1 whilst other Octopus holders (including children, elderly, persons with disabilities and students) will enjoy a $0.5 fare discount.
Macau's 1Q GDP Dips 0.9% YoY in Real Terms; Gaming Service Exports Fall 20.7% Information from the Statistics and Census Service (DSEC) indicated that Gross Domestic Product (GDP) -0.9% YoY in real terms inQ1 2021, a milder contraction compared to the previous quarter (-45.9%).
Exports of services rebounded by 4.1% year-on-year, of which exports of gaming services fell by 20.7% while exports of other tourism services surged by 88.1%.
CHINA UNICOM (00762.HK) announced that the New York Stock Exchange filed Form 25 with the United States Securities and Exchange Commission on 7 May 2021 and the delisting of the Company’s American Depositary Shares became effective as of the beginning of the business on 18 May. In light of the delisting, the Company intends to file a Form 15F with the SEC to deregister the ADSs and terminate its reporting obligations under the Securities Exchange Act.
Convenience Retail Asia (0831) announced that Sabrina Fung Wing-yee, the daughter of major shareholder Victor Fung Kwok-king, and Terence Fung Yue-ming, the son of the chairman William Fung Kwok-lun, have been appointed non-executive directors, effective today. Each is entitled to receive a director’s fee of HK$200,000 a year.
The high court has told 803 fund established by former chief executive Leung Chun-ying not to stick its nose into other people's business. That came yesterday with the court refusing the 803 Fund's application for a judicial review in order to challenge what it claimed to be the Buildings Department's failure to enforce the law against illegal structures at former legislator Claudia Mo Man-ching's Repulse Bay home. Judge Anderson Chow Ka-ming noted that the fund had set up a hotline to report fugitives and it encouraged people to report what appeared to be breaches of the national security law.
HK Govt Files Written Submission to WTO on US Requirement on Origin Marking
Centa-City Leading Index (CCL) last tracked at 184.49, down 0.09% weekly.
CCL Mass sagged 0.56% weekly to 186.25.
CCL (mid-and-small units) faded 0.35% weekly to 184.20.
The research department of Centaline Property, said the three key CCL indices softened this week following five weeks of rally. CCL and CCL (mid-and-small units) held steady at 184, while CCL Mass stood firmly at 186. They did not expect property prices to be going south.
DOW +0.19%, NDX +0.09%, S&P +0.08%, Russel 2K -0.18%
Markets opened higher and traded sideways through the day, dipping into the close ahead of the long weekend.
Core PCE rose more that forecast but not as much as some had feared and the savings rate remains elevated. Spending was inline with forecasts. All of which means that the Fed is looking at a Goldilocks moment.
Senate Republicans presented a $928 billion infrastructure counteroffer to President Biden, well below Biden’s most recent proposal of $1.7 trillion, with clear differences on what constitutes infrastructure.
Salesforce +5% after Q1 earnings beat
Day trader names were volatile; AMC was the most active stock on the NYSE shooting up as much as 38% but closing -1.5%. 650m shares traded that is 1.5x its outstanding stock
GameStop erased earlier gains and closed -12.6%.
Banks Saw initial weakness but rebounded JPMorgan Chase -0.1%, Citigroup -0.1% Wells Fargo -0.1%, Amex +0.3%
Work from home names: Facebook -1.2%, Apple -0.5%, Amazon -0.2%, Netflix -0.2%, Disney -0.2%, Zoom Video +1.6%, Alphabet -0.3% and Microsoft +0.2%,
Tech NXP Semi +0.6%, Nvidia +4.9%, Micron +0.3%, AMD +2.1%, Skyworks -0.5%
Re-opening stocks Boeing -1.5%, Caterpillar -0.1%, Simon Property +0.2%, Kohl’s -2.2%, Nordstrom -2.2%, Gap -4.8%, United Airlines -1.3%, Carnival -1.5%, Wynn Resorts -0.6%, Chevron +0.8%, Exxon Mobil -0.3%,
Lock down names Campbell Soup +1.8% General Mills +0.9%, JM Smucker +0.6%DATA
Personal Spending Apr +0.5% MoM vs +4.7% Mar revised (F/cast was +0.5%)
Personal Income Apr-13.1% vs +20.9% Mar revised (F/cast was -14%)
PCE Price Index Apr +0.6% MoM vs +0.6% Mar revised (F/cast was +0.7%)
PCE Price Index Apr +3.6% YoY vs +2.4% Mar revised (F/cast was +3%)
Goods Trade Balance Adv Apr $-85.23b vs -91.98b Mar revised (F/cast was -91b)
Wholesale Inventories Adv Apr +0.8% vs +1.1% Mar revised (F/cast was +1.2%)
Core PCE Price Index Apr +0.7% MoM vs +0.4% Mar (F/cast was +0.3%)
Core PCE Price Index Apr +3.1% vs +1.9% Mar revised (F/cast was +2.6%)
Chicago PMI May 75.2 vs 72.1 Apr (F/cast was 69)
Michigan Data Final
Current Conditions May 89.4 vs 97.2 Apr (F/cast was 90.8)
Consumer Expectations May 78.8 vs 82.7 Apr (F/cast was 77.6)
5 yr Inflation Expectations May 3% vs 2.7% Apr (F/cast was 3.1%)
Consumer Sentiment May 82.9 vs 88.3 Apr (F/cast was 82.8)
Inflation Expectations May 4.6% vs 3.4% Apr (F/cast was 4.6%)
Baker Hughes Oil Rig Count 359 vs 356 prior
Baker Hughes Total Rig Count 457 vs 455 prior
Presdients FY 2022 Budget $-1837b vs -966b priorUSD was slightly weaker vs Yen & Euro. Bitcoin -6.7% @ 36,179, VIX +0.1% @ 16.76,
US T10 @ 1.581% ticked lower despite the higher inflation data
OIL Brent +0.24%, WTI -0.79% A weekly gain with global recovery hopes outweighing new supply from Iran concerns
Gold +0.41%, Silver +0.45%, Copper +0.14% Platinum +0.45%, Palladium +0.76%. Gold closed above $1,900 as inflation ticks higher
Market closed re-opens TuesdayDAX +0.74%, CAC +0.75%, FTSE +0.04%
Markets opened higher FTSE traded sideways up small, DAX & CAC worked higher. Insurance stocks leading but all sectors in the green.
Euro zone economic sentiment climbed more than expected in May to a three-year high. French economy hit a technical recession. UN ICAO to investigate Belarus air piracy act as Russia blocks Air France and Austrian Airlines routes to avoid Belarus.
UK PM Johnson warned that the lifting of social distancing might be delayed past June 21. -VE Brewers, Hospitalityand leisure names.
Total +0.3% AGM proposed changing its name to TotalEnergies to signal its move toward cleaner energy sources, while facing pressure over its climate plan.
Banco de Sabadell -6.5% after releasing its three-year strategic plan.DATA
Consumer Confidence May -5.1 vs -8.1 Apr (F/cast was -5.1)
Consumer Inflation Expectations May 22.2 vs 19.6 Apr (F/cast was 22)
Economic May 114.5 vs 110.5 Apr revised (F/cast was 112)
Industrial May 11.5 vs 10.9 Apr revised (F/cast was 11.5)
Services May 11.3 vs 2.2 Apr revised (F/cast was 5.1)
Import Prices Apr +1.4% MoM vs +1.8% Mar (F/cast was +0.8%)
Import Prices Apr +10.3% YoY vs +6.9% Mar (F/cast was +9.7%)
Inflation Rate May +1.4% YoY vs +1.2% Apr (F/cast was +1.4%)
Inflation Rate May +0.3% MoM vs +0.1% Apr (F/cast was +0.3%)
GDP Growth Rate Final Q1 -0.1% QoQ vs -1.5% Q4 revised (F/cast was +0.4%)
Household Consumption Apr -8.3% MoM vs -0.3% Mar revised (F/cast was +1.5%)
PPI Apr -0.3% MoM vs +1% Mar (F/cast was +0.5%)
PPI Apr +7.3% YoY vs +4.6% Mar (F/cast was +8%)
GERMANY No data due
FRANCE No data due
UK Market closed re-opens Tuesday