Archives of “June 2019” month

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Wilbur Ross: Trump and Xi may decide to reopen talks

  
  Analysis

US commerce secretary, Wilbur Ross, comments

  • G20 isn’t the forum for Trump and Xi to sign a final trade deal
  • Trump wants structural reforms in trade deal with China
  • Fed should reconsider last rate hike, which was at best premature
All I’m getting from the headline here is that talks are non-existent now and that even a Trump and Xi meetup later this month may not necessarily resolve that. If this headlineovernight is anything to go by, there isn’t much reason to be hopeful or optimistic for now.

Eurostoxx futures -0.6% in early European trading

  
Analysis, Global Indices

Slightly softer tones in early trades

  • German DAX futures -0.6%
  • French CAC 40 futures -0.4%
  • UK FTSE futures -0.4%
Part of the story for the declines here is catch up play to the performance of US equities overnight. European equities ended the session higher yesterday before US stocks surrendered their gains to end around flat levels for the day.
The other part of the softer start here is slight weakness in US equity futures and risk sentiment as we begin the session. E-minis are down by about 0.2% as Treasury yields are also weighed lower so that is helping to keep the yen and franc bid in the early European morning.

Nikkei 225 closes lower by 0.35% at 21,129.72

  
Analysis, Global Indices

Tokyo’s main index fails to breach the 100-day moving average

Nikkei 12-06

Japanese stocks are closing at their lows amid fresh protests in Hong Kong regarding the China extradition bill, which is weighing on sentiment in the region today. The Hang Seng index is languishing at its lows, down by 1.8% currently.

That and global trade tensions is starting to put a bit of weight on risk assets in the past hour with Treasury yields inching lower alongside US equity futures, which are down by nearly 0.2% as we begin the session.
This is helping to keep the yen a little bid with USD/JPY slipping to 108.35 now. As mentioned earlier, with little on the economic calendar, expect changes in the risk mood to be the notable market driver in the European morning.

China inflation data for May: CPI 2.7% y/y (expected 2.7% ) and PPI 0.6% y/y (expected 0.6%

  
Analysis, Economy

Chinese May month 2019 inflation

CPI 2.7% y/y , in line with the central esitiamte and its highest since Feb of 2018.
  • expected 2.7% y/y, prior 2.5%
  • 0.0% change m/m
PPI 0.6% y/y, in line
  • expected 0.6% y/y, prior 0.9%
  • +0.2% m/m
  Food CPI +7.7% y/y – I mentioned earlier 9a reminder ewlly) how higher pork prices are impacting on this component.
Non food is +1.6% y/y, much more subdued at the core measure.
more to come

Oil: UAE Energy Minister says OPEC close to reaching agreement on extending production cuts

  
Analysis, Crude

United Arab Emirates Oil Minister Al-Mazroui

  • OPEC members close to reaching agreement on extending production cuts
  • Says current oil inventories suggest curbs should remain in place
  • OPEC’s production deal should remain or be extended ‘at least until the end of the year’

OPEC meeting coming up on  June 25 and 26. Some what to expects:

  • Goldman Sachs on oil, OPEC, Russia, Saudi. Hard road ahead for extension of output pact
  • Russia’s Siluanov: If OPEC+ doesn’t reach an agreement, oil price may fall to $40

Call it a tie in the US stock market today

  
Analysis, US Market

Major indices close within shouting distance of the close from yesterday

Call it a tie betweent the buyers and sellers. That is because the major indices are ending the day within few points of unchanged on the day.

Although unchanged, it was more of a disappontment for the bulls. The Dow was up 185 points at the highs. The Nasdaq was up 86 points. The S&P was up aount 24 points at the highs.  So those gains were eroded through the day.
The final numbers are showing:
  • S&P fell -1.01 pointsor -0.04% at 2885.72
  • Nasdaq fell -0.603 points or -0.01% at 7822.56
  • Dow fell -13.70 points or -0.05% at 26048.98
Below are the high/low % changes and the closing %.  As you can see, the move above the 0% line was greater. So giving up those gains is a disappointment.
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