Following the losses in the West on trade concerns, the most of the region’s markets gave ground today. Hong Kong suffered the most as citizens continue to protest a proposed extradition bill. This is driving Hibor rates higher. They are currently at levels not seen since 2008. We all remember how well that year went.
Most sectors end the day red. Real estate, especially in Hong Kong and IT fell more than 1%. Materials managed an advance of c. 0.25%.
- Chinese inflation data for both overall CPI and PPI were inline with expectations. Food prices continue to accelerate gaining 7.7% y/y vs. the prior reading of 6.1%.
- Softbank -2.4% reacted to yesterday’s news a consortium of states filed an antitrust suit to block the T-Mobile/Sprint merger.
- China Tobacco +9.6% was on fire in its trading debut on the Hong Kong Exchange.
- After the local close, China released various lending data. New CNY loans for May are below expectations.
The European markets have been lower since the open. Any attempts to pare the declines have faltered at c. 0.3%. They are currently trading near the lows.
Boris Johnson “officially” declared his candidacy to head the U.K.’s conservative party. That is certainly no surprise or that matter, a secret. He caused the markets to wobble when he said a “no deal Brexit” is still an option. However, he went on to say that is not the preferred outcome.
The commodity markets are seeing crude tumble. The API data released after yesterday’s close showed an unexpected build in inventories of 4.85m barrels.
- Growth at BATS -5.0% for growth of e-cigarettes and other “next generation products” fell short of its FY guidance of 30-50% growth. The company says they “approached” the target during the H1 of the year and will accelerate during the H2.
- Q1 NI at Inditex-flat is inline with expectations. The company sees its FY LFL sales growing 4-6%.
- Reckitt Benckiser +1.4% is snagging Laxman Narasimhan from Pepsico to be its next CEO. He will replace Rakesh Kapoor effective Sept. 1st.
On Our Side of the Pond
- France’s Dassault Systemes -0.9% has agreed to purchase clinical trial software company, Medidata Solutions. The all cash bid is $92.25 per which below yesterday’s close of $94.75. However, the shares have risen from below $79 per share back in April when word the companies were conducting talks hit the tape.
- Lululemon’s results are due.
- U.S. DoE crude inventories and CPI are due.
Markets & Macro
|SK||Unemployment rate SA||May||4.10%||4.00%||4.10%||—|
|AU||ANZ Roy Morgan Weekly Consumer Confidence Index||9-Jun||—||114.6||116.9||—|
|JN||Core Machine Orders MoM||Apr||-0.80%||5.20%||3.80%||—|
|JN||Core Machine Orders YoY||Apr||-5.30%||2.50%||-0.70%||—|
|AU||Westpac Consumer Conf Index||Jun||—||100.7||101.3||—|
|AU||Westpac Consumer Conf SA MoM||Jun||—||-0.60%||0.60%||—|
|SK||Money Supply L SA MoM||Apr||—||0.80%||1.30%||—|
|SK||Money Supply M2 SA MoM||Apr||—||0.50%||0.80%||—|
|SK||Bank Lending To Household Total||May||—||KR843.6t||KR838.6t||—|
|FR||Private Sector Payrolls QoQ||1Q F||0.30%||0.50%||0.30%||—|
|SP||House transactions YoY||Apr||—||-3.10%||6.80%||—|
|SP||CPI Core MoM||May||—||0.10%||1.10%||—|
|SP||CPI Core YoY||May||—||0.70%||0.90%||—|
|SP||CPI MoM||May F||0.20%||0.20%||0.20%||—|
|SP||CPI YoY||May F||0.80%||0.80%||0.80%||—|
|SP||CPI EU Harmonised MoM||May F||0.20%||0.20%||0.20%||—|
|SP||CPI EU Harmonised YoY||May F||0.90%||0.90%||0.90%||—|
|CH||Aggregate Financing CNY||May||1450.0b||1400.0b||1360.0b||1359.2b|
|CH||Money Supply M2 YoY||May||8.60%||8.50%||8.50%||—|
|CH||New Yuan Loans CNY||May||1300.0b||1180.0b||1020.0b||—|
|CH||Money Supply M0 YoY||May||3.50%||4.30%||3.50%||—|
|CH||Money Supply M1 YoY||May||3.20%||3.40%||2.90%||—|
|US||MBA Mortgage Applications||7-Jun||—||26.80%||1.50%||—|
|IN||Industrial Production YoY||Apr||0.60%||—||-0.10%||—|
|US||CPI Ex Food and Energy MoM||May||0.20%||—||0.10%||—|
|US||CPI Ex Food and Energy YoY||May||2.10%||—||2.10%||—|
|US||CPI Core Index SA||May||262.28||—||261.735||—|
|US||CPI Index NSA||May||256.179||—||255.548||—|
|US||Real Avg Hourly Earning YoY||May||—||—||1.20%||—|
|US||Real Avg Weekly Earnings YoY||May||—||—||0.90%||—|
|US||Monthly Budget Statement||May||-$199.5b||—||-$146.8b||—|
|UK||RICS House Price Balance||May||-21%||—||-23%||—|