According to Macquarie’s Chief China Economist Larry Hu, China’s economic recovery from the pandemic is expected to expand, indicating that the country is not currently facing the same stagnation issues as Japan. However, recent economic data has disappointed investors who were hoping for a strong rebound in the world’s second-largest economy after the lifting of Covid restrictions in December. In April, youth unemployment reached a record high of over 20%. In a meeting led by Premier Li Qiang, the State Council, China’s top executive body, emphasized the need to improve the business environment and remove local barriers to market access. Additionally, the country plans to extend purchase incentives for new energy vehicles to stimulate consumption. It was acknowledged during the meeting that the foundation of China’s economic recovery is not yet solid.
The major Asian stock markets had a green day today:
The major Asian currency markets had a mixed day today:
Some economic news from last night:
Caixin Services PMI (May) increased from 56.4 to 57.1
Chinese Composite PMI increased from 52.9 to 55.6
Services PMI (May) increased from 55.4 to 55.9
Company Gross Operating Profits (QoQ) (Q1) decreased from 12.7% to 0.5%
Some economic news from today:
Nikkei Services PMI (May) decreased from 62.0 to 61.2
Bank of England policymaker Catherine Mann stated that Britain is facing a more significant inflation issue compared to the United States or the euro zone. The country is experiencing high headline price increases, and there are indications of persistent underlying pressures. Mann, who has been advocating for interest rate hikes since joining the Bank of England in 2021, also expressed concerns about potential financial market volatility as the global economy adjusts to higher borrowing costs. British consumer price inflation reached a 41-year high of 11.1% in October, and in April, it stood at 8.7%, the joint highest among major advanced economies alongside Italy. This led to a sell-off in the bond market as investors anticipated further rate increases by the Bank of England. Core inflation, which excludes volatile food and energy prices and is considered a better indicator of future inflation trends, reached its highest level on record at 6.8% last month. Mann suggested that leftover savings from the COVID-19 pandemic have helped households absorb price increases by companies, and the increased minimum wage, which rose by 9.7% in April, may have had cascading effects on higher pay scale.
The major Europe stock markets had a negative day today:
The major Europe currency markets had a mixed day today:
Some economic news from Europe today:
CPI (MoM) (May) increased from 0.0% to 0.3%
Spanish Services PMI (May) decreased from 57.9 to 56.7
Italian Services PMI (May) decreased from 57.6 to 54.0
French Services PMI (May) decreased from 54.6 to 52.5
German Services PMI (May) increased from 56.0 to 57.2
German Trade Balance (Apr) increased from 14.9B to 18.4B
S&P Global Composite PMI (May) decreased from 54.1 to 52.8
Services PMI (May) decreased from 56.2 to 55.1
Composite PMI (May) decreased from 54.9 to 54.0
Services PMI (May) decreased from 55.9 to 55.2
Apple hosted its annual Worldwide Developers Conference (WWDC) from June 5 to June 9, in an online format, with a special in-person experience at Apple Park on opening day. The event was free for all developers and highlighted the latest advancements in iOS, iPadOS, macOS, watchOS, and tvOS. The keynote address was available via Apple.com, the Apple Developer app, the Apple TV app, and YouTube, with on-demand playback available after the conclusion of the stream. Apple was expected to introduce a major update for iPhone users with iOS 17 and a redesigned interface for Apple Watch users with watchOS 10. The company announced its first new product since 2014, the Vision Pro.
US Market Closings:
Canada Market Closings:
Brazil Market Closing:
The oil markets had a green day today:
The above data was collected around 13:37 EST on Monday
The above data was collected around 13:46 EST Monday.
Japan 0.434% (+1.8bp), US 2’s 3.90% (+0.012%), US 10’s 3.7023% (+0.93bps); US 30’s 4.50% (-0.008%), Bunds 2.398% (+9bp), France 2.946% (+8.1bp), Italy 4.071% (+8.6bp), Turkey 13.44% (+123bp), Greece 3.804% (+10.6bp), Portugal 3.089% (+8.5bp); Spain 3.397% (+8bp) and UK Gilts 4.219% (+6.2bp).