ASIA:
In May, Asian bonds experienced a significant increase in foreign investments, with the highest monthly inflows in nearly two years. This surge was driven by expectations of a more moderate approach to monetary tightening by the U.S. Federal Reserve. Data from regulatory authorities and bond market associations revealed that foreign investors bought a net total of $10.1 billion worth of bonds in countries such as India, Indonesia, Malaysia, South Korea, and Thailand. This marked the largest monthly purchases since June 2021. Notably, South Korean bonds attracted the most attention with net purchases of $8.2 billion, while Malaysia and Indonesia received inflows of $652 million and $500 million, respectively. Indian and Thai bonds also saw inflows of around $400 million each. Analysts highlighted that investors were optimistic due to indications that regional economies had reached their peak inflation levels. This led to expectations of interest rate cuts by central banks to stimulate economic growth.
The major Asian stock markets had a mixed day today:
The major Asian currency markets had a mixed day today:
Precious Metals:
No economic news from last night:
Some economic news from today:
Japan:
BoJ Core CPI (YoY) increased from 2.9% to 3.1%
EUROPE/EMEA:
According to sources, European Central Bank (ECB) policymakers are unlikely to pause their streak of interest rate hikes this summer, despite indications of sluggish economic growth and persistently high inflation. In conversations at the ECB’s annual forum in Sintra, Portugal, most rate-setters expressed expectations of raising borrowing costs at both the July and September meetings. The ECB recently increased interest rates to their highest level in 22 years and stated that another rate hike in July was highly likely, as it projected inflation to remain above its 2% target until the end of 2025. Some policymakers, both on and off the record, suggested that a rate hike at the ECB’s September meeting, which would raise the deposit rate to 4.0%, was more probable than not due to elevated measures of underlying price pressures.
The major Europe stock markets had a green day today:
The major Europe currency markets had a mixed day today:
No economic news from Europe today:
US/AMERICAS:
US home prices rose for the third straight month in April 2023, according to the S&P CoreLogic Case-Shiller US National Home Price Index. The National Composite rose by 1.3% in March, and now stands only 3.6% below its June 2022 peak. The 10- and 20-City Composites performed similarly, with March gains of 1.6% and 1.5%, respectively. The modest increases in home prices seen in March accelerated in April 2023. The national index posted a month-over-month increase of 0.4% after seasonal adjustment, and before seasonal adjustment, the National Index posted a 1.3% month-over-month increase. The median existing-home price for all housing types was $375,700, a decline of 0.9% from March 2022. Home prices are rising on a year-over-year basis, although the amount of that price growth has been getting smaller for the past several months
US Market Closings:
Canada Market Closings:
Brazil Market Closing:
ENERGY:
The oil markets had a negative day today:
The above data was collected around 14:10 EST on Tuesday
The above data was collected around 14:17 EST Tuesday.
BONDS:
Japan 0.374% (+2bp), US 2’s 4.75% (+0.020%), US 10’s 3.7639% (+4.49bps); US 30’s 3.84% (+0.016%), Bunds 2.356% (+5.6bp), France 2.879% (+4.6bp), Italy 3.993% (+4.8bp), Turkey 16.34% (+13bp), Greece 3.582% (+1.3bp), Portugal 3.064% (+4.1bp); Spain 3.321% (+5bp) and UK Gilts 4.375% (+7.4bp).
The post Market Talk – June 27, 2023 first appeared on Armstrong Economics.
