Asia-Pacific markets largely fell on Monday in a week when the PBoC is broadly expected to cut its 1-year and 5-year Loan Prime Rates tomorrow while uncertainty is surrounding China’s economy and the scope of any potential stimulus. In an attempt to improve tense relations between the US and the Asian giant, Blinken is on a high-stakes diplomatic trip to Beijing, making him the highest level American official to visit Beijing since Biden became president, after a number of prominent figures from the corporate world ranging from Elon Musk to Jamie Dimon. Last week ended with a red day for US indices that anyway reached several major milestones: best week since March for the US500 and US100, up 2.6% and 3.3% on the week, 5 and 8 weeks in a row respectively. US30 posted its 3rd consecutive week of gains. Today US cash markets are closed for the Juneteenth Holiday.
- FX –The USDIndex is flat at 101.89 (+0.06%) and the greenback is quite volatile against the APAC currencies (AUD -0.17% at 0.6865, low at 0.6834; NZD –0.15% at 0.62238, low at 0.6205); USDCNH is back on the rise at 7.15 (+0.3%). EUR, Cable are flattish.
- Stocks – China –1.42%, HK -1.53%, Nikkei -0.93% (still hovering close to 33-year high). EU Futures in red (DAX -0.35%, FTSE -0.10%) as are the US ones (the 3 major benchmarks are all -0.15%). Last week added another rise to an impressive streak, NVDA added 10%, MSFT 4.7% and hit a record Thursday. On Friday though, several big tech names fell >1% (GOOGL, AMZN, AAPL).
- Commodities – USOil – -0.76% at $70.91. the spread against UKOil is at $4.80 up from $3.62 on 24th May, Gold – rejected $1968 last Friday, now trading at $1955. Metals are in the red.
Today – US Juneteenth holidays, CAD Industrial Product Price
Biggest FX Mover @ (06:30 GMT) AUDJPY (-0.44%) on a strong uptrend since 1st Jun, trading at 97.12 now. RSI sloped downward and overbought (76.9), MACD positive on the Daily timeframe. ATR (10) ticking slightly higher than 95.6 pips on average per day.
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Marco Turatti
Market Analyst
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