Global Markets:
- Asian Stock Markets : Nikkei up 0.12%, Shanghai Composite up 0.95%, Hang Seng up 0.03% ASX down 0.22%
- Commodities : Gold at $2335.5 (0.03%), Silver at $29.48 (-0.44%), Brent Oil at $85.73 (0.59%), WTI Oil at $82.21 (0.87%)
- Rates : US 10-year yield at 4.400, UK 10-year yield at 4.212, Germany 10-year yield at 2.534
News & Data:
- (USD) Core PCE Price Index m/m 0.1% vs 0.1% expected
- (USD) Personal Income m/m 0.5% vs 0.4% expected
- (USD) Personal Spending m/m 0.2% vs 0.3% expected
- (CAD) GDP m/m 0.3% vs 0.3% expected
Markets Update:
Asia-Pacific markets began the second half of the year with mixed performance as investors evaluated June business activity data from China and Japan’s business confidence readings. China’s official PMI figures showed the manufacturing PMI at 49.5, unchanged from May, marking its second consecutive month in contraction territory. In contrast, a private survey indicated the sharpest improvement in manufacturing conditions in three years, with the S&P Caixin PMI rising to 51.8 in June from 51.7 in May.
On Monday, Japan revised its first-quarter GDP contraction to 2.9% year on year, up from the previously reported 1.8%. GDP data for the third and fourth quarters of 2023 were also revised downward. Japan’s Nikkei 225 rose 0.26% to a three-month high, while the broader Topix increased by 0.49%. Confidence among large Japanese manufacturers improved in the second quarter, with the Bank of Japan’s Tankan survey at +13 compared to +11 in the first quarter. Economists surveyed by Reuters had predicted a +12 reading.
South Korea’s Kospi was flat, but the small-cap Kosdaq advanced by 0.76%. The country’s factory activity expanded at its fastest pace since February 2022, with its June manufacturing PMI rising to 52.0 from 51.6. Mainland China’s CSI 300 edged down slightly, while Australia’s S&P/ASX 200 fell by 0.23%. Non-manufacturers’ sentiment in Japan stood at +33, matching market forecasts but down from +34 in the previous quarter, marking the first decline in non-manufacturers’ confidence in four years.
Hong Kong markets were closed on Monday for a public holiday. In the U.S., all three major indexes fell overnight as traders analyzed a “near perfect” set of inflation data, according to an industry expert. The S&P 500 dropped 0.41%, the Nasdaq Composite declined 0.71%, and the Dow Jones Industrial Average decreased by 0.12%. Both the S&P 500 and Nasdaq Composite hit new all-time intraday highs earlier in the session before pulling back.
Upcoming Events:
- 6:00 PM GMT – USD Final Manufacturing PMI
- 6:30 PM GMT – GBP Final Manufacturing PMI
