- Fed's George recap - sees Fed policy interest rate near 2% by August
- More bad news ahead? Snap could be canary in the coal mine for broader internet sector
- Recap of comments from Fed's Daly - says she does not expect a recession
- RBNZ to hike cash rate by 50bp tomorrow - Wednesday 25 May 2022
- PBOC sets USD/ CNY central rate at 6.6566 (vs. estimate at 6.6576)
- UBS has slashed its forecasts for China economic growth also
- Japan finance minister Suzuki says will take serious action in response to rising prices
- Japan preliminary Manufacturing PMI for May 53.2 (prior 53.5) & Services 51.7 (prior 50.7)
- Further China support for Russia - wants to erode dominance of USD
- More from Fed's George says wants to see a convincing fall in inflation
- US Trade Representative Tai says still working on next trade actions with China
- JP Morgan downgrade China economic growth forecast, again. Project large contraction.
- China coronavirus - Shanghai reports 480 new local cases (all in quarantine)
- Kansas City Fed’s annual symposium at Jackson Hole is scheduled for August 25-27
- Fed's George says while inflation is clearly decelerating it could jump again
- Australian weekly consumer confidence rises to 90.8 (still very pessimistic)
- China Securities Journal says there may be an issue of special sovereign bonds
- Australia preliminary PMIs for May: Manufacturing 55.3 (prior 57.9) Services 53.0 (56.6)
- New Zealand Q1 2022 retail sales -0.5% q/q (prior +8.6%)
- Fed's Daly says the US economy has a lot of momentum
- ICYMI - Biden and Yellen will discussa review of US tariffs on China
- US equity index futures Globex reopen lower - SNAPped back (down) to reality
- SNAP shares getting slammed after firm warns on deteriorating economy
- Forexlive Americas FX news wrap: Stocks off to a good start to the week. Dollar weakens
- Morgan Stanley are projecting a range-bound EUR/GBP over the medium-term
- Trade ideas thread - Tuesday 24 May 2022
- The UK is preparing plans for a 'windfall tax' on electricity generators
- Russia's Lavrov says economic ties with China will strengthen faster
- Biden is considering environmental waivers to lower gasoline prices
- JP Morgan (quants) modelling shows a 41% probability of US recession
After the US market cash equity market closed Snapchat owner Snap warned of deteriorating macroeconomic trends and said it is unlikely to fulfil revenue and profit estimates for the second quarter. From a company filing:
- "the macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range".
SNAP shares dropped over 20% and the fall was contagious, tech leaders Meta and Alphabet both dipped, as did many others. The NASDAQ gapped lower upon its reopen for (US) evening trade:
As the morning in Asia progressed the USD gained ground. AUD, NZD and CAD all fell notably against the big dollar. As did GBP and EUR. USD/JPY popped briefly above 128.00 before dropping back to be, as I update, little changed for the session.
Data releases were relatively minor. NZ retail sales for Q1 came in down q/q following the very strong rebound in the previous quarter. Preliminary PMIs from Australia and Japan for May remained above the 50 line, all in expansion.
Federal Reserve Kansas City President George spoke. Her comments gave no hints any departure from the expected path ahead for two consecutive 50bp rate hikes.
