- Goldman Sachs says if the US debt limit agreement passes Congress it trims GDP slightly
- ICYMI: Oil - Wall Street Journal says "Tensions are rising between Saudi Arabia & Russia"
- Japan says its ordered preparation for destruction of any North Korean missile
- PBOC sets USD/ CNY reference rate for today at 7. 0575 (vs. estimate at 7.0574)
- UBS expect a Reserve Bank of Australia rate hike in July
- Warnings in China over "negative down payments" for home, property buying,
- Weekend data - China Industrial profits in April down 18.2% y/y (March was -19.2% y/y)
- US President Biden is delivering remarks on the debt limit agreement - "Good news"
- BoA says an FOMC rate hike in June is a close call, Fed needs 3 conditions to be met
- ICYMI: IMF has told the Federal Reserve to hike more, and quickly, and then hold 'em high
- Weekend - Fed's Goolsbee welcomed news of a deal on US debt ceiling
- Trade ideas thread - Monday, 29 May 2023
- Monday morning open levels - indicative forex prices - 29 May 2023
- The US debt ceiling deal is done. Here are the details
The big news to kick off the week was the debt limit agreement reached over the weekend in the US:
The news acted as support for risk asset trades. Moves were not large, however US equity index futures are higher to begin the new week while the USD is a little weaker. AUD, NZD, EUR all gained during the session. Again, moves were not large.
The yen found some support. North Korea informed Japan it’d be launching a satellite in coming days (NK specified a time window of May 31 to June11). Japan objected, Prime Minister Kishida said any missile launch, even if called a satellite, is a serious violation of the UN Security Council Resolution. Chief Cabinet Sec. Matsuno says a launch would be a threat to Japan’s security.
The data calendar in Asia was empty today. Interest and liquidity was lessened due to the upcoming Europe/UK/US holiday today.
Asian equity markets:
Japan’s Nikkei 225 +1.3%
China’s Shanghai Composite +0.2%
Hong Kong’s Hang Seng -0.2%
South Korea’s KOSPI was closed for a holiday today
Australia’s S&P/ASX 200 +1.1%
US S&P500 futures gapped higher:
