- PBOC leaves one-year loan prime rate unchanged at 3.70%, as expected
- Macau reports 34 positive covid cases
- UK June Rightmove house price index +9.7% y/y vs +10.2% prior
- New Zealand May Business NZ PSI 55.2 vs 49.2 prior
- BOJ offers to buy unlimited amounts of 5-10 year JGBs
- Decentralized protocol for lending Solana votes to take control of whale's account
- Weekend news: Macron loses parliamentary majority
- Weekend news: Fed's Waller backs another 75 bps in 'all-in' fight to lower inflation
- Petro wins Colombian election in a blow to petroleum industry
Markets:
- Gold up $4 to $1843
- S&P 500 eminis +10 points
- Shanghai Comp +0.1%
- WTI crude oil down 46 cents to $109.10
- EUR and CHF lead, USD lags
The market tried on a few different themes to start out the week but has settled into a US-holiday chop.
The early mode was optimistic as S&P futures opened 25 points higher and bitcoin climbed above $20,000 and through $20,700, which is above late-Friday levels. That was coupled with yen selling and a climb in oil prices.
The mood shifted when China came online. Worries about covid and the economy led to a sharp selloff in Chinese iron ore and other industrial commodities. For a time, that looked like it would spook the broader market. All the early moves were reversedand a cloud formed over markets.
More recently that's faded and markets have in a more-neutral position. It started with a bounce in China stocks and now the lone theme is some light USD selling.
The US is off for a holiday today and the calendar was light in Asia. The NZ data was low-tier and the PBOC decision unfolded as anticipated.
Expect crypto to remain lively but the data slate in Europe is light today as well so we might get the first taste of summer markets just as summer gets under way in the Northern hemisphere.
Eamonn will be back tomorrow.
