- New York Fed President Williams is speaking on Monday 27 June 2022
- ECB central bank forum opens today, Monday 27 June 2022 - Lagarde to speak
- Ecuador says its oil output may stop completely in 48 hours
- China Industrial profits data for May: -6.5% y/y (prior -8.6%)
- China COVID update - Macau records 357 new cases
- PBOC sets USD/ CNY reference rate for today at 6.6850 (vs. estimate at 6.6819)
- AUD and NZD have turned down sharply from earlier highs
- Early indicators suggest that China’s economy showed some muted improvement in June
- Crude is dripping lower
- Bank of Japan Summary of Opinions at the Monetary Policy Meeting, June 2022
- KPMG warn there is a significant risk of a UK recession, with risk to the downside
- ICYMI - IMF slashes US growth forecast, says the US will "narrowly" avoid a recession
- Goldman Sachs' forecast is for the S&P 500 to end the year at 4,300 (consensus of 4,650)
- Gold price higher - over the weekend the G7 banned imports of Russian gold
- Russia is poised to default on its debt - 26 June 2022 deadline
- Trade ideas thread - Monday 27 June 2022
- G7 will ban imports of Russian gold
- BIS warns that the global economic indicators are "flashing red", real risk of stagflation
- Oil price cap - G7 leaders discussed plans to reduce Russian revenues from oil exports
- Iran launched a rocket into space ahead of expected nuke talks
- Canada's Finance Minister Freeland said Canada still has a path to a "soft landing"
- Jim Simons: Manager of the most-successful hedge fund ever, talks about his career
- Five EU countries seek to delay the EU ban on petroleum-powered cars
- China COVID update. Beijing further relaxes curbs, Shanghai declare victory ... but ...
- IMF lowers US growth forecasts. Sees 2.9% this year, down from 3.7%
- More from Daly: Markets have priced in 75 bps in July, let's get that increase in
- Forexlive Americas FX news wrap: Market senses a less-hawkish Fed
T here were decent moves in financial markets to open the week here in Asia, with solid two-way traffic. Early moves in FX saw the USD mainly fall. EUR, AUD, NZD, GBP all gained against the dollar.
That better tone continuing from Friday’s US-time better tone was soon rejected though, as the focus turned to reports out of the IMF and BIS on Friday and over the weekend ringing alarm bells on the risks of recession. Into the Tokyo morning USD/JPY began a steady decline. EUR, AUD, NZD, GBP all fell away alongside, hence sharply lower yen crosses. Oil dropped, as did US equity index futures upon the week's trade opening on Globex.
As opening time in China approached the tone then improved! USD/JPY retraced some of its loss, as did AUD etc. against the USD. Oil recovered its earlier losses and, as I post, is net up on the session so far. News out of Ecuador indicates further supply issues ahead.
Chinese equities gained. The Hang Seng is up more than 2%. China was helped by another large injection of funds from the People's Bank of China in open market operations just prior to the local open.
On the data front it was a light day. China's industrial profits fell m/m in May, but not as much as they had fallen in April. They are still up YTD y/y.
From the Bank of Japan we had the 'summary' of the June meeting, not adding a real lot to what we already knew from this unchanged policy meeting. Board members did express concern about a sharply falling yen though.
Oil - weak early then higher:
