RANsquawk

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  • Geopolitical tensions mount amid further missile testing from North Korea. North Korea aims to create an ICBM capable of hitting the US this year
  • Asian equities pared initial Korea-inspired losses. JPY strengthened on early safe-haven flows, pushing USD/JPY briefly below 113.00
  • Looking ahead, highlights include Eurozone and UK service PMIs and FOMC...
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  • RBA maintained its cash rate target at 1.5%, however defies hopes of a more upbeat outlook.
  • Hong Kong stocks underperforms while North Korea yet again conducts another missile launch.
  • Looking ahead, highlights include Riksbank rate decision, Fonterra dairy auction.

ASIA

Asia initially traded mixed as the region took a cue from Wall St. where the DJIA edged fresh...
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The Riksbank is expected to keep its interest rate unchanged at -0.50% with all analysts surveyed by Reuters expecting that to be the case. The central bank is also not expected to make any changes to its QE programme at the meeting.

The economy has been performing relatively well recently with inflation higher than the central bank expected, however, Nordea think this will be disregarded as they “will do their utmost to avoid inflation settling at too low levels”. Inflation remains below the Riksbank’s...
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  • Asian equities traded in an indecisive manner with modest support seen for the Nikkei 225 post-Tankan data
  • Most major currencies pared recent gains against the greenback as the USD-index further recovered from 9-month lows
  • Looking ahead, highlights include Eurozone, UK and US mfg PMIs, US ISM and construction spending.

ASIA

Asia traded mixed following a...
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  • Haven currencies benefited from the risk averse tone overnight, with USD/JPY tracking below 112.00
  • Firmer than expected Chinese Mfg. PMI fails to lift sentiment in Asia, while Japanese inflation remains subdued.
  • Looking ahead, highlights include UK GDP, US PCE and Baker Hughes rig count.

ASIA

Asia stocks traded in a sea of red amid month-, quarter- and half-year...
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  • Haven currencies benefitted from the risk averse tone overnight, with USD/JPY tracking below 112.00
  • Firmer than expected Chinese Mfg. PMI fails to lift sentiment in Asia, while Japanese inflation remains subdued.
  • Looking ahead, highlights include UK GDP, US PCE and Baker Hughes rig count.

ASIA

Asia stocks traded in a sea of red amid month-, quarter- and half-year...
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  • Asian equities traded with little direction after losses seen on Wall Street which were led by tech and healthcare names
  • Most FX majors continued to gain against the greenback, with commodity linked currencies outperforming during Asia trade
  • Looking ahead, highlights include US Trade data, pending home sales, DoEs and a slew of central bank...
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  • Asian equities traded with little in the way of firm direction in what was a relatively data and news-light session
  • A relatively quiet tone persisted in FX markets with the USD-index range-bound to hold above 97.00
  • Highlights include BoE’s FSR, ECB’s Draghi, Coeure, Praet, Fed’s Yellen, Williams, Harker and Kashkari

ASIA

Asia equities traded mixed...
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  • UK PM May is set to publish a 15 page document today detailing how she intends to protect the rights of 3.2mln EU nationals residing in Britain
  • Asian equities traded higher across the board after a positive close on Wall Street on Friday with macro newsflow otherwise light
  • Looking ahead, highlights include German IFO, US Durables and ECB’s...
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Click here for the RANsquawk Week Ahead Eco Preview, 26 to 30 June 2017

FEDERAL RESERVE

• The abundance of Fedspeak last week did little to persuade the market to shift towards the FOMC’s hiking trajectory – which has pencilled in seven additional 25bps hikes tspanough the end of 2019; Fed Funds Futures, on the other hand, see just two more hikes over that...
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The RANsquawk Weekly G10 Central Bank Monitor can be accessed here

NORTH AMERICA

MON 26 JUN 2017 - 1330BST: US DURABLE GOODS ORDER (MAY, PRELIM)

Forecast: -0.7% vs prev. -0.8%; ex-transport seen 0.3% vs prev. -0.5%. The headline weakness is likely to come on the back of softer orders from Boeing, which reported...
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  • UK PM May unveiled proposals for EU citizens at the Brussels summit including a proposal that would allowed 3 million EU citizens to stay in the UK Permanently
  • Asian equity markets lacked impetus amid quiet newsflow and after a subdued Wall St. close in which stocks posted a 3rd consecutive day of losses
  • Looking ahead, highlights include Eurozone PMIs, Canadian CPI, Fed’s Bullard, Mester and...
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  • UK PM May is facing a constitutional crisis after Labour and the Liberal Democrats tspaneatened to use the House of Lords to water down Brexit
  • NZD which was lifted by the RBNZ after it kept rates unchanged as expected and suggested an optimistic tone on growth
  • Looking ahead, highlights include Norges Bank rate decision, US weekly jobs and Fed’s...
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The RBNZ is scheduled to release its latest rate decision today at 2200BST/1600CDT/0500HKT in which consensus is one-sided for the OCR to be kept on hold at the record low 1.75%, with all 26 economists surveyed unanimously forecasting no changes in rates.

Expectations for the central bank to stand pat tspanoughout the near-term and maintain a neutral tone were solidified at the last meeting, after Governor Wheeler explicitly stated that the RBNZ is neutral on policy and expects the OCR to remain at the...
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  • The DUP is reported to have tspaneatened to walk away from talks with the Conservative party over forming a government
  • Asian equity markets traded mostly negative following the downbeat Wall St. close, where energy lagged
  • Looking ahead, highlights include UK PSNB figures, US existing home sales, DoEs

ASIA

Asia equity markets...
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  • Asian equities saw little in the way of firm direction with the Nikkei 225 supported by a softer JPY and the ASX hampered by commodities
  • USD held on to the gains spurred by hawkish comments from Fed's Dudley. EUR/USD and GBP/USD firmly below 1.1200 and 1.2800 levels respectively
  • ...
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  • Today sees the beginning of UK-EU Brexit negotiations with UK press suggesting a potential tspaneat to May’s leadership
  • French President Macron’s party and allies won a parliamentary majority with over 300 seats of the total 577-seats.
  • Looking ahead, highlights include the beginning of UK-EU Brexit negotiations, ECB’s...
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RANsquawk Weekly G10 Central Bank Monitor can be accessed here

NORTH AMERICA

TUE 20 JUN 2017 - 1330BST: US CURRENT ACCOUNT BALANCE (Q1)

Forecast: The deficit is seen narrowing to USD 124.9bln vs a deficit of 112.4bln prior.

WED 21 JUN 2017 - 1500BST: US EXISTING HOME SALES (MAY)

Forecast:...
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RANsquawk's Eco Week Ahead can be accessed here

FEDERAL RESERVE

• As expected, the FOMC hiked rates by 25bps to 1.00-1.25% – the second hike of 2017, and the fourth in the current tightening cycle. Minneapolis Fed President Neel Kashkari was the lone dissenter, once again.

• The revisions to its economic projections were mostly in-line with the...
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  • BoJ kept rates unchanged at -0.1% as expected and maintained QQE with Yield Curve Control as expected
  • Asian equities traded mostly higher across the board despite the negative lead from Wall Street. Nikkei 225 outperformed amid softer JPY
  • Looking ahead, highlights include US housing starts, Uni. Of...
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  • Fed hiked by 25bps as Exp. & outlined plans for balance sheet normalisation, expects inflation and growth to pick up
  • Subsequently seen as more hawkish than anticipated; support for US yields, USD, equities hampered before recovering into the close
  • Looking ahead, highlights include SNB & BoE rate decisions, US weekly...
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PREVIEW: BoE June Rate Decision and Minutes Release 1200BST/0600CST

  • Current BoE Base Rate: 0.25%, Asset Purchase Target: GBP 435bln of government securities and GBP 10bln of corporate debt.
  • Analysts expect the BoE to remain on hold this meeting with rhetoric from the minutes expected to have a neutral tone.
  • This meeting sees the release of the decision itself, the vote split and the minutes, but no Quarterly Inflation Report scheduled this...
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  • Asian equities traded with little in the way of firm direction despite tech names posting a rebound yesterday and the S&P 500 and DJIA posting record highs
  • FX markets were relatively quiet with the USD-index languished below the 97.00 level ahead of an anticipated ‘dovish hike’ by the Fed later today
  • Looking ahead, highlights include the UK jobs report, US CPI, DoEs and the FOMC rate...
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  • The FOMC is seen raising the FFR target by 25bps to 1.00-1.25%, but the main focus will be on the hike trajectory
  • Updated economic projections will be published, and there will be a post-meeting press conference with Chair Janet Yellen
  • Analysts aren’t expecting any dramatic changes in the Fed’s updated forecasts and ‘dot-plots’
  • Traders will be looking out for details on how the Fed intends to begin sspaninking its balance sheet
  • ...
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  • Asian equities managed to avoid further losses despite a continuation of tech-related selling pressure seen on Wall Street
  • In FX, USD/JPY nursed yesterday’s losses to test 110.00 to the upside, while EUR/USD languished after relinquishing the 1.1200 handle
  • Looking ahead, highlights include UK CPI, German ZEW, US PPI and API Inventories

ASIA

Asia sspanugged...
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+14 pips in the coffers for Don https://t.co/Vn0YtwzV3G