North American News
US stocks close near unchanged as early enthusiasm wanes
- Closing changes for the main North American markets
Excitement for AI gripped markets on Tuesday once again. Nvidia gained 3% and briefly was valued at more than $1 trillion, while meme stock C3 AI gained 33%.
Initially, all of tech soared but the mood soured throughout the day on economic worries.
- S&P 500 +0.1%
- Nasdaq Comp +0.3%
- Russell 2000 -0.3%
- DJIA -0.1%
Fed’s Barkin: There is uncertainty around where rates need to go
- Comments from Barkin
- Is seeing evidence that rates hikes are curbing demand
- There is more willingness among businesses to try to increase price and that will continue until demand falls
- Hope that rates can stay at a ‘neutral, normal’ level for some time, that would be healthy for the economy
- Commercial real estate strain appears focused in B and C quality office buildings in downtown areas, not the entire sector
US May consumer confidence 102.3 vs 99.0 expected
- US May 2023 consumer confidence data from the Conference Board
- Prior was 101.3 (revised to 103.7)
Details:
- Present situation index 148.6 vs 151.8 prior
- Expectations index 71.5 vs 71.7 prior
- 1 year Inflation 6.1% vs 6.2% prior
- Jobs hard-to-get 12.5 vs 10.6 prior
Dallas Fed manufacturing index -29.1 vs -23.4 prior
- Manufacturing survey from the Dallas Fed
- Prior was 23.4
- Output -1.3 vs +0.9 prior
Textile product mills
- We feel better now than we did a month ago about sales and the general environment. We have seen an increase in sales, particularly in our direct-to-consumer segment, although retail stores are down. I also think uncertainty has reduced. I feel that we have a better grasp on the “new normal” cost structure and don’t anticipate any new major shocks to the system.
Transportation equipment manufacturing
- There is nothing encouraging on the horizon. The war on fossil fuels and higher interest rates continue to make things worse. Doesn’t the Federal Reserve understand a higher interest rate is crushing banks?
US March CaseShiller 20-city house price index +0.5% m/m vs 0.0% expected
- US home price data from CaseShiller and from the FHFA
- Prior was +0.1% y/y
- Prices -1.1% y/y vs -1.6% expected
FHFA numbers — which are national rather than 20 cities:
- y/y prices +3.6% vs +4.0% prior
- m/m prices +0.6% vs +0.5% prior
Commodities
Gold extends rebounds from two-month low, hits fresh highs above $1,960
- Gold rebounds sharply as government bond yields decline.
- XAU/USD climbs $30 from monthly lows to reach five-day highs.
Gold price is rising considerably on Tuesday, supported by a decline in government bond yields. XAU/USD hit a fresh daily high at $1,962 before pulling back towards $1,950.
Earlier in the day, XAU/USD hit a two-month low of $1,931 at the beginning of the European session before jumping more than $30 in a rally that started after Spain’s inflation figures.
According to preliminary data, Spain’s Consumer Price Index (CPI) dropped 0.1% in May, against expectations of a 0.1% increase, with the annual rate falling from 4.1% to 3.2%. These figures could be anticipating a larger decline in Eurozone inflation, due to be released on Thursday. Germany will report April’s preliminary CPI data on Wednesday.
Meanwhile, US economic data will also take centre stage, with the focus on employment figures. ADP will release its report on Thursday, and Nonfarm Payrolls are due on Friday.
Bond yields are falling in Europe and the US, with the 10-year German bund yield standing at 2.37%, the lowest since May 18, and the 10-year Treasury yield at 3.73%, down 1% for the day.
Crude oil settles at $69.46
- The price is down -$3.21 or -4.42%
The price of crude oil settled at $69.46, down -$3.21 or -4.42%.The high reached $73.55. The low extended to $69.02. The 50% of the move up from the low from May 4th came in at $69.19. The price lows for the day also moved below the swing low from mid-June near $69.42, but the price settled just above that level. The price decline could not sustain momentum below that level.
Russia’s Novak says to discuss oil market situation with oil companies on 30 May
- Interfax reports on the matter
Novak endured a bit of a fiasco last week as seen here, but the latest headline above shouldn’t be anything too noteworthy. In any case, this does setup a reminder to the upcoming OPEC+ meeting on 4 June. That will be a weekend risk for oil traders, so just a bit of a heads up.
EU News
European equity close: UK markets suffer a steep loss
- Closing changes
It’s a mixed bag throughout markets today and even as US equities rally, European markets sold off. Closing changes:
- Stoxx 600 -0.3%
- German DAX -0.3%
- UK FTSE 100 -1.4%
- French CAC -1.4%
- Italy MIB -0.2%
- Spain IBEX -0.2%
Spain May preliminary CPI +3.2% vs +3.5% y/y expected
- Latest data released by INES – 30 May 2023
- Prior +4.1%
- HICP +2.9% vs +3.4% y/y expected
- Prior +3.8%
Eurozone May final consumer confidence -17.4 vs -17.4 prelim
- Latest data released by the European Commission – 30 May 2023
- Economic confidence 96.5 vs 98.9 expected
- Prior 99.3
- Industrial confidence -5.2 vs -4.0 expected
- Prior -2.6
- Services confidence 7.0 vs 10.2 expected
- Prior 10.5
ECB’s Šimkus says expects a 25 bps rate hike in June and July
- Remarks by ECB policymaker, Gediminas Šimkus
Well, the situation is still highly fluid but it is possible to see two more rate hikes before pausing by the ECB. Markets are seeing a peak in rates at about 3.68% now, which is somewhat consistent of two additional rate hikes at least.
SNB total sight deposits w.e. 26 May CHF 516.7 bn vs CHF 515.7 bn prior
- Latest data released by the SNB – 30 May 2023
- Domestic sight deposits CHF 505.2 bn vs CHF 504.5 bn prior
Eurozone April M3 money supply +1.9% vs +2.1% y/y expected
- Latest data released by the ECB – 30 May 2023
- Prior +2.5%
Other News
Japan top currency diplomat Kanda says officials are watching forex moves closely
- Remarks by Kanda after the emergency meeting between the BOJ, MOF, and FSA
- Important for currencies to move stably reflecting economic fundamentals
- Not focusing on any forex levels specifically
- Closely watching forex moves, will respond appropriately if necessary
Sunak to visit Biden at the White House on June 8
- White House confirms the earlier UK statement
UK Prime Minister Rishi Sunak will cross the Atlantic next week to visit President Biden at the White House. I wouldn’t expect any market moves on the meeting, which will touch on Ukraine, energy security, climate and Ireland.
Statement from White House Press Secretary Karine Jean-Pierre on the Visit of Prime Minister Rishi Sunak of the United Kingdom
President Biden looks forward to welcoming Prime Minister Rishi Sunak ofthe United Kingdom for an Official Working Visit to the White House on Thursday, June 8 to further deepen the close and historic partnership between the United States and the United Kingdom. Building on their recent engagements, the two leaders will review a range of global issues, including their steadfast support for Ukraine as it defends itself against Russia’s brutal war of aggression, as well as further action to bolster energy security and address the climate crisis. The President and the Prime Minister will discuss efforts to continue strengthening our economic relationship as we confront shared economic and national security challenges. They will also review developments inNorthern Ireland as part of their shared commitment to preserving thegains of the Belfast/Good Friday Agreement.
Cryptocurrency News
Cardano price rallies with surge in DEX volume and new meme coin launch
- Cardano price climbed nearly 8% since Friday alongside a spike in transaction volumes of decentralized exchanges.
- Cardano-based DEX Minswap’s transaction volume grew from $10 million to $72 million from May 1 to 30.
- The launch of SNEK and BANK meme coins contributed to the rising Cardano network activity.
Cardano-based decentralized exchange Minswap registered a large spike in transaction volume since the beginning of May. Between May 1 and 30, transaction volume surged from $10 million to $72 million.
The launch of two meme coins SNEK and BANK on the Cardano blockchain contributed to the rise in network activity on the Ethereum-killer chain.
Cardano-based DEXes and meme coins fuel ADA price rally
The Cardano blockchain registered a rise in its transaction volume in May. Transaction volume on Minswap, the largest DEX on the Ethereum-killer blockchain, climbed from $10 million at the beginning of May to $72 million on Tuesday.
Minswap is currently the largest DEX on the Cardano blockchain by Total Value Locked (TVL). The exchange holds upwards of $175 million worth of assets. A significant spike in activity on Minswap, therefore, influences the Cardano blockchain.
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