North American News
Closing changes: Nasdaq suffers a rare down day
- Finishing levels for the main equity markets in the US
Closing changes:
- S&P 500 -0.35%
- Nasdaq Comp -1.2%
- Russell 2000 +0.45%
- DJIA flat
Goldman Sachs downgrade Tesla to neutral today and that kicked off some profit taking in shares of TSLA, which fell 6%. Other high-flying mega tech names also struggled including NVDA -3.5%, META -3.3% and GOOG -3.0%.
US treasury auctions $42B of two-year notes at a high yield of 4.67%
- WI level at the time of the auction was 4.678%
- High-yield 4.67%
- WI level at the time of the auction 4.678%
- Bid-to-Cover 2.86X versus 6 month average of 2.71x
- Tail -0.8 bps versus a 6 month average of -0.2bps
- Directs (a measure of domestic demand) 18.2% versus 6 month average of 20.0%
- Indirect (a measure of domestic demand) 68.5% versus 6 month average of 61.9%
- Dealers:( dealers take the rest) 13.3% versus a 6 month average of 18.1%)
Wall Street Journal: “This Bull Market Is Just Getting Started, Traders Bet”
The Wall Street Journal have published a piece titled:
- This Bull Market Is Just Getting Started, Traders Bet
The journal uses the ‘euphoria’ word:
Bullish bets on artificial intelligence have boomed. More than 1.3 million call contracts on chip makers Nvidia changed hands on an average day in June, on track for the highest monthly total on record. Those volumes surpass the exuberance seen in November 2021, when the Nasdaq Composite reached its peak.
Dallas Fed June manufacturing survey -23.2 vs -29.1 prior
- Texas-area manufacturing survey
- Prior was -29.1
- Output -4.2 vs -1.3 prior
- New orders -16.6 vs -16.1 prior
- Prices paid for raw materials +1.4 vs +13.8 prior
- Prices paid for finished goods -1.9 vs +0.4 prior
- Capex +0.3 vs -3.7 prior
- Employment +2.2 vs +9.6 prior
- Company outlook -10.7 vs -22.3 prior
Fed’s Williams: Restoring price stability is of ‘paramount importance’
Canada May advance wholesale trade +3.5%
- Statistics Canada releases advance May data
- Advance manufacturing sales +0.8%
That’s a strong number on wholesale trade and was led by
- Motor vehicles and motor vehicle parts and accessories: +7.4%
- Machinery, equipment and supplies: +4.3%
- Miscellaneous goods: +12.5%
Commodities
Silver regains 200-day SMA jumping above $22.80
- XAG/USD sets a second day in a row of gains, jumping to a four-day high of $22.88.
- A cautious market mood ahead of central bankers’ speeches at the ECB’s Forum gives the Silver traction.
- Falling US yields make precious metals find demand.
On Monday, Silver reclaimed the 200-day Simple Moving Average (SMA) at $22.52 and soared to a high of $22.88. This surge in Silver prices can be attributed to a cautious market sentiment preceding the upcoming speeches from central bankers at the European Central Bank (ECB) Forum at Sintra. Furthermore, the declining US yields have led to increased demand for precious metals, further supporting Silver’s upward momentum.
Natural Gas price edges up as heatwave continues though participation declines
- Natural Gas makes higher highs as record temperatures mean more demand for use in powering air conditioning.
- Natural Gas futures data shows bullish interest waning, however, indicating the rally may be running out of steam.
- As price nears the key $3.000 MMBtu watershed, the entrenched long-term downtrend loses significance.
Natural Gas price trades a touch higher on Monday after pulling back from its highs. The commodity continues to be supported by hotter-than-usual weather in most of the US and Europe, which increases demand for Natural Gas used to power air conditioning. Gas prices may lack the energy to go much higher, however, as data from the futures market suggest falling market participation in the rally.
Natural Gas news and market movers
- Natural Gas price rises in the short-term due to increased demand for air conditioning as much of the US and Europe experience hotter-than-usual temperatures for this time of year.
- Gains may be limited, however, according to FXStreet Senior Analyst and Editor Pablo Piovano, who says the rise is accompanied by falling participation in the Gas futures market.
- “Natural Gas prices extended the recovery and advanced to multi-week highs past $2.70 on Friday. The strong uptick was accompanied by declining open interest, which pours some cold water over the likelihood of further gains in the very near term.” Said Piovano in a report analyzing CME data on Monday morning.
- Norwegian supply concerns, after outages at the Hammerfest LNG export terminal and the processing plants at Nyhamna and Kollsnes, had been supporting prices. However, the effect has been offset by projected weaker demand from faltering global growth, according to an analysis by ANZ bank cited on MarketWatch.
- Last week’s Purchasing Manager Index data was on the whole poor for most of Europe and the US, potentially indicating a weaker economic growth trajectory.
- Supply constraints also need to be read within the context of robust existing stocks, according to data from Gas Infrastructure Europe, cited by CNN, last week. A milder-than-expected spring has allowed stocks to accumulate, and European storage facilities remain relatively high, at roughly 73% full – a much higher level than the 56% average at the same time of the year over the past five years.
- Japan and South Korea have recorded much higher Gas stores recently. This, combined with concerns about Chinese growth, suggest Asian demand may not be as high as expected.
- The US Dollar Index is slightly down on the day which is likely providing some underpinning support for Natural Gas, given the inverse relationship between the two.
WTI crude oil settles at $69.37
- Up at $0.21 or 0.30%
WTI crude oilfutures are settling at $69.37. That’s up $0.21 or 0.30%. The high-priced theory reached $70.11. The low price extended to $68.71. Earlier in the Asia-Pacific session, prices moved higher following the brief Russian mutiny, but gains were capped as the uprising was quickly quashed.
EU News
European equity close: Eurostoxx lower for the sixth straight day
- Closing changes for Europe
- Stoxx 600 -0.1%
- German DAX -0.1%
- UK FTSE 100 -0.2%
- French CAC +0.3%
- Italy MIB +0.1%
- Spain IBEX +0.1%
UK CBI June retailing reported sales -9 vs -10 prior
- Latest data released by CBI – 26 June 2023
- Prior -10
SNB total sight deposits W.E. 23 June CHF 508.0 bn vs CHF 510.6 bn prior
- Latest data released by the SNB – 26 June 2023
- Domestic sight deposits CHF 496.6 bn vs CHF 499.9 bn prior
German inflation to slow further in coming months – Bundesbank
- The German central bank comments in its monthly report
- German economy has bottomed out
- A slight growth in GDP is expected in Q2
- German industry continues to largely weather decline in demand
Germany June Ifo business climate index 88.4 vs 90.7 expected
- Latest data released by Ifo – 26 June 2023
- Prior 91.7; revised to 91.5
- Current conditions 93.7 vs 93.5 expected
- Prior 94.8
- Outlook 83.6 vs 88.0 expected
- Prior 88.6; revised to 88.3
Ifo economist says storm clouds are forming for the German economy
- Remarks by Ifo economist, Klaus Wohlrabe
- Weak demand for industry, order backlog is falling
- Industry export expectations are noticeably down, global rate hikes are dampening demand
ECBs Simkus: At least one more rate hike required
ECB’s Simkus via CNBC is saying:
- At least one more rate hike is required.
Other News
Japan chief Cabinet secretary Matsuno says closely watching FX moves
- Remarks by Japan chief Cabinet secretary, Hirokazu Matsuno
- Important for exchange rate to move stably reflecting economic fundamentals
- Seeing sudden and one-sided moves in the FX market
- Closely watching the moves with high sense of urgency
Japan April leading indicator index 96.8 vs 96.8 prior
- Latest data released by the Japan Cabinet Office – 26 June 2023
- Prior 96.8
- Coincident index 97.3
- Prior 97.2
Putin: The organizers of the rebellion must know they will be brought to justice
- Putin comments in speech billed as ‘transformative’
- The organizers of the rebellion must know they will be brought to justice
- The organizers of the rebellion, having betrayed the country, betrayed those who were with them
- Most of Wagner are also patriots
- I promise those of Wagner who want to go to Belarus, I will keep my promise
- The Wagner military can conclude a contract with the Ministry of Defense, return home or go to Belarus.
- The choice is yours. I will keep my promise
Cryptocurrency News
BTC alternatives mark notable rises on the back of Bitcoin price retaining $30,000 support
- Bitcoin price rise resulted in a stellar recovery for the cryptocurrency’s alternates, with the likes of Bitcoin Cash, Bitcoin SV and Zcash noting a 20% to 100% increase in value.
- BTC price has restricted its movement to sideways after breaching the $30,000 mark, keeping hopes up of a potential rally
- Net unrealized profits of BTC holders have risen by 14% since the recovery began on June 15.
Bitcoin price has propelled the market into a recovery mode, with many altcoins charting remarkable rallies. The few cryptocurrencies that benefitted the most from this turned out to be the ones that were built as an alternative to Bitcoin, forked from its code.
XRP sees inflow of $240,000 in a week as crypto funds record largest influx of capital in 2023
- Crypto investment products observed the largest inflow of capital since July 2022, a total of $199 million from institutional investors.
- XRP funds observed a total inflow of $240,000 last week, according to a CoinShares report.
- XRP price has remained largely unchanged over the past week, the altcoin is gearing up for a recovery.
CoinShares, a firm that offers physically-backed Exchange Traded Products (ETPs) in Europe, published a report early on Monday revealing that XRP investment products observed an inflow of $240,000 from institutional investors over the past week.
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