General trend
- Asian markets were mostly flat, with the exception of the Nikkei up 0.7% and in particular the Hang Seng up over 3.0% at one point in morning trading on the Alibaba news.
- Alibaba restructuring news after the Hang Seng closed yesterday helped Alibaba ADRs go higher 14% overnight.
- [Alibaba: Confirms new organizational and governance structure into 6 units; Each to have the flexibility to raise outside capital and potentially to seek its own IPO] Will Ant Financial be allowed to revive IPO?
- Quarter end balancing of fund managers is currently in focus.
- US equity FUTs up nearly 0.5% over the US closing.
- AUD slightly lower after softer monthly CPI came in softer than expected at 6.8%,
- Aussie bond yields erase gain; RBA expected to leave rates unchanged next week.
Headlines/economic data
Australia/New Zealand
- (AU) ASX 200 opens -0.1% at 7,030.
- (AU) AUSTRALIA FEB CPI Y/Y: 6.8% V 7.2%E.
- (AU) Australia sells A$800M v A$800M indicated in 3.75% May 2034 bonds; Avg Yield: 3.3864%; bid-to-cover: 3.78x.
China/Hong Kong
- (HK) Hang Seng opens +2.9% at 20,348; Alibaba indicated higher by >14%.
- (CN) Shanghai Composite opens +0.3% at 3,253.
- (HK) Hong Kong sells total HK$79.57B in 1-month, 3-month and 6-month.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY200B v CNY278B prior in 7-day reverse repos: Net injects CNY133B v injects CNY96B prior.
- (CN) China PBOC sets Yuan reference rate: 6.8771 v 6.8749 prior.
- (CN) China to extend zero tariff on coal imports - financial press.
- (CN) China reportedly to make greater effort to attract foreign investments – press.
- (CN) China NDRC Dep Dir General: China's potential growth rate is the potential growth rate of the entire world.
- Alibaba confirms new organizational and governance structure into 6 units; Each to have the flexibility to raise outside capital and potentially to seek its own IPO.
Japan
- (JP) Nikkei 225 opens +0.1% at 27,549.
- (JP) Japan's Parliament passes record ¥114T budget for FY23.
South Korea
- (KR) Kospi opens flat at 2,432.
- (KR) South Korea Mar Consumer Confidence: 92.0 v 90.2 prior.
- (KR) South Korea Financial Supervisory Service's (FSS) Lee Bokhyun: South Korea Bank's hybrid bonds are safer than those in Europe.
- (KR) North Korea said to restart diplomatic activity for the first time in 3 years of COVID isolation; Expected to rotate its foreign envoys in the coming months - FT.
- (KR) South Korea Finance Minister: Government will take steps to increase domestic consumption.
Other Asia
- (VN) Vietnam Mar Trade Balance: $0.7B v $4.1Be.
- (VN) Vietnam Q1 GDP Y/Y: 3.3% v 4.8%e.
- (VN) Vietnam Mar CPI Y/Y: 3.4% v 3.9%e.
- (MY) Malaysia Central Bank: Sees 2023 GDP growth between 4.0-5.0% range; both headline and core CPI seen between 2.8-3.8% range.
- (TH) Thailand foreign tourist arrivals to be at least 30M in 2023: Private industry group.
North America
- (US) FDIC Chair Gruenberg: Regional bank liquidity has remained stable, US has a strong set of regional banks.
- (US) Fed’s Bullard (Non-Voter): Financial stress can be contained by macro prudential tools; monetary policy can put downward pressure on inflation.
- Micron guided Q3 FY23 results below estimates.
- (US) US Energy Secretary: Strategic Petroleum Reserve (SPR) buy-backs could begin late this year [2023].
Europe
- (UK) PM Spokesperson Davies: UK Energy Sec to announce plans to secure UK's energy security and reach net zero by 2050.
- (EU) EU's Dombrovskis (Trade Chief): EU banking situation is stable and banks are prepared to withstand shocks.
Levels as of 01:20 ET
- Nikkei 225, +0.8%, ASX 200 +0.2% , Hang Seng +2.0%; Shanghai Composite -0.1% ; Kospi -0.3%.
- Equity S&P500 Futures: +0.5%; Nasdaq100 0.4%, Dax +0.4%; FTSE100 +0.2%.
- EUR 1.0834-1.0850 ; JPY 130.76-131.79 ; AUD 0.6688-0.6713 ; NZD 0.6238-0.6271.
- Gold -0.3% at $1984/oz; Crude Oil +0.7% at $73.69/brl; Copper -0.5% at $4.0568/lb.
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.
Recommended Content
Editors’ Picks
EUR/USD recaptures 1.0700 ahead of key US data

EUR/USD is trading above 1.0700, staging a decent recovery despite soft inflation data from the Euro area. The Euro buyers cheer hawkish ECB commentary while the risk-positive market environment limits the USD's upside ahead of key US data.
GBP/USD rises above 1.2450 as risk flows dominate

GBP/USD is recovering above 1.2450 in the European session, as the US Dollar resumes its downside amid a risk-on market mood. Renewed dovish Fed expectations and US debt deal passage keep the US Dollar undermined ahead of the US ADP jobs and ISM Manufacturing PMI data.
Gold price rebounds toward $1,970 amid renewed US Dollar selling

Gold price is rebounding toward $1,970, having found strong bids near $1,950. The risk-on market profile is weighing on the US Dollar, enabling Gold price to attempt a recovery. The further upside, however, appears elusive amid rallying US Treasury bond yields. US data awaited.
Bitcoin likely to remain in red through the next quarter if history is any indication

Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally.
C3.ai gets punched in the face, is the AI hype a bit overdone?

OMG! Stocks sold off on Wednesday….and NVDA? That stock gave back $15 or 3.8% - What is going on? That is not supposed to happen….it can only go up! Quick someone call the NVDA police!