Stock market news, growth after correction, fundamental and corporate analyzes
• Traders appear reluctant to make major moves ahead of Friday's crucial release of the US Personal Consumer Expenditures Price Index, the Federal Reserve's preferred measure of inflation. Economists polled by Reuters expect annual growth to slow to 2.6% in May, the slowest in three years. Until then, market participants are following the Federal Reserve's guidance, while policymakers are preaching patience, emphasizing that the Fed is in no rush to cut interest rates and curbing any excitement about a rate cut. Markets are forecasting about two rate cuts this year, with the September cut estimated at about 67%, CME's FedWatch tool showed.
• Futures indicate European bourses are set for a higher open, likely helped by a rally in technology stocks after Nvidia shares rose more than 6%, reversing a three-session decline that saw its market value fall by about 430 billion dollars.
• With the economic calendar empty, markets may drift and end-of-quarter caution will limit significant moves. Attention will also be focused on the euro as France prepares to vote.
• In Asia, technology shares rose, with Taiwan shares rising 0.24% and the Nikkei rising 1.45% to its highest level since early April, although the gains were not enough to keep broader markets in positive territory.
• The Japanese yen fell below 160 per dollar, a level that traders suspect could lead to a new round of intervention after Tokyo spent about 9.8 trillion yen in late April and early May to support the currency.
• Deliveroo shares have been in the spotlight in corporate news after Reuters reported that US food delivery group Doordash said it was interested in taking over its UK counterpart last month.
• China's fiscal revenues fall at fastest pace in year - Bloomberg
Total revenues, which include the general government budget and government funds budget, fell 4.1% in January-May from a year earlier to 11.36 trillion yuan ($1. 6 trillion).
In the first five months, combined spending on the two accounts fell 2.2% year on year to 13.61 trillion yuan. This leaves a fiscal deficit of 2.25 trillion yuan.
Are the printing presses turning on and the yuan devaluing ahead? An interesting year awaits us in 2025.
• Germany initiates massive arming of the EU with long-range missiles against the Russian Federation - Defense Express
We are probably talking about the new Land Cruise Missile - it is specially designed for long-range precision strikes.
European Investment Bank boosts multi-billion dollar defense investment - Reutes
The EIB wants to inject a further €6 billion into the defense sector, increasing its investments in drones, satellites and cybersecurity. The plan underscores Europe's willingness to provide loans to defense companies.
• More than 200 million metric tons of rare metals found near an island in Japan - japantimes. The non-profit organization Nippon Foundation and the National University of Tokyo have discovered huge concentrations of minerals on the seabed that contain large amounts of rare metals such as cobalt and nickel. It is noted that both metals are necessary for lithium-ion batteries.
• LockBit hackers said they hacked the US Federal Reserve and stole 33 terabytes of data for ransom. The deadline for receiving the ransom is June 25, after which, if the US government does not pay the group $50 thousand, confidential information will be publicly available.
• Applications for participation in BRICS were submitted by Thailand and Malaysia, in total more than 30 countries - Assistant to the President of the Russian Federation Ushakov.
• The cost of housing according to the US S&P Case Shiller index in April increased by 7.2% y/y.
Prices for residential real estate in the United States are rising due to a shortage.
The US Conference Board Consumer Confidence Index fell less than expected in June
from 102 to 100.4 (100.0 was expected).
Consumers are cooling but remaining strong.
• Days after the Wall Street Journal reported that Apple and Meta were in talks to integrate the latter's artificial intelligence models, Bloomberg's Mark Gurman said the iPhone maker has no plans for any such moves.
Apple has held brief talks with Meta, according to Bloomberg about the possibility of partnership back in March. This was the time when Apple was in talks with several companies to integrate its models with their devices.
However, the company shelved the idea of installing Meta's AI models on the iPhone due to privacy concerns.
• Apple could face a fine for violating EU antitrust laws of up to 10% of its global annual revenue.
Brussels has accused Apple of stifling competition in its app store. This will be the first time EU regulators apply new digital rules to a major technology group.
EU continues to flex its antitrust muscles with US tech giants
European regulators have hit Microsoft with a new antitrust charge, a day after the same regulator accused Apple of violating EU antitrust laws.
• Among the world's largest auto manufacturers, Tesla has the highest profit per vehicle. Mercedes-Benz has second place - Nikkei Asia reports.
• Reuters Investigates on Mt.Gox: According to Japanese law, Mt.Gox customers will receive compensation based on the BTC price of $483. Thus, the exchange will refund $68.5 million to customers instead of $8.7 billion.
• AI helps Italian financial regulator Consob identify insider trading - Reuters. The algorithms Consob is testing can support preliminary analysis to identify suspected cases of such trafficking, followed by targeted investigations, the agency notes.
• California fast food franchise owners and consumers felt the brunt of the minimum wage increase. Business closures may leave some consumers wondering about the health of businesses in general.
• Waymo's autonomous ride-hailing service is now available to everyone in San Francisco - Reuters. Self-driving vehicles are expected to bring commercial success to automakers, even as regulatory scrutiny remains tight.
• Vale, the world's second-largest iron ore producer, taps international bond markets for the first time in a year for $1 billion.
Exxon is planning a new oil project in Guyana to boost production in the 2030s.
• XOM has taken the first step towards its seventh oil project in Guyana, a clear signal that the company intends to increase oil production in the South American country.
• Nike set for weak quarterly sales growth as On, Hoka steal market share - Reuters. On Tuesday, Federal Reserve member Michelle Bowman stressed that she is ready to raise interest rates if keeping them unchanged fails to bring price pressures under control.
• iPhone sales at the 618 Festival in China increased by 2.7% y/y. Huawei sales grew by 42.4% YoY.
• SEC Chairman Gensler: The approval process for the ETH ETF is going smoothly.
• Rivian (RIVN) shares are up 50% in premarket trading. Volkswagen AG said it will invest $1 billion in the electric vehicle maker and plans to invest another $4 billion if the two companies' planned electric vehicle-focused joint venture goes ahead.
Rivian and Volkswagen will each own 50% of the joint venture, and upon "successful implementation," Volkswagen will have immediate access to Rivian's E/E technology, which it will use in its own electric vehicles.
The 50% jump in the stock is likely driven by the high short interest in Rivian shares, which is around 19% of the total float.
• FedEx (FDX) shares are up 14% after the report. The company expects demand to improve in the coming fiscal year and said it has put its cargo business on review as it tries to cut billions of dollars in costs and harmonize operations. Investors love cutting costs.
• The Fed may ease regulatory capital requirements for US banks.
The Fed is set to release the results of its annual bank stress tests after the stock market closes on Wednesday.
Bloomberg: "back-of-the-envelope calculations suggest the proposed changes could result in an increase of just 5%," compared with a 16% increase in the original proposal.
This will lead to an increase in buybacks for a number of banks.
• Companies representing nearly half the market capitalization of the S&P 500 index will find themselves in periods of declining buybacks by the end of next week: Deutsche Bank
“Large buybacks of $1 trillion per year continue to be well supported by strong earnings. However, discretionary buybacks (based on management discretion) will decline in the near term as companies enter shutdown periods before reporting second-quarter earnings.”
• AI stocks regained investor favor yesterday. “Fly cheaper” worked. Business as usual in a bullish trend.