- Asian Stocks Falter as Japan Warns on Yen Moves: Markets Wrap
(Bloomberg) — Asian shares edged lower, kicking off a week that includes measures of inflation that will help guide bets on the outlook for global interest rates. The yen was steady after Japan’s top currency official ratcheted up intervention rhetoric. - Oil Extends Drop as Risk-Off Tone Counters More Attacks on Ships
(Bloomberg) — Oil declined for a second session as a risk-off tone in broader markets countered escalating attacks on ships near Yemen. Brent slipped below $85 a barrel and West Texas Intermediate fell toward $80. The drop came despite two vessels being attacked, with one abandoned after flooding and another sustaining moderate damage. - Stocks’ Bull Run Has Little Upside Left in 2024: MLIV Survey
(Bloomberg) — The S&P 500 Index has likely logged most of the gains it will see this year as investors are growing increasingly nervous about the stock market’s rich valuations, according to the latest Bloomberg Markets Live Pulse survey. The 2024 rally, which has driven the US equity benchmark to 31 record closing highs, has left the asset class more overpriced. - Netanyahu Says Major Operations in Gaza Will End ‘Very Soon’
(Bloomberg) — Prime Minister Benjamin Netanyahu said Israel will soon end the intense stage of fighting in Gaza and will focus on targeted operations against Hamas. “It will be very soon,” Netanyahu said when asked in a TV interview whether fighting in the southern city of Rafah will end in a month’s time. It was his first interview with an Israeli media outlet since the Oct. 7 attacks. - Sunak’s Tories Fear Betting Scandal May Expand and Bury Them
(Bloomberg) — Rishi Sunak’s chances of avoiding a landslide defeat in the UK general election dwindled further as his governing Conservative Party struggled to contain revelations that several of the prime minister’s close aides placed bets on the date of the vote. - Yen Is Under Pressure Even as Japan Steps Up Its Verbal Warnings
(Bloomberg) — The yen remained under pressure and within a whisker of key levels against the dollar Monday, even as Japan’s top currency official warned that authorities stand ready to intervene in currency markets 24 hours a day if necessary. “If there are excessive currency fluctuations, it has a negative impact on the national economy. - Hedge Funds’ Bullish Copper Bets Run Into China’s Slowdown
(Bloomberg) — As copper surged to record highs last month, several senior Chinese traders started trying to contact western hedge fund managers whose names they’d only read in the press. For years, the veteran traders’ privileged insight into their own economy had given them an edge in the copper market, where China accounts for more than half of global demand. - Macron Says Election Decision Aimed to Avoid Disarray in Autumn
(Bloomberg) — Emmanuel Macron again sought to explain his decision to dissolve parliament, saying he aimed to take into account the defeat his party suffered in European elections and to avoid an even greater risk of turmoil to come. - Antisemitism Makes Biden-Trump ‘Binary’ Vote, Emhoff Says
(Bloomberg) — Second gentleman Doug Emhoff said re-electing President Joe Biden is crucial for combating antisemitism and accused Donald Trump of “fanning the flames” of hatred in comments after speaking at the site of a 2018 synagogue shooting in Pittsburgh. - Gold Holds Weekly Decline as Optimism for Major Fed Pivot Fades
(Bloomberg) — Gold steadied after a modest weekly loss, with recent data showing resilience in the US economy reducing the likelihood that the Federal Reserve will deliver more than one interest rate cut this year. The precious metal lost 0.5% last week, following signals from Fed officials that they expect to reduce borrowing costs only once this year. - One BOJ Member Notes Need to Mull More Monetary Easing Tweaks
(Bloomberg) — One Bank of Japan board member said the bank needs to consider further adjustment of monetary easing as there are upside risks for inflation, according to the summary of opinions at a June policy meeting. The central bank kept its benchmark rate unchanged at the June 13-14 meeting while it decided to cut bond buying and reveal its plan for that. - Japan’s Retail Investors Eye Risky Wagers on Yen Intervention
(Bloomberg) — An army of retail traders appears to be reloading bets for a rebound in the yen as the currency’s slide increases the chances of Japan intervening in the market again. Bullish positions on the yen against the dollar have been building since mid-May via futures contracts that cater to individual Japanese investors, data from Tokyo Financial Exchange Inc. - Prudential to Buy Back $2 Billion Worth of Insurer’s Own Shares
(Bloomberg) — Prudential Plc launched a $2 billion share buyback program that will be completed no later than the middle of 2026, as the insurer outlined progress that includes the potential for further cash returns to shareholders. The pace and timing of the buyback will be subject to market conditions, the firm said in a statement Sunday. - Stock futures are flat as the market set to enter last week of June near a record
Stock futures were mixed on Monday morning as the market is set to enter the last week of June and 2024′s first half near record highs. Futures on the Nasdaq Composite and S&P 500 futures were both little changed. Dow Jones Industrial Average futures inched down 0.13%. The S&P 500 scored an intraday record of 5,505.53 on Thursday and posted another winning week. - Nvidia shares fell 3.2% on Friday, extending losses for a second consecutive session.
The rout has wiped off more than $200 billion in market value. The drop comes amid a broader market retreat as options expire in a so-called triple-witching session. As the option contracts disappear, investors will adjust their positions, adding a burst of volume capable of swinging individual holdings. A chart technician pointed out a “bearish engulfing” stock pattern that Nvidia formed recently, which often signals that the prior upward momentum is waning. - McDonald’s shares rose 2.2% after UBS says the restaurant chain is positioned to improve its sales trajectory in the back half of the year and 2025.
“Our latest franchisee discussions and analysis of MCD’s historical value offerings support our view that multiple value-focused initiatives, plus marketing and new product launches over the coming quarters should drive a positive inflection in US sales trends,” UBS analyst Dennis Geiger wrote. His franchise checks suggest potential for McDonald’s $5 meal deal, which launches June 25 and will run for four weeks nationally, to drive a roughly 200 basis point lift to comparable sales. Rates buy with PT $335. - Palo Alto Networks rose 3% after the stock was initiated with a recommendation of buy at DA Davidson, with the broker saying the software company’s three platforms enable greater vendor consolidation.
Analyst Rudy Kessinger notes that the company has barely penetrated the “massive” total addressable market (TAM). “PANW has still captured just ~7% market share in a TAM that is quickly approaching $200B+.”PT set to $380. - Cryptocurrency-linked stocks traded lower on Friday as Bitcoin fell to the lowest level in a month.
After reaching an all-time high of almost $74,000 in March amid surging optimism over the approval of US exchange-traded funds to directly hold the original cryptocurrency, Bitcoin has retreated around 15% to below $63,000 currently. Adding to the malaise is fluctuating expectations for cuts in US interest rates, which has lessened demand for most riskier assets. - FactSet shares climbed 3.77% after it reported its third quarter earnings and boosted its forecast for the full year.
In the third quarter, revenue came in at $552.7 million, +4.3% YoY, while estimates were at $553.3 million. Adjusted earnings per share came in at $4.37 vs $3.79 YoY, beating estimates of $3.91. For the full year ahead, the company forecasted an adjusted earnings per share of $16.00 to $16.40, beating estimates of $16.03. It also now expects revenue to be between $2.18 billion and $2.19 billion, while estimates are at $2.2 billion. - Palantir shares are down 6.73%, after various sell-side analysts downgraded the stock from neutral to sell, with a $20 price target.
Analysts believed that the downgrade came after a dismal earnings season for enterprise software, and how the company has also failed to live up to the 18-month gen AI narrative. - Southeast Asia is a top choice for firms diversifying supply chains amid U.S.-China tensions
Southeast Asia has emerged as a top beneficiary of the “China Plus One” strategy where businesses seek to reduce the risks associated with full reliance on China’s market or supply chain. Companies, even as they maintain a presence in China, have been diversifying manufacturing operations by expanding into other countries such as Vietnam and Indonesia.
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