1. Asian Stocks Tread Water Before Inflation Data: Markets Wrap

    (Bloomberg) — Asian stocks traded in a narrow range on Tuesday ahead of a swath of global inflation prints that’s expected to influence monetary policy. Equities in Japan, Australia and South Korea traded mixed after a start to the week when US and UK markets were closed and European shares edged higher in thin trading. US futures edged higher in early Asia hours.

  2. JAPAN INSIGHT: Hidden in Plain Sight – Next BOJ Hike Is Near

    (Bloomberg Economics) — The Bank of Japan’s mixed messaging on its next rate hike has led the market to believe incorrectly, in our view that it will take its time to move. To decipher its core message, we untangle the two basic signals in a key passage in its April outlook report. Our read is the next hike will come sooner, not later consistent with our base case for a July move.

  3. UBS Says Mostly Done ‘Optimizing’ Roles in Asia Pacific Region

    (Bloomberg) — UBS Group AG’s Asia Pacific president signalled that most of the bank’s job cuts in the region are over as it nears the official completion of its historic merger with Credit Suisse Group AG. “We have optimized most of the position both in terms of lines of business and the geography,” Edmund Koh, Asia Pacific president at UBS.

  4. Israel Airstrike and Death of Egyptian Guard Ratchet Up Tensions

    (Bloomberg) — An Egyptian soldier was killed during a clash with Israeli troops at a Gaza border crossing on Monday while an Israeli airstrike on Sunday killed at least 40 Palestinians at a camp for displaced people, further inflaming regional tensions over the Israel-Hamas war. Egypt’s military confirmed that a border guard died at the Rafah border crossing on Monday.

  5. Brazil Central Bank Chief Says Inflation Forecasts Will Improve

    (Bloomberg) — Brazil’s central bank chief said consumer price forecasts will improve, pushing back hours after a closely-watched survey showed economists lifting their 2024-2026 inflation estimates further above target. While cost-of-living estimates have risen again due to “recent noise,” they should stabilize and then improve with time.

  6. Private Credit Lures $100 Billion Fund Seeing Sticky Inflation

    (Bloomberg) — Colonial First State, which manages A$151 billion ($100 billion) of Australian pension and wealth assets, plans to add billions in private credit deals as it sees interest rates staying elevated for longer. CFS will boost its private credit allocation to an average of about 3% across its portfolio.

  7. Gold Climbs as Markets Weigh Improving Inflation Sentiment

    (Bloomberg) — Gold rose — after its worst week since September — as a tempering of US consumer inflation expectations bolstered sentiment that the Federal Reserve may have room to cut rates this year. The University of Michigan sentiment survey on Friday showed consumers expect prices to climb less quickly than earlier in the month.

  8. Xi Tells Politburo China Needs Financial Regulations With Teeth

    (Bloomberg) — China’s President Xi Jinping said the country’s financial regulators and local governments must take greater responsibility for defusing risks, as he chaired a Politburo meeting on Monday to review new rules for accountability. Xi told the 24-member decision-making body that the new rules will strengthen the Communist Party’s leadership in the financial.

  9. Bets on Canada Rate Cut Bring Hope for Lagging Bank Stocks

    (Bloomberg) — Investors up and down Toronto’s Bay Street are increasingly betting on a June rate cut in Canada, potentially giving a boost to Canada’s long-suffering bank stocks. The S&P/TSX Banks index has gone up just 0.9% this year, compared with a 6.7% gain for Canada’s benchmark S&P/TSX Composite, amid concern that a combination of high interest rates.

  10. Stocks Get Lift From Rate Outlook, Dollar Dips: Markets Wrap

    (Bloomberg) — European shares edged higher in thin trading after a European Central Bank official signalled policy makers could consider successive rate cuts starting next month. Futures on the Nasdaq 100 climbed 0.4% to a record high with US markets closed. Carmakers and utilities led a modest advance in the Stoxx Europe 600 index.

  11. Copper To $40,000 A Tonne, Says Hedge Fund Titan Pierre Andurand: What ETF Investors Should Watch

    (Benzinga Newswire) The investment landscape for copper has been ignited by recent bullish predictions, particularly from prominent hedge fund manager Pierre Andurand. Andurand’s forecast of copper prices reaching $40,000 per tonne underscored a compelling investment opportunity in copper miner stocks.

  12. Hyundai Adds More Banks for Possible Record India IPO

    (Bloomberg) — Hyundai Motor Co. has brought in Kotak Mahindra Bank Ltd. and Morgan Stanley as advisers on a potential initial public offering of its India unit, according to people familiar with the matter, as the automaker considers what might be one of the biggest-ever listings in the South Asian country. The banks join Citigroup Inc., HSBC Holdings Plc and JPMorgan Chase & Co. as advisers.

  13. China Evergrande New Energy Vehicle Group shares surged 86.64% higher in Hong Kong its biggest jump since 2014, as trading resumed Monday for the company after a suspension since 17 May 2024.

    This happened after the firm announced that liquidators are in talks with a potential unidentified buyer, who may extend a new line of credit to support production. China Evergrande Group reached a preliminary agreement with the buyer who could take an initial 29% stake, according to a Hong Kong stock exchange filing on Sunday. The deal would include an option to buy an additional 29.5% stake later, as it currently still requires due diligence.

  14. Lenovo shares jumped 8.86% in Hong Kong on Monday, their highest level since June 2015, as analysts foresee the next generation AI PCs to drive the computer maker’s growth.

    Analysts expect that AI PCs will contribute 25% and 35% of Lenovo’s 2024 and 2025’s revenues, respectively. Last week, the company reported upbeat fourth quarter earnings (23 May 2024), where it saw net income of $248 million vs $114 million YoY, beating estimates of $158.4 million. Revenue came in at $13.83 billion, +9.5% YoY, beating estimates of $13.09 billion.

  15. Stock futures rise to kick off shortened trading week

    Stock futures advanced Monday night as investors await inflation data due at the end of the shortened trading week for a better picture of the market’s outlook. Futures tied to the Dow Jones Industrial Average added 38 points, or 0.1%. S&P futures gained 0.1%, while Nasdaq 100 futures edged up 0.2%. Stocks are on track to end May on a strong note, after softer inflation data earlier this month and better-than-expected quarterly earnings reports lifted sentiment and suggested rate cuts could come earlier than investors had anticipated.

  16. Weapons are on the way, U.S. lawmakers tell Taiwan during visit

    Weapons that Taiwan has ordered from the U.S. are coming, a senior U.S. lawmaker said Monday, as a bipartisan House delegation met with the Beijing-claimed island’s new president. Taiwan, a self-ruling democracy that rejects China’s sovereignty claims, has complained of delays in the delivery of U.S. weapons seen as crucial in defending it against potential invasion by Beijing, which has not ruled out using force in achieving its aims. “We are moving forward on those weapons systems,” Rep. Michael McCaul, R-Texas, chairman of the Foreign Affairs Committee, said at a news conference in Taipei after he and other lawmakers met with Taiwanese President Lai Ching-te. “I’d like to see them faster, but they are forthcoming.”

  17. Gold, silver and copper rally has just taken a breather new high are not that far off

    Gold prices have been rallying to record highs, with spot gold notching a new top of $2,449.89 per ounce on Monday. Silver too hit multi-year highs earlier last week, as did industrial metal copper. Silver rallied past $31 per ounce to over a decade high last Wednesday amid surging investor interest and supply challenges.

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