JOLTs job openings 7.594M vs 7.300M estimateUS June consumer confidence 91.2 vs 94.8 expectedCanada April GDP +0.5% vs +0.4% expectedUS April CaseShiller 20-city house price index +1.1% y/y vs +0.9% expectedFHFA monthly home price index for April -0.1% versus a revised 0.2% last monthIran’s Ghalibaf: We won’t enter any more negotiations until MOU conditions are metECB debating doubling banks’ minimum reserve requirement to 2% from 1% – reportBOE’s Bailey: We have time to judge the pass through of higher energy pricesFed’s Hammack: The jobs market is right around full employment, growth looks goodUS Supreme Court upholds birthright citizenship, striking down Trump orderOman proposes a fee plan for the Strait of Hormuz — reportGermany June preliminary CPI +2.3% vs +2.6% y/y expectedThe top-25 stocks in the S&P 500 so far this year are dominated by chip and AI names
Markets:
Gold flat at $4016US 10-year yields up 6.2 bps to 4.44%WTI crude oil down 72-cents to $70.02S&P 500 up 0.9%AUD leads, JPY lags
The yen bulls capitulated on Tuesday as the currency continued to carve out 40-year lows in an accelerating fashion. The pair did most of its damage early in the day as it rose as high as 162.66 in a steady climb through the London fix.
The caveat on the move is that it came on the final day of the quarter and that could be skewing things. There was a fundamental backing though as the JOLTS report showed job openings at a two year high and boosted optimism for this week’s non-farm payrolls report.
Elsewhere, the US dollar was generally softer with commodity currencies making gains. Optimism about global growth is creeping up and that’s put a small bid into the antipodeans.
Talk is shifting towards the wage gains in the US jobs report as a possible catalyst towards a rate hike in July or September.
Elsewhere, stocks were nicely bid to wrap up a sensational quarter for the AI trade. The Nasdaq led the way on strength in chip names once again. Intel, Nvidia and Texas Instruments were among the top gainers. Dispersion was thinner than you would like and decliners actually outpaced gainers.
This article was written by Adam Button at investinglive.com.