APAC stocks were varied at month-end, DXY lingers around the 105 mark, Crude futures nursed some of the prior day's losses - Newsquawk Euro Market Open

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Thursday, Jun 30, 2022 - 05:54 AM
  • APAC stocks were varied at month-end amid a slew of data releases including mixed Chinese PMIs.
  • European equity futures are indicative of a negative open with Eurostoxx 50 -0.5% after the cash market closed lower by 1.0% yesterday.
  • DXY lingers around the 105 mark, EUR/USD dipped as low as 1.0434 overnight, AUD leads G10 FX.
  • Crude futures nursed some of the prior day's losses but with the rebound capped by the mixed risk appetite.
  • Looking ahead, highlights include UK GDP, German Retail Sales, EZ Unemployment, US PCE & Chicago PMI, Riksbank & JMMC/OPEC+ Meetings, Speech from ECB’s Lagarde & Supply from Italy.

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  • US stocks finished mixed amid choppy trade with equity markets struggling for direction heading closer to month-end while participants also await upcoming releases including PCE data on Thursday and ISM Manufacturing PMI on Friday.
  • SPX -0.07% at 3,819, NDX +0.18% at 11,658, DJIA +0.27% at 31,029, RUT -1.12% at 1719.
  • Click here for a detailed summary.


  • US Democrats are said to be weighing paring a tax hike to win over moderate Democrat Senator Manchin with discussions including scaling back minimum levies for corporations, according to Bloomberg.
  • US Supreme Court Justice Breyer will retire on June 30th and will be replaced by Ketanji Brown Jackson, according to a press release.



  • Russian President Putin said Russia will answer in kind if NATO infrastructure is deployed to Finland and Sweden, while he doesn't rule out tensions will emerge in Russia's relations with Finland and Sweden after they decided to join NATO and said there is no use setting an end date to the "special military operation" in Ukraine, according to RIA and IFAX.
  • IAEA said it has once again lost connection to its safeguards surveillance systems at Ukraine's Zaporizhzhia nuclear plant and it is also facing a partial loss of remote safeguards data transmission from Chernobyl, according to Reuters.
  • US Director of National Intelligence said US assessment remains that Russia wants to take most of Ukraine, according to Reuters.
  • Britain unveiled GBP 1bln of new military aid for Ukraine, according to AFP News Agency.


  • US State Department spokesperson said no progress was made in indirect talks with Iran, according to Reuters.



  • APAC stocks were varied at month-end amid a slew of data releases including mixed Chinese PMIs.
  • ASX 200 was dragged lower by weakness in energy, miners and the top-weighted financials sector.
  • Nikkei 225 declined after disappointing Industrial Production data and with Tokyo raising its virus infection level.
  • Hang Seng and Shanghai Comp. were somewhat mixed with Hong Kong indecisive and the mainland underpinned after the latest Chinese PMI data in which Manufacturing PMI printed below estimates but Non-Manufacturing PMI firmly surpassed forecasts and along with Composite PMI, all returned to expansion territory.
  • US equity futures remained subdued following the prior day's losses with markets awaiting PCE data; ES -0.4%.
  • European equity futures are indicative of a negative open with Eurostoxx 50 -0.5% after the cash market closed lower by 1.0% yesterday.


  • DXY was stuck around 105.00 as it cooled from the recent advances which were supported by month-end flows.
  • EUR/USD attempted to nurse losses but lacked strength after yesterday's softer than expected German CPI.
  • GBP/USD remained despondent after the recent losses against the dollar and mixed BoE commentary.
  • USD/JPY traded sideways amid the cautious mood and after pulling back from resistance just shy of 137.00.
  • Antipodeans were mixed with NZD/USD contained after weaker business confidence survey data.


  • 10yr USTs traded rangebound although held on to most of the prior day’s gains owing to the month-end flows and with supply in the rear view, while data was also discouraging with a downward revision to Q1 GDP.
  • Bunds eased back from resistance at the 147.00 level as price action calmed from the prior day’s fluctuations
  • 10yr JGBs were uneventful with downside limited by the cautious mood and disappointing Industrial Production data from Japan.


  • Crude futures nursed some of the prior day's losses but with the rebound capped by the mixed risk appetite.
  • US Special Envoy Hochstein said the US welcomes the major change in attitude from OPEC+ and hopes OPEC+ will move to step two of the supply boost, while he added the US remains in talks with OPEC nations and can reassess more SPR releases after October, according to Reuters.
  • Exports of Ecuador's Oriente Crude were suspended after a force majeure was declared due to anti-government protests, according to Reuters sources. It was also reported that PetroEcuador confirmed it activated a force majeure over Oriente crude exports and Ecuador declared a state of emergency in oil-producing areas of Azuay and Imbabura.
  • Spot gold lacked direction alongside an uneventful dollar and ahead of PCE price data.
  • Copper was softer overnight in the aftermath of the weaker than expected Chinese Manufacturing PMI data.


  • Bitcoin traded slightly lower and briefly dipped beneath the 20,000 level.


  • NATO Secretary General Stoltenberg said China's growing assertiveness has consequences for the security of allies, while he added China is not our adversary, but we must be clear-eyed about the serious challenges it presents.
  • US blacklisted 5 Chinese firms for allegedly helping Russia in which Connec Electronic, King Pai Technology, Sinno Electronics, Winnine Electronic and World Jetta Logistics were added to the entity list which restricts access to US technology, according to WSJ.
  • Japan's government cut its assessment of industrial production and noted that production is weakening, while it stated that Japan's motor vehicle production declined 8% M/M and that industrial production likely saw the largest impact of Shanghai's COVID-19 lockdown in May, according to Reuters.
  • Tokyo metropolitan government will reportedly increase COVID infections level to the second-highest, according to FNN.


  • Chinese NBS Manufacturing PMI (Jun) 50.2 vs. Exp. 50.5 (Prev. 49.6)
  • Chinese NBS Non-Manufacturing PMI (Jun) 54.7 vs. Exp. 50.5 (Prev. 47.8)
  • Chinese NBS Composite PMI (Jun) 54.1 (Prev. 48.4)
  • Japanese Industrial Production MM (May P) -7.2% vs. Exp. -0.3% (Prev. -1.5%)
  • Japanese Industrial Production YY (May P) -2.8% vs. Exp. 4.2% (Prev. -4.8%)
  • New Zealand NBNZ Business Outlook (Jun) -62.6% (Prev. -55.6%)
  • New Zealand NBNZ Own Activity (Jun) -9.1% (Prev. -4.7%)



  • Society of Motor Manufacturers and Traders said UK car manufacturing rose 13.3% Y/Y to 62.3k units in May, according to Reuters.


  • UK Lloyds Business Barometer (Jun) 28 (Prev. 38)