Weekend News Round Up - Newsquawk Asia-Pac Market Open

US stocks rallied on Friday amid buying into quarter-end and as participants digested a slew of data releases including a softer-than-expected Core PCE report which was accompanied by a cooling in housing prices and core services ex-housing components, although goods prices accelerated. Furthermore, the final UoM sentiment was revised higher for June but inflation expectations were unchanged, while the Chicago PMI disappointed expectations amid soft aircraft orders from Boeing.
PBoC Deputy Governor Pan Gongsheng was named as the PBoC’s Party Secretary which was suggested to likely be a prelude to becoming Governor, while PBoC Governor Yi and former Party Secretary Guo stepped down from their party roles, according to WSJ and FT.
Rumours are circulating on Twitter that SEC Chairman Gensler submitted his resignation following an internal investigation, according to Twitter sources.
Looking ahead, highlights include New Zealand Building Permits, Australian Manufacturing PMI & Building Approvals, Japanese BoJ Tankan Survey, Regional PMIs, Chinese Caixin Manufacturing PMI, US Markets Will Finish Early and Canadian Markets are Closed on Monday.

More Newsquawk in 2 steps:

1. Subscribe to the free premarket movers reports

2. Trial Newsquawk’s premium real-time audio news squawk box for 7 days

Highlights include New Zealand Building Permits, Australian Manufacturing PMI & Building Approvals, Japanese BoJ Tankan Survey, Regional PMIs, Chinese Caixin Manufacturing PMI, US Markets Will Finish Early and Canadian Markets are Closed on Monday.

US TRADE

US stocks rallied on Friday amid buying into quarter-end and as participants digested a slew of data releases including a softer-than-expected Core PCE report which was accompanied by a cooling in housing prices and core services ex-housing components, although goods prices accelerated. Furthermore, the final UoM sentiment was revised higher for June but inflation expectations were unchanged, while the Chicago PMI disappointed expectations amid soft aircraft orders from Boeing.
SPX +1.22% at 4,450, NDX +1.60% at 15,179, DJIA +0.83% at 34,406, RUT +0.38% at 1,888.
Click here for a detailed summary.

NOTABLE HEADLINES

US President Biden is to travel to the UK, Finland and the NATO summit in Lithuania from July 9th, according to the White House.
US President Biden tweeted that his administration will deliver high-speed internet to all Americans, while he also noted that his administration beat big pharma to cap the cost of insulin for seniors on Medicare but their work isn’t done until they extend the cap for everyone.
US is exploring a new refugee program for some non-Mexican migrants in Mexico, according to Reuters sources.
Unconfirmed rumours are circulating on Twitter that SEC Chairman Gensler submitted his resignation following an internal investigation, according to Twitter sources.
Tesla (TSLA) delivered a record number of vehicles in Q2 following price cuts earlier this year with deliveries up 10.4% Q/Q and 83.5% Y/Y to over 466k units, while production reached nearly 480k units, according to FT. It was also reported that Tesla China is to offer discounts on inventory cars of Model S and Model X, according to Reuters.

Czech Central Bank Governor Michl said they are not considering cutting rates and will likely get inflation to below 10% in the next two months, while he added that inflation can be more persistent than they think and they would have to raise rates if demand was to revive, according to Pravo.

Iraq’s June oil exports averaged 3.3mln bpd, according to the Oil Ministry, cited by Reuters.

Ukrainian President Zelensky said a serious threat remains at the Zaporizhzhia nuclear plant because Russia is technically ready to provoke a localised explosion at the facility, according to Reuters.
Ukrainian Deputy Defence Minister Maliar said Russian troops are advancing in four frontline areas in eastern Ukraine amid fierce fighting, while she added that Ukrainian troops were making advances in one eastern area and two southern areas, according to AFP.
Russian President Putin is reportedly seeking control of more than 100 Wagner Group companies and Russian security services raided Wagner Group institutions, according to Al Jazeera.
CIA Director Burns said it is always a mistake to underestimate Russian President Putin’s fixation to control Ukraine and that the war in Ukraine has already been a strategic failure for Russia, while he also stated that the disaffection in Russia is a once in a generation opportunity for an intelligence agency such as the CIA which is not letting it go to waste, according to Reuters.
Belarusian President Lukashenko signed a law allowing to ban media from ‘unfriendly countries’ in Belarus, according to RIA.
Chinese military declaration visited the UK and France from June 4th and July 1st to discuss the development of bilateral defence relations, according to Reuters.

A magnitude 6.7 earthquake was reported in the Neiafu, Tonga region, while the US Tsunami Warning System said there was no tsunami danger for the US West Coast, British Columbia and Alaska, according to Reuters.

NOTABLE APAC HEADLINES

PBoC Deputy Governor Pan Gongsheng was named as the PBoC’s Party Secretary which was suggested to likely be a prelude to becoming Governor, while PBoC Governor Yi and former Party Secretary Guo stepped down from their party roles, according to WSJ and FT.
PBoC survey found that China’s urban residents were more willing to raise consumption in Q2 compared with Q1 and residents are hoping to increase their spending mostly on education, medical care and tourism in Q3.
China’s MOFCOM expressed dissatisfaction regarding export controls of semiconductor products imposed by the Netherlands, while it urged the Netherlands to not hinder bilateral cooperation in the semiconductor industry and to not abuse export controls, according to Reuters.
US National Counterintelligence and Security Center warned about the risk of engaging in business with China after Beijing implemented a revised counterespionage law on July 1st.
CIA Director Burns said the answer is not to decouple from an economy like China’s which would be foolish, while he added the answer is to sensibly de-risk and diversify by securing resilient supply chains, protecting US’s technological edge and investing in industrial capacity, according to Reuters.
More than 50,000 were affected and nearly 7,000 were evacuated after heavy rain in China’s Hunan Province, according to China.org.cn.

DATA RECAP

NOTABLE HEADLINES

Financial advisers warned that steps by banks and building societies to help UK borrowers cut their monthly mortgage payments risk storing up financial trouble in later life as they face a higher total interest bill and lower income in retirement, according to FT.
French President Macron postponed his state visit to Germany amid unrest in France and met ministers to discuss a response to the unrest, while he asked his ministers to continue mobilising until complete calm is restored. It was also reported early on Sunday that the arrests in France overnight had increased to 719 and that the Paris suburb mayor’s home was attacked using a burning car.
Foreign buyers are reportedly driving up demand and prices of real estate in Spain with buyers, especially from the US and northern Europe snapping up homes on Spain’s southern coast, according to Bloomberg.