Breakfast Bites - Mon Jul 10, 2023

Rise and shine everyone and Happy Monday!

We have a quiet day today for economic data with a host of Fed Speakers - Barr, Daly, Mester and Bostic.

Earnings season starts this week. Today we have Helen of Troy reporting before market open - they just announced a beat on Revenues and EPS.

US Equity Futures are marginally lower. Oil, Gold and Copper lower. Bitcoin and the US Dollar index marginally higher. The Yield Curve has steepened to -0.86%.

Asia and Australia

• Asian equities finished mixed Monday. Japan benchmarks lower for a fifth consecutive day, losses too in Seoul and Taipei despite better-than-expected numbers from TSMC.

• Factory-gate prices fall further in China, adding to deflation concerns - PPI fell 5.4% in June (weakest since December 2015), below expectations of a 5.0% drop, following 4.6% decline in the previous month.

• Japan's current account surplus misses forecasts

• Asia ex-China on track to record highest FY fund inflow in eight years - overseas investors bought $25.4B in regional ex-China stocks YTD with India received most at $12.3B. A $28 billion wave of selling pressure threatens China stocks

• South Korea state-run think tank says local economy appears to be on an upswing

• TSMC sales beat forecasts on AI demand

Europe, Middle East, Africa

• European equity markets firmer

• The latest Sentix survey for the Eurozone economy showed a decline in confidence for the fifth consecutive month. Came in at -22.5 versus -17.9 forecast and prior -17.0.

• Politics in the Netherlands in the spotlight Monday following last week's collapse of the country's government. PM Rutte, who has been in power since 2010, set for a no-confidence vote in The Hague today after last week's coalition government infighting over migration policy.

• BoE Governor Bailey rejected calls to raise the inflation goal above 2%, arguing any change could damage the bank's credibility

The Americas

• Yellen's trip to China yields no breakthroughs as expected but dialogue remains open

• Analysts expect second-quarter earnings to have fallen almost 9% — the biggest year-over-year decline since 2020, according to data compiled by Bloomberg Intelligence.

• Bank earnings: The six lenders will set aside an estimated additional $7.6bn to cover loans that could go bad, analysts estimate.

• Monetary Policy Meeting Minutes for Mexico show a “hold for longer” stance. Most directors discussed it premature to discuss rate cuts. The Committee left rates unchanged at 11.25% by unanimous decision during the Jun 22 meeting.

Calendars

(news taken from Reuters, FT, Bloomberg; Calendar from Benzinga Pro)