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Daily Briefing – Monday, June 12, 2017


European indexes including the FTSE shrugged off UK election results, closing in the green on Friday. The FTSE, in fact, led the pack with a 1% gain, and pound futures this morning are also up ¼ of a percent after remaining stable at 1.26 against the US dollar – this after a 22-pip downward gap on the election results announcement Thursday. And consumer spending, as reported by VISA credit, dropped for the first time in 4 years, based on a report this morning. Meanwhile, as French PM Macron celebrates his party’s victory in parliamentary elections, another Spanish bank, Liberbank, stands on the brink of failure after last week Banco Popular was sold to Santander when a bailout was refused.


With inflation down, Wholesale Inventories on Friday contracting by ½ a percent and Thursday’s Initial Jobless Claims up 245k, the US Fed’s Open Market Committee gears up for its Wednesday policy meeting in which analysts expect another interest rate hike. The inventories drop is attributed to declines in auto inventories (1.4%), farm products (2.4%) and petroleum (5%), raising fears that Q2 GDP may be downgraded considerably. On Friday, the Nasdaq lost 1.8% on losses by Apple (3.9%), Micron (5.7%), Nvidea (6.5%) and more.



Friday’s tech stock sell-off in the US extended into the Asian session overnight, pushing the Kospi and the Hang Seng down 1%, the Nikkei by 0.54% and major Chinese benchmarks by about ½ a percent. Japanese machine orders fell by more than 10%for the first time in 3 months this morning due to a slowdown in construction & investments in the public sector. Australian, Malaysian and Philippine markets are closed today for national holidays.




Bitcoin continues its ascent, shooting past the $3000 mark overnight on high liquidity across Asia. And oil managed to gain 0.6% overnight after Qatar relieved markets by announcing it would stick to the OPEC production freeze agreement in spite of tensions with Saudi Arabia and other member states.



Bucking the trend of other high-tech shares on Friday, Microsoft managed to reverse losses just ahead of yesterday’s announcement of its new Xbox One X, which will appear on shelves in November. And Alibaba stock surged by $15 on Friday after it announced sales growth of 45-49% in 2018.

Today’s Events

10 AM GMT UK: Inflation Report Hearings
6 PM GMT US: Monthly Budget Statement
1:30 AM GMT (+1) Australia: Business Confidence

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