Morning wrap (27.06.2023)

Indexes from the Asia-Pacific region were mixed during the second session of the new week. Nikkei dropped by 0.5%, S&P/ASX 200 gained 0.24%, and Kospi fell by 0.14%. Chinese indexes performed strongly, with gains ranging from 1.20% to 1.60%.

European futures contracts for indexes indicate a higher opening of the cash session on the Old Continent.

Strength in Hong Kong-listed technology stocks boosted Asian shares, despite growing concerns of a recession in the US.

US equity futures rose, recovering from Monday's declines, where Nasdaq 100 fell by 1.4% after its worst week since March.

The Australian dollar gained 0.5% against the US dollar and remained the best-performing currency among G10 currencies.

There is a high likelihood of an oversupply of US Treasury bonds in the coming months, which could lead to a significant increase in bond yields.

US Treasury Secretary Yellen will visit Beijing in July to discuss the global economic situation.

China is on track to achieve its 5% economic growth target for 2023. Premier Li warns against world disintegration amid current geopolitical shifts.

Chinese state banks are selling dollars to support the yuan in foreign markets.

Premier Li of China predicts that GDP growth in the second quarter will exceed the first quarter. China is expected to achieve its growth target of 5%.

ECB's Kazaks disagrees with market predictions of interest rate cuts in early 2024, supporting keeping rates higher for longer.

The yen remained stable around 143.40 against the dollar, causing concern among Japanese leaders.

Japan's Finance Minister warns against excessive depreciation of the yen, stating an appropriate response will be necessary if currency movements become too strong.

Oil prices stabilize as demand concerns replace fears of a Russian coup. Crude oil is up by 0.5%.

Cryptocurrencies initially faced losses but later recovered as they reacted to a key trendline. BTC is still trading above $30,000, while ETH gained 0.44%.