{"id":23754,"date":"2023-06-17T00:10:13","date_gmt":"2023-06-17T04:10:13","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/calm-before-central-bankers-chatter\/"},"modified":"2023-06-17T00:10:15","modified_gmt":"2023-06-17T04:10:15","slug":"calm-before-central-bankers-chatter","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=23754","title":{"rendered":"Calm Before Central Bankers\u2019 Chatter"},"content":{"rendered":"
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Key News<\/h3>\n

Asian equities were mixed overnight as Japan outperformed and Korea underperformed in advance of today\u2019s US Fed interest rate decision, with a pause in June and hike in July anticipated.<\/p>\n

Tonight will be must-see TV as China\u2019s 1-year medium-term lending facility rate will be released with an anticipated 10 basis point cut to 2.65%, May industrial production (+3.5% estimate), retail sales (+13.7% estimate) and fixed asset investment (+4.4% estimate) followed by next week\u2019s 1 and 5-year loan prime rate anticipated to be cut by 5 basis point to 3.6% and 4.25%. Hong Kong and China popped out of the gate, though faded with Hong Kong internet mixed and EV ecosystem stocks outperforming as May sales look strong along with rumors of Nio and Mercedes Benz partnership.<\/p>\n

Hong Kong\u2019s most heavily traded by value were Tencent +0.23%, Alibaba HK -0.64%, Meituan -0.55%, China Construction Bank -1.38%, ICB -2.35%, BYD +0.39%, NetEase +1.46%, and Li Auto +5.39%. Trip.com was off -5.25% as Baidu cut its 69.159 million stake by 7.934 million shares. Besides traders\u2019 profit taking, a contributor to the Hong Kong and China fade reported that Secretary of State Blinken and Foreign Minister Qin Gang\u2019s conversation was \u201ctense\u201d in advance of Blinken\u2019s China trip, according to Reuters.<\/p>\n

Nikkei Asia, which is no China cheerleader, and its subsidiary, the Financial Times, had a great scoop noting that US Treasury\u2019s Robert Kaproth became the first US diplomat to visit Hong Kong last week. The Financial Times interview with Citadel\u2019s Ken Griffin during his visit to Hong Kong focused on China\u2019s stimulus measures and the importance of China to the US and the global economy. Hong Kong’s short turnover fell -44% overnight to 14% of Main Board turnover after yesterday\u2019s unusual spike. CNY and the Asia dollar index were off versus the US dollar as Treasury bonds rallied. In addition to the rate cuts, chatter continues on stimulus measures to support domestic consumption.<\/p>\n

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The Hang Seng and Hang Seng Tech diverged -0.58% and +0.36% on volume -6.66% from yesterday, which is 80% of the 1-year average. 175 stocks advanced, while 302 declined. Main Board short turnover declined -44% from yesterday, which is 64.9% of the 1-year average, as 14% of turnover was short turnover. The growth factor outperformed the value factor as large caps outperformed small caps. Materials and communication were the only positive sectors, gaining +0.93% and +0.49%, while financials -1.33%, utilities -1.25%, and healthcare -1.2%. The top sub-sectors were auto, household products, and food, while banks, telecom, and utilities were the worst. Southbound Stock Connect volumes were light as Mainland investors bought $197 million of Hong Kong stocks, with Tencent a large net buy, Li Auto a small net buy, and Xpeng and Meituan were small net sells.<\/p>\n

Shanghai, Shenzhen, and STAR diverged -0.14%, +0.25%, and -0.4% on volume +6.3% from yesterday, which is 109% of the 1-year average. 2,033 stocks advanced, while 2,601 declined. Growth factors outperformed value factors as large caps outperformed small caps. The top sectors were staples +1.67%, communication +0.56%, and energy +0.42%, while utilities -1.12%, financials -0.88%, and real estate -0.39%. The top sub-sectors were chemicals, construction machinery, and soft drinks, while banks, telecom, and power industry. Northbound Stock Connect volumes were light\/moderate as foreign investors sold -$306 million of Mainland stocks, with Kweichow Moutai a large net buy, Foxconn a light\/moderate buy, and Longi Green Energy a moderate net sell. CNY and the Asia dollar index were off versus the US dollar as Treasury bonds rallied. Copper and steel rallied.<\/p>\n

Last Night’s Performance<\/h3>\n

Last Night\u2019s Exchange Rates, Prices, & Yields<\/h3>\n