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Writer's pictureSimon Charles Hooper

25/05/23 Briefing

The S&P 500 futures are up 29 points and are trading 0.7% above fair value. The Nasdaq 100 futures are up 287 points and are trading 2.1% above fair value. The Dow Jones Industrial Average futures are down 66 points and are trading 0.2% below fair value.

A huge gain in NVIDIA (NVDA) after the company beat earnings estimates and raised guidance, along with other semiconductor stocks trading higher in solidarity, has driven the outperformance of the Nasdaq 100 and S&P 500 futures. Meanwhile, debt ceiling uncertainty has kept the broader market in check.

Angst around the debt ceiling has escalated after Fitch Ratings put the nation's AAA rating on "watch negative." Also, Congressional members will leave Washington for Memorial Day, but will return to vote on legislation if a debt ceiling deal is reached, according to The Hill.

Fitch's action has fueled selling in the Treasury market. The 2-yr note yield is up seven basis points to 4.41% and the 10-yr note yield is up four basis points to 3.75%.

Elsewhere, Germany's Q1 GDP was revised to show a contraction of 0.3% after a 0.4% contraction in Q4, meeting the technical definition of recession with two consecutive quarters of negative GDP. That has renewed underlying concerns about global growth.

Market participants will receive the second estimate for Q1 GDP (Briefing.com consensus 1.1%; prior 1.1%), along with weekly initial jobless claims (Briefing.com consensus 247,000; prior 242,000), today at 8:30 a.m. ET.

In corporate news:

  • NVIDIA

(NVDA 388.17, +82.75, +27.1%): beats by $0.17, beats on revs; guides Q2 revs far above consensus

  • Snowflake (SNOW 153.54, -23.60, -13.3%): beats by $0.10, beats on revs; Sees Q2 product revenue of $620-$625 mln

  • Splunk (SPLK 105.43, +8.74, +9.0%): beats by $0.30, beats on revs; guides Q2 revs above consensus; guides FY24 revs in-line

  • American Eagle (AEO 9.80, -2.27, -18.8%): reports EPS in-line, beats on revs, guides JulQ revenue growth below consensus

  • Best Buy (BBY 72.75, +3.60, +5.2%): beats by $0.05, reports revs in-line; reaffirms FY24 EPS guidance, revs guidance

  • Carnival (CCL 10.91, +0.24, +2.3%): upgraded to Buy from Hold at Citigroup

  • e.l.f. Beauty (ELF 95.28, +8.83, +10.2%): beats by $0.22, beats on revs; guides FY24 EPS above consensus, revs above consensus

  • Digital Turbine (APPS 9.84, -4.59, -31.8%): misses by $0.04, misses on revs; guides JunQ EPS below consensus, revs below consensus

  • Medtronic (MDT 85.91, -1.58, -1.8%): beats by $0.02, beats on revs; lowers FY23 EPS below consensus; to acquire wearable insulin patch maker EOFlow

  • MetLife (MET 51.04, +0.79, +1.6%): announces $19.2 billion risk transfer transaction; further increases share repurchase authorization to $4 billion - to host call at 9 a.m. ET

  • Verizon (VZ 35.77, -0.10, -0.3%): warned customer service employees of layoffs, according to The Verge

  • Dollar Tree (DLTR 139.99, -15.36, -9.9%): misses by $0.07, reports revs in-line; guides Q2 EPS below consensus, revs in-line; guides FY24 EPS below consensus, revs in-line

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's Nikkei: +0.4%, Hong Kong's Hang Seng: -1.9%, China's Shanghai Composite: -0.1%, India's Sensex: +0.2%, South Korea's Kospi: -0.5%, Australia's ASX All Ordinaries: -1.0%.

    • In economic data:

      • South Korea's April PPI -0.1% m/m (expected 0.3%; last 0.1%); 1.6% yr/yr (expected 2.3%; last 3.3%)

      • Singapore's Q1 GDP -1.6% qtr/qtr (expected -0.7%; last -0.7%); 0.4% yr/yr (expected 0.1%; last 2.1%)


  • In news:

    • China Securities Daily noted that there is no room for additional sharp depreciation of the yuan after the currency reached its lowest level against the dollar since late November.

    • South Korea's President Yoon confirmed that he will represent his country at the NATO summit in July.

    • The Bank of Korea left its base rate at 3.50%, as expected, and increased its terminal rate forecast by 25 bps to 3.75%.

    • Hong Kong's Hang Seng will be closed tomorrow for Buddha's Birthday.



  • Major European markets trade on a mostly lower note. STOXX Europe 600: -0.1%, Germany's DAX: -0.1%, U.K.'s FTSE 100: -0.3%, France's CAC 40: -0.3%, Italy's FTSE MIB: -0.2%, Spain's IBEX 35: -0.1%.

    • In economic data:

      • Germany's Q1 GDP -0.3% qtr/qtr (expected -0.1%; last -0.4%); -0.2% yr/yr (expected 0.2%; last 0.3%). June GfK Consumer Climate -24.2 (expected -24.0; last -25.8)

      • U.K.'s May CBI Distributive Trades Survey -10 (expected 10; last 5)

      • France's May Business Survey 99 (expected 101; last 101)

      • Spain's April PPI -4.5% yr/yr (last -1.4%)


  • In news:

    • Germany officially entered recession after Q1 GDP was revised to show a contraction of 0.3% after a 0.5% contraction in Q4.

    • European Central Bank policymaker de Guindos said that wages and profits present an upside risk to inflation while the crisis in the banking sector poses a downside risk. Meanwhile, ECB policymaker Vasle repeated that more rate hikes are needed.



U.S. equity futures:

  • S&P 500 Futures: +24 @ 4,140

  • DJIA Futures: -104 @ 32,700

  • Nasdaq 100 Futures: +266 @ 13,871

Overseas:

  • Europe: DAX -0.1%, FTSE -0.3%, CAC -0.3%

  • Asia: Nikkei +0.4%, Hang Seng -1.9%, Shanghai Composite -0.1%

Commodities:

  • Crude Oil -1.43 @ 72.91

  • Nat Gas -0.034 @ 2.532

  • Gold -2.25 @ 1962.35

  • Silver -0.077 @ 23.163

  • Copper +0.0290 @ 3.5905


Earnings/Guidance:

  • American Eagle ( AEO 14.71% ) reports EPS in-line, beats on revs, guides JulQ revenue growth below consensus

  • American Woodmark ( AMWD 10.98% ) beats by $0.68, reports revs in-line; guides FY24 revs in-line

  • Baozun ( BZUN 8.82% ) reports Q1 results; misses on revs

  • Best Buy ( BBY 1.14% ) beats by $0.05, reports revs in-line; reaffirms FY24 EPS guidance, revs guidance

  • Burlington Stores ( BURL 2.73% ) misses by $0.08, misses on revs; guides Q2 EPS below consensus, revs below consensus; guides FY24 EPS below consensus, revs in-line

  • CIBC ( CM 1.55% ) beats by $0.07, reports revs in-line

  • Columbus McKinnon ( CMCO 3.08% ) beats by $0.06, beats on revs; guides Q1 revs above consensus

  • Digital Turbine ( APPS 42.55% ) misses by $0.04, misses on revs; guides JunQ EPS below consensus, revs below consensus

  • Dollar Tree ( DLTR 12.32% ) misses by $0.07, reports revs in-line; guides Q2 EPS below consensus, revs in-line; guides FY24 EPS below consensus, revs in-line

  • e.l.f. Beauty ( ELF 17.61% ) beats by $0.22, beats on revs; guides FY24 EPS above consensus, revs above consensus

  • Enersys ( ENS 12.16% ) beats by $0.44, beats on revs; issues Q1 EPS guidance

  • Fortive ( FTV 0.72% ) sees Q2 EPS and revs below consensus; reaffirms FY23 guidance; provides longer term guidance

  • GDS Holdings ( GDS 0.00% ) beats by $0.16, misses on revs; guides FY23 revs in-line

  • Genesco ( GCO 31.88% ) misses by $0.49, beats on revs; lowers FY24 guidance

  • Guess? ( GES 9.10% ) beats by $0.21, beats on revs; guides Q2 EPS below and revs below consensus; raises FY24 EPS guidance; increases dividend by 33%

  • Hamilton Lane ( HLNE 4.88% ) reports Q4 (Mar) results; raises dividend

  • LiveRamp ( RAMP 12.21% ) beats by $0.14, reports revs in-line; guides JunQ revs above consensus; guides FY24 revs below consensus

  • Medtronic ( MDT 4.13% ) beats by $0.02, beats on revs; lowers FY23 EPS below consensus

  • Modine Manufacturing ( MOD 13.84% ) beats by $0.20, beats on revs; guides FY24 revs in-line

  • NetEase ( NTES 2.23% ) beats by RMB3.03, reports revs in-line; NTES announced a dividend increase to $0.4650/ADS (from $0.27/ADS)

  • Nutanix ( NTNX 14.60% ) beats by $0.01, beats on revs; guides Q4 revs above consensus

  • NVIDIA ( NVDA 27.06% ) beats by $0.17, beats on revs; guides Q2 revs far above consensus

  • Raymond James ( RJF 2.68% ) reports April operating data; Client assets under administration increased 5% yr/yr

  • Red Robin Gourmet ( RRGB 6.71% ) beats by $0.82, beats on revs, raises FY23 revenue and adjusted EBITDA guidance

  • Royal Bank of Canada ( RY 3.08% ) misses by $0.17

  • Snowflake ( SNOW 17.65% ) beats by $0.10, beats on revs

  • Splunk ( SPLK 1.40% ) beats by $0.30, beats on revs; guides Q2 revs above consensus; guides FY24 revs in-line

  • StepStone Group ( STEP 5.71% ) misses by $0.04, beats on revs

  • Stratasys ( SSYS 3.73% ) and Desktop Metal (DM) reaffirm FY23 guidance following M&A news

  • Titan Machinery ( TITN 17.73% ) beats by $0.17, misses on revs; reaffirms FY25 EPS guidance

  • Toronto-Dominion Bank ( TD 3.69% ) misses by CAD 0.14, reports revs in-line; does not expect to meet its medium-term adjusted EPS growth target range of 7-10%

  • UiPath ( PATH 10.74% ) beats by $0.09, beats on revs; guides Q2 revs below consensus; guides FY24 revs above consensus

  • Weibo ( WB 3.86% ) beats by $0.02, misses on revs; approves special dividend

  • Zoetis ( ZTS 2.44% ) provides longer term targets ahead of investor day

  • Zuora ( ZUO 17.80% ) beats by $0.05, reports revs in-line; guides Q2 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs in-line

News:

  • Republicans and White House are both seeing progress in debt ceiling talks, according to Reuters

  • Congressional members will leave Washington for Memorial Day, but will return if debt ceiling deal is reached, according to The Hill

  • Fitch places United States' 'AAA' on rating watch negative

  • Atlanta Fed President Raphael Bostic (not a voting FOMC member) says rate cuts unlikely until well into next year, according to Bloomberg

  • Florida Governor Ron DeSantis officially announces that he will seek the Republican nomination for President of the United States

  • More airlines are encountering near collisions as regulators attempt to find out why, according to the Wall Street Journal

  • Cruise lines are seeing occupancy levels above 100%, according to the Wall Street Journal

  • 10x Genomics ( TXG 1.19% ) announces the commercial availability of a new Visium CytAssist Gene and Protein Expression product to expand the breadth of the Visium CytAssist spatial analysis capabilities

  • Airbus ( EADSY ): Air Corporate of Italy orders 43 Airbus helicopters

  • Amazon ( AMZN 1.75% ) aiming to close China application store, according to SCMP

  • Annexon ( ANNX 56.29% ) Topline Data from ARCHER Phase 2 Trial of ANX007 in Geographic Atrophy Demonstrated Statistically Significant, Dose-Dependent Preservation of Visual Function

  • Apellis Pharmaceuticals ( APLS 1.43% ) reports top-line results from phase 2 meridian study in ALS

  • Apollo ( APO 0.19% ) co founder Leon Black wins dismissal of rape lawsuit, according to the Wall Street Journal

  • Arcutis Biotherapeutics ( ARQT 7.40% ) COO Ken Lock stepping down, effective June 2; VP of Market Access Ayisha Jeter appointed interim CCO

  • AstraZeneca ( AZN 1.31% ) to highlight momentum of practice-changing cancer medicines across its robust pipeline at ASCO 2023

  • BigCommerce ( BIGC 4.18% ) appoints Daniel Lentz as CFO, effective July 1; replaces Robert Alvarez, who is retiring

  • BioXcel Therapeutics ( BTAI 23.22% ) announces promising topline results from Part 1 of pivotal SERENITY III Trial of BXCL501 for at-home use in acute treatment of agitation in bipolar disorders or schizophrenia

  • Brainstorm Cell Therapeutics ( BCLI 0.00% ) COO David Setboun to resign, effective May 31

  • Bristol-Myers ( BMY 0.01% ) in collaboration with Janssen Pharmaceuticals announce that all three prospective indications for milvexian have now been granted Fast Track Designation by the U.S. Food and Drug Administration

  • Chemours ( CC 1.58% ) announced a capacity investment in its low global warming potential Opteon 1100 foam blowing agent and Opteon SF33 specialty fluid. The expansion will triple capacity of the ultra-low GWP, hydrofluoroolefin (HFO) solution, enabling customers and value

  • DHI Group ( DHX 2.14% ) announced an organizational restructuring intended to streamline its operations - includes 10% reduction in workforce

  • Dyne Therapeutics ( DYN 7.67% ) announces that the European Medicines Agency has granted orphan drug designation for DYNE-101

  • Ericsson ( ERIC 0.10% ): U.S. District Court dismisses securities claim against Ericsson

  • ExlService ( EXLS 1.37% ) launches generative AI platform to help clients transform their business with AI

  • Fluor ( FLR 1.36% ) subsidiary awarded five-year contract, plus five one-year extension options with London-based Harbour Energy; new contract scheduled to commence in Q2

  • Honeywell ( HON 0.84% ) expands Honeywell Forge Performance+ software suite with its Honeywell Connect release

  • HSBC ( HSBC 0.42% ) mulling exit from at least 12 countries, according to Reuters

  • Illumina ( ILMN 8.54% ): Carl Icahn (IEP) is expected to win at least one seat on Illumina board, according to Reuters

  • Lindsay Corp ( LNN 0.70% ) and Pessl Instruments announce a strategic, global partnership focused on combining Pessl's field monitoring systems with Lindsay's FieldNET remote irrigation management platform

  • LSB Industries ( LXU 2.65% ) and Amogy have entered into a memorandum of understanding aimed at promoting the adoption of low-carbon ammonia as a marine fuel, initially for the U.S. inland waterways transportation sector

  • MetLife ( MET 3.61% ) announces $19.2 billion risk transfer transaction; further increases share repurchase authorization to $4 billion

  • Mirati Therapeutics ( MRTX 13.32% ) announces that the SAPPHIRE study did not meet its primary endpoint of overall survival at the final analysis

  • Myriad Genetics ( MYGN 2.57% ) announces the addition of Folate Receptor Alpha (FRa) to its Precise Oncology Solutions portfolio; new biomarker adds another companion diagnostic option for providers to help guide treatment decisions for patients with ovarian cancer

  • New Found Gold Corp. ( NFGC 3.96% ) Hits Significant Gold Mineralization in 27 of 33 Holes Drilled in Inaugural Drill Program at Queensway South Including 19.0 G/T AU Over 3.15M

  • NIKE ( NKE 0.06% ) Announces Senior Leadership Changes to Deepen Consumer-Led Growth and Marketplace Advantage

  • Novartis ( NVS 2.64% ) unit Sandoz receives Marketing Authorization Applications from EMA for proposed biosimilar denosumab

  • NXP Semi ( NXPI 0.61% ) Founding Chairman Sir Peter Bonfield retires as of the conclusion of the company's 2023 Annual General Meeting; Julie Southern appointed to serve as Chair, effective immediately

  • Palantir Technologies ( PLTR 1.88% ) and the Ministry of Digital Transformation of Ukraine have announced a partnership that will help enable the company's technology to support the defense and reconstruction of the country in the wake of the Russian invasion

  • Reviva Pharmaceuticals ( RVPH 4.52% ) announced preclinical efficacy data on Brilaroxazine in IPF at the 2023 American Thoracic Society International Conference and Publication in Medical Research Archives

  • Sony ( SONY 0.55% ) Playstation handheld device could arrive by November, according to The Verge

  • Tilray's ( TLRY 2.27% ) Tilray Medical and FL Group received authorization from Italy's Ministry of Health to distribute three new medical cannabis compounds; announces European market expansion in Italy

  • Trex ( TREX 2.77% ) announces that Dennis Schemm has resigned as CFO effective on June 9, 2023, at which time the CFO responsibilities at Trex will be assumed on an interim basis by Bryan Fairbanks

  • Vanda Pharmaceuticals ( VNDA 0.82% ) reports results from a Phase III study of Tradipitant in motion sickness

  • Verizon ( VZ 2.76% ) warning customer service employees of layoffs, according to The Verge

  • Waterstone Financial ( WSBF 0.51% ) authorizes a share repurchase program for up to 2,000,000, or approximately 9.3%, of its outstanding shares

M&A:

  • Air Products ( APD 0.13% ) to acquire and operate a natural gas-to-syngas processing facility in Qashqadaryo Province, Uzbekistan for US$1 bln

  • Boston Scientific ( BSX 0.50% ) ends plan to purchase majority stake in M.I. Tech, according to Stat News

  • Chveron ( CVX 2.21% ) aiming to sell Congo assets, according to Reuters

  • Desktop Metal ( DM 3.71% ) to combine with Stratasys (SSYS) in $1.8 bln all-stock transaction

  • Four Corners Property Trust ( FCPT 1.48% ) announces agreement to acquire up to 14 Darden restaurant properties for up to $85 million on initial cash rent of up to approximately $5.35 million

  • Medtronic ( MDT 4.13% ) to acquire wearable insulin patch maker EOFlow

  • Stratasys ( SSYS 3.73% ): Nano Dimension (NNDM) launches $18.00 per share all-cash special tender offer to increase ownership in Stratasys to between 53% and 55% of its outstanding shares

  • Tradeweb Markets ( TW 1.88% ) acquires Yieldbroker for AUD125 mln

Syndicate:

  • Hannon Armstrong Sust. Infr. ( HASI 4.28% ) prices offering of 13,043,479 shares of common stock at $23.00 per share

  • Physicians Realty Trust ( DOC 2.56% ) closes on $400 mln term loan maturing May 2028

  • Schrodinger ( SDGR 7.95% ) entered into $250 mln common stock Sales Agreement with SVB Securities

  • Virtus Investment Partners ( VRTS 0.05% ) files mixed shelf securities offering

IPOs:

  • IPOs Expected to Price:

    • Atmus Filtration Technologies (NYSE: ATMU): The manufacturer of filtration products for commercial vehicles and agriculture, construction, mining and power generation vehicles is expected to price its 14.1 M share IPO between $18-$21.


Gapping Up/Down

  • Gapping up:

    • NVDA +26.8%, NTNX +15.7%, RRGB +12.8%, ELF +12.1%, ZUO +10.3%, AMD +9.7%, SPLK +8.7%, RVPH +7.6%, DM +7.4%, MOD +7%, VNET +6.7%, TSM +6.2%, ACLS +4.2%, SSYS +4%, CM +3.8%, AMAT +3.4%, EQH +3%, BIGC +2.9%, SDGR +2.9%, UVV +2.5%, AVGO +2.4%, LRCX +2.1%, MSFT +2%, WB +2%, WSBF +1.9%, ENS +1.9%, BZUN +1.9%, FLR +1.6%, DOC +1.6%, NTES +1.6%, KLAC +1.5%, ARQT +1.4%, GES +1.3%, APD +1.2%, FCPT +0.9%, RJF +0.9%


  • Gapping down:

    • APPS -33.5%, AEO -18.6%, ANNX -18.4%, SNOW -14.8%, MRTX -8.5%, PATH -7.5%, BCLI -5.9%, STEP -5%, HASI -2.8%, TD -2.8%, MYGN -1.9%, KLIC -1.8%, TREX -1%


Analyst Research (see Upgrades/Downgrades calendar for full list):

  • Upgrades

    • Caesars Entertainment (CZR) upgraded to Neutral from Negative at Susquehanna; tgt raised to $39

    • CVB Financial (CVBF) upgraded to Buy from Neutral at Janney

    • Dorian LPG (LPG) upgraded to Outperform from In-line at Evercore ISI; tgt raised to $32

    • Ford Motor (F) upgraded to Neutral from Underperform at Daiwa Securities; tgt $12

    • NVIDIA (NVDA) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $475

    • Pembina Pipeline (PBA) upgraded to Outperform from Neutral at Credit Suisse

    • Toll Brothers (TOL) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $77

    • Vipshop (VIPS) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $18


  • Downgrades:

    • Caleres (CAL) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $25

    • Digital Turbine (APPS) downgraded to Neutral from Buy at ROTH MKM; tgt lowered to $10

    • Snowflake (SNOW) downgraded to Neutral from Buy at Rosenblatt; tgt lowered to $170


  • Others:

    • Cedar Fair (FUN) initiated with an Overweight at KeyBanc Capital Markets; tgt $54

    • German American Bancorp (GABC) assumed with a Neutral at Piper Sandler; tgt $31

    • SeaWorld Entertainment (SEAS) initiated with a Sector Weight at KeyBanc Capital Markets

    • SentinelOne (S) initiated with a Strong Buy at Raymond James; tgt $25

    • Six Flags (SIX) initiated with an Overweight at KeyBanc Capital Markets; tgt $35

    • Webster Financial (WBS) initiated with a Buy at Deutsche Bank; tgt $47


Econ Data:

  • 08:30 ET: Initial Claims for May 20 (Briefing.com Consensus 247K; Prior 242K)

  • 08:30 ET: Continuing Claims for May 13 (Briefing.com Consensus NA; Prior 1799K)

  • 08:30 ET: GDP - Second Estimate for Q1 (Briefing.com Consensus 1.1%; Prior 1.1%)

  • 08:30 ET: GDP Deflator - Second Estimate for Q1 (Briefing.com Consensus 4.0%; Prior 4.0%)

  • 10:00 ET: Pending Home Sales for Apr (Briefing.com Consensus -2.9%; Prior -5.2%)

  • 10:30 ET: EIA Natural Gas Inventories for May 20 (Briefing.com Consensus NA; Prior +99 bcf)

Earnings:

  • Monday (May 22)

    • Morning: GLBE

    • Afternoon: CSWC HEI NDSN ZM


  • Tuesday (May 23)

    • Morning: AZO BJ DKS DAVA IHS KC LOW VIPS WSM

    • Afternoon: A INTU NEWR PANW TOL URBN VFC


  • Wednesday (May 24)

    • Morning: ANF CRMT ADI BMO BNS DY KSS WOOF PLAB PLCE

    • Afternoon: AEO APPS ELF ENS GES RAMP MOD NVDA SNOW SPLK STEP PATH ZUO


  • Thursday (May 25)

    • Morning: AMWD BZUN BBY BURL CM CMCO DLTR GDS GCO HLNE MDT NTES RL RY TITN TD WB

    • Afternoon: ME ADSK COST DECK DOMO GPS LGF.A MRVL RH ULTA WDAY


  • Friday (May 26)

    • Morning: BIG BAH BKE


Asia & Europe detail:

Asia: Nikkei +0.4%, Hang Seng -1.9%, Shanghai Composite -0.1%

Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. China Securities Daily noted that there is no room for additional sharp depreciation of the yuan after the currency reached its lowest level against the dollar since late November. South Korea's President Yoon confirmed that he will represent his country at the NATO summit in July. The Bank of Korea left its base rate at 3.50%, as expected, and increased its terminal rate forecast by 25 bps to 3.75%. Hong Kong's Hang Seng will be closed tomorrow for Buddha's Birthday.

  • In economic data:

    • South Korea's April PPI -0.1% m/m (expected 0.3%; last 0.1%); 1.6% yr/yr (expected 2.3%; last 3.3%)

    • Singapore's Q1 GDP -1.6% qtr/qtr (expected -0.7%; last -0.7%); 0.4% yr/yr (expected 0.1%; last 2.1%)


---Equity Markets---

  • Japan's Nikkei: +0.4%

  • Hong Kong's Hang Seng: -1.9%

  • China's Shanghai Composite: -0.1%

  • India's Sensex: +0.2%

  • South Korea's Kospi: -0.5%

  • Australia's ASX All Ordinaries: -1.0%

---FX---

  • USD/JPY: +0.1% to 139.54

  • USD/CNH: +0.3% to 7.0824

  • USD/INR: +0.1% to 82.70

Europe: DAX -0.1%, FTSE -0.3%, CAC -0.3%

Major European markets trade on a mostly lower note. Germany officially entered recession after Q1 GDP was revised to show a contraction of 0.3% after a 0.5% contraction in Q4. European Central Bank policymaker de Guindos said that wages and profits present an upside risk to inflation while the crisis in the banking sector poses a downside risk. Meanwhile, ECB policymaker Vasle repeated that more rate hikes are needed.

  • In economic data:

    • Germany's Q1 GDP -0.3% qtr/qtr (expected -0.1%; last -0.4%); -0.2% yr/yr (expected 0.2%; last 0.3%). June GfK Consumer Climate -24.2 (expected -24.0; last -25.8)

    • U.K.'s May CBI Distributive Trades Survey -10 (expected 10; last 5)

    • France's May Business Survey 99 (expected 101; last 101)

    • Spain's April PPI -4.5% yr/yr (last -1.4%)


---Equity Markets---

  • STOXX Europe 600: -0.1%

  • Germany's DAX: -0.1%

  • U.K.'s FTSE 100: -0.3%

  • France's CAC 40: -0.3%

  • Italy's FTSE MIB: -0.2%

  • Spain's IBEX 35: -0.1%

---FX---

  • EUR/USD: -0.2% to 1.0726

  • GBP/USD: UNCH at 1.2366

  • USD/CHF: +0.1% to 0.9057

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