Major Indices
| Index | Performance |
|---|---|
| S&P 500 | +2.42% |
| DOW Jones | -0.34% |
| NASDAQ | +3.52% |
| FTSE 100 | +2.45% |
| DAX | +3.22% |
| Nikkei 225 | +0.01% |
| Shangai Composite | +1.29% |
US CPI Release
Equities responded positively as CPI grew by just 0.2% monthly in June and only 3% annually The USD weakened against a basket of currencies, and DXY fell by 2.25% Treasury Yields sank on the lower inflation data. Yields fell to 4.64% from 5.1% Last Week, whilst prices rose.
Trading View: ticker US02YS1`
Consumer DEflation in China
CPI fell by 0.2% in June 2023 (driven by 7.2% drop in Pork prices).
Q2 GDP grew by 6.3% compared to 2022, an underwhelming statistic as the expectation was 7.3%. This was a quarter upon quarter increase of 0.8%.
Annual CPI growth hits 0%.
Liu Guoqiang, deputy governor of the PBOC shrugged off inflation concerns. Chinese banks issued 1.81tn Yuan in June (22% increase from May). This suggests consumers are not yet feared by the threat as deflation increases the real value of debt, subsequently making it harder to repay.
It is expected that China will cut interest rates, amid concerns of them missing their 5% annual GDP Growth target in 2023.
National Bureau of Statistics China
The Peoples Bank of Canada (PBoC) is expected to keep the one year Loan Prime Rate at 3.55%. They are aiming to lower borrowing costs and patch up the shakey Post-Covid economy
Other Headlines
- Dominoes and Uber partnership
- US Credit Card debt is high at $986bn, hinting that there will be a slowdown in spending (alongside high interest rates)
- Tik Tok aims to scale the 'TikTok shop' to $20bn valuation