Daily Global-Macro Brief LIVE

Markets 4

  • Dow Jones rose 468.77 points (0.92%) to a new all‑time close.
  • S&P 500 up 1.65% and Nasdaq up 3.07% in regular session.
  • Futures were flat: Dow futures down <0.1%, S&P futures -0.1%, Nasdaq futures -0.2%.
  • Asian markets mixed: Korea Kospi +0.61%, Kosdaq -1.47%; Japan Nikkei flat, Topix -0.38%; Hong Kong Hang Seng futures at 24,799.
  • U.S.-Iran agreement expected to reopen Strait of Hormuz, sending oil down about 5%.
  • Japan's Nikkei slipped about 0.2% and China's SSEC fell roughly 0.3% after earlier gains on Iran deal optimism.
  • The yen weakened to near 155 per dollar as investors await the Bank of Japan's upcoming meeting.
  • Market focus shifts to the BOJ, with expectations of unchanged rates and possible tweaks to yield‑curve control.
  • Oil prices held steady around $80 a barrel, limiting any further market lift.
  • S&P 500 futures slipped about 0.1% after earlier Wall St surge.
  • Wall Street rose roughly 0.5% on hopes of de‑escalation in Iran and a tech rally.
  • Technology shares led the advance, with the Nasdaq up near 0.7%.
  • EUR/USD climbs to around 1.1590, approaching the 1.1600 level in early Asian trading.
  • President Trump and Vice President Vance signed a memorandum to reopen the Strait of Hormuz with Iran.
  • The Federal Reserve is expected to keep its benchmark rate unchanged at 3.50%‑3.75% at the June meeting.
  • Euro gains on risk‑on sentiment as geopolitical tension eases following the Strait of Hormuz deal.

Central Banks 3

  • BoJ likely to raise the benchmark rate by 25 basis points to 1%, the highest level since 1995
  • Japan's CPI eased to 1.4% in April while wholesale inflation surged to 6.3% in May
  • USD/JPY trades above the 160.00 mark, a level viewed as a potential yen intervention threshold
  • BoJ may announce a reduction in Japanese Government Bond purchases, affecting long‑term yields
  • Rate hike already priced in, so immediate impact on the yen is expected to be limited
  • Reserve Bank of Australia likely to keep the cash rate unchanged at 4.35% in June.
  • Market probability of an August RBA rate hike has dropped to 22% from 80% a month earlier.
  • Australian unemployment rose to 4.5% in April, the highest since September.
  • CPI inflation eased to 4.2% year‑over‑year in April, while quarterly GDP growth slowed to 0.3% (forecast 0.5%).
  • Three of the four major Australian banks expect the cash rate to stay at 4.35% for the rest of 2026.
  • Minister Minoru Kiuchi will attend today's BoJ meeting but declined to comment on market expectations of a rate hike
  • He stressed the need for sustained communication and collaboration between the BoJ and government to hit the 2% inflation target
  • USD/JPY slipped 0.05% to 160.25 after his remarks
  • The BoJ lifted rates in March 2024, ending its ultra‑loose policy stance

Energy/Oil 2

  • Brent crude rose about 1% to roughly $85 per barrel
  • WTI crude gained around 1% to near $80 per barrel
  • Rally driven by worries a US‑Iran peace agreement could restore oil supply flows
  • WTI trades around $80.10 per barrel in Asian hours, showing little movement
  • Iran cuts July light crude premium to $7.15/bbl above Oman/Dubai, down from $13 last month
  • U.S. Strategic Petroleum Reserve fell by 8.9 million barrels to 340.3 million, its lowest level since 1983
  • Traders remain cautious ahead of a US‑Iran interim peace accord, with no clear price direction

Gold/Metals 1

  • Gold rose modestly in Asian trading, reaching around $4,360 per ounce.
  • US‑Iran memorandum reduced war risk, pushing Treasury yields and the dollar lower.
  • Probability of a Fed rate hike in December fell to 58% from about 70% last week.
  • Technicals show gold still below its 100‑day SMA (~$4,762) and RSI near 43, indicating bearish pressure.

Geopolitics 2

  • White House says President Trump could make the US‑Iran nuclear agreement public by Friday.
  • The deal, negotiated under the previous administration, would outline steps to lift sanctions on Iran.
  • No indication that Congress will review the agreement before it is released.
  • President Trump claims Iran committed to forgo nuclear weapons
  • Trump dismisses reports of a $300 million U.S. fund for Iran as fake news
  • Israeli forces intercepted rockets from Hezbollah, no injuries reported
  • WTI crude rose 0.10% to $79.90 after the statements

Tech/AI 2

  • Microsoft will use AWS cloud capacity to handle increased AI demand on GitHub services
  • The collaboration aims to reduce latency and operational strain for GitHub Copilot and related tools
  • Amazon will provide compute resources, reflecting rising demand for AI infrastructure across tech firms
  • Seven leading AI firms (Microsoft, Google, Amazon, Meta, OpenAI, Oracle, xAI) signed a pledge with President Trump in March.
  • The agreement obligates them to pay for every megawatt of new electricity required by AI workloads.
  • Companies also commit to covering grid infrastructure costs needed to support AI compute demand.
  • Bitzero (NASDAQ: AIBZ) is cited as a related AI-focused company.

Companies 6

  • Forward Industries announces intention to merge with SkyAI via an all‑stock transaction
  • Deal aims to combine Forward's manufacturing capabilities with SkyAI's AI platform
  • Merger terms not disclosed; transaction expected to be accretive to earnings
  • Regulatory approvals required; closing anticipated in 2025
  • General Motors is negotiating to provide components for Lockheed Martin's weapons systems
  • The potential deal would broaden GM's presence in the defense sector
  • Lockheed Martin is seeking additional suppliers for key parts amid rising demand
  • No financial terms or timeline have been disclosed
  • Form 13D/A filed on June 15, 2024
  • Indicates acquisition of a beneficial ownership stake exceeding 5%
  • Filing may signal upcoming shareholder actions or strategic moves
  • Form 4 filing submitted on June 15 for Hut 8 Corp.
  • The filing discloses recent insider transactions under SEC rules.
  • No immediate market impact anticipated from the disclosure.
  • Corpay director Steven Stull disposed of $360,780 worth of company shares
  • The insider sale was disclosed in a recent Form 4 filing
  • No additional insider transactions were reported for the same period
  • Mondelez International announced Amit Banati as its new CFO.
  • Banati brings extensive experience from senior finance roles in the consumer goods sector.
  • The appointment is part of Mondelez's leadership refresh ahead of its upcoming fiscal year.

Other 2

  • Health-related financial risks rank as the top threat to retirement security
  • Market crashes are considered less concerning than health crises for retirees
  • Many retirees lack adequate planning for potential health expense shocks
  • Claiming Social Security before full retirement age while working can trigger benefit withholdings
  • Earnings above $21,240 (2024 limit) are deducted dollar‑for‑dollar from benefits
  • Withheld amounts are credited to future benefits and can be recovered when earnings drop
  • Full retirement age ranges from 66 to 67, depending on birth year