v US
ISM non-manufacturing survey rises to 56.0 in June
v Greek
Finance Minister Varoufakis resigned
v Ringgit
plunges to levels not seen since the late 1990s Asian Financial Crisis
v Foreign
selling of Malaysia equities persists despite the outlook revision by Fitch
v Japan’s
leading index decreases in May after rising in the previous two months
v Fitch
Ratings: Japan’s public debt burden is likely to remain high under a new
fiscal framework approved last
month
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OVERNIGHT MARKET
UPDATE:
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·
US – The ISM non-manufacturing survey rose to 56.0 in June
following the reading of 55.7 in May. Together with the manufacturing ISM,
these data are suggesting that the US economy remains on a firm footing.
·
Greece – Prime Minister Tsipras spoke with German Chancellor
Merkel on Monday and agreed to outline new fiscal proposals at the emergency
euro area leaders’ Summit in Brussels at 5pm London time Tuesday.
·
Greece – Finance Minister Varoufakis resigned. However, the
newly appointed Finance Minister, Euclid Tsakalotos is unlikely to herald a
significant shift in Syriza’s negotiating position. Tsakalotos has been a
staunch critic of austerity.
·
Euro area – Media reports stated that the ECB will maintain the
existing Emergency Liquidity Assistance (ELA) cap at EUR89 billion for the time
being.
·
Currency – EUR was relatively stable as little concrete progress
on Greece was made. Oil currencies, CAD and NOK, were under pressure from oil
declines, while USD was stable despite slightly weaker
data.
·
Rate – German bunds rallied in early trade, but these moves were
gradually unwound, with 10-year yields down 2.7 bps. US 10-year yields were
down 10 bps.
·
Equity – Greek uncertainty continued to weigh on European equity
markets. US markets fared a little better with the DJIA down 0.3% and the
S&P500 down 0.4%.
·
Energy – Crude oil prices hit a two month low amid mounting
concerns over economic stability in Europe and Asia. On the supply side, an
increase in Iranian supply is expected to compete with Russian sales when the
new supply hits the market. The Russian benchmark oil is similar to Iran’s
flagship blend.
Precious Metal – Gold, which typically seen as an alternative investment
in times of financial and economic uncertainties, failed to attract any
interest despite Greece concerns. It initially rallied during Asian hours.
INDICATIVE MAJOR CURRENCIES
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