Fixed Income Market Overview
U.S. Treasury yields rose on Monday as investors anticipated the Federal Reserve’s monetary policy meeting and crucial inflat ion data this week. The 10-year Treasury yield climbed nearly 4 basis points to 4.465%, while the 2-year yield increased by 1 basis point to 4.883%. Investors await the Fed’s interest rate decision, expected to leave rates unchanged, and will scrutinize the Fed’s guidance and press conference for economic outlook insights. May’s consumer and producer price index reports, also due this week, will provide fresh inflation data. Policymakers have emphasized needing more evidence of inflation easing toward the 2% target before considering rate cuts. The May jobs report showed a stronger-than-expected increase in nonfarm payrolls, rising by 272,000.
Emirates Telecom’s €2.2 Billion PPF Deal at Risk in EU Probe.
Oil rises on hopes of summer fuel demand.
Saudi oil giant Aramco’s shares rise after stock sale set to raise $11.2 billion.
Gold is getting harder to find as miners struggle to excavate more, World Gold Council says.
Toyota lost over $15 billion in market value last week after being caught falsifying tests.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,868.04 | 69.05 | 0.18%↑ |
| NASDAQ | 19,074.67 | 73.72 | 0.39%↑ |
| S&P 500 | 5,360.79 | 13.80 | 0.26%↑ |
| NIKKEI | 39,038.16 | 354.23 | 0.92%↑ |
| HSI | 18,366.95 | -109.85 | -0.59%↓ |
| VIX | 12.74 | 0.52 | 4.26%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.47% | 0.03 |
| US 30-YR | 4.60% | 0.04 |
| US 5-YR | 4.49% | 0.02 |
| JPN 10-YR | 1.04% | 0.07 |
| UK 10-YR | 4.33% | 0.07 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 77.74 | 2.21 | 2.93%↑ |
| NAT GAS | 2.906 | -0.012 | -0.41%↓ |
| GOLD | 2,327.00 | 2.00 | 0.09%↑ |
| SILVER | 29.87 | 0.43 | 1.47%↑ |
| COPPER | 4.544 | 0.060 | 1.34%↑ |
Equity Market Overview
Southwest Airlines
Activist hedge fund Elliott Management has acquired a $1.9 billion stake in Southwest Airlines and is pushing for leadership changes, targeting CEO Bob Jordan and Chairman Gary Kelly. Elliott criticizes Southwest’s decline from a top-tier airline to a laggard and plans to replace current leaders with outside candidates. Despite Southwest’s board expressing confidence in its current leadership, Elliott remains committed to pursuing all pathways for change. Southwest shares have dropped over 50% in the past three years, contrasting with Delta and United Airlines. Elliott dismissed Southwest’s minor upgrades, advocating for more substantial changes to compete better. Southwest has faced challenges, including delays in new aircraft and a costly 2022 holiday meltdown.
Euro Market
European stocks fell on Monday, led by declines in banks, consumer products, and construction shares, after Emmanuel Macron called a snap French election following a defeat in the European parliamentary elections. Energy and mining stocks rose due to higher copper and oil prices. Macron’s snap election aims to counter Marine Le Pen’s far-right rise, risking his legislative power and political credibility. The euro dropped 0.5% and French bond futures slipped. The election, starting June 30, could shift France’s political landscape significantly, with broader implications for the EU amidst challenges like Russia’s aggression and climate change.
India Market
Indian stock ETFs are attracting traders seeking opportunities in emerging markets during a busy election year. Prime Minister Modi, known for his market-friendly stance, continues to focus on economic development, with Nirmala Sitharaman reappointed as finance minister, ensuring policy continuity. India saw the largest inflow among emerging markets for the week ending June 7, with $468.9 million, led by the iShares MSCI India ETF (INDA) and the WisdomTree India Earnings Fund (EPI). This influx followed a sharp decline in Indian stocks on June 4, which quickly recovered after Modi secured coalition support.
