Fixed Income Market Overview
Treasury yields fell on Tuesday as the Federal Reserve’s two-day monetary policy meeting began. The 10-year Treasury yield decreased by 2 basis points to 4.447%, and the 2-year Treasury yield dropped by 3 basis points to 4.857%. The Fed is expected to maintain interest rates at 5.25%-5.5%, with a possible rate cut later this year. Investors are looking for clues from the Fed’s comments on future policy. Key economic indicators, the consumer price index for May and the producer price index, are also due this week, with hopes that cooling data may prompt earlier rate cuts to avoid recession concerns.
Saudi Aramco announces completion of secondary share sale for $11.2 bln.
UK unemployment nears three-year high, wage growth firm as election looms.
UK Smashes Bond Demand Record With £109 Billion Orderbookv.
Mastercard to phase out manual card entry for online payments in Europe by 2030.
Oil prices hold firm after rally as OPEC sticks to demand and steady economic growth forecasts.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,747.42 | -120.62 | -0.31%↓ |
| NASDAQ | 19,210.18 | 135.51 | 0.71%↑ |
| S&P 500 | 5,375.32 | 14.53 | 0.27%↑ |
| NIKKEI | 39,134.79 | 96.63 | 0.25%↑ |
| HSI | 18,176.34 | -190.61 | -1.04%↓ |
| VIX | 12.85 | 0.11 | 0.86%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.41% | -0.06 |
| US 30-YR | 4.54% | -0.06 |
| US 5-YR | 4.42% | -0.06 |
| JPN 10-YR | 1.02% | -0.02 |
| UK 10-YR | 4.28% | -0.06 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 77.90 | 0.16 | 0.21%↑ |
| NAT GAS | 3.129 | 0.223 | 7.67%↑ |
| GOLD | 2,326.60 | -0.40 | -0.02%↓ |
| SILVER | 29.23 | -0.64 | -2.15%↓ |
| COPPER | 4.510 | -0.034 | -0.74%↓ |
Equity Market Overview
General Motors
General Motors announced a new $6 billion stock repurchase authorization approved by its board, following the near completion of a $10 billion buyback program from November 2023. CFO Paul Jacobson highlighted the company’s focus on profitability in both internal combustion engine and electric vehicle businesses while efficiently deploying capital to return cash to shareholders. This new authorization allows GM to repurchase shares opportunistically after the current program’s completion, though no specific timeframe was given. GM’s stock has risen by 32.4% this year, closing at $47.57 on Monday. The buyback plans come amid challenges in the electric vehicle market and fluctuating customer demand for new cars.
Raspberry Pi
Shares of Raspberry Pi surged over 38% on Tuesday as the British computing startup initiated its initial public offering, aiming to raise £166 million ($211.2 million). The stock began conditional trading at 280 pence per share, closing at 388 pence, valuing the company at approximately £541.6 million. The IPO includes shares from the Raspberry Pi Foundation and its majority shareholder, with a potential overallotment option that could increase the total offering to £178.9 million. Raspberry Pi, founded by CEO Eben Upton in 2012 to make computing more accessible, has shifted its focus to the industrial market, driving a 41% revenue increase to $265.8 million in 2023. This IPO is seen as a significant boost for London’s stock exchange, which has struggled to attract tech listings, contrasting with firms like Arm choosing U.S. listings.
Apple
Apple’s developer conference highlighted both AI advancements and strategies to boost iPhone sales amid challenging consumer spending and tech competition. The introduction of “Apple Intelligence,” featuring generative AI for custom emojis and enhanced Siri functions, aims to invigorate its customer base and drive upgrades to the iPhone 15 Pro or Pro Max. Analysts predict a significant upgrade cycle akin to the iPhone 12’s release, potentially lifting sales from the 270 million iPhones not upgraded in four years. Despite some skepticism about consumer adoption, Apple’s seamless AI integration and focus on user privacy present a compelling case for its new devices. The company’s stock responded positively, reflecting investor optimism about these developments.
