Fixed Income Market Overview
U.S. Treasury bond yields rose on Monday after Minneapolis Federal Reserve President Neel Kashkari suggested that rate cuts might not occur until December. The 10-year Treasury yield increased by over 7 basis points to 4.289%, and the 2-year Treasury note yield rose about 6 basis points to 4.744%. Kashkari mentioned that more data is needed to ensure inflation is returning to 2% before making any rate cut decisions. Last week’s lower-than-expected producer price index boosted hopes for a rate cut. Key economic data, including May retail sales and housing figures, are expected this week. Markets will be closed on Wednesday for the Juneteenth holiday.
Apple supplier TDK says battery breakthrough can deliver higher performance for wearable devices.
BBVA Plans to Start Digital Bank in Germany to Rival JPMorgan.
PE firm Ardian and Saudi Arabia’s SWF PIF agreed to acquire a 38% stake in London’s Heathrow Airport for $4.26B.
Warren Buffett’s Berkshire Hathaway trims its stake in Chinese EV maker BYD to 6.9%.
Oil prices rise after booking best week since April.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,778.10 | 188.94 | 0.49%↑ |
| NASDAQ | 19,902.75 | 242.95 | 1.24%↑ |
| S&P 500 | 5,473.23 | 41.63 | 0.77%↑ |
| NIKKEI | 38,102.44 | -712.12 | -1.83%↓ |
| HSI | 17,936.12 | -5.66 | -0.03%↓ |
| VIX | 12.75 | 0.09 | 0.71%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.29% | 0.06 |
| US 30-YR | 4.41% | 0.06 |
| US 5-YR | 4.31% | 0.06 |
| JPN 10-YR | 0.93% | -0.01 |
| UK 10-YR | 4.12% | 0.06 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 80.33 | 1.88 | 2.40%↑ |
| NAT GAS | 2.788 | -0.093 | -3.23%↓ |
| GOLD | 2,329.00 | -20.10 | -0.86%↓ |
| SILVER | 29.39 | -0.08 | -0.27%↓ |
| COPPER | 4.448 | -0.048 | -1.06%↓ |
Equity Market Overview
Hyundai Motor Co.
Hyundai Motor Co. shares reached a record high following the announcement of its India unit’s planned listing in Mumbai, which aims to enhance Hyundai’s presence in the world’s third-largest auto market. Shares surged by up to 6.3% to 285,000 won ($206.47), closing 3.9% higher and elevating its market capitalization to 58.3 trillion won. The India unit’s IPO could be the largest in the nation, with Hyundai Motor potentially raising $2.5-$3 billion at a valuation of up to $30 billion. Analysts believe this move will bolster Hyundai’s growth in India, particularly in the electric vehicle sector. The IPO will involve the South Korean parent selling up to 17.5% of its stake in the wholly owned unit. Details on pricing and valuation were not disclosed, though sources indicate a significant financial ambition for the listing.
Tesla
Tesla Inc. has received approval to test its advanced driver assistance system on select Shanghai streets, with potential approval forthcoming in Hangzhou. These tests, conducted by Tesla staff, mark a step toward offering the feature to Chinese drivers. This approval follows CEO Elon Musk’s recent visit to Beijing, which had already positively impacted Tesla’s shares. Despite the growing popularity of advanced driver-assistance systems in China, Tesla’s Full Self-Driving (FSD) system remains non-autonomous and requires constant supervision. In China, Tesla’s FSD system is priced at 64,000 yuan ($8,800), but due to regulatory restrictions, activation remains limited. Consequently, only a small number of Chinese customers have opted for this feature.
