- All eyes will be on this week's rate decisions, starting with the Bank of Japan (BOJ) tomorrow morning
- Tues: the BOJ is expected to hike policy rate by 25 basis points to 1.00%. Comments from Governor Ueda at the late April meeting and in early June indicated that the Policy Board intended to continue its policy normalisation process in the near term, to “avoid falling behind the curve … unless there is a major downturn in the economy” and as long as prices rise “as expected or if upside risks materialize".
- Another factor that may support the BOJ decision to hike is recent comments from PM Takaichi that the BOJ is able to decide monetary policy settings independently, which represents a shift away from prior comments that indicated some opposition to rate hikes.
- The Nikkei225 Index is amongst the top performing index amongst developed markets, with a 31.2% year to date (YTD) return as of 3PM on 12 June, compared to the S&P's +8% YTD gain
- Tues: a series of key activity data in China will be published, starting with the May industrial production - which is expected to rise 4.2% over the previous year (YoY)
- May retail sales is expected to fall 1% YoY in May, the first decline since 4Q2022
- Fixed Asset Investment is estimated to have fallen 2.8% YoY in Jan-May
- Wed night: the FOMC is widely expected to keep the federal funds rate unchanged at the 3.50–3.75% range at next Wednesday’s meeting. Attention and focus will be on the tone of the communication, particularly so as this will be the first meeting with Kevin Warsh in the Chair role
- The statement may shift away from an easing bias toward a more neutral bias, a change that was foreshadowed at the April decision. The updated Summary of Economic Projections may also provide insight with the dot plot potentially shifting in a hawkish direction
- Investors keen to trade any volatility in the US, Japan and China-related Hang Seng Index may consider using the below trending index warrants which will move in greater magnitude than the indices depending on their effective gearing levels:
Trending S&P call TDRW: https://warrants.com.sg/tools/livematrix/TDRW
Trending S&P put IYUW: https://www.warrants.com.sg/tools/ livematrix /IYUW
Trending Nasdaq-100 call EFKW: https://warrants.com.sg/tools/livematrix/EFKW
Trending Nasdaq-100 put YVJW: https://warrants.com.sg/tools/livematrix/YVJW
Trending Nikkei225 call V5PW: https://warrants.com.sg/tools/livematrix/V5PW
Trending Nikkei225 put YHSW: https://warrants.com.sg/tools/livematrix/YHSW
Trending HSI call VKLW: https://warrants.com.sg/tools/livematrix/VKLW
Trending HSI put PNXW: https://warrants.com.sg/tools/livematrix/PNXW
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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