Morning Brew June 12 2024

Good morning,

US Stocks posted a further record close yesterday as Apple posted the gain I had expected for Monday yesterday. Apple gained 7% or more than 200bio USD or one time the largest German Company SAP. Oracle is up 8% after hours.

The US 500 is 5380, the USTech100 NAS 19232 and the US 30 38780. The GER40 remains stuck below the highs after the election disaster and is trading at 18445.

Yields and USD Index are a little lower at 4.40 and 105.25, EURUSD is at 1.0740, GBPUSD 1.2745 and USDJPY 157.22.

Gold and Silver are a little higher at 2315 and 29.45.

The CPI and the FOMC will be key today after the first round of data is released and any deviation from the expectation will be important for traders as outlined in the articles below

• Japanese Corporate Goods Prices came higher than expected
• China PPI fell less than expected at -1.4% vs -1.5% expected.
• China CPI 0.3% vs 0.4% expected
• German CPI and HICP in line at annual 2.4% and 2.8%.
• UK Industrial Output was worse than expected at -0.9% vs -0.1% expected.

 These numbers are not a very clear picture except for confirming the mess the UK is in.,

Key times are now:

14:30 for the US CPI expected at 3.4% and the Core at 3.5%.

20:00 FOMC Rate decision no change expected
20:30 Press Conference with Jerome Powell.

A further topic – even if not the most important today is the French economy and the uncertainty around the snap election. The Yield Spreads between Germany and France are “interesting”

Also, The European Commission will notify car makers on Wednesday that it will provisionally apply additional duties of up to 25% on imported Chinese electric vehicles from next month, the Financial Times reported .

Preparation for today:

Charu: France Election Turmoil: European Equities Amidst the Upheaval

Kim: Top formations in Gold and Silver. How low will they go? Bottom and reversal indications for Gold/Silver ratio

Charu: US CPI and Fed Previews: Delays, but Dovish

Key Data:

Wednesday
Data: China CPI & PPI, DE HICP, UK GDP, US CPI, US Rate Decision

Thursday
Data: US Initial Jobless Claims

Friday
Data: EU Trade Balance, US Import Prices, University of Michigan Sentiment