while we slept; China; no rest for the weary ...
Good morning…
Updates will be shorter than normal and will contain even less of a view / comment (if possible) due to this upcoming weekends festivities … I’ve noted them this past weekend, HERE, and thanks for understanding and slowing down to read.
By now you’ve likely heard about Chinese data dump overnight. China’s data disappointing (to put it midly) as Resail Tales fell 11.1% yoy vs f/c 6.1%, IP down 2.9% yoy vs f/c up 0.4% … for more, as only ZH can put it,
China Economy Crashes Worse Than Expected Amid Covid Lockdowns
HERE you’ll find a few words of wisdom from the sellside (including GSs downgrade of the US econ, Rosies monthly strategizer (above avg duration exposure) and a few words from MSs in-house grizzly bear(s), among other items of interest.
… here is a snapshot OF USTs as of 755a:
… HERE is what another shop says be behind the price action, you know,
WHILE YOU SLEPT
USTs are modestly cheaper in light trading conditions, Bunds underperforming on comments from the ECB's Villeroy ('decisive June meeting, and an active summer'). There was a brief rally overnight on China's release of activity, poor headline optics mostly due to shutdowns in April. Most importantly, the PBOC rolled over MLF and repo operations, but left the rates unchanged, which didn't help risk-assets on the mainland (CSI 300 -1%, Hang Seng +0.3%). The Nikkei and ASX outperformed with gains of 0.3% and 0.5% respectively. U.S. and European futures are in the red though (SPX futures -14 pts here at 7:30am), In FX markets, USD strength has cooled so far (AUD +0.3%), while Crude Oil prices are modestly lower (-1.1%).
… and for some MORE of the news you can use » IGMs Press Picks for today (16 May) to help weed thru the noise (some of which can be found over here at Finviz).
One thought to share from the inbox just a short while ago … from Barclays,
Global Macro Thoughts: No rest for the weary
The macro outlook has worsened, given China’s aggressive zero-COVID approach, stubbornly high US inflation, and a rising risk of natural gas shortages in Europe. We take off our tactically neutral stance, and go back to being negative on risk assets.
No rest for the weary, indeed. For somewhat MORE have at this weekends hit — you’ll find some observations from the sellside along with couple economic calendars all cobbled together to help as you plan your trades and TRADE your plans. I’m OUT FRIDAY … but more on that then.
For now … THAT is all for now. Off to the day job…