📈Market performance
📘US stocks mixed:
- The Dow rises 0.08%, the Nasdaq falls 0.51%, the S&P 500 declines 0.22%, and the Russell 2000 drops 0.17%. The dollar index falls 0.01%, reported at 98.7639. The 2-year US Treasury yield drops by 4.22 basis points to 3.8992%, while the 10-year yield falls by 1.97 basis points to 4.3731%. The VIX drops 6.99%, reported at 20.62. Brent crude oil falls 1.69%, reported at 75.78, and London gold drops 0.08% to 3367.64.
📘Chinese concept stocks generally fall:
- The dollar falls 75 basis points against the offshore yuan, reported at 7.1794. The Nasdaq Golden Dragon Index falls 0.92%, Pinduoduo falls 1.02%, Alibaba falls 0.42%, JD.com falls 3.26%, NetEase falls 0.03%, Li Auto falls 1.55%, Xpeng Motors falls 1.61%, NIO falls 0.29%.
📘A-shares mixed, Hong Kong stocks generally rise:
- The Shanghai Composite Index falls 0.07%, the CSI 300 rises 0.09%, and the ChiNext Index falls 0.83%. The Hang Seng Index rises 1.26%, and the Hang Seng Tech Index rises 0.88%.
📘European stock markets mixed:
- The UK's FTSE 100 falls 0.20%, France's CAC40 rises 0.48%, Germany's DAX rises 1.27%. The euro rises 0.21% against the dollar, reported at 1.1522.
📘Japan and South Korea, as well as emerging markets, show mixed results:
- The Nikkei 225 index falls 0.22%, the South Korean Composite Index rises 1.48%, the Indian SENSEX30 rises 1.29%, the Indonesian Composite Index falls 0.88%, the Ho Chi Minh Index in Vietnam falls 0.13%, and the Mexican MXX rises 0.35%.
📍📍Key focus
📘Attention to the Middle East situation: Iran and European officials hold their first meeting, but fail to break the deadlock; Trump comments on this meeting; Russia issues a strong statement in support of Iran.
- Iran and European officials hold their first meeting, but fail to break the deadlock: Iranian Foreign Minister meets with his counterparts from the UK, France, and Germany for three hours of secret talks in Geneva. Iran expresses willingness to engage in dialogue on its nuclear program and other issues, but insists on its right to enrich uranium, refusing to restart US-Iran nuclear negotiations before Israel halts its attacks. The three foreign ministers call for de-escalation and hope for US involvement in subsequent talks.
- Trump comments on the meeting: Trump states that he does not currently demand a ceasefire from Israel, and whether to support a ceasefire 'depends on the situation'; he indicates that he will give Iran two weeks to decide whether to negotiate and claims that the US has intelligence on Iran's nuclear weapon progress, believing that Iran is only weeks away from possessing nuclear weapons.
- Russia issues a strong statement in support of Iran: The Kremlin spokesperson states that a regime change in Iran is 'unacceptable' and that if Khamenei is assassinated, it would 'open Pandora's box', with Russia responding 'very negatively'.
📘Federal Reserve officials speak: Waller hopes for a rate cut in July, and Daly states that the likelihood of starting rate cuts in the third quarter is greater.
- Federal Reserve Governor Waller (25-year voting member, dovish) hopes to cut interest rates in July: He states there is no need to wait too long, and a rate cut could happen as early as the July meeting, suggesting to ignore tariff impacts. There are signs of a slowdown in the labor market, and employment deterioration should be prevented.
- San Francisco Fed President Daly (non-25-year voting member, neutral) states that the likelihood of cutting rates starting in the third quarter is greater: The situation will be clearer by then; continuous low inflation for three months is good news, but vigilance is needed.
- 'New Federal Reserve Communique' comments on Waller's speech: Nick Timiraos states that Waller is a 'dark horse' for the next Federal Reserve Chair, with a flexible stance that helps respond to potential inflation rebounds without carrying historical baggage.
📘Trump's attacks on Powell escalate again, reiterating calls to dismiss Powell: He claims to have tried various ways to influence rate cuts, stating that 'good', 'neutral', and 'hawkish' approaches have been ineffective. If rates drop to 1%-2%, it could save trillions annually; he questions why the Federal Reserve Board does not overturn Powell and suggests he could be fired, saying 'his term is almost over.'
📘Japan's May CPI is 3.5% year-on-year, expected 3.5%, previous value 3.6%; month-on-month 0.3%, previous value 0.4%
Japan's May CPI, excluding fresh food and energy, is 3% year-on-year, expected 3.2%, previous value 3.3%
Japan's May CPI, excluding fresh food, is 3.7% year-on-year, expected 3.6%, previous value 3.5%
✍️Commentary: Considering the rise in food prices, Japan's inflation data for May is not surprising. It is expected that food price pressure will ease in the coming months, with future attention on the impact of Middle Eastern geopolitical tensions on energy prices.
📘Minister of Commerce Wang Wentao holds video talks with EU Commissioner: Both sides have in-depth discussions on topics such as electric vehicle anti-subsidy cases, export controls, and market access, agreeing to jointly prepare for important economic and trade agendas between China and Europe and promote stable development of economic and trade relations.
📘National Development and Reform Commission: The 'old for new' national subsidy will continue to be promoted, with 138 billion yuan in central funds to be issued in two batches in the third and fourth quarters. The first two batches this year have already been issued 162 billion yuan, and further central and local support will continue to ensure funding.
📅Key events this week (GMT+8)
Tesla's Robotaxi is in trial operation in Austin.
