Morning Wrap (16.06.2023)

• Wall Street indices ended yesterday's trading with gains: S&P 500 and Nasdaq up by 1.2%, Dow Jones up by 1.3%, and Russell 2000 up by 0.8%.

• Asia-Pacific indices traded higher: Nikkei up by 0.6%, S&P/ASX 200 up by 0.7%, Chinese indices fluctuated between -0.10-0.10%, and Kospi up by 0.5%.

• DAX futures indicate a higher opening for the European cash session.

• Asian equities are set for a third weekly gain, driven by expectations of additional stimulus from China.

• UBS lowered its forecast for China's GDP growth this year to 5.2% from 5.7% and for 2024 to 5% from 5.2% due to various economic factors.

• Bank of America cut China's 2023 full-year GDP growth forecast to 5.7% from 6.3%.

• The Bank of Japan hold interest rates unchanged at -0.1%, in line with analysts' expectations

• The Bank of Japan expects Japan's economy to recover gradually and anticipates a slowdown in the core CPI in the middle of fiscal year 2023.

• New Zealand's Manufacturing PMI was 48.9, slightly lower than the previous 49.1.

• The S&P 500 extended its winning streak to six days, and the Nasdaq 100 reached its highest level since March 2022, driven by the hype around artificial intelligence.

• The stock rally fueled by artificial intelligence hype is spreading beyond the technology sector, raising concerns about an overbought market.

• JP Morgan expects further rate hikes from the European Central Bank, predicting a +25bp in July and another +25bp in September, taking the terminal rate to 4%.

• BlackRock has applied for a Bitcoin spot exchange-traded fund (ETF), which would be the first crypto spot ETF in the United States if approved.

USDJPY experienced a slight upward movement following the Bank of Japan's decision to maintain its interest rate. Despite market expectations aligning with the unchanged rate, the Japanese yen depreciated against the US dollar, M15 interval, source xStation 5