Global Markets

*Namaste!!!*

*US Markets in Detail...*

@AlliesFin

*SGX: 15,815 (-19) (-0.12%)*

*Provisional Cash Rs. In Crs. (27th June)*

FIIs: -1,278 (4,539 – 5,817)

DIIs: +1,184 (5,101 – 3,917)

Sensex: 53,161: +433: +0.82%

Nifty: 15,832: +133: +0.85%

BankNifty: 33,811: +184: +0.55%

NiftyIT: 28,346: +568: +2.05%

MIDCAP: 21,992: +189: +0.87%

Dow: 31,438 (-62) (-0.20%)

S&P: 3,900 (-12) (-0.30%)

Nas: 11,525 (-83) (-0.72%)

Brazil: 100,764: +2,091: +2.12%

Ftse: 7,258: +50: +0.69%

Dax: 13,186: +68: +0.52%

Cac: 6,047 (-26) (-0.43%)

MOEX: 2,417: +26: +1.07%

WTI Oil: $109.6: +2: +1.81%

Brnt: $115.2: +2: +1.80%

Gold: $1,825 (-6) (-0.30%)

Silver: $21.19: +0.13%

Copper: $376.6: +2.2: +0.57%

Copper (LME): $8,381 (-28) (-0.33%)

Zinc (LM): $3,350 (-142) (-4.05%)

Alluminum (LME): $2,456 (-22) (-0.87%)

Tin (LME): $24,590 (-2,395) (-8.88%)

Eur-$: 1.0584

GBP-$: 1.2265

Jpy-$: 135.46

Re: 78.3463: +0.00%

USD = RUB: 54.2578 (-0.05%)

US10yr: 3.20%

GIND10YR: 7.407 (-0.50%)

$ Index: 103.9510 (-0.22%)

US Vix: 26.95 (-1.03%)

India Vix: 21: +2.19%

BalticDry: 2,331 (-23) (-0.98%)

*ADR/GDR*

Cogni (-0.50%)

Infy: +0.48%

Wit (-0.73%)

IciciBk (-1.42%)

HdfcBk (-1.68%)

DrRdy (-0.48%)

TataMo (-1.09%)

TatSt (-1.36%)

Axis: +0.00%

SBI (-0.17%)

RIGD (-1.24%)

INDA (-0.78%) (IShares MSCI INDIA ETF)

INDY (-0.82%) (IShares MSCI INDIA 50 ETF)

EPI (-0.64%) (Wisdom Tree India Earning)

PIN (-0.66%) (Invesco India Etf)

*U.S. stock indexes book biggest daily drop in over a week despite strong economic data, with few catalysts to sway investor sentiment as they approach the half-way point of a year in which the equity markets have been slammed by heightened inflation worries and tightening Fed policy Tech Drags Down Stocks As Treasury Yields Climb.*

*Investors weighed stronger-than-expected data on durable goods against expectations for a slowing economy that could limit the magnitude of Federal Reserve rate increases.*

*The major averages struggled as investors weighed whether stocks have reached a bottom or are instead briefly rebounding from oversold conditions. Stocks could get a lift in the near term this week, as investors rebalance their holdings for the end of the quarter.*

It was the biggest one-day point and percentage declines for all three indexes since June 16, according to Dow Jones Market Data.

At the start of a week expected to be marked by fickleness and lack of conviction on a market trough, the S&P 500 had a hard time finding direction throughout most of the day.

*The reason for lack of direction this week and next week is investors are looking for what’s going to happen in the second quarter reporting period*

*There will be lots of fund managers rebalancing their portfolios this week, which could mean more volatility. Betting on a bear-market bottom could be a costly mistake, while selling short is not as lucrative as was the case when markets were higher.*

*Trader sentiment continues to be impacted by a confluence of factors -- from aggressive Federal Reserve hikes to looming recession fears and unsettling inflation readings.The market isn’t turning a corner until investors know the US has avoided a recession, “and we are not there yet.”*

*There’s a growing perception among prominent Wall Street voices that the level of bullishness about the corporate side may be in desperate need of a reality check. Data from Bloomberg Intelligence show analysts expect companies in the S&P 500 to see profits grow by 10.7%, up from 10% a month ago and 8.7% at the start of the year.*

*Another way of looking at it is: on a scale of 1 to 5 -- in which 5 is a buy and 1 is a sell -- analysts now have an average consensus rating of 4, data compiled by Bloomberg show. That’s the highest reading since 2002.*

*We are a long way from looking at a situation where investors have sworn against stocks in a significant way like they usually do at the bottom of a bear market. Investors should use any further gains in the stock market as opportunities to raise some cash and get more defensive.*

Market volatility sparked by fears of recession is also behind the current trend of corporate- and sovereign-bond deals getting withdrawn. Issuers have pulled 16 transactions globally so far this month, the most since Bloomberg started monitoring figures in February, after Russia began its invasion of Ukraine.

Last week, the S&P 500 jumped 6% to snap a three-week losing run. The Dow Jones Industrial Average rose 5% and the tech-heavy Nasdaq Composite gained 7%.

*All three indexes are on course to notch two straight quarterly declines for the first time since 2015. They also appear set to post losses for June, which would mark three consecutive down months for the tech-heavy Nasdaq, its longest losing streak since 2015.*

*Volume on U.S. exchanges was 10.91 billion shares, compared with the 12.95 billion average over the last 20 trading days.*

*What drove markets*

*Stocks struggled to hang on to opening gains even after data surprised as it showed U.S. durable-goods orders rose by 0.7% in May, versus forecasts for a 0.2% rise, and pending home sales rebounded last month, reversing a six-month decline. It added credence to U.S. Federal Reserve Chairman Jerome Powell's assertion that the economy is robust enough to withstand the central bank's attempts to rein in decades-high inflation without sliding into recession. Investors were caught between recession and inflation fears.*

*Stocks sank lower in the afternoon after wavering over the flat line earlier in the day. The day’s moves had been “tepid,” Baird’s Ross Mayfield told CNBC, noting that there still isn’t a clear catalyst driving what has been and will continue to be a “meandering” market.*

*“In these kind of bear market rallies, it’s more about things getting a little too oversold, a little too negative,” he said. “But those aren’t enough on their own to really sustain the rally, they just can provide relief in pockets.”*

*Mayfield noted that any signs of meaningful easing in inflation would be a positive catalyst for stocks.*

From here, the expectation is probably once again that we’ve hit peak inflation, even if the rollover is very slow, and that financial markets should see reduced volatility into year-end. If we see another push higher in inflation, however, all bets are off and volatility should accelerate again.

We’re going to be dealing with this push-and-pull for some time to come now. It dosen’t seem we can expect to see a situation where inflation comes down significantly without a pretty significant slowdown in economic growth.

*Strategists at Credit Suisse said bond yields may have seen their peak, particularly for Treasury-inflation protected securities, which in turn could mean the dollar DXY is close to its summit. They say their lead indicators are consistent with 0% GDP growth, as evidenced by the collapse in housing affordability, the weakness of corporate confidence and the weakness in the employment gauge of the Institute for Supply Management manufacturing index.*

Stocks had bounced last week in a move analysts credited to expectations that a slowing economy could see the Federal Reserve hike rates less aggressively than previously expected.

*Fed Chairman Jerome Powell warned lawmakers that achieving a so-called soft landing for the economy as the Fed tightens interest rates would be “very challenging.”*

Global growth and inflation concerns are keeping investors up at night. At a June 14-15 semiannual meeting for BlackRock’s portfolio managers and executives, “concerns over a global growth slowdown weighed on participants as a stampede of central banks raised rates in an effort to rein in inflation.”

Most attendees said they expect to see short cycles, more macro volatility and volatile markets..

*Group of Seven economic powers met in Germany where they underscored their commitment to Ukraine for the long haul with plans to pursue a price cap on Russian oil.*

*The S&P was on track to report its fifth worst year-to-date price decline since 1962 as of Friday, Stovall said.*

*"Every time the SPX rose by more than 20% in a year it fell by an average of 11% starting relatively early in the new year. And all years where the decline started in the first half got back to break even before the year was out."*

*"No guarantee that’s going to happen this year, but the market could surprise us to the upside," Stovall said.*

*With several weeks to go until second-quarter reporting commences, 130 S&P 500 companies have pre-announced. Of those, 45 have been positive and 77 have been negative, resulting in a negative/positive ratio of 1.7 stronger than the first quarter but weaker than a year ago.*

*Stock futures rose slightly in overnight trading Monday following a losing day as investors prepare to rebalance their portfolios with the end of the quarter fast approaching.*

*Several major banks raised their dividends in response to successfully clearing this year’s Federal Reserve stress tests, including Bank of America, Morgan Stanley and Goldman Sachs. JPMorgan and Citigroup, however, said increasingly stringent capital requirements forced them to keep their dividends unchanged.*

The S&P 500 is up more than 7% since hitting a bear-market low in mid-June, although the benchmark is still off 19% from its high and 18% since the year began.

*The market volatility isn’t over yet, however, UBS equity strategist Christopher Swann said in a note Monday.*

*“The concerns that caused the index to fall into bear market territory earlier in June have not gone away—including worries over the pace of rate rises, the threat of recession, and political risks,” he said. “While the most probable single scenario, in our view, would feature an economic soft landing and market stabilization, sentiment is likely to remain fickle, and this is not a market to position for any one scenario with high conviction.”*

*Companies in focus*

• *Frontier Airlines parent Frontier Group Holdings Inc.* issued a letter to *Spirit Airlines Inc.* shareholders, urging them to support the air carriers’ agreed upon merger deal. In the letter, Frontier Chairman William Franke and Chief Executive Barry Biffle said the recently amended Frontier-Spirit deal offers Spirit shareholders value “well in excess” of JetBlue Airways Corp.’s “illusory proposal, which lacks any realistic likelihood of obtaining regulatory approval.” Frontier shares finished down by 1.21%, while Spirit shares closed 8% lower and JetBlue shares gained 1.6%.

• *BioNTech* shares also climbed 7.2% after the drug maker said its Omicron-based Covid-19 booster generates an improved immune response against that variant

• Shares of *Robinhood Markets Inc.* shares finished 14% higher after the crypto exchange FTX denied conversations with Robinhood about a potential merger or acquisition deal with the trading app, following an earlier news report detailing internal talks at FTX about a potential deal from Bloomberg. In extended trading, Robinhood Markets fell 4% after FTX's Sam Bankman-Fried said his cryptocurrency exchange was in no active M&A conversations with the retail stock trading platform.

• *Coinbase Global Inc* dropped over 10% after Goldman Sachs downgraded that cryptocurrency exchange to "sell" from "buy".

The Shanghai Composite ended 0.9% higher, while the Hang Seng Index jumped 2.4% and Japan’s Nikkei 225 rose 1.4%.

European stocks closed slightly higher on Monday, as a positive trend seen at the end of last week’s trading lost some momentum.

The pan-European Stoxx 600 index provisionally ended 0.6% higher, having traded up more than 1% earlier in the session. Mining stocks rose over 2% to lead the gains.

*Elsewhere on Monday, investors will be looking for more updates from the summit of the Group of Seven leaders. U.S. President Joe Biden joined the leaders of the world’s wealthiest democracies, including Canada, the U.K., Germany, France, Italy and Japan, for the three-day summit beginning Sunday at which Ukraine and the global economy are topping the agenda.*

As the G-7 leaders gathered in Germany, the Ukrainian capital of Kyiv was once again hit by Russian missile strikes, several months after Russian forces withdrew from the city to focus on eastern Ukraine, where they have made significant headway in recent weeks.

*What to watch this week:*

# San Francisco Fed President Mary Daly is interviewed by LinkedIn’s chief economist, Tuesday

# US GDP, Wednesday ECB President Christine Lagarde, Federal Reserve Chair Jerome Powell, BOE Governor Andrew Bailey and Cleveland Fed President Loretta Mester due to speak at ECB event, Wednesday

# St. Louis Fed President James Bullard speaks, Wednesday

# China PMI, Thursday

# US personal income, PCE deflator, initial jobless claims, Thursday

# Eurozone CPI, Friday

# US construction spending, ISM Manufacturing, Friday

*Currencies*

# The Bloomberg Dollar Spot Index was little changed

# The euro rose 0.3% to $1.0581

# The British pound was little changed at $1.2272

# The Japanese yen fell 0.2% to 135.44 per dollar

*Bonds*

# The yield on 10-year Treasuries advanced six basis points to 3.19%

# Germany’s 10-year yield advanced 10 basis points to 1.55%

# Britain’s 10-year yield advanced nine basis points to 2.39%

*Commodities*

# West Texas Intermediate crude rose 1.6% to $109.34 a barrel

# Gold futures fell 0.3% to $1,824.20 an ounce.

Market updates https://telegram.me/AlliesFin