Overnight Price Action
Asian stocks put on a mixed showing, with the Nikkei index up 1.6% on strong industrial production data but the SHCOMP and HSI slipping 0.1%. The S&P 500 gained 0.4% to 1654.41 and European stocks also bounced from a threeweek low, the Stoxx 600 adding 0.4% to 303.55.
In FX, EUR fell fractionally against the USD to 1.3043. Asian currencies mostly receded against the USD, with the JPY shedding 0.26% to 100.99. The AUD strengthened to 0.9669 and the NZDUSD also gained 0.22% to 0.8092. IDR and INR were down 0.99% and 0.36% to 9905 and 56.37 against the USD, respectively. The PBoC fixed USDCNY 24 pips lower at 6.1796.
US government securities lost 1.8% in May, the steepest monthly decline in three years in anticipation of curtailment of US bond purchases. However, 7Y notes attracted strong interest yesterday, with yields at 1.496%, the highest auction rate since March 2012. Gold was steady at USD1418 and Brent prices level at USD102.25.
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Credit Suisse