As of Tue, Jun 11th, Singapore Time zone UTC+8
Dollar Index +0.23%, 96.77
USDJPY, +0.18%, $108.39
EURUSD, -0.16%, $1.1315
GBPUSD, -0.36%, $1.2689
USDCAD, -0.01%, $1.3267
AUDUSD, -0.57%, $0.6959
NZDUSD, -0.84%, $0.6610
In US-China trade,Trump has warned Xi Jinping that a new round of tariffs would be levied on the country’s goods if the two leaders failed to meet at the G20 summit in Japan, as trade tensions continued to simmer between Washington and Beijing. “I think the differences can be worked out very easily. I would be surprised if he didn’t go. I think he is going, I haven’t heard that he’s not,” Trump said. But he added that levies on $300bn of additional Chinese imports would be imposed immediately if Xi failed to show up, on top of a 25 per cent tariff in place now on $250bn of goods. In US-Mexico trade, Trump could still reinstate the tariffs, though, if the U.S. thinks Mexico is not doing enough to stop the flow of illegal migration through its borders. Nevertheless, U.S. companies dodged a 5% tariff rate on all goods imported from Mexico, which kept the market in good spirits in addition to sizable M&A activity and decreased demand for U.S. Treasuries.
The 2-yr yield and the 10-yr yield increased six basis points each to 1.90% and 2.14%, respectively. The U.S. Dollar Index advanced 0.23% to 96.77. WTI crude fell 1.1% to $53.31/bbl.
S&P500, +0.47%, 2,886.73
Nasdaq, +1.14%, 7,501.93
Nikkei Futures, +0.60%, 21,047.5
S&P 500 advanced as much as 1.1% on Monday, catalyzed by the U.S. and Mexico reaching a deal to avoid tariffs that were scheduled to be imposed yesterday.The S&P 500 consumer discretionary (+1.1%), information technology (+1.0%), and financials (+0.9%) sectors, which are among the most heavily weighted sectors in the S&P 500, outperformed the broader market.
Consumer discretionary received strong support from shares of Amazon (AMZN 1860.63, +56.60, +3.1%), information technology rose on the back of the semiconductor stocks, and financials benefited from higher Treasury yields amid the decreased demand for the safe-haven asset. The Philadelphia Semiconductor Index increased 2.5%.
In M&A news, United Technologies (UTX 128.01, -4.14, -3.1%) and Raytheon (RTN 187.12, +1.21, +0.7%) agreed to an all-stock merger of equals, valued at roughly $120 billion. Salesforce (CRM 152.79, -8.48, -5.3%) announced it will acquire Tableau Software (DATA 167.41, +42.20, +33.7%) for $15.7 billion in stock, which represents a 42% premium to DATA’s closing price from Friday.
Separately, shares of Beyond Meat (BYND 168.10, +29.45) continued to soar, tacking on another 21.2% on Monday. Since pricing its IPO at $25 per share on May 1, the stock has yielded a staggering 572.4% return to shareholders.