CURRENCY MARKET WRAP
As of Tue Jul 9th, Singapore Time zone UTC+8
Dollar Index +0.14%, 97.37
USDJPY, +0.23%, $108.72
EURUSD, -0.10%, $1.1215
GBPUSD, -0.07%, $1.2515
USDCAD, +0.20%, $1.3103
AUDUSD, -0.12%, $0.6973
NZDUSD, -0.07%, $0.6626
There were no notable data prints out if the U.S. and G7 on Monday, the major currencnies remained relatively unchanged.
Turkish Lira dropped on Monday as investors ditched Turkish assets after the country’s central bank governor was ousted by President Recep Tayyip Erdogan. A presidential decree released Saturday said Turkish central bank Governor Murat Cetinkaya was removed from his post and replaced with his deputy, Murat Uysal. The decree did not specify why Cetinkaya was fired, but speculation of his removal had been rising given his reluctance to cut interest rates at Erdogan’s behest. Cetinkaya’s dismissal comes at a time when Turkey’s economy is in disarray and Erdogan struggles to maintain political power.
U.S. Treasuries finished little changed in a quiet session. The 2-yr yield increased one basis point to 1.89%, and the 10-yr yield declined one basis point to 2.03%. The U.S. Dollar Index increased 0.14% to 97.37. WTI crude increased 0.2% to $57.40/bbl.
STOCK MARKET WRAP
S&P500, -0.48%, 2,975.95
Nasdaq, -0.71%, 7,785.79
Nikkei Futures, -0.23%, 21,700.0
S&P 500 lost 0.48% on Monday, pressured by analyst downgrades and waning hopes for a 50-basis points rate cut at the end of the month. With the major indices near record highs, investors adopted a cautious mindset in front of speeches from several Fed officials this week.
Contributing to the risk-off mood was a slew of downgrades, which featured Apple (AAPL 200.02, -4.21, -2.1%)being downgraded to Sell from Neutral at Rosenblatt. Morgan Stanley, meanwhile, downgraded global equities to Underweight from Equal-Weight, citing a poor outlook for equities over the next three months. Weakness in Apple contributed to the underperformance in the S&P 500 information technology sector (-0.7%). Losses from the materials (-1.1%), communication services (-0.9%), health care (-0.8%), industrials (-0.7%), and financials (-0.6%) sectors also hindered the broader market.
In other corporate news, shares of Boeing (BA 351.12, -4.74, -1.3%) underperformed the broader market amid news that a Saudi airline opted out of $5.9 billion 737 Max order in favour of Airbus.