Morning Call Script - 13 May 2024

Overnight asset drivers & the impending data calendar

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What’s Moved Overnight

• Another quiet Wellington open session. Market drifting within closely defined ranges as we wait for US CPI....

  • Nikkei 5220, CSI 3660, Crude $78.00, Brent $82.50, Gold $2350, XBT 60.9k, EUR 1.0770, GBP 1.2525, AUD 0.6595, JPY 155.83, CNH 7.2417, 10s at 4.50%.

• Tariffs on Chinese goods get support from both sides of the isle and look set to build over the course of the campaign trial. How will Xi respond? Will they deval USDCNY before the election?

  • FT - US set to impose 100% tariff on Chinese electric vehicle imports

  • Bloomberg - Biden to Hike Tariffs on China EVs, Offer Solar Exclusions

• 10yr JGB sold off 2.5bps as BoJ reduces slightly their offer amount for bonds... start of a consistent taper?

  • Nikkei Asia - BOJ cuts purchases of Japanese government bonds in hawkish signal

• Other stories in the news over the wkd... Inflation data key for the Fed and Biden as its impacting his support, Trump pledges MAGA Tax cuts

  • Bloomberg - This Round of Inflation Data Will Matter Greatly

  • FT - Support for Joe Biden’s economic policies wanes amid inflation fears, FT poll finds

  • Bloomberg - Trump Pledges Across-the-Board Tax Cuts If He Returns to Office

For greater details on the overnight news stories, current macro themes, and a comprehensive look at the week ahead, look out for today’s edition of The Morning Hark. Landing in the inbox of PRO subscribers around 7.15GMT (2.15 EST).

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Have a great day, and keep smiling!

Podcast for the Commute

• Macro Musings - Mary Daly on Fed Policy, the Economic Impacts of AI, and the Future of the Fed’s Framework

The Day Ahead

• ECB's Buch (14:00) 

• Fed's Jefferson (14:00) and Mester (14:00) 

• USD (16:00): Consumer Inflation Expectations

Stay informed throughout the day with our new commentary channel (‘Intraday Market Colour’) highlighting key notes, topics du jour, and HarksterHQ’s market updates around key data points and headlines. 

Available on the HarksterPRO Research Platform.

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