Morning auction: “Super bad feeling”

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 1, 2022. REUTERS/Brendan McDermid/File Photo

A look at the day to come on the markets of Julien Ponthus.

With the Nasdaq (.NDX) having lost around a quarter of its value since the start of the year, some investors will no doubt share Elon Musk’s “super bad feeling” about the economy.

But the Tesla CEO’s sentiment, shared with executives in an email, might be taken by others with a generous pinch of salt, given Friday’s data showing the U.S. economy generated more jobs. in May than expected. Read more

Asked by Reuters about Musk’s comments, Joe Biden suggested the problem lay with Tesla and pointed to investments made by Ford to compete with the electric carmaker. Read more

But with the jury still out on whether the world’s largest economy is heading for a hard or soft landing, this Friday’s U.S. consumer price report could shape expectations about the pace of policy tightening. of the Federal Reserve.

What is already clear this morning, however, is that the Bank of Japan remains firmly on the side of the doves, with Governor Haruhiko Kuroda stressing that its top priority is to support the economy with “powerful” monetary stimulus. Read more

Thursday’s European Central Bank meeting will be a key meeting where the bank could draw a line under its years of bond buying stimulus and signal a first rate hike in July, following record inflation of 8.1% of the euro area in May.

And although there are signs that the rebound of the European economy post-COVID-19 could collapse, the French finance minister said on Sunday that despite the war in Ukraine and high inflation, he expected positive growth for 2022.

Bruno Le Maire’s optimism seems to match the mood of the markets on Monday. Asia closed with gains, while European and US futures point to a positive open.

Musk’s “super bad feeling” may instead be shared by British Prime Minister Boris Johnson – he could have a tough week, as Tory lawmakers prepare to challenge his leadership for more.

Key developments that should further guide markets on Monday:

– Services activity contracts in May in China for the third consecutive month

– UK Finance Minister Rishi Sunak faces a parliamentary committee hearing on the cost of living

-Italian TIM aims to maximize value and reduce debt in the event of a breach Read more

-US to let Eni and Repsol ship Venezuelan oil to Europe for debt Read more

-Czech central bank chief: Another rate hike likely, 75bps or more Read more

Report by Julien Ponthus

Our standards: The Thomson Reuters Trust Principles.