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U.K. and EU Begin Brexit Talks





British Brexit Secretary Davis Davis launches official talks in Brussels on Monday, that will forge the terms on with the UK will divorce from the European Union and set its ties with the zone for the coming years.


Almost a year since Britons shocked the world by voting on June 23 to sever ties with their main trading partner and almost three months since PM Theresa May triggered a two-year countdown to Brexit in March 2019, there is almost no clarity to what the future holds for both parties.


Even the British premier's political survivability is in question. Theresa May's conservatives lost their majority in a general election 10 days ago.


Davis is slated to meet chief EU arbitrator Michel Barnier at the European Commission's headquarters. They are scheduled to give a joint press conference following dialogue among their teams that will last seven hours.


Both parties attempted to downplay expectations for the possible results after a day of discussions. EU diplomats hope that the first meeting can enhance the talks' atmosphere following heated exchanges.


Davis conceding to Monday's agenda led some EU officials to perceive that May's government may be beginning to come around how the Brexit talks should proceed on Brussel's terms.


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RBA Minutes On Tap For Tuesday





The Reserve Bank of Australia will on Tuesday release the minutes from its June 6 meeting, highlighting a modest day for Asia-Pacific economic activity.


At the meeting, the RBA decided to retain its interest rate at a record low 1.50 percent for the ninth consecutive meeting.


Australia also will see Q1 figures for house prices, with forecasts suggesting an increase of 2.2 percent on quarter and 8.9 percent on year. That follows the 4.1 percent quarterly increase and the 7.7 percent yearly gain in the previous three months.


New Zealand will provide June data for the consumer confidence index from ANZ; in May, the index climbed 1.8 percent to a score of 123.9.


Japan will release May figures for nationwide and Tokyo area department store sales; in April, sales were up 0.7 percent on year and down 0.8 percent on year, respectively.


Hong Kong will provide May numbers for consumer prices and unemployment. In April, the inflation rate was 2.0 percent, while the jobless rate came in at 3.2 percent.


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Dow, S&P 500 Log Record Close as Tech Stocks Regain





US equities rallied on Monday as technology stocks recuperated following their not-so-impressive performance in the last session.


The S&P 500 and Dow Jones glided higher as the technology sector climbed 1.7%, pushing equity indices higher. Previously, the sector lost 3.4% in the last few weeks.


Major tech shares including Facebook, Apple, and Alphabet all inched higher. Also, Amazon logged an all-time high as the trading session started.


The Dow stood at 21,528.99, up 0.83%, with Apple leading the advances. The Nasdaq ended at 6,239.01, up 1.42%. The S&P 500 closed at 2,453.46, with the IT leading eight sectors to their surge.


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Sek Likely to Strengthen Gradually in Months Ahead, Eur/sek to Trade Around 9.2 by End-2017





The Swedish krona has consolidated in a comparatively narrow range between 9.70 and 9.80 against the euro in the past month. Riksbank’s surprise decision in April to extend its quantitative easing program to the end of this year, albeit halving the monthly rate of asset purchases in the second half of the year, came against the backdrop of volatile inflation readings and uncertainty in Europe, noted Lloyds Bank in a research report.


However, additional easing of monetary policy over and above this is unlikely. To a greater extent, Emmanuel Macron’s performance in the French presidential and legislative elections has lowered the political uncertainty in Europe. Moreover, keeping inflation aside, the Swedish economy continues to perform well.


Household consumption continues to be strong, while manufacturing and services PMI are solid. Furthermore, the SEK is believed to be considerably undervalued on a fundamental basis. Therefore, a gradual strengthening is likely in the months ahead, with EUR/SEK falling to 9.2 by the end of 2017, added Lloyds Bank.


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U.S. Treasury Yields Slide as Traders Wager on Gradual Rate Hikes





U.S. government bond yields traded down as two Fed Reserve officials underlined that central bank's gradual strategy to hiking interest rates, while, taking note of the concerns regarding weak inflation and subdued growth in the economy.


Chicago Fed President Charles Evans said the U.S. central bank can postpone another hike until December and hold off in September another increase in interest rates. Meanwhile. Boston Fed President Eric Rosengren said the lower rates may be a norm in the market for a longer period of time.


Yield on the 10-year Treasury note declined 3.5 bps to 2.153 percent. The two-year note yield trimmed 1.6 bps at 1.348 percent. Yield on the 30-year bond lost 5.2 bps to trade at 2.735 percent, bringing the bond's yield to its lowest level since November 8.


The statements caused bond investors to become doubtful on how fast the Fed will hike rates in the future as it also looks to unwind its $4.5 trillion balance sheet this year.


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New Zealand Credit Card Spending Data Due On Thursday





New Zealand will on Thursday release May figures for credit card spending, highlighting a modest day for Asia-Pacific economic activity. Spending was up 0.9 percent on month and 6.4 percent on year in April.


Taiwan will see May figures for unemployment, with the jobless rate expected to rise to 3.80 percent from 3.78 percent in April.


Hong Kong will provide Q1 data for current account; in the three months prior, the current account surplus was 34.83 billion HKD, while the capital account had a deficit of 185 million HKD and the financial account showed a shortfall of 65.92 billion HKD.


The central bank in the Philippines will wrap up its monetary policy meeting and announce its decision on interest rates.


The bank is widely expected to keep its benchmark lending rate unchanged at 3.00 percent.


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Gold Climbs as Treasury Yields Hit Near 10-Year Low





Gold prices rose Thursday as the US dollar's easing made the Treasury yields hit its lowest in almost a decade.


The curve of the Treasury yield straightened to almost 10-year troughs as investors assessed how the Federal Reserve's hawkish tool shaped the economy but inflation measures are slumping. The greenback tumbled from a one-month peak versus a bunch of currencies.


US gold futures for August settlement traded at $1,253.10 an ounce, up 0.6%. Spot gold stood at $1,251.91 an ounce, up 0.5%. Earlier, it gained 0.3%, its biggest intraday percentage change since June 6.


Meanwhile, the holdings of SPDR Gold Trust climbed 0.4% to 853.98 tonnes, previously 853.68 tonnes.


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Japan Manufacturing Sector Slows In May - Nikkei





The manufacturing sector in Japan continued to expand in May, albeit at a slower pace, the latest survey from Nikkei showed on Friday with a seven-month low manufacturing PMI score of 52.0.


That's down from 53.1 in May, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.


Individually, output posted its slowest growth in nine months, although exports expanded and job creation was sustained.


Stocks of purchases, stocks of finished goods and backlogs of work all swung to contraction.


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Gold Climbs following Five-Week Low





Gold continued its rebound Thursday as it climbed above the last session's five-week trough as the US dollar stabilized.


US gold futures for August settlement closed at $1,249.40, up 0.3%. Spot gold settled at $1,249.17 an ounce, up 0.3%. In the last trading session, it added 0.3% after trading at $1,240.75, its five-week trough.


Meanwhile, silver stood at $16.57 per ounce, up 0.9%. Platinum ended at $924.40, up 0.1%. But palladium traded at $884.60, down 0.4%.


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New Zealand Has NZ$103 Million Surplus In May





New Zealand had a merchandise trade surplus of NZ$103 million in May, Statistics New Zealand said on Tuesday.


That was shy of expectations for a surplus of NZ$419 million and down from the downwardly revised NZ$536 million a month earlier (originally NZ$578 million).


Exports were up 8.7 percent on year to NZ$4.95 billion - beating forecasts for NZ$4.93 billion and up from NZ$4.70 billion.


Imports jumped an annual 15.0 percent to NZ$4.85 billion versus expectations for NZ$4.48 billion and up from NZ$4.16 billion.


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