IN THE OVERNIGHT 13 JUNE

CPI DAY! 8:30 AM ET

Sea of GREEN

  • Hong Kong: Hang Seng closed up +0.60%
  • China CSI 300   +0.53%
  • Taiwan KOSPI    +0.33%
  • India Nifty 50    +0.64%
  • Australia ASX    +0.33%
  • Japan Nikkei    -+1.67%
  • European bourses in mixed  territory so far this morning
  • US indices pretty flat  so far in pre-market, USD down -0.31%

TOP 5 STORIES OVERNIGHT

  • German ZEW and CPI is out- Germany is often seen as a barometer of the EU overall.

German CPI (M/M) May F: -0.1% (est -0.1%; prev -0.1%) – German CPI (Y/Y) May F: 6.1% (est 6.1%; prev 6.1%)

German CPI EU Harmonised (M/M) May F: -0.2% (est -0.2%; prev -0.2%)

German CPI EU Harmonised (Y/Y) May F: 6.3% (est 6.3%; prev 6.3%)

German ZEW Survey Expectations Jun: -8.5 (est -13.5; prev -10.7) 

German ZEW Survey Current Situation Jun: -56.5 (est -40.2; prev -34.8)

The economic outlook for Germany ticked higher this month, according to a poll of financial market experts, who said the current environment has deteriorated significantly.

Germany’s ZEW economic thinktank said Tuesday that its June expectations measure for the coming six months rose to -8.5% to beat the forecast of -13.5 and the -10.7 points result last month, which was the worst showing since December.

The current conditions indicator fell to its lowest mark since January, dropping to -56.5 points versus the -40.2 forecast and the -34.8 reading last month.

The continued negative reading for the view of the next six months “means that experts do not anticipate an improvement in the economic situation during the second half of the year,” ZEW President Achim Wambach said. “Particularly, sectors focused on exports are likely to perform poorly due to a weak global economy. However, the current recession is generally not considered particularly alarming.” -Livesquawk

  • China Weighs Broad Stimulus With Property Support, Rate Cuts -BBG

China is considering a broad package of stimulus measures as pressure builds on Xi Jinping’s government to boost the world’s second-largest economy, according to people familiar with the matter.

The stimulus proposals, drafted by multiple government agencies and partially reported by Bloomberg News earlier this month, include at least a dozen measures designed to support areas such as real estate and domestic demand.

Seems the world, commodities in particular are waiting for this economy to pick up….there must have been at least 12 stories on this overnight.

  • OPEC Monthly Report out

OPEC holds 2023 oil demand view steady, warns on economic outlook

OPEC left its 2023 global oil demand growth forecast steady for a fourth month on Tuesday, although the producer group warned that the world economy faced rising uncertainty and slower growth in the second half of the year.

World oil demand in 2023 will rise by 2.35 million barrels per day (bpd), or 2.4%, the Organization of the Petroleum Exporting Countries (OPEC) said in its monthly report.

This was virtually unchanged from 2.33 million bpd forecast last month.

OPEC said in the report its May output fell by 464,000 bpd to 28.06 million bpd as voluntary cuts, promised by Saudi Arabia and other members, took effect.-Reuters

  • Bank of America Fund Managers Survey

Global fund managers cut their equity allocations to a five-month low, while cash levels dropped to 5.1%, their lowest since January 2022, a Bank of America survey showed on Tuesday. 

Via -PiQ

BAML JUNE GLOBAL FUND MANAGER SURVEY:

NVESTORS CUT ALLOCATION TO STOCKS TO 5-MONTH LOW, STILL UNDERWEIGHT

ALLOCATORS CUT CASH LEVELS TO 5.1%, 19-MONTH LOW

“LONG BIG TECH”, “SHORT CHINA” MOST CROWDED TRADES

INVESTORS CUT ALLOCATION TO COMMODITIES TO 3-YEAR LOW

NET 87% OF INVESTORS EXPECT LOWER GLOBAL CPI IN NEXT 12 MONTHS

  • BlackRock fund targets greening of materials sector-Reuters

BlackRock on Tuesday launched the “Brown to Green Materials Fund” targeting undervalued carbon-intensive companies that produce the raw materials and products driving the energy transition.

Investors are increasingly focused on what actions companies in industries such as metals and mining, cement, and construction, are taking to decarbonise, as the sectors produce over 17% of global greenhouse gas emissions.

Growing demand for lithium, copper and other metals critical to the green energy transition is poised to benefit the earnings growth of companies throughout the supply chain from mine to end-product, should the adoption of lower carbon technologies exceed expectations, BlackRock said.

Those companies that produce the materials and have a quality plan to decarbonise – and their suppliers – should re-rate as their margins get a boost and sustainability risks decrease, it said.

The fund manager screened index provider MSCI’s All-Country World Index for the world’s highest emitting companies that are likely to see rising demand as a result of the transition over the next 10-20 years, selecting those with the technology and finances to implement changes in a realistic timeframe, said Evy Hambro, BlackRock’s global head of Thematic and Sector Investing.

Will be interesting to see what is in this, I looked, it is not listed yet. Notable Blackrock admits we have to fund non-green, they just wrapped it in a nice package, so they did not seem hypocritical. This will bod well for metals and mining stocks of transition metals.

US DATA TODAY

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