The main news overnight was the BOJ keeping rates on hold 0.1%. There was 'No Change' to QT (i.e. they continue to buy bonds at a pace of JPY 6trn a month) although BOJ did say they will specify the plan for reducing bond purchases at the next meeting. The Vote was 9-0 on rates and the Vote was 8-1 on JGB purchases with Nakamura voting against cutting bond purchases. The Yen weakened and opens up at 158.20, the markets were expecting more hawkish rhetoric and, if I were a betting man, a +15bps hike to +0.25% in July, to get the BOJ back on the 25bps path, which is followed by most developed central banks is not a bad call.
In other markets, Copper is poised for its first weekly advance in four as there are signs that Chinese demand has started to pick up. The metal has fallen more than 10% from last month’s record high due to worries about a steady increase in global inventories, profit-taking by speculators and muted Chinese demand. West Texas Intermediate crude fell 0.7% to $78.10 a barrel, Spot gold rose 0.2% to $2,309.72 an ounce, the yield on 10-year Treasuries is at 4.27% and Bitcoin rose 0.5% to $67,002.07.
The Tesla shareholder meeting was dominated by Elon Musk's pay package, the board approved a $45bn (£35.3bn) pay deal for the CEO and data wise we have in the US University of Michigan consumer sentiment survey and the Chicago Fed President Austan Goolsbee speaks.
Don't forget the Euro's start tonight can Scotland beat the host nation Germany and start the tournament with a shock? We all know its not coming home but am sure it will be emotional along the way.
