Market Commentary: Wednesday 28th May

Asian equities are mostly unchanged for the day, aside from the Hang Seng (-0.8%). US equity futures are flat, with attention focused on later today’s Nvidia earnings. Markets will be watching whether growing restrictions on shipping its technology to China have clouded the chipmaker’s outlook more than expected. Demand in the US and other markets remains strong.

As expected, the RBNZ cut rates earlier today but also signaled that the policy rate is now close to neutral. The market is now pricing in just one additional cut over the next year. This follows a broader pattern across many major economies, where fewer rate cuts are now expected over the next 12 months. The exception is Australia, where almost three cuts are still priced in for the rest of the year.

A 40-year Japanese government bond auction was met with weak demand today, sending the 30-year yield 10bps higher. This reversed some of the relief seen yesterday, as broader concerns continue to grow that government spending is pushing budget deficits into dangerous territory.

**For professional investors only** Any opinions, news, research, analyses, prices, or other information contained in this blog is provided as general market commentary and does not constitute (and should not be construed as containing) investment advice or an investment recommendation, or an offer of, or solicitation for, a transaction in any financial instrument. Some of this information may have been provided by third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. No representation or warranty, expressed or implied, is made or given by or on behalf of iSAM Securities or its directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this blog, and no responsibility or liability is accepted for any such information. As a result, any person acting on any information does so entirely at their own risk. iSAM Securities will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.