From Marc to Market:
The fragility of the ceasefire in the Middle East was driven home today by the strike on a Qatari LNG ship in the Strait of Hormuz today. Oil and gas prices are higher. Samsung earnings failed to deter profit-taking, which weighed on chip and AI equity names. Still, the South Korean wan jumped 1% to a two-week high as SK Hynix prepares to sell American depository receipts (~$28 bln). The company has said it intends to repatriate some of the funds raised. Japan’s 30-year bond auction drew the highest demand in seven years, though yields recovered from the initial decline. Hong Kong launched a gold clearing and settlement facility today.
The US dollar is firmer against the G10 currencies but the Japanese yen. It is straddling the JPY162 level in the European morning, where options for $2.2 bln expire later today. Germany reported a 0.9% rise in May industrial output, which was well above expectations and matches the largest increase since March 2025. Still the euro is trading quietly lower. The NATO conference in Türkiye will attract attention. Meanwhile, the market awaits word from the French court whether Le Pen can run in next year's presidential contest. And the $119 bln coupon auctions this week by the US Treasury kick-off with the $58 bln sale of three-year notes today....
....MUCH MORE
