US stocks ended lower overnight, ending near worst levels as strong economic data showed the resilience of the economy, paving the way for the Fed to continue its tightening cycle. Dow down 237 points (-0.67%), snapping 13 straight sessions of gains dragged down by Microsoft -2.09% and Visa -1.12%. Dow at best up 125 points. Dow at worst down 304. Meanwhile, the S&P 500 fell 0.64%, and the NASDAQ lost 0.55%. US treasury yields jumped after news that the BoJ will allow long-term interest rates to rise, pushing the 10Y yield above 4% reducing the attractiveness of stocks, and the USD Index rose after the ECB hiked rates.

• ASX to fall. SPI Futures down 44 points (-0.53%).
• Gold fell 1.38% hitting a 2-week low as the USD climbs.
• Copper fell 0.59% as US economic data spurred the dollar higher.
• Nickel +0.3% Aluminium -0.47% Zinc -0.53%, Lead +0.79% Tin -1.32%
• WTI and Brent rose 1.47% and 0.96% surpassing the April peak on tighter supplies.
• 10Y Bond Yields: US 4.02%, Australia 4.03%, and Germany 2.49%.

European blue-chip equities rallied to their highest level in more than 15 years overnight despite the ECB rate hike as the market anticipates its close to the end of its tightening cycle. STOXX 50 +2.3%, FTSE +0.2%, CAC +2.1%, and DAX +1.7%. Asian markets mixed. Hang Seng +1.41% on track to enter a technical bull market. Meanwhile, greater China markets fell with Shanghai -0.2%, Shenzhen -0.41%, and ChiNext -0.32% as China’s industrial profits extended a double-digit drop on weak demand, with profits at industrial firms in Chain falling 16.8% YoY in 1H23.

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