Americas

At presidential behest, the US Treasury Department is considering controls on transactions and freezing Chinese officials’ and businesses’ assets.

As well as visa restrictions for Chinese officials – all this in retaliation for new Chinese security laws being enacted in Hong Kong citizens.

Meanwhile, US markets continue to soar, the DOW adding 2.17% upon closing yesterday.

The Chicago Fed’s activity index declined to -16.74 in April. While Case-Shiller’s home price index increased by 3.9% (YoY) in March. While, new home sales surprisingly increasing by 0.6% in April – a further 22% contraction was expected.

Asia

Chinese markets are in the red this morning, led by the Hang Seng’s 0.9% decline as US-SINO tensions rise.

Hong Kong hostilities flare – the latest herring being Beijing’s pushing a bill in Hong Kong to criminalize disrespect for the Chinese national anthem.

The Nikkei is up 0.69% and Australia by 0.16%.

The Yen is marginally up following Reuters’ report of a finalized bond-purchasing agreement that would release a trillion-dollar stimulus into the economy.

Europe

European markets were up again yesterday, the DAX at the rear with a mere 1%.

Consumer confidence in France declined to a better-than-expected 93 index points in May while the business climate expectedly dropped to 70.

While, in Germany, IFO this morning announced an improvement in employment expectations.

Commodities

Both gold and oil were down this morning on strengthening equities markets in Europe and the US.

Bitcoin is back below the 9K mark. As digital assets manager CoinShares introduces its CoinShares Gold and Cryptoassets Index (CGCI) to the Bloomberg terminal.

Coindesk this morning concludes that the only hope of regaining ground lies with central banks adopting digital currencies – an ironic remark. After all the token was created as a peer-to-peer payment system, meant to bypass the traditional and corruption-prone monetary system.

Despite its volatility, on the yearly chart, it is clear that the crypto is on a downtrend, with lower highs and especially lows quite consistent.

Corporate

Volkswagen shares are up 2.15% yesterday after Reuters reported a deal with a major Chinese electric vehicle manufacturer.

Likewise, Merck is up 1.14% after announcing its purchase of Australian COVID drug maker Ridgeback Biotherapeutics.

Finally, HP reports quarterly earnings today after the NY close.

Expect an EPS of 45 cents, down 20 cents from last quarter, on expected revenues of $12.78 bn – down 12.6% QoQ.

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