A RELENTLESS PURSUIT FOR BETTER

The ECB are near-certain to continue to ease policy at the June meeting, delivering another 25bp cut, amid continued efforts to cushion the eurozone economy against the impact of ongoing trade uncertainty.

Tariff uncertainty is back at the top of traders’ agendas after Trump’s weekend to-and-fro on EU import levies, though after a weekend U-turn, dip buyers are back. This week, NVDA earnings highlight the calendar.

The new trading week essentially kicks up with US equity futures reopening, with the reopen of US cash treasuries not far off, and full market participation resuming normal service. The ASX200 and NKY225 cash equity markets will open inline as per the movement from their own respective futures markets (HK50 and H-share futures didn’t trade overnight) and taking inspiration from a solid EU equity session (EU Stoxx 50 closed +1.3%). Asia equity will take some steer from S&P500 futures, which traded through to 1 PM EDT (3 am AEST) and while a meagre 138k contracts traded on the day (around 10% of what is typical), price closed near session highs and sit +0.2% higher than where Asia cash equity closed yesterday.