- US stocks finished lower on Friday and snapped their weekly gains on what was a choppy session with an early risk-off mood sparking from weak global PMIs, while the US PMIs were varied with manufacturing PMI at a steeper contraction but services PMI topped estimates and there was also some mixed commentary around inflation.
- Russian Wagner Group chief Prigozhin accepted a proposal by Belarusian President Lukashenko to stop the movement of his troops to Moscow and end a brief ‘mutiny’.
- Ukrainian military intelligence chief General Budanov said Russia has finished preparations for a terrorist attack at the Zaporizhzhia nuclear plant with 4 out of 6 power units at the plant mined with explosives and ready to be blown, according to an interview with The New Statesman.
- Looking ahead, highlights include Japanese Services PPI & Leading Index, Singapore Industrial Production, BoJ Summary of Opinions from the June 15th-16th Meeting.
More Newsquawk in 2 steps:
1. Subscribe to the free premarket movers reports
2. Trial Newsquawk’s premium real-time audio news squawk box for 7 day
LOOKING AHEAD
- Highlights include Japanese Services PPI & Leading Index, Singapore Industrial Production, BoJ Summary of Opinions from the June 15th-16th Meeting.
US TRADE
- US stocks finished lower on Friday and snapped their weekly gains on what was a choppy session with an early risk-off mood sparking from weak global PMIs, while the US PMIs were varied with manufacturing PMI at a steeper contraction but services PMI topped estimates and there was also some mixed commentary around inflation.
- SPX -0.77% 4,348, NDX -1.00% at 14,891, DJIA -0.65% at 33,727, RUT -1.44% at 1,821.
- Click here for a detailed summary.
NOTABLE HEADLINES
- A train derailment in Montana collapsed a bridge and sent several tanker cars carrying hazardous materials into the Yellowstone River.
GLOBAL NEWS/FX
- SNB’s Jordan said the central bank will probably have to hike rates again and the recent interest hike was likely not enough to fully get to grips with the high inflation in Switzerland, according to an interview with SRF.
- Bank for International Settlements warned of material risks of further financial stress, while it called for more interest rate hikes and said the world was at a crucial point as countries struggle to rein in inflation, according to Reuters.
- Turkish Central Bank said securities maintenance regulation was simplified to increase the functionality of market mechanisms and strengthen macro-financial stability, according to Reuters.
COMMODITIES
- Saudi Aramco and TotalEnergies (TTE FP) award contracts for USD 11bln Amiral project, according to Reuters.
- Qatar said the situation in Russia calls for maximum restraint and will have repercussions on energy and food supplies, according to a Foreign Ministry statement cited by Reuters.
- Eastern Libyan authorities threatened to blockade oil exports over the distribution of state energy revenue.
GEOPOLITICAL
RUSSIA/UKRAINE
- There were reports that the Wagner Group took control of all military facilities in two big Russian cities including Voronezh which is 310 miles from Moscow and that a convoy was headed to Moscow led by senior Wagner commander Utkin after Wagner Group Chief Prigozhin declared war against the Russian Defence Ministry.
- Russian President Putin stated during a national address that they are facing treason and internal betrayal, while he said that any differences should be dropped and that everyone that took part in a mutiny will be punished. Furthermore, he signed an order for 30 days of detainment if martial law is violated and the Russian Foreign Ministry warned Western countries against using the Wagner mutiny ‘to achieve their Russophobic goals’, according to Reuters.
- Russian Wagner Group chief Prigozhin issued a defiant message following Russian President Putin’s speech in which he officially refused to obey Putin’s orders and said he and his men would not turn themselves in on Putin’s orders, as well as stated that Putin is wrong to accuse him of treason. There were also comments in a Wagner-affiliated Telegram channel that Putin made a wrong choice and Russia will have a new president soon.
- It was later reported on Saturday that Wagner Group chief Prigozhin accepted a proposal by Belarusian President Lukashenko to stop the movement of his troops to Moscow which was said to be a profitable and acceptable proposal to solve the issue on the table in which Prigozhin will move to Belarus and the charges against him will be dropped, while Prigozhin confirmed the Wagner Group is returning its convoys to bases to avoid bloodshed and is turning the column advancing to Moscow back to bases.
- Russia’s Kremlin confirmed that Belarusian President Lukashenko helped mediate with the Wagner Group and said fighters that did not take part in the march will sign contracts with the Defence Ministry, while other fighters who took part will not be prosecuted in recognition of their service and stated that avoiding bloodshed was more important than punishing people.
- Ukrainian President Zelensky said the situation in Russia shows no one is in control and there is chaos. Zelensky also stated that Ukraine will not remain silent, will not be inactive and will defend Europe’s eastern flank, while he added that the longer Russian troops remain in Ukraine, the greater the devastation they will bring to Russia, according to Reuters.
- Ukrainian President Zelensky said he spoke with US President Biden in which they discussed the course of hostilities and processes taking place in Russia, while he called for global pressure on Russia and noted that leaders discussed a further expansion of defence cooperation with the emphasis on long-range weapons, according to Reuters.
- Russian President Putin said he is in contact with Defence Ministry officials and Russia feels confident in realising all its plans and tasks related to the special military operation which he gave top priority to, according to Reuters.
- Ukraine’s Defence Minister Reznikov discussed recent events in Russia with Defence Secretary Austin in which he stated that Russian authorities are weak and that things are moving in the right direction, according to Reuters. It was separately reported that a Ukrainian official said there were no visible signs of a meltdown on the frontline but added that the Wagner Group turmoil could create some new opportunities.
- Ukrainian military intelligence chief General Budanov said Russia has finished preparations for a terrorist attack at the Zaporizhzhia nuclear plant with 4 out of 6 power units at the plant mined with explosives and ready to be blown, according to an interview with The New Statesman.
- US Secretary of State Blinken said the Russian turmoil is an internal matter and he doesn’t think we’ve seen the final act of the turmoil. Blinken also stated that it is too soon to say what the future holds for Wagner fighters and that there has been no change in the US nuclear posture, as well as noted that the unity to support Ukraine remains, according to Reuters.
- US, UK, German and French leaders reaffirmed their commitment to continue supporting Ukraine for as long as necessary, according to a German government spokesperson cited by Reuters.
- Russia’s central bank said the Moscow stock exchange, banks and other financial institutions will operate as normal on Monday despite the non-working day being observed in Moscow as banks need to ensure the continuous and smooth operation of Russian financial markets, according to Reuters.
- 3,000 elite Chechen troops were sent to protect Moscow from mutinous mercenaries if necessary, according to RIA.
OTHER
- US Secretary of State Blinken said he raised the issue of China’s military base in Cuba with Cuba.
- Chinese Foreign Minister Qin met with Russian Deputy Foreign Minister Rudenko in Beijing and exchanged views on regional and international issues of common concern, according to China’s Foreign Ministry cited by Reuters.
- Taiwan’s Defence Ministry said Chinese aircraft approached within 24 nautical miles of Taiwan’s coast.
- North Korea said it will increase its response to stronger US military measures and provocations on the Korean peninsula, while it added that US Secretary of State Blinken’s threats against China to pressure Pyongyang expresses a dangerous hegemonic mentality, according to KCNA.
- Turkish President Erdogan spoke with NATO Secretary General Stoltenberg and said that Sweden must stop protests by PKK supporters for NATO membership, according to Reuters.
ASIA-PAC
NOTABLE APAC HEADLINES
- PBoC injected CNY 196bln via 7-day reverse repos on Sunday at the rate 1.90%, according to Reuters.
EU/UK
NOTABLE HEADLINES
- UK PM Sunak defended possible curbs on UK public sector pay in which he warned that high public sector pay rises would be giving with one hand and taking with the other by fuelling inflation, according to FT.
- ECB published an interview with Vice-President de Guindos in which he noted that monetary policy measures are starting to have an impact on financing conditions and a contraction in credit will pass through to the real economy with dampening demand to lower inflation. De Guindos noted that the finishing line is in sight when questioned if the target is a long way off and responded that it will depend on the data when asked if an end to hikes can be expected before the summer holidays.
- ECB’s Makhluof said he is undecided regarding a rate increase beyond July and is prepared to look at the evidence, while he thinks they are near the top of the ladder, according to Irish Independent.
- Europe’s Single Resolution Board pushes policymakers to provide more protection for depositors and is said to be requesting a rethink into how lenders are wound down following recent bank failures, according to FT.
- Greek conservatives led by former PM Mitsotakis had a clear lead over former PM Tsipras’s Syriza party in the rerun election with official results showing Mitsotakis’s New Democracy party winning 40.4% of votes and a majority of 157 seats in the 300-seat parliament, according to Reuters.
