Cancellation of Ukraine Deal
UNITED STATES
US stocks closed higher on Wednesday supported by improving economic data and news of a potential coronavirus vaccine by BioNTech, S&P gained 0.5%, Nasdaq added 1%. The yield on 10Y USTs advanced by 21 bps to 0.67%. However, the number of new virus cases in US topped 50k/day for the first time and some states decided to backtrack on reopening – California banned indoor dining and NY delayed the restart of these services. Today the investors will keep eye on NFP data.
OIL
Oil traded almost flat yesterday, WTI closed at USD 39.81 per barrel – flat, Brent gained 0.1% to USD 42.06.
ASIA
Asian indexes trading positive this morning after the holiday in Hong-Kong. Hang Seng is up 1.5%, Kospi appreciated by 0.9%.
CIS
CIS region brought us a batch of news: the constitution change elections results showed the support of 78% voters. It gave the potential ability for President Putin to rule the country till 2036. Ukraine came with a new issue of 2033 bond; however, the deal was cancelled as the head of Ukraine’s central bank unexpectedly submitted his resignation after what he described as a sustained campaign of political pressure against him and his colleagues. Ukraine sovs are trading 20-25bsp higher in yield across the curve. Kazakhstan announced the new 2-weeks lockdown with an option to extend it starting from July 5th as the number of cases increased dramatically.
SSA
On SSA front, Saudi Arabia has threatened Nigeria and Angola with new oil price war. The Saudi energy minister issued the ultimatum as he believes that mentioned countries are filing to abide the OPEC`s production cuts. However, NGERIA and ANGOL sovereigns traded half a point higher across the curve.