1. US regulators sue Binance and founder Zhao, alleging a "web of deception."
- Lawsuit adds pressure on Binance, causing decline in Bitcoin price.
- Analysts predict crippling effect on Binance, according to Ed Moya from Oanda.
2. Asian stock markets open lower due to weakening US services sector.
- Softening services sector data raises expectation of no interest rate hike by the Federal Reserve.
- US services sector shows minimal growth in May, with new orders slowing down.
- Prices paid by businesses for inputs hit a three-year low, supporting Fed's inflation-fighting efforts.
- Services industry accounts for over two-thirds of the US economy.
Currency and Bond Market:
3. US dollar weakens against most G10 currencies; 10-year Treasury yield stable.
- Shorter-term US rates experience slight increase following near stagnation of services sector in May.
- Reassessment of Fed's interest rate hike path prompted by services sector data.
4. Oil prices decline amid uncertainty over supply and demand.
- Traders assessing supply and demand outlook, particularly after Saudi Arabia's supply cut announcement.
- Uncertainty impacting oil market; traders closely monitoring developments.
5. Bill issuance flood begins, potentially impacting liquidity.
- US Treasury initiates significant bill issuance, attracting buyers and draining liquidity.
- Liquidity risks may keep market range-bound until further clarity, including Fed's interest rate decision.
6. Gold remains steady after previous session's gains.
- Investors closely monitoring gold for further price movements and market developments.
7. Apple unveils highly anticipated augmented reality headset, Apple Vision Pro.
- Tim Cook describes the headset as seamlessly blending real and virtual worlds.
- Apple's first major hardware launch in nearly a decade.
- Alongside AR headset, Apple introduces latest iPhone OS and announces MacBook Air updates.
- Apple Vision Pro features a two-hour battery life, priced at $3,499, to hit the market early next year.
Key Events This Week:
- Rate decisions in Australia and Poland on Tuesday.
- China's forex reserves and trade data on Wednesday.
- US trade and consumer credit data on Wednesday.
- Canada rate decision on Wednesday.
- EIA crude oil inventory data on Wednesday.
This concludes the Morning Brief for June 6, 2023. Stay tuned for more updates throughout the day.