TL;DR

China injects $160B as exports to US plunge; US-China trade talks start; S&P 500 holds 6,000.

Highlights

• China injected over 1.17 trillion yuan ($160B) in liquidity as May CPI fell 0.1% y/y; exports to the US plunged 34.5% amid tariff pressures12.
• US-China trade talks begin in London, with rare earths supply and export controls on the agenda1519.
• Japan’s 30-year bond yield hit 3% (25-year high); US 30-year Treasury yield topped 5% as global debt concerns persist318.
• Hong Kong intervened with HK$129.4B to defend its USD peg; local rates at record lows4.
• S&P 500 closed above 6,000; US stock futures flat ahead of CPI/PPI and key trade talks19.
• Oil steady after a 4% weekly gain; Brent at $66.47, WTI at $64.5919.
• Qualcomm to acquire UK’s Alphawave for $2.4B; Alphawave shares up 23%7.
• Warner Bros. Discovery to split into two companies, backed by $17.5B JPMorgan loan; shares up ~10% pre-market8.
• Tesla down 2.6% pre-market after Baird and Argus downgrades; stock down 26.9% YTD9.
• Merck’s enlicitide met Phase 3 endpoints for LDL-C reduction; stock up 2.6% pre-market14.
• MicroStrategy added 1,045 Bitcoin ($110M); Bitcoin above $107,000, near highs1112. US spot Ethereum ETFs logged $837M in 15-day inflows13.
• Elevated geopolitical risk: Poland scrambled jets after Russian strikes near its border; Ukrainian drones hit Russian defense plant56.

Commentary

Asian macro signals remain in focus as China’s liquidity injection and ongoing deflation highlight persistent demand weakness12. The sharp 34.5% drop in Chinese exports to the US, despite a temporary tariff truce, underscores continued trade friction217. Today’s US-China talks in London—centered on rare earths and export controls—will be closely watched for any signs of de-escalation or supply chain relief, particularly for US tech and manufacturing sectors1519.

Global fixed income markets are under pressure as Japan’s 30-year JGB yield hit a 25-year high and the US 30-year Treasury yield topped 5%318. These moves reflect rising concerns about sovereign debt sustainability across major economies and could drive further volatility in rates and risk assets. Hong Kong’s sizable intervention to defend its USD peg, amid record-low local rates, signals ongoing capital flow and currency management challenges in Asia4.

In US equities, the S&P 500 ’s close above 6,000 masks mixed sector performance19. Corporate actions remain in focus: Warner Bros. Discovery ’s split and Qualcomm ’s Alphawave acquisition highlight ongoing M&A and restructuring78. Tesla ’s continued underperformance after two downgrades signals narrowing leadership among mega-cap techs9. Merck’s clinical trial success provides a positive catalyst for healthcare14. Oil prices are steady after last week’s gains, with traders eyeing upcoming US inflation data for direction19.

Crypto continues to attract institutional flows, with MicroStrategy ’s latest Bitcoin purchase and strong inflows into US spot Ethereum ETFs supporting prices near record highs1113. Geopolitical tensions remain elevated, with Russian strikes near Poland and Ukrainian drone attacks on Russian defense assets adding to European risk considerations56.

Traders should monitor US-China trade headlines, US inflation data, and rate movements for near-term direction, while remaining alert to geopolitical developments and sector-specific catalysts.