- PBOC governor Pan Gongsheng signals slower credit growth and offshore FX push
- China to issue CNY 300bln bonds to boost bank capital as local debt tackled
- Goldman holds TTF gas forecasts, flags upside risk and delayed LNG recovery
- China financial regulator vows to tackle property, local debt and small bank risks
- US Defense Production Act floated to force US insurer to cover Hormuz passage, Navy escort
- PBOC sets USD/ CNY mid-point today at 6.8096 (vs. estimate at 6.7569)
- Japan exports beat forecasts in May at fastest pace since late 2022
- Singapore May exports surge 38.4%, biggest jump in 20 years on AI demand
- Japan April core machinery orders surge, exports beat also
- “OpenAI burned $3.7 billion in first quarter of 2026”
- One more ECB hike seen in September before rates plateau through 2027
- Japan business sentiment rises in June on semiconductor demand, Reuters Tankan
- Chinese export flood puts EU tariff wall firmly on G7 agenda in France
- New Zealand Q1 current account deficit narrows sharply on quarterly basis
- US-Iran deal: where things stand and what comes next
- Yen stays weak after BoJ hike as analysts eye intervention risk
- New Zealand consumer confidence drops to lowest since 2023, survey shows
- investingLive Americas market news wrap: Oil continues to fall in the lead-up to the FOMC
- Oil: Private inventory survey shows a headline crude oil draw much greater than expected
- RBA holds rates at 4.35%, signals further hikes still possible – recap
- Broader US indices close near lows. Dow industrial average closes higher.
Summary:
- US weighing naval escorts and insurance mandates to unblock nearly 500 stranded tankers at Hormuz despite MOU signing; oil prices lower on supply return expectations
- New Zealand consumer confidence hit a two-year low of 80.4 in Q2; Q1 current account deficit narrowed sharply to NZ$1.008B from NZ$5.984B prior
- Japan Reuters Tankan: manufacturers +13 from +8, non-manufacturers +32 from +29; Nikkei clawed back losses to print a fresh all-time high near 70,000
- Singapore NODX surged 38.4% in May, a 20-year high, on AI electronics demand; US 12.5% tariff proposal clouds the outlook
- China vice premier announced CNY 300bln special bond issue to recapitalise banks and pledged vigorous local government debt resolution; PBOC governor Pan Gongsheng signalled credit growth will not return to its previous pace and laid groundwork for further yuan internationalisation
- OpenAI burned through $3.7bln in Q1 2026, more than half its $5.7bln in revenue, per Reuters citing The Information; confidential IPO prospectus filed last week with a suspected September debut
- FX markets subdued ahead of the FOMC; Chinese equities lagged with the Hang Seng -0.7% and Shanghai Comp -0.2% as auto and aluminium names weighed and markets shrugged off reports the US delayed blacklisting DeepSeek and over 100 Chinese firms
Markets drifted towards the North American session in a holding pattern, with the Federal Open Market Committee decision the dominant event risk and traders reluctant to extend positions ahead of new Fed Chair Kevin Warsh’s first major policy test at the podium.
The Hormuz supply picture remained the key macro overhang for energy markets. Oil prices traded lower as the US-Iran interim peace deal continued to price in a gradual return of supply, though the physical reality remains complicated: nearly 500 vessels including 220 oil tankers are sitting anchored outside the strait, unable to move while insurance markets remain effectively closed to Hormuz transits. The Trump administration is now weighing fee-based naval escorts and potential use of the Defense Production Act to compel US insurers to provide coverage, with the White House under pressure to translate the MOU into actual barrel flows.
Out of the Asia-Pacific session, the data run was broadly constructive. Japan’s Reuters Tankan showed two consecutive months of improving manufacturer sentiment, Singapore delivered its strongest export print in two decades on AI-driven chip demand, and New Zealand’s current account deficit narrowed sharply on a quarterly basis. The softer note came from New Zealand consumer confidence, which fell to its lowest reading since 2023 as war-related fuel costs and borrowing pressures bit into household sentiment.
China generated significant headline flow. The vice premier’s CNY 300 billion special bond announcement to recapitalise financial institutions, paired with a pledge to vigorously resolve local government debt, represented the most concrete fiscal commitment in some time. PBOC governor Pan Gongsheng followed with a frank assessment that sustaining China’s previous pace of credit growth is neither achievable nor desirable, while also advancing the groundwork for broader yuan internationalisation through new offshore FX and bond market steps in Shanghai.
In equities, Japan’s Nikkei 225 was the standout, taking back early losses to print a fresh all-time high. Chinese markets lagged, with the Hang Seng off 0.7% and the Shanghai Composite down 0.2%. Report that the US had delayed blacklisting DeepSeek and over 100 Chinese firms failed to lift sentiment.
Away from macro, OpenAI’s finances came into focus after Reuters, citing The Information, reported the company burned through $3.7 billion in the first quarter of 2026, more than half its $5.7 billion in revenue. The disclosure follows last week’s filing of a confidential IPO prospectus, with a market debut suspected for September.
This article was written by Eamonn Sheridan at investinglive.com.