Sweden's central bank on Thursday lifted its key policy rate to 0.75% from 0.25%, raised its rate path and signalled a slower pace of asset purchases as it fights against high inflation becoming entrenched in price-setting and wage-formation.
Economists polled by The Wall Street Journal before the decision had all expected a 50 basis points hike.
Talking Markets: Yen to Face More Pressure as BOJ Stays the Course
The yen faces further weakness in the third quarter even after recently hitting a 24-year low against the U.S. dollar, as the Bank of Japan appears likely to maintain its ultra-accommodative monetary policy, analysts say.
Interest-rate differentials between Japan and the U.S. could widen further over the next few months as the BOJ keeps its main policy rates around zero while the Federal Reserve raises its benchmark federal-funds rate further from the current range between 1.50% and 1.75% to tackle high inflation. BOJ Gov. Haruhiko Kuroda has said that monetary policy needs to stay accommodative because Japan's economy hasn't fully recovered from the impact of the Covid-19 pandemic.
German Jobless Claims Rose Strongly in June, Unemployment Rate Up
Jobless claims in Germany rose strongly in June due to the registration of Ukrainian refugees in the German labor market, the Federal Employment Agency said Thursday.
Jobless claims rose by 133,000 on month after declining by 5,000 in May. Economists polled by The Wall Street Journal had forecast a decline of 5,000.
Biden and Leaders of Japan and South Korea Pledge Greater Cooperation
President Biden met with the heads of Japan and South Korea-the first such gathering between the three countries' leaders in nearly five years-and pledged deeper cooperation to counter North Korea's weapons provocations.
The Wednesday meeting, on the sidelines of the North Atlantic Treaty Organization summit in Madrid, was another example of increased coordination between Washington and two of its key Asian allies. Tokyo-Seoul relations are on a tentative recovery path after deteriorating in recent years over historical grievances and trade disputes.
U.S. Blacklists Five Chinese Firms for Allegedly Helping Russia's Military
The U.S. Commerce Department added five Chinese companies to an export blacklist for allegedly helping Russia's military despite U.S. and allied efforts to cut off Russia's access to technology following its invasion of Ukraine.
Commerce officials said the companies had supplied items to Russian entities of concern before Russia's Feb. 24 invasion and "continue to contract to supply" sanctioned Russian entities. They didn't provide details on the technology involved.
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Economic Indicators (ET):
0830 Apr GDP
Stocks to Watch:
Field Trip Health 4Q Rev C$1.7M; 4Q Loss/Shr C$0.25; FY22 Rev C$4.9M; FY22 Loss/Shr C$0.95
Field Trip Health: To Complete Reorganization That Will Separate Field Trip Discovery and Field Trip Health Divisions Into 2 Independent Public Companies; Discovery to Be Renamed Reunion Neuroscience Inc., Continue to Focus on Research and Development of Novel Psychedelic Molecules; Field Trip Health to Be Renamed Field Trip Health & Wellness Ltd., Continue Its Focus on Developing Proprietary, Competitive and Differentiated Psychedelic-Assisted Therapies
Field Trip Health: Each Share of Company Will Be Exchanged for One Reunion Share and 0.86 Shares of Field Trip H&W; Closing of Arrangement on or Around August 2022
Mdf Commerce 4Q Loss C$8.67M; 4Q Rev C$30M
Air Canada to Make 'Meaningful' Reductions in Capacity Due to Industry Constraints
Air Canada said it will be forced to make "meaningful" cancellations to flights in July and August--the first busy summer season since the pandemic--due to strains in the global aviation industry.
The cancellations would affect about 150 flights a day, or over 10% of the daily flights the airline operated prior to Wednesday's announcement, an Air Canada spokesman said. Three routes will be temporarily suspended, which connect Montreal and Pittsburgh; Baltimore and Kelowna, British Columbia; and Toronto and Fort McMurray, Alberta, or the center of oil sands production in the country.
Read more here.
Expected Major Events for Thursday
01:00/JPN: May Steel Imports & Exports Statistics
04:30/JPN: May Preliminary Report on Petroleum Statistics
05:00/JPN: May Housing Starts
05:00/JPN: May Construction Orders
06:00/GER: May Foreign trade price indices
06:00/UK: 1Q Balance of Payments
06:00/UK: Jun Nationwide House Price Index
06:00/UK: 1Q UK quarterly national accounts
06:00/GER: May Retail Trade
06:45/FRA: May Household consumption expenditure in manufactured goods
06:45/FRA: May PPI
06:45/FRA: Jun Provisional CPI
07:55/GER: Jun Labour market statistics (incl unemployment)
08:00/ITA: May Unemployment
08:30/UK: 1Q Business investment revised results
09:00/ITA: May PPI
12:30/US: May Personal Income & Outlays
12:30/CAN: Apr GDP
12:30/US: 06/25 Unemployment Insurance Weekly Claims Report - Initial Claims
12:30/US: U.S. Weekly Export Sales
13:00/RUS: Weekly International Reserves
13:45/US: Jun Chicago Business Barometer - ISM-Chicago Business Survey - Chicago PMI
14:00/US: 1Q GDP by State
14:30/US: 06/24 EIA Weekly Natural Gas Storage Report
19:00/US: May Agricultural Prices
20:30/US: Foreign Central Bank Holdings
20:30/US: Federal Discount Window Borrowings
23:01/UK: May Zoopla House Price Index
23:30/JPN: Jun CPI (Tokyo), CPI ex-Food (Tokyo)
23:30/JPN: May Labour Force Survey
23:50/JPN: 2Q Tankan Survey of Enterprises in Japan
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Expected Earnings for Thursday
Accolade Inc (ACCD) is expected to report for 1Q.
Acuity Brands (AYI) is expected to report $2.61 for 3Q.
Bassett Furniture Industries Inc (BSET) is expected to report $0.45 for 2Q.
Capstone Green Energy Corp (CGRN) is expected to report for 4Q.
Constellation Brands (STZ,STZB) is expected to report $2.60 for 1Q.
Kayne Anderson Energy Infrastructure Fund Inc (KYN) is expected to report for Full year.
Lindsay Corp (LNN) is expected to report $1.67 for 3Q.
Micron Technology (MU) is expected to report $2.34 for 3Q.
National Energy Services Reunited Corp (NESR) is expected to report $0.11 for 1Q.
Nautilus (NLS) is expected to report $-0.72 for 1Q.
Simply Good Foods (SMPL) is expected to report $0.33 for 3Q.
Singularity Future Technology Ltd (SGLY) is expected to report for 3Q.
Techprecision Corp (TPCS) is expected to report for 4Q.
Walgreens Boots Alliance Inc (WBA) is expected to report $0.66 for 3Q.
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ANALYST RATINGS ACTIONS
Aileron Therapeutics Cut to Market Perform From Outperform by William Blair
Altria Cut to Underweight From Equal-Weight by Barclays
Bath & Body Works Cut to Neutral From Overweight by JP Morgan
Cadence Design Systems Raised to Neutral From Underperform by B of A Securities
Crown Castle Cut to Hold From Buy by Deutsche Bank
Eagle Bancorp Montana Cut to Neutral From Buy by DA Davidson
Federated Hermes Raised to Outperform From Market Perform by Keefe, Bruyette & Woods
Franklin Resources Cut to Underperform From Market Perform by Keefe, Bruyette & Woods
Goldman Sachs Raised to Buy From Neutral by B of A Securities
Heritage Financial Raised to Buy From Neutral by DA Davidson
Joann Cut to Hold From Buy by Loop Capital
McDonald's Raised to Overweight From Neutral by Atlantic Equities
Oracle Raised to Outperform From Neutral by Exane BNP Paribas
O'Reilly Automotive Raised to Buy From Neutral by DA Davidson
Qorvo Cut to Underperform From Neutral by B of A Securities
Rent-A-Center Cut to Equal-Weight From Overweight by Stephens & Co.
Sally Beauty Holdings Cut to Underperform From Market Perform by Raymond James
Seven Hills Realty Trust Raised to Market Outperform From Market Perform by JMP Securities
Skyworks Cut to Underperform From Neutral by B of A Securities
Synopsys Raised to Neutral From Underperform by B of A Securities
T Rowe Price Cut to Underperform From Market Perform by Keefe, Bruyette & Woods
Teradyne Cut to Neutral From Buy by B of A Securities
Texas Instruments Cut to Neutral From Buy by B of A Securities
Ulta Beauty Raised to Strong Buy From Outperform by Raymond James
Universal Display Cut to Neutral From Buy by B of A Securities
Upstart Holdings Cut to Underweight From Equal-Weight by Morgan Stanley
Victory Capital Cut to Market Perform From Outperform by Keefe, Bruyette & Woods
WisdomTree Investments Cut to Market Perform From Outperform by Keefe, Bruyette & Woods
World Acceptance Cut to Underweight From Equal-Weight by Stephens & Co.
Zendesk Cut to Hold From Buy by Craig-Hallum
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires