While banks worldwide continue to worry about the bond market, equity investors in Asia continue to be pretty upbeat, bidding equity index futures up and setting the tone for today’s trading. Meanwhile, Hanergy makes headlines once again as it turns out that employees exercised millions of stock options in the days leading to the share’s dramatic fall. Elsewhere, Jamie Dimon adds another feather on his cap: billionairehood.
Futures point to an Asian equity market rebound. With crude oil prices falling and the bond market sinking, contracts on Asian equity indices point to a higher trading day for the region with the Nikkei 225 bidding up in the Osaka pre-market compared to its Chicago closing while the Hang Seng and the Hang Seng China Enterprises Index advanced 0.4% and 0.5% respectively. Shanghai’s SHCOMP meanwhile traded pretty much flat after gaining over 6% the past two days. Bloomberg
10-year Treasury and Bund yields hit new highs. Checking their assumptions on the Western economies, traders sent yields on 10-year U.S. Treasurys and German Bunds to new highs for the year, with the 10-year Bund yield hitting 0.888% while the 10-year Treasury yield jumping to 2.366%. Thin liquidity was also blamed for exacerbating the selloff. WSJ (paywall)
Hanergy employees cashed in their stock options before stock’s dive. In the latest twist in the ongoing saga of Hanergy Thin Film, employees of the energy company exercised 56.9 million stock options in May, with the majority exercised between May 16 and May 20 – a four day period before the company’s stock fell almost 50%. Who owned these options however, was not disclosed. WSJ (paywall)
Goldman, Deutsche Bank voice concern about liquidity in the bond market. Inventories of bonds have dropped by 27% since 2007. But they’ve nearly doubled at bond mutual funds and ETF. Goldman Sachs President Gary Cohn worries that investors won’t have the liquidity they are accustomed when the markets get stressed. The issue is on the agenda at the Federal Reserve. And ICAP, a larger broker, may put in circuit breakers during periods of extreme volatility in the U.S. bond market. Bloomberg
Goldlilocks market in the U.S.? Data released Wednesday point to a moderate growth scenario The Federal Reserve’s Beige Book, based on surveys in each district, point to “modest” to “moderate” growth. The Commerce Department reported that the April trade gap had narrowed to $40.9 billion from March’s revised deficit of $50.6 billion. ADP reported that private employers added 201,000 jobs in May — the most saince January. Friday, the Labor Department reports on non-farm payrolls for May. Reuters
Jamie Dimon joins the Billionaire’s Club. J.P. Morgan CEO Dimon has joined the higher echelons of the financially blessed, with a net worth of $1.1 billion. Dimon has benefited from his very generous pay, $20 million last year in cash and stock, as well as his $485 million stake in J.P. Morgan. Joining the billionaire’s club is a rare feat for for the head of a retail bank. Time
Rafael Nadal ousted from French Open. Serbian tennis pro Novak Djokovic has become the second man to beat the Spanish sensation Nadal at the French Open after a straight-sets win during the quarter-finals. Djokovic will go on to play Andy Murray in Friday’s semi-finals, and is only two wins away from a career Grand Slam of all four major tennis titles. Nadal hasn’t lost in the French Open since 2009. BBC
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