I. Yesterday's News
International News
1. The U.S. economy slowed less than feared in the first quarter due largely to a jump in consumer spending, providing a slightly more encouraging outlook for growth this year. Gross domestic product increased at a 1.4 percent annual rate instead of the 1.2 percent reported last month, the Commerce Department said. The reading was the worst since the second quarter of 2016 but above analysts' expectations. The U.S. dollar briefly edged up after the release of the data before retracing earlier losses against a basket of currencies. Prices of U.S. Treasuries were trading lower and stocks on Wall Street were mixed.

2. Bank of England chief economist Andy Haldane said on Thursday that the central bank needed to "look seriously" at raising interest rates to keep a lid on inflation which has pushed past the BoE's target and is set to rise further. "We need to look seriously at the possibility of raising interest rates to keep the lid on those cost of living increases," Haldane told the BBC during a visit to Wales. "For now we are happy with where the rates are, we need to be vigilant for what happens next." Last week, Haldane surprised financial markets by saying he was likely to vote for higher borrowing costs this year, adding to speculation about the first BoE rate hike in a decade.

3. The U.S. Federal Reserve needs solid data to maintain a monetary policy that diverges from the world's other major developed economies, St. Louis Federal Reserve chief James Bullard, who does not currently vote in the U.S. Federal Reserve's rate-setting committee, said on Thursday. Speaking to reporters, Bullard added that it was "disconcerting" that market measures of inflation in the world's largest economy had fallen despite the central bank raising interest rates twice so far this year. "The U.S. is kind of trying to go it alone... which we can do and we certainly have done historically," Bullard said earlier. "But if you want to go it alone in this environment you have to really have data that's coming in strong behind you and justifying what you want to do."

4. There is no talk of further oil output cuts by the Organization of the Petroleum Exporting Countries and its allies despite only a slow drawdown in inventories, the United Arab Emirates' energy minister said on Thursday. "I think OPEC countries and non-OPEC countries who joined us have done their part. We are looking at the others to do their part as well. We are not worried about the market recovery," Suhail bin Mohammed al-Mazroui told journalists on the sidelines of a conference in Paris. "Of course additional production coming from several producers is prolonging the recovery but I think that is rather short-term. We hope to see more recovery in the third and fourth quarters," he said.

5. The United States on Thursday imposed sanctions on two Chinese citizens and a shipping company for helping North Korea's nuclear and missile programs and accused a Chinese bank of laundering money for Pyongyang. U.S. Treasury Secretary Steve Mnuchin said at a press conference that the actions were designed to cut off funds that North Korea uses to build its weapons programme. "We will follow the money and cut off the money," he said. A Treasury statement named the bank as the Bank of Dandong and the firm as Dalian Global Unity Shipping Co Ltd. It named the two individuals as Sun Wei and Li Hong Ri. The sanctions imposed on the two Chinese citizens and the shipping company blacklists them from doing business with U.S.-tied companies and people.

6. President Xi Jinping said on Thursday that the central government will as always support the Hong Kong Special Administrative Region (HKSAR) in growing its economy and improving people's wellbeing. He also said he would join people from all walks of life in Hong Kong to review the SAR's extraordinary 20-year journey, sum up its experience and plan the future to ensure the smooth and long-term successful practice of the "one country, two systems" policy.

II. Market Overview
FX
1. Global Market
The U.S. dollar held around a nearly 14-month low against the euro on Thursday on growing expectations of more hawkish monetary policies in Europe and Canada and on skepticism of another Federal Reserve interest rate increase this year. The euro jetted to $1.1444, its highest since May 11, 2016. The dollar index hit a roughly nine-month low of 95.531 in afternoon U.S. Trading. The greenback touched a roughly five-month low of C$1.2987 against the Canadian dollar and last traded down 0.3 percent at $1.3001. The dollar hit a more than one-month high of 112.92 yen before easing from that level to last trade 0.2 percent lower against the Japanese currency at 112.05.

2. Home Market
China's yuan kept rising against the dollar on Thursday, surging 270 bps during the session to the highest since November 9. The midpoint rates also jumped to a two-week high. Large forex settlement appeared in the morning as the dollar index was losing steam. Yuan is expected to keep rising in the near term. Investors shall focus on big banks' moves.

Precious Metals
Gold prices fell on Thursday as signs that central banks may scale back their ultra-loose monetary policy pushed bond yields higher on both sides of the Atlantic, though a decline in the dollar to its lows for the year lent support. Spot gold was down at $1,245.24 an ounce, while U.S. gold futures for August delivery settled down 0.3 percent at $1,245.80.

Commodities
1.Crude Oil
Oil futures ended slightly higher on Thursday, extending crude's rally to a sixth straight session after a decline in weekly U.S. crude production temporarily eased concerns about deepening oversupply. U.S. crude futures settled up 19 cents at $44.93 a barrel after hitting a two-week high of $45.45 in late-morning trading. Brent crude futures ended up 11 cents at $47.42 a barrel, after touching a two-week high of $48.03 earlier in the session.

2.Base Metals
Copper prices hit three-month peaks on Thursday, boosted by a lower dollar, expectations of stronger demand from top consumer China, falling stocks and a break of a major technical level. Benchmark copper on the London Metal Exchange ended up one percent at $5,940 a tonne after touching $5,963.5, its highest since the end of March. Aluminium prices climbed one percent to $1,915 a tonne on expectations of lower supplies from top producer China. LME lead added 0.8 percent to $2,314 a tonne from a 3-month high of $2,322.50. The battery metal has been boosted by shrinking mine supply and rising Chinese imports. Tin rose 3.1 percent to $20,050.

U.S. Treasuries
1. U.S. Bonds
Benchmark U.S. Treasury yields rose to six-week highs on Thursday on the likelihood that central banks in Europe will become less accommodative, before bonds pared price losses as stocks declined. Benchmark 10-year notes fell 14/32 in price to yield 2.27 percent, after earlier rising to 2.30 percent, the highest since May 17.

2. Chinese bonds
China's interbank cash bonds and IRS firmed on Thursday, while T-bonds sagged. But the gains of cash bond yields were limited. Surging yuan against the dollar and loose interbank liquidity partly hedged against the negative impact of higher offshore rates.

Stock Market
1. U.S. Equities
Wall Street fell sharply on Thursday, with the S&P 500 and the Dow industrials suffering their worst daily percentage drops in about six weeks, as a recent decline in technology shares deepened and outweighed strength in bank shares. The technology sector dropped 1.8 percent, and were the worst-performing major group. The Dow Jones Industrial Average fell 167.58 points, or 0.78 percent, to 21,287.03, the S&P 500 lost 20.99 points, or 0.86 percent, to 2,419.7 and the Nasdaq Composite dropped 90.06 points, or 1.44 percent, to 6,144.35.

2. Hong Kong Equities
Hong Kong stocks soared to the peak in almost three weeks, led by financials as market bet President Xi Jinping would announce supportive policy at the 20th anniversary of Hong Kong's return to China. The Hang Seng index rose 1.1 percent to 25,965.42, while the China Enterprises Index gained 0.2 percent to 10,432.02 points.

3. China Equities
China's main stocks indexes closed higher on Thursday, led by blue chips, financials in particular, after recent consolidation. Cyclicals, led by coal and building materials, firmed across the board. Despite of softening rebounding momentum, the downward potentials were also limited. The Shanghai Composite Index settled up 14.86 points or 0.47 percent to 3,188.06 points. The trading volume of Shanghai A shares fell to 147.1 billion yuan from 162 billion yuan.