The International Monetary Fund warned against the negative impact of U.S. tax cuts and increased government spending, saying they increase the risk of a recession within the next couple of years. In a report, the IMF said fiscal stimulus could result in an inflation surprise, which might push the Federal Reserve to raise interest rates more quickly than expected. On June 13, the Fed raised its benchmark interest rate to 1.75% to 2%, and signaled it may take a faster path on rate hikes this year.
In other regulatory
The Financial Supervisory Service, South Korea's integrated financial regulator, has launched a probe and may fine Goldman Sachs Group Inc.'s branch in Seoul for alleged naked short selling, The Korea Times reports. On May 30, Goldman Sachs International allegedly placed a short selling order for 350 stocks, of which the Seoul branch failed to repurchase 20 stocks in time. This indicated that the 20 stocks were not in its possession at the time, according to the report.
The digital token ether
On the M&A
Blank check company Far Point Acquisition Corp. raised $632.5 million in its recently concluded initial public offering
And first-quarter noninterest mortgage income of U.S. banks and thrifts
In other parts of the world
Asia Pacific: India to cut stake in IDBI Bank; former chief of Chinese regulator admits guilt
Europe: ECB to halt QE after December; Deutsche Bank off-loads $1B ship loans
Middle East & Africa: Qatar's 3-way bank merger talks collapse; Kenya to repeal interest rate cap
The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, the Hang Seng was down 0.43% to 30,309.49, while the Nikkei 225 was up 0.50% to 22,851.75.
In Europe, around midday, the FTSE 100 slipped 0.75% to 7,707.44, while the Euronext 100 rose 0.15% to 1,076.62.
On the macro front
The Empire State Manufacturing Survey, the industrial production report, the consumer sentiment report, the Baker-Hughes Rig Count and the Treasury International Capital report are due out today.
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