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June 10, 2026 TOP NEWS War Update: IRGC in
retaliation to the so called self
defense strike from US have attacked the fifth fleet in Bahrain with
Drones. Earlier US has carried out self-defense strike against Iran in
response to Iranian attacks on US helicopter. Iran said the US had chosen to
test our determination and that Iran’s armed forces would leave no attack or
threat unanswered stating that leave our region if US wants to be safe. On
the other side Israel continues to attack on Southern Lebanon. Asian markets
trade negatively in the range of 1-3%. Gift nifty indicates a flattish start
with 60 points upsides. Dixon Technologies: Entered
a binding term sheet with Taiwan’s Gemtek
Technology to set up a JV for manufacturing Optical Transceivers (SFP) and
BOSA products. This move pushes Dixon deeper into high-growth data center,
5G, telecom, and AI infrastructure segments. Optical Transceivers are modules
that convert electrical signals into light (and vice versa) so data can
travel through fiber optic cables. They are plugged into network switches,
routers and servers in Data Centers, Telecom Networks, Enterprise IT. BOSA
Modules (Bidirectional Optical Sub-Assembly) is the engine inside a
transceiver that allows it to send and receive data over a single fiber
strand. They are critical for Fiber-to-the-Home (FTTH) and IoT Devices. Quality power: Acquires Winwin Specialty Insulators for an enterprise value of
~₹315 Cr. The move Strengthens Quality Power's position in the high-voltage
transmission ecosystem. Adds a product segment with high entry barriers due
to utility approvals, testing history, and qualification requirements. Adani Energy: Acquire 100%
of IntelliSmart Infrastructure Pvt Ltd for ₹3,050
Cr (equity + redemption of optionally convertible debentures). Post‑deal,
AESL becomes India’s largest smart metering platform with a combined
portfolio of 4.7 Cr+ smart meters. Meta
Platforms and Reliance Industries Limited (RIL) have announced a joint
venture to develop and deploy Llama-based enterprise artificial intelligence
solutions in India and select international markets, with an initial combined
investment of approximately Rs 855 crore (around $100 million). Under the
agreement, RIL will hold a 70% stake in the joint venture while Meta will
hold the remaining 30%. The JV will offer two core products: an enterprise AI
Platform-as-a-Service that allows organisations to customise, deploy, and govern generative AI models for
workflows across sales, IT, customer service, and finance; and a suite of
pre-configured AI solutions for both cross-functional and sector-specific use
cases. Separately, Reliance will build a 168 MW data centre
that Meta will lease, with options to scale capacity. MACRO WRAP ·
China's national CPI fell 0.1% MoM in
May, after a 0.3% MoM rise in April,. Domestic
gasoline swung from +12.6% to -0.3% on international oil-price pass-through;
energy CPI moved from +5.7% to -0.1%, shifting its M-o-M contribution from
+0.39 percentage points to -0.01 percentage points. Services prices eased
from +0.5% to -0.1% as post-May Day travel declined, with the services
contribution to MoM CPI moving from +0.22ppt to -0.03ppt; vehicle rental and
airfares alone flipped from +8.6% and +29.2% to -6.8% and -6.3%, together
reducing MoM CPI by ~0.04ppt. Seasonal summer clothing (+0.6%) and stronger
AI-related demand boosting mobile phones (+1.6%) and tablets (+1.1%) added
roughly +0.05ppt to May MoM CPI. ·
Middle East geopolitical tensions remain
elevated as the US and Iran continue exchanging retaliatory actions,
increasing risks to regional stability and investor sentiment. The latest
escalation followed fresh US “self-defence” strikes
on Iran after an American helicopter was downed, while Tehran reiterated that
any attack would be met with a proportional response. Iranian media reported
drone strikes targeting a US military base in Kuwait on June 10, following
earlier attacks on US facilities in Bahrain and Jordan. Meanwhile, Israel
intensified military operations against Hezbollah in southern Lebanon, adding
to broader regional uncertainty and sustaining upside risks to energy prices,
safe-haven demand, and market volatility. ·
The global market would
remain focused on tonight’s US CPI report, The market is pricing 0.5%
jump in monthly inflation and headline number is expected to print 4.2% annualised inflation.
The Fed funds futures are pricing in 26bp hike by year-end and a total hike
of 38bp by September 2027. The Fed is currently in its blackout period ahead
of next week's FOMC meeting on 16-17 June. The Atlanta Fed's GDP Now model
revised Q2 growth up to 3.3% from 3.0%, reinforcing the resilient US growth
narrative. ·
US existing home sales rose 3.2% to 4.17
million annualized, beating expectations despite high mortgage rates. Gains
were strongest in the Midwest and South, modest in the Northeast, and flat in
the West. Inventory rose 3.3% to a 10‑month
high, reaching 4.5 months of supply. ·
The US trade deficit narrowed to $55.9
billion in April from $56.6 billion, beating expectations. Exports rose 2.6%
to a record $327.1 billion, led by capital goods, industrial supplies, and
consumer goods, while services slipped. Imports increased 2.0% to $383.0
billion, driven by higher capital goods and service purchases. ·
Japan’s producer prices rose 6.3% y-o-y
in May, up from 5.3% and above the 5.5% forecast, the fastest since March
2023 amid higher energy costs. Month-on-month, prices rose 0.9%, down from
April’s revised 2.8%. ·
US private employers added an average of
29,000 jobs per week in the four weeks to May 23, down from 30,500 and
marking a third week of easing growth. Still, ADP’s May report showed a solid
122,000 net job gain, with hiring more broad-based and momentum intact into
summer. ·
The DJIA rose 0.2% while the S&P500
and the Nasdaq Composite fell 0.3% and 1.0% respectively. The Eurostoxx 50 fell 0.2%. The Dollar Index dipped 0.1% to
99.91. EUR-USD was a touch higher around 1.1540. The
US 2Y yield fell over 4bp to 4.12% and the US 10Y yield declined nearly 5bp
to 4.52%. The German 10Y yield dipped 2bp to 3.04%. The UK 10Y yield fell 4bp
to 4.90%. Brent crude oil prices fell 3.0% to USD91.45. Gold fell 1.6% to USD
4,261. ·
Data Watch: The key focus will be on May
US CPI print (Bloomberg est 0.5% m/m, 4.2% y/y), which carries significant
implications for the Federal Reserve's Jun meeting and the trajectory of rate
hikes now being priced by bond markets. OTHER NEWS
TCS
chairman N Chandrasekaran said the IT industry will no longer hire at the
scale seen over the past two decades as AI takes over parts of traditional
work, signalling a structural shift for India’s
$315 billion technology sector. “The company will not be hiring the kind of
number it used to hire,” Chandrasekaran said at TCS’s 31st annual
general meeting held virtually on Tuesday. |
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