Crypto News: Hot property

Good morning, it's Matt here in chilly Melbourne. It's a big day for markets with US Congress due to vote on the debt ceiling deal, but first…

Today's must-reads:
• Australian house prices climbed a third straight month
• Inflation accelerated faster than anticipated
• Why cities must be thought of as biomes to combat the climate crisis

Australian house prices climbed for a third month in May, suggesting further interest rates may be needed to cool resurgent demand that threatens to exacerbate inflationary pressures in the economy. The gains were led by Sydney, rising 1.8%, its biggest increase since September 2021.

Speaking of inflation, it accelerated faster than expected in April, driven by higher fuel and house prices. The result casts some doubt over widespread expectations that the RBA has ended its hiking cycle, with swaps traders now pricing in a 25 basis-point hike by August.

In New Zealand, however, house values fell 10.2% from a year earlier, a marginally slower pace of decline from the previous month, according to CoreLogic. The moderation, along with the central bank all but ending its rate hike cycle, is being seen by some as a fillip to the property market.

Cities should be seen as living, dynamic systems that evolve with people alongside nature if we are to better design solutions to tackle the climate crisis. With cities responsible for over 75% of greenhouse gas emissions, designing smart and sustainable cities is the single most pressing challenge in confronting climate change, according to an Australian architecture expert.

Australia will double down on the government's policy of greater trade diversification despite increasingly warm economic ties with China. More trade will build a secure and stable economic future having learned "valuable lessons over the last few years," Trade Minister Don Farrell will say in a speech to the National Press Club in Canberra today.

Australian stock futures are pointing to a weaker market open after US stocks slumped, almost wiping out a monthly gain. Concerns about the global economy resurfaced after poor data in China, a slide in US regional banks raised some eyebrows and the furious rally in big tech took a breather.

Federal Reserve officials hinted they're inclined to pause their rate hike cycle when they meet this month, sending US Treasury yields lower. A pause, however, should not be interpreted as the central bank reaching peak rate, board member Philip Jefferson said. BlackRock's Larry Fink said he expects up to four more hikes.

US Congress is set to vote on the debt-limit deal struck by House Speaker Kevin McCarthy and President Joe Biden later today after it cleared a major procedural step needed to consider the measure. Markets are awaiting the passage with baited breath as the June 5 deadline for avert default quickly approaches.

Jamie Dimon remains committed to doing business in China even as tensions between Washington and Beijing escalate. While the situation is "far more complex" than before, it's unlikely there will be a decoupling between China and the West, the JPMorgan Chase & Co. chief told Bloomberg Television.

• March quarter private capital expenditure due 11:30am Sydney
• Caixin China manufacturing and services PMI due 11:45am Sydney

A Japanese domestic airline has started a month-long "all-you-can-fly" service from Tokyo, seeing an opportunity to cash in as work routines undergo a dramatic shift in the wake of the Covid pandemic. Star Flyer Inc.'s "Star Pass" targets commuters wanting unlimited flights between the capital's Haneda Airport and Kitakyushu — a city near Fukuoka where the carrier is based, on Japan's southern Kyushu island — for remote work and leisure. For ¥40,000 ($286), people under 26 can make as many trips as they want during a 30-day period that will end on June 13. Users older than 26 pay ¥150,000.