The US$ has had a fairly steady session, with the DXY moving just 5 points higher, with the main attraction being seen in Sterling which saw another selloff after the UK Government conceded that there will be no Brexit compromise with the opposition Labour meaning that the UK should now begin to prepare to participate in the European election on May 23, at which both major political parties are likely to suffer very heavy losses.
In other markets, US stocks were volatile but ended flat, as traders wait on the crucial round of talks between the United States and China, with Vice Premier Liu He to visit Washington on Thursday/Friday in a last-ditch effort to strike a deal. Otherwise, the US will raise tariffs to 25% from 10% on $200 billion worth of Chinese imports on Friday.
In the commodities markets, the metals have given up some minor ground (-.2%/-0.4%) while WTI has gone the other way, +1.1%, after the EIA reported that that crude inventories fell by nearly 4 million barrels in the week to May 3, versus forecasts for a build of 1.2 million.
Looking ahead, the main interest today will come from China, with the release of the April CPI and PPI (CPI, exp 0.1%mm, 2.5%yy; PPI, exp 0.6%yy). Europe has a completely empty calendar and then we have some more inflation data from the us with the release of the April PPI (exp 0.2%mm, 2.3%yy; Ex-F/E, 2.5%yy) as well as March Trade Balance, Wholesale Inventories and the weekly Jobless Claims.
Central bank speakers will then take centre stage, led by Fed Chair, Jerome Powell who may create some waves, while other Fed speakers will include Bostic and Evans. Have a good day.,
Economic data highlights will include:
Thur: China CPI/PPI, Japan Machine Tool Orders, Consumer Confidence Index, US PPI, Trade Balance, Wholesale Inventories, Jobless Claims, Fed’s Evans Speech
Market moves, in brief:
Bonds: US10Y; 97.62% (0.05%), German 10Y; -0.044% (-23%), UK 10Y; 1.138% (-1.83%), Australian 10Y; 1.745% (-2.75%), NZ 10Y; 1.865% (-0.53 %), China 10Y; 3.345% (-0.43%)
Stock Indices: DJI; +0.01%, S+P; -0.16%, NASDAQ; -0.23%, EUStoxx50; +0.47%, FTSE100; +0.15%, Shanghai Composite; -1.12%,
Metals: Gold $1280 oz (-0.27%), Silver $14.83 oz (-0.46%), Copper $2.7735 lb (-0.50%), Iron Ore $94.19 per tonne (NYMEX) (-0.59%),
Oil: WTI $62.10 pb (+1.10%)
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