News

US Stock-Index Futures Uptick Following Trump Comment

Equities

Major US stock Index futures bounced-off the lows supported by Trump's latest comments. After the trade disputes between China and the United States intensified and both sides applied or vowed to apply certain measures, Trump declared that he believes that the trade negotiations will be successful. His comments helped to ease investors’ concerns over a full-blown trade war between the world's largest economies. The Dow Jones Industrial Average found at a low of 25217 and rose to a high of 25412, the S&P500 futures rebounded from 2800 to trade higher at 2821, and the Nasdaq futures surged to 7371.

USD

The dollar index which measures the greenback against a basket of major currencies reversed from a four-week low of 97.03 to trade higher at 97.40. The dollar attracted flow from safety assets following Trump's bullishness on trade talks. The US 10-year yields fell to 2.386% the lowest since late March as the chances of monetary tightening diminished with the ongoing trade spats. The USDJPY recovered from a three-month low of 109.02 to 109.83, the EURUSD fell to a low of $1.1220, and the GBPUSD plunged to a two-week low of $1.2930.

Metals

Gold prices soared to a one-month high of $1303 supported by the escalating market risks and uncertainties. The trade disputes between China and the United States along with the escalating geopolitical tensions in the Persian Gulf urged investors to rush to safety. Gold is well-known as a traditional safe haven during uncertainty. The silver ounce rallied to a high of $14.80, and palladium rose to $1340.

Oil

Oil prices finished lower after a choppy trading day. The rising geopolitical tension between the United States and Iran boosted prices especially after Iran threatened to close the Strait of Hormuz. On the other hand, the trade spats between China and the United States weighed on oil prices as a full-blown trade war between the world's largest economies could deteriorate the global economic outlook and lead to lower oil demand. The West Texas Intermediate crude futures faltered at a two-week high of $63.32 and tumbled to $60.63, and Brent futures erased gains and plunged to $69.69.

Major Economic Events

GMT Country Event Expectation Previous

8:30

UK

Average Earnings Index +Bonus (Mar)

3.4%

3.5%

8:30

UK

Unemployment Rate (Mar)

3.9%

3.9%

9:00

EU

German ZEW Economic Sentiment (May)

5.1

3.1

9:00

EU

Industrial Production (MoM) (Mar)

-0.3%

-0.2%

20:30

US

API Weekly Crude Oil Stock

 

2.806

 

 

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