Date : 29th May 2018.
MACRO EVENTS & NEWS OF 29th May 2018.
FX News Today
Asian Market Wrap: 10-year Treasury yields fell below 2.9% for the first time this month before coming back from overnight lows to currently 2.902%, down -2.9 bp on the day. 10-year JGBs are down -0.4 bp at 0.028%. Italy angst triggered risk aversion in holiday thin markets and as the dip in yields weighed on the dollar, the strengthened yen put further pressure on Japanese stock markets. Topix and Nikkei are down -0.75% and -0.97% respectively. Hang Seng and CSI 300 both lost -0.65%, the ASX outperformed and is posting slight gains. Asian stock markets are also mostly down, although the NASDAQ managed to make some headway as U.S. markets prepare to come back from yesterday’s holiday. Overall risk aversion continues to dominate amid political turmoil in Europe and as the end U.S. exemptions on tariffs on steel and aluminium loom on the horizon. At hopes that the U.S. – North Korea summit will take place after all remains alive as a diplomacy seems to heat up. Oil prices remained under pressure as Saudia Arabia and Russia mull higher output to ease concerns over supply shortages. The WTI future is trading at USD 66.72 per barrel, after falling to a low of USD 65.80.
In Europe, the Italian 10-year meanwhile is already up a further 13 bp and at 2.788% set to overtake U.S. yields for the first time since 2014 as the ECB remains quiet on the sidelines and the impact of Draghi’s promise to do “all it takes”, starts to be priced out. Portuguese 10-year yields are also up 13 bp already this morning. In Italy 2-year bonds are selling even faster and the yield is up nearly 50 bp at 1.33%. There are a number of ECB speakers today and with the bond market rout widening pressure on the central bank to step in with some form of verbal intervention is mounting. Stock futures are also selling off and financial market turmoil will overshadow today’s data calendar, which includes Eurozone M3 as well as Italian confidence data.
Charts of the Day
Main Macro Events Today
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
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Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
MACRO EVENTS & NEWS OF 29th May 2018.
FX News Today
Asian Market Wrap: 10-year Treasury yields fell below 2.9% for the first time this month before coming back from overnight lows to currently 2.902%, down -2.9 bp on the day. 10-year JGBs are down -0.4 bp at 0.028%. Italy angst triggered risk aversion in holiday thin markets and as the dip in yields weighed on the dollar, the strengthened yen put further pressure on Japanese stock markets. Topix and Nikkei are down -0.75% and -0.97% respectively. Hang Seng and CSI 300 both lost -0.65%, the ASX outperformed and is posting slight gains. Asian stock markets are also mostly down, although the NASDAQ managed to make some headway as U.S. markets prepare to come back from yesterday’s holiday. Overall risk aversion continues to dominate amid political turmoil in Europe and as the end U.S. exemptions on tariffs on steel and aluminium loom on the horizon. At hopes that the U.S. – North Korea summit will take place after all remains alive as a diplomacy seems to heat up. Oil prices remained under pressure as Saudia Arabia and Russia mull higher output to ease concerns over supply shortages. The WTI future is trading at USD 66.72 per barrel, after falling to a low of USD 65.80.
In Europe, the Italian 10-year meanwhile is already up a further 13 bp and at 2.788% set to overtake U.S. yields for the first time since 2014 as the ECB remains quiet on the sidelines and the impact of Draghi’s promise to do “all it takes”, starts to be priced out. Portuguese 10-year yields are also up 13 bp already this morning. In Italy 2-year bonds are selling even faster and the yield is up nearly 50 bp at 1.33%. There are a number of ECB speakers today and with the bond market rout widening pressure on the central bank to step in with some form of verbal intervention is mounting. Stock futures are also selling off and financial market turmoil will overshadow today’s data calendar, which includes Eurozone M3 as well as Italian confidence data.
Charts of the Day
Main Macro Events Today
- EU M3 Money Supply – Expectations – at 3.9% y/y from 3.7% y/y seen in April.
- US S&P/CS Composite-20 HPI – Expectations – S&P/Case-Shiller Home Price Indices expected slightly lower at 6.5% y/y in March from 6.8% y/y in April.
- US CB Consumer Confidence – Expectations – 128.0 in May, down only slightly from a strong 128.7 reading in April and the 17-year high of 130.0 in February.
- RBNZ Financial Stability Report
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Click HERE to access the full HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!
Click HERE to READ more Market news.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.