Overnight Snapshot 

The Day Ahead

0915hrs UK         UK Bank of England MPC member Jan Vlieghe speaks in London
0915hrs UK         UK Parliamentary hearing on latest BoE Inflation Report. BOE’s Mark Carney, Dave Ramsden, Michael Saunders and Jan Vlieghe all speak
0930hrs UK         UK Public Sector Net Borrowing (est £7.24bln/£8.46bln ex banks vs previous -£0.3bln / £1.3bln)
1000hrs UK         FI Bank of Finland Governor Erkki Liikanen speaks in Helsinki
1100hrs UK         UK CBI Industrial Trends Survey (est Orders 2.67 / Prices 17.75 vs previous 4 / 18)
1330hrs UK         CA Canadian Wholesale Trade Sales (est 0.83%mom vs previous -0.8%)
1500hrs UK         US Richmond Fed Manufacturing Index (est 9.56 vs previous -3)
Earnings releases from US include KLX TJX, Ceridian HCM and Kohl’s Corp
In the UK we see Big Yellow, House of Fraser, Topps Tiles, Halfords & Homeserve report and in Europe we have Nykredit and Sonova amongst others.

The Day So Far….

STOCKS: US stocks rose yesterday and gains in industrials helped propel the Dow to a more than 2 month closing high up 298.2 points at 25013.29, after the apparent US-China trade war truce calmed fears of a tit for tat war. US Treasury Secretary Steven Mnuchin’s comments over the weekend that the two countries had put the prospect of a trade war on hold boosted stocks from the open. Boeing again pushed the Dow up, adding over 87 points on their own, on a day when only Merck and Johnson & Johnson were negative. The S&P500 followed suit with a strong open which was tempered slightly, closing 20.04 points higher at 2733.01, whilst the Nasdaq100 added 39.278 points to end the day at 6905.532.
The major Asia-Pacific indices were mostly lower on Tuesday, with a lack of fundamental news flow apparent.  Japan's Nikkei 225 lost 42 points as health care and energy dragged, while telecoms & consumer staples provided the largest upticks on a choppy day that saw positive territory in the morning before easing in the post lunch session.  The Hang Seng was closed today as the locals celebrated Buddha’s birthday.  China's CSI 300 shed 0.7% with property developers leading the fall, while baby related names moved higher amid reports that China is considering scrapping birth limits.
 The ASX 200 lost over 50 points  over the morning after opening sharply down following on from yesterday's underperformance, as the telecom sector applied the most weight, with all the major sectors moving lower. The selling momentum tailed off in the afternoon, with post mid day trading mostly sideways. US index futures posted marginal gains, with the e-mini S&P 1 point higher as the mini has Dow added just over 30 points.

US TREASURYS: There has been little in the way of inspiration for Tsy traders, with Fed non-voter Kashkari offering his usual dovish remarks heading into early Asia-Pacific hours. This came after voter Bostic & non-voter Harker offered little new in front of the FOMC May meeting Minutes due Wednesday. - Tsys have edged higher, with T-Notes marginally bettering Monday's high.

OIL: The major crude benchmarks posted modest gains overnight with WTI adding $0.25 and Brent adding $0. to trade at $72.49 & $79.44 respectively.  US President Trump has prohibited Americans from buying Venezuelan gov't debt, in addition to debt linked to the state-owned oil company following the re-election of Venezuelan President Maduro, which lent support to crude on Monday.  Iranian tensions continue to simmer, after US Secretary of State Pompeo outlined a fresh batch of sanctions on Monday.

GOLD: Gold shed $2 to trade at $1290/oz as the US-China trade war fears eased back

FOREX: The JPY has outperformed in Asia-Pacific hours, although it has only managed to lodge modest gains, with USDJPY operating sub-111.0 for the majority of the session. BoJ Gov. Kuroda & Deputy Gov. Wakatabe offered little fresh in the way of the insights into MonPol. Kuroda suggested that the BoJ is on the right path, while noting that we shouldn't expect the average duration of the BoJ's JGB holdings to change by much. Wakatabe noted that the BoJ could do more re: easing if required, but stressed that such a move wasn't his base case.
- GBPUSD stopped short of the 50%/61.8% retracement of the 1.3493-1.3391 move (1.3442-54) in early dealing, and last trades at 1.3420. EURUSD last 1.1790, back from highs just shy of 1.1800, with Italy's President due to meet with the M5S & League leaders after receiving their PM nomination. Sources noted decent interest in the 1.1823 June 4 EURUSD calls during Monday's London/NY session, with some EUR1.5bln changing hands. The antipodeans stuck to a tight range.


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Отдел аналитики