Overnight Snapshot

 

The Day Ahead

0800hrs UK         EU The ECB’s Francois Villeroy de Galhau speaks in Paris
0900hrs UK         DE German IFO Business Climate Index (est 102.0 vs previous 102.1)
0930hrs UK         UK British Bankers Asscn Home Loan Approvals (est 37367 vs previous 37567)
0930hrs UK         UK GDP (est 0.12%qoq / 1.21%yoy vs previous 0.1% / 1.2%)
1330hrs UK         US Durable Goods (est -1.16% vs previous 2.6%)
1415hrs UK         EU The ECB’s Benoit Coeure & Bank of England’s Mark Carney speak at a Riksbank event in Stockholm
1420hrs UK         US Federal Reserve Governor Jerome Powell speaks at the Riksbank event in Stockholm
1500hrs UK         US University of Michigan Sentiment Index (est 98.78 vs previous 98.8)
1645hrs UK         US Dallas Fed President Robert Kaplan, Atlanta Fed President Raphael Bostic and Chicago Fed President Charles Evans speak on a panel in Dallas
1730hrs UK         EU The EU Chief Brexit negotiator Michel Barnier speaks in Lisbon
1920hrs UK         EU ECB Governing Council member Jens Weidmann speaks at the Riksbank event in Stockholm
 
Earnings releases from US include Foot Locker
No major UK or European earnings
UK Closed Monday for Spring Bank Holiday, US Market closed Monday for Memorial Day Holiday
 
HEADLINE NEWS: Samsung ordered to pay Apple $540mln in patent case

 

The Day So Far….

STOCKS: US stocks ended slightly lower after President Trump cancelled a planned summit with North Korea’s Kim Jong Un and threatened to impose tariffs on auto imports, although the losses were tempered by gains in Netflix and General Electric. Trump’s order on Wednesday for an investigation into whether vehicle and car part imports had damaged the US car industry could further complicate negotiations with China and other trading partners. Trump cancelled the summit with the North Korean leader citing Pyongyang’s open hostility even though the Koreans followed through on a promise to blow up tunnels at their nuclear test site. The losses were largely recouped by the close with traders citing a sharp drop on the announcement of the summit cancellation as a knee-jerk reaction. The S&P500 closed down 5.53 points at 2727.76 after trading as low as 2707.38, the Dow ended the day at 24811.76, down 75.05 following a low of 24605.9, whilst the Nasdaq100 almost finished positive, but finished with a 3.932 point loss at 6949.699 with a low print over 60 points below.
Asia Pacific stocks struggled, despite comments from North Korea which stated that it was still open to meeting with the US despite President Trump's cancellation off the June 12 summit.  The Nikkei 225 added a meagre 13.78 points bucking the trend, as the consumer staples sector led the way higher, while the energy & telecoms sectors added the most weight.  The Hang Seng has shed around 0.5% at the time of writing in a volatile session, with the energy sector weighing after Thursday's sell off in crude prices. China's Shanghai Composite was virtually unchanged for much of the morning session before weakness pushed the index down through most of the afternoon. The ASX 200 lost just over 4 points to end the day almost unchanged. The energy sector once again added the most weight, with materials also weighing on the index as BHP Billiton lagged. - US index futures were higher overnight with the mini Dow trading 45 points higher, while the e-mini S&P has added 5 points.

US TREASURYS: US Tsys have eased in the early part of the Asia-Pacific session after North Korea stressed that it was still willing to meet with the US going forwards despite US President Trump's cancellation of the June summit. - Yields are higher across the curve as traders await the extended holiday weekend, with an early close scheduled for Friday & the space closed on Monday. - The Eurodollar strip has operated in mixed fashion with the white and red contracts 0.5 tick higher to 1.0 tick lower.

OIL: The major oil benchmarks traded a few cents lower in Asia-Pacific hours after coming under pressure on Thursday as Russia noted that the OPEC+ nations may relax their oil production constraints, a view echoed by Saudi energy minister Al-Falih early on Friday, although he noted that no commitment to such a move has been made.

GOLD: Gold stuck to a tight range overnight and last deals $2 lower at $1303/oz.

FOREX: The JPY softened following comments out of North Korea, which suggested that the state is still more than willing to meet with the US despite Trump calling off the summit that was scheduled for 12 June. USDJPY last trades at 109.60, but never really threatened the 21-DMA at 109.78. There are notable option expiries at 110.25-30 & 110.50 today. - The USD was stronger in the main as US yields edged higher on the North Korea headlines, although ranges were generally tight. - GBPUSD has edged lower in Asia-Pacific dealing as reports suggested that the latest round of Brexit discussions have yielded little in the way of breakthroughs, with no movement noted re: the major hurdles in discussions. Elsewhere BoE Gov Carney was cautious re: Brexit, offering little new in terms of insight into MonPol.

 

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Отдел аналитики