24 April 2017 Daily Market Updates

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French centrist Emmanuel Macron and far-right nationalist Marine Le Pen won the first round of the French presidential election, triggering a runoff on May 7 between two radically different visions of the country’s future.Macron, a first-time candidate and political independent, was on course to take 23.4 percent in Sunday’s election, with National Front leader Le Pen on 22.6 percent, according to projections from the Interior Ministry based on almost four-fifths of votes counted.  The euro went up to five month high as result, soaring as much as 2 percent in early trading to touch the highest level since November, before paring some of those gains.
President Donald Trump tax plan is seen as temporary cut without border revenue.He has promised a “massive” tax cut for Americans. He may be able to achieve it — but only temporarily, if the changes can’t meet the criteria needed by lawmakers to make permanent changes. News that Trump’s plan isn’t likely to include a border-adjusted tax, or BAT, suggests his proposed tax measures won’t meet the standard of revenue neutrality.Treasury Secretary Steven Mnuchin on Saturday repeated the administration’s goal of getting “sustainable” economic growth of 3 percent or higher, and said Trump is counting on tax reforms to pay for themselves by boosting the economy and tax receipts along with it. Trump’s budget director Mulvaney says Trump tax plan details won’t be ready until June.
Trump plans top-level briefing with senators in North Korea.The White House will hold a briefing for senators with its “four principals” on North Korea as the administration considers its options for dealing with saber-rattling from Pyongyang.Over the weekend, North Korea detained a U.S. citizen who’d been teaching at a university there as he was leaving the country, according to media reports that cited officials with the Swedish embassy in Pyongyang. Three Americans are now being held in the isolated nation.Trump’s schedule was amended to add calls with Japanese Prime Minister Shinzo Abe and Chinese President Xi Jinping Sunday night. The topic wsn’t announced but North Korea on Sunday said it was ready to sink a U.S. aircraft carrier to show its military strength.
White House still press to hold Obamacare vote this week. Donald Trump’s administration continues to push for a vote this week in the House to replace Obamacare, which the president said on Sunday is in serious trouble.Mick Mulvaney, director of the Office of Management and Budget, said on Sunday that the Senate Budget Committee sent language on the health bill to the House on Saturday night, as negotiations between Congress and the White House continue.
U.K. Prime Minister Theresa May seeks to snatch U.K. labour voters with energy price cap.May’s Conservative Party is proposing to cap household gas and electricity prices as part of its campaign platform for the June 8 election, adopting an issue promoted by the opposition Labour Party in the last election.Work and Pensions Secretary Damian Green confirmed the plan that the Conservative manifesto will set out a policy of ordering energy regulator Ofgem to set a maximum price for the 70 percent of households that pay suppliers’ standard tariffs.The move is similar to a proposal made by former Labour Party leader Ed Miliband before the 2015 election. It signals a further pitch by May to woo Labour voters in key swing districts.
Australia’s Finance Minister Mathias Cormann said,U.S. President Donald Trump’s plan to upgrade the nation’s roads, ports and bridges will drive demand for steel and support iron ore prices.The price of iron ore has slumped almost 30 percent since Chinese Premier Li Keqiang last month signaled plans to cut his nation’s steel capacity. The world’s No. 2 economy is Australia’s biggest trading partner and iron ore exports account for more than 3 percent of Australia’s gross domestic product.Iron ore has had a volatile 18 months. It slumped to a low of just over $38 in December 2015 then steadily rebounded until it reached a peak of just under $95 in February this year before retreating back to around $65.Cormann played down fears that Trump would upend the global economy by unleashing a wave of punishing tariffs or erecting other barriers in an effort to shrink the nation’s trade deficit.He said,the U.S. and the Trump administration has put out a very ambitious infrastructure investment program,so global demand for steel, we believe, will continue to require significant exports of Australian iron ore.
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Market in details
FX:
The Bloomberg Dollar Spot Index climbed 0.1 percent after trading most of the session little changed. It’s down 0.2 percent for the week.
The yen rose 0.2 percent to 109.099.
EUR/USD climbed 1.5 percent to $1.0884 soaring as much as 2 percent after the French election.
GBP/USD stays around 1.2820 since last Thursday.
AUD/USD  rose to 0.7560 early this morning.
Rates:
The yield on 10-year Treasury notes was unchanged at 2.23 percent on last Friday, leaving the rate identical to where it ended the prior week.
Corporate issuance was muted in the week with $25 billion in three sessions, largely from financials as JPMorgan Chase & Co. Bank of America Corp. and Morgan Stanley all sold debt.
French 10-year yields were little changed at 0.93 percent. Bunds gained, with the yield on the benchmark due in a decade one basis point lower at 0.24 percent.
Equities:
At close last week,U.S. shares dropped ahead of the first round of the French presidential vote this weekend as financial companies hurt performance. U.S. Treasury bonds were mixed as the spread between two and 10-year bonds widened. S&P 500 down 0.3% to 2349. Dow Industrials down 31 to 20,548.Energy shares weakened 0.4%.
European stocks were little changed at close last week.The Stoxx Europe 600 Index rose less than 0.1 percent at 8:35 a.m. in London. The regional benchmark is on track for a weekly drop of 0.6 percent, its steepest since early February.The Stoxx 600 advanced 0.2 percent.
S&P/ASX 200 futures unchanged; futures relative to estimated fair value suggest an early gain of 0.1%.
Commodities:
West Texas Intermediate fell as investors lost faith that an extension of OPEC-led supply cuts will overcome growing U.S. production and ease a global glut.
Front-month futures lost 2.2 percent Friday to settle at $49.62 a barrel, the lowest close since March 29. The contract fell 6.7 percent last week.
Gold futures rose 0.2 percent to $1,287.20 an ounce, as a measure of the metal’s volatility fell to a 4-year low before the first round of voting in French elections.
Iron ore futures climbed 5.1 percent.
London Metal Exchange copper settled unchanged at $5,623 per ton, after swinging between gains and losses.
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