Good Morning All;
we’ll see the daily market report.
U.S. Dollar Index up 0.5% to 99.58; The greenback traded at the highest in a month in the wake of hawkish comments from Federal Reserve officials. Safe haven assets caught a bid after Sky News reported North Korea will proceed with a nuclear test. Also, the greenback gained support from a rise in 10Y UST yields as traders ramped up bets that the Fed will hike rates in June
EUR/USD fell to a fresh session low at 1.0874 as bids under 1.0890 cushioned the blow from a rising USD; The euro fell for a second day as traders pared back positions after Macron’s victory in the presidential race allayed concerns over Frexit
JPY down 0.01% to 113.9900 per US$; USD/JPY rose to 114.23, its highest since March 15, when it traded as high at 114.88; the pair was supported by a rise in UST yields at a time when the BOJ has pledged it will keep rates low for an extended period; The yen was undermined after BOJ Gov. Kuroda reiterated the central bank will continue strong monetary policy accommodation amid still-low inflation expectations
AUD/USD fell to its lowest since Jan. 9 after Australian March retail sales declined 0.1% vs expectations for a gain of 0.3% and as prior month data were also revised lower; the AUD was also weighed by a new budget plan that forecast a widening deficit and which included a new tax on Australia’s largest banks; AUD/USD traded to Jan. 9 lows, weighed by leveraged names adding to shorts after Tuesday’s budget announcement and retail sales miss, traders in Asia and New York said; AUD event risk from China inflation data ahead
NZD/USD paring losses into the session close as traders brace for an RBNZ rate decision on Thursday; Inflation is above target, the economy is growing at about 3% a year and the housing market is overheated; yet RBNZ’s Wheeler expected to keep the official cash rate at 1.75% on Thursday, according to all 16 economists surveyed by Bloomberg;
U.S. 10Y yield widened 1.1 bps to 2.3977%; The yield on 10-year Treasury notes rose one basis point to 2.40 percent Tuesday after climbing four basis points on Monday.
German 10Y yield widened 1.2 bps to 0.43%; German bunds were pressured following hawkish comments from German Finance Minister Wolfgang Schaeuble, which further weighed on Treasurie
French 10-year yields increased two basis points to 0.86 percent. Similar maturity German yields increased one basis point, to 0.43 percent.
Italian 10Y yield widened 3.7 bps to 1.986%; Spanish 10Y yield widened 3.3 bps to 1.621%
S&P 500 down 0.1% to 2,396.92; Dow Jones down 0.2% to 20,975.78; Nasdaq up 0.3% to 6,120.59; Futures on the S&P 500 were little changed. The underlying gauge fell 0.1 percent Tuesday, while the CBOE Volatility Index edged higher after closing Monday at the lowest since December 1993.
The Stoxx Europe 600 added 0.5 percent, the highest since August 2015. Miners rose 1.7 percent.
Futures on the Nikkei 225 rose 0.2 percent in Chicago. Australia’s S&P/ASX 200 Index contracts advanced 0.3 percent.
Emerging-market shares climbed 0.3 percent for a second day of gains; Futures on Hong Kong’s Hang Seng index added 0.5 percent.
Gold fell to the lowest in almost 2 months as investors turn their attention to the outlook for rising U.S. interest rates amid easing political uncertainty in Europe. Futures dropped 0.9 percent to settle at $1,216.10 an ounce, even after the China Gold Association said demand in the biggest consumer could jump to a four-year high.
Brent Futures down 0.8% to $48.96/bbl; Crude fell as Libyan output rose to the highest in more than two years, getting in the way of OPEC’s efforts to drain a global glut.
West Texas Intermediate oil slipped 1.2 percent to settle at $45.88 a barrel. Brent for July settlement slipped 61 cents, or 1.2 percent, to $48.73 a barrel
Zinc and nickel pulled base metals higher as mining equities stage rebound.