CURRENCY MARKET WRAP
As of Fri, May 10, Singapore Time zone UTC+8
Dollar Index -0.14%, 97.44
USDJPY, -0.16%, $109.85
EURUSD, +0.20%, $1.1220
GBPUSD, +0.01 %, $1.3010
USDCAD, -0.06%, $1.3466
AUDUSD, -0.05%, $0.6988
NZDUSD, +0.04%, $0.6586
U.S. Producer Price Index for final demand increased 0.2% m/m in April, as expected, while the index for final demand, less food and energy (“core PPI”), increased 0.1% m/m (consensus 0.2%). The report didn’t show any acceleration in core producer inflation, which will keep the market’s pass-through concerns for the consumer in check.
U.S. Treasuries finished on a higher note, although buying interest cooled off as equities staged a recovery. The 2-yr yield declined four basis points to 2.26%, and the 10-yr yield declined three basis points to 2.46%. The U.S. Dollar Index lost 0.14% to 97.44. WTI crude lost 0.6% to $61.73/bbl.
In trade news, a CNBC headline was quick to point out that Trump said he had an “excellent alternative” to a trade deal, which was later clarified that the tariffs were the alternative. Trump also said he received a letter from President Xi and intended to give him a call later, which was a sign of good will ahead of a Thursday dinner (EST) between Vice Premier Liu He and USTR Lighthizer.
S&P500, -0.30%, 7,582.75
Nasdaq, -0.46%, 7,582.75
Nikkei Futures, -0.84%, 21,398.0
S&P 500 declined 0.3% on Thursday, although it had dropped as much as 1.5% on concerns about a protracted trade war with China.
Shares of Walt Disney (DIS 133.59, -1.40, -1.0%) finished lower despite it beating top and bottom-line estimates. Shares of Intel (INTC 46.62, -2.62, -5.3%) dropped after it was downgraded to Market Perform from Outperform at BMO Capital Markets. Chevron (CVX 121.19, +3.69, +3.1%), meanwhile, decided to not provide a counteroffer to acquire Anadarko Petroleum (APC 73.39, -2.47, -3.3%).