CURRENCY MARKET WRAP
As of Sat, May 11, Singapore Time zone UTC+8
Dollar Index -0.04%, 97.33
USDJPY, +0.16%, $109.94
EURUSD, +0.12%, $1.1235
GBPUSD, -0.07 %, $1.3000
USDCAD, -0.39%, $1.3413
AUDUSD, +0.17%, $0.7001
NZDUSD, +0.12%, $0.6599
U.S. CPI increased 0.3% m/m in April (consensus 0.4%) while core CPI, which excludes food and energy, rose just 0.1% (consensus 0.2%) for the third consecutive month.
U.S. Treasuries finished little changed after backing off their morning highs. The 2-yr yield declined two basis points to 2.24%, and the 10-yr yield was unchanged at 2.46% The U.S. Dollar Index was little changed at 97.33. WTI crude declined 0.1% to $61.66/bbl.
In U.S.-China trade news over the weekend, Trump warned China to reach a trade deal now, or face a ‘far worse’ one if he gets re-elected. Two days of talks ended Friday with no deal. China’s top negotiator said the two sides would meet again in Beijing at an unspecified date, but warned that China would make no concessions on “important principles.” “I think that China felt they were being beaten so badly in the recent negotiation that they may as well wait around for the next election, 2020, to see if they could get lucky & have a Democrat win – in which case they would continue to rip-off the USA for US$500 Billion a year,” Trump said in a tweet. “The only problem is that they know I am going to win (best economy & employment numbers in U.S. history, & much more), and the deal will become far worse for them if it has to be negotiated in my second term. Would be wise for them to act now, but love collecting BIG TARIFFS!” S&P500 futures opened approximately 1% lower on Monday as a result.
STOCK MARKET WRAP
S&P500, +0.37%, 2,881.40
Nasdaq, +0.05%, 7,586.53
Nikkei Futures, -0.33%, 21,310.0
U.S. stocks staged a major reversal on Friday, climbing from steep losses to modest gains. The S&P 500 was down as much as 1.6% on persisting trade uncertainty, but positive trade rhetoric on Friday helped lift the benchmark index to a gain of 0.37%. Ten of the 11 S&P 500 sectors swung positive, led by utilities (+1.7%), materials (+1.3%), and consumer staples (+1.2%). The lone exception was the health care sector (-0.1%).
In corporate news, Uber (UBER 41.57, -3.43, -7.6%) – 69.71B Market Cap, made its public debut on Friday, although the price action was much more subdued than past IPOs this year. Shares opened at $42 after pricing at $45 per share, which was already at the lower end of the $44-$50 range.