CURRENCY MARKET WRAP
As of Wed, May 29, Singapore Time zone UTC+8
Dollar Index +0.21%, 97.94
USDJPY, -0.13%, $109.36
EURUSD, -0.21%, $1.1169
GBPUSD, -0.16%, $1.2659
USDCAD, +0.39%, $1.3488
AUDUSD, +0.09%, $0.6926
NZDUSD, -0.02%, $0.6544
Trade progress remained elusive, while headlines continued to swirl. Trump said he expects a deal in the future but said the U.S. is not ready for one at this moment. Demand for U.S. Treasuries remained strong, sending yields even lower, amid the trade uncertainty and negative disposition in equities. The 2-yr yield declined four basis points to 2.12%, and the 10-yr yield declined six basis points to 2.27% — eight basis points below the yield on the 3-month bill. The U.S. Dollar Index advanced 0.21% to 97.94. WTI crude rose 0.8% to $59.11/bbl.
STOCK MARKET WRAP
S&P500, -0.84%, 2,802.39
Nasdaq, -0.31%, 7,278.38
Nikkei Futures, -0.79%, 21,033.0
S&P 500 lost 0.84% on Tuesday, while U.S. Treasuries rallied, as investors continued to show little enthusiasm for risk assets. Tuesday’s decline wiped out an early gain for the benchmark index and sent it back near the 2800 level as losses accelerated into the close.
The S&P 500 consumer staples (-1.8%), utilities (-1.6%), and health care (-1.4%) sectors led the market lower. The Dow Jones Transportation Average (-1.3%) was another laggard, as investors remained concerned about a protracted trade war with China. The communication services sector (+0.2%) was the lone sector to finish higher.
Shares of Advanced Micro Devices (AMD 29.03, +2.59, +9.8%), Total System (TSS 118.84, +5.39, +4.8%), and Fiat-Chrysler (FCAU 13.78, +0.93, +7.2%) bucked the broader trend on Tuesday. AMD impressed investors with its new products. Total System confirmed its $21.5 billion merger of equals with Global Payments (GPN 148.87, -4.57, -3.0%). Fiat-Chrysler proposed a merger with Renault (RNSDF), which will reportedly give its preliminary approval, according to Bloomberg.