CURRENCY MARKET WRAP
As of Sat, Jun 1st, Singapore Time zone UTC+8
Dollar Index -0.40%, 97.75
USDJPY, -0.96%, $108.28
EURUSD, +0.34%, $1.1169
GBPUSD, +0.19%, $1.2632
USDCAD, -0.14%, $1.3514
AUDUSD, +0.47%, $0.6939
NZDUSD, +0.49%, $0.6536
Global growth concerns were evidenced by the 5.2% drop in WTI crude ($53.48/bbl, -$2.92) and investors seeking safety in U.S. Treasuries.The 2-yr yield dropped 12 basis points to 1.94%, and the 10-yr yield dropped nine basis points to 2.14%. The U.S. Dollar Index fell 0.4% to 97.75.
The big headline on Friday, which helped accelerate weekly losses was Trump announcing a 5% tariff rate on all goods imported from Mexico starting on June 10. The tariff rate will increase incrementally during the summer and reach 25% on Oct. 1 unless Mexico takes actions to curb the flow of undocumented migrants entering the U.S. Another trade dispute on top of a U.S.-China trade war with no clear end in sight fueled ongoing concerns that trade tensions will lower economic, and earnings, growth prospects.
China added to these fears after it announced that it is drafting a list of unreliable foreign entities that harm the interests of its firms, increasing speculation about Chinese retaliation against the U.S.
STOCK MARKET WRAP
S&P500, -1.32%, 2,752.06
Nasdaq, -1.62%, 7,127.96
Nikkei Futures, -1.86%, 20,540.0
Friday’s 1.32% decline in the S&P 500 sent it below its 200-day moving average (2776) and extended its weekly decline to 2.6%. The Dow Jones Industrial Average (-1.4%), the Nasdaq Composite (-1.5%), and the Russell 2000 (-1.4%) extended their weekly losses to 3.0%, 2.4%, and 3.2%.
In corporate news, shares of General Motors (GM 33.34, -1.48, -4.3%) underperformed on the Mexico tariff threat. Dell Technologies (DELL 59.55, -6.86, -10.3%), Gap (GPS 18.68, -1.92, -9.3%), and VMware (VMW 176.98, -14.11, -7.4%) disappointed investors with their earnings results, while Uber (UBER 40.41, +0.61, +1.5%) pleased investors with its results.