Market sentiments are generally steady today. Better than expected job and housing data lift Dollar mildly higher in early US session. Yen and Swiss Franc are trading of the softer side, paring some of this week's gains. While US moves to contain Huawei catch a lot of headlines, there is practically no negative reactions in the markets. Chinese stocks ended the day higher while US futures also point to higher open. It will take a while more to see what's next in US-China trade and political tensions. Meanwhile, Sterling's selloff is gathering momentum again, in particular against Dollar and Euro. UK government keeps saying that talks are continuing with opposition Labor and pledges to bring back the Brexit Withdrawal Agreement as soon as possible. But traders are clearly impatient with the lack of concrete progress. If seemed that politicians in the two biggest parties of the UK didn't learn anything from recent local election defeats. Euro is steady as Italian yield retreats while German yield recovers. German 10-year yield is back above -0.1 after initial dive. Though, it's unsure whether it can sustain above this -0.1 handle. US auto tariffs are another major uncertainty for the Eurozone, in particular Germany. While there were rumors that Trump will delay auto tariffs decisions, Commerce Secretary Wilbur Ross sounds noncommittal today. He just noted that Trump has many options on May 18, when a decision is due. In Europe, currently, FTSE is up 0.25%. DAX is up 0.64%. CAC is up 0.30%. German 10-year yield is down -0.0022 at -0.097. Earlier in Asia, Nikkei dropped -0.59%. Hong Kong HSI rose 0.02%. China Shanghai SSE rose 0.58%. Singapore Strati Times rose 0.36%. Japan 10-year JGB yield dropped -0.008 to -0.059. |
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