1 May 2017

Currency Markets the dollar shrugged off early modest losses in holiday-thinned Asian trading on Monday, while solid European inflation data underpinned the euro. Against its Japanese counterpart, the dollar nudged 0.1 percent higher to 111.68. The euro was steady on the day at $1.0894, underpinned by solid euro zone inflation figures on Friday that analysts said could prompt the European Central Bank to take a more hawkish tone in its June statements. The Australian and New Zealand dollars were slightly lower at $0.7483 and $0.6856respectively. The dollar edged up 0.1 percent against the Canadian dollar on Monday to C$1.3673 after logging a 14-month high of C$1.3697 on Friday.

Commodities Markets oil prices edged lower on Monday, undermined by a weak manufacturers survey out of China, and despite talk that OPEC-led crude oil output cuts could be extended when oil producers meet later this month. NYMEX crude for June delivery was down 10 cents at $49.23 a barrel. London Brent crude for new front-month delivery in July was down 13 cents at $51.92. Gold fell on Monday after the dollar edged up as U.S. congressional negotiators hammered out a deal on a spending package to keep the federal government funded through September. Spot gold fell 0.3 percent to $1,264.06 per ounce. U.S. gold futures eased 0.2 percent to $1,265.20 an ounce.

US Equity Markets stocks edged lower on Wall Street on Friday after data showing the U.S. economy grew at its weakest pace in three years in the first quarter gave traders a reason to cash recent gains. The Dow fell 0.19 percent, to close at 20,940.51, the S&P 500 lost 0.19 percent, to 2,384.2 and the Nasdaq Composite fell 0.02 percent, to 6,047.61. Intel  fell 3.4 percent after the company reported lower-than-expected quarterly revenue. Baidu ended down 4.1 percent after the Chinese internet company forecast second-quarter revenue largely below estimates. Gross domestic product grew at a 0.7 percent annual rate, below the 1.2 percent rise estimated by economists. The economy grew at a 2.1 percent pace in the fourth quarter.


Bond Markets U.S. Treasury prices ended higher on Friday on last-minute month-end buying, reversing losses fueled by data showing steady growth in U.S. inflation and wages despite soft economic growth in the first quarter. In late trading, benchmark 10-year U.S. Treasury notes were up 3/32 in price to yield 2.285 percent, down from 2.296 percent late on Thursday.  U.S. 30-year bond prices rose 6/32, yielding 2.954 percent, down from Thursday’s 2.965 percent. On the front end, U.S. two-year yields were at 1.269 percent , up from Thursday’s 1.258 percent.

Asian Equity Markets Japanese stock prices posted modest gains on Monday as high-tech shares such as Tokyo Electron and Murata Manufacturing gained on upbeat earnings in otherwise holiday-lulled trading. The Nikkei rose 0.4 percent to 19,273.87 points. The Nikkei rose more than the broader Topix, which gained 0.2 percent to 1,535.00, because of a 13 percent gain in Tokyo Electron, which has a big weighting in the Nikkei. MSCI’s broadest index of Asia-Pacific stocks outside Japan added 0.1 percent. Asian markets were little fazed by China’s official manufacturing survey on Sunday which showed growth in the country’s factories slowed more than expected in April to a six-month low.