Trading Review: Current Reports, Trends, Indices, Stocks, Bonds, Forex and Commodities and Analyst Recommendations
The day of trading on European stock exchanges opened with declines. The London Stock Exchange is closed for the holiday. Trading in US stock market indices is up 0.6% -0.9%.
The yield on 10-year US government bonds rises by 5 basis points to 2.95%.
In Germany it was reported today that retail sales recorded a 0.1% decline in March, compared to an expected 0.2% increase.
In Tokyo, the Nikkei index fell 0.1% today.
Asian stock markets are trading today in a mixed trend, with the Tokyo index showing a slight rise and Seoul showing slight declines. The markets in China, Singapore and Hong Kong are closed for the holiday.
In China, it was reported over the weekend that the Purchasing Managers’ Index (PMI) of the industry stood at 47.4 points in April, indicating a decline in the pace of activity.
Slight gains are now being recorded in contracts trading on U.S. stock market indices.
In the commodity trading arena, oil contracts are down 0.8% and gold is down 1.3%. This is while the dollar strengthens slightly against the major currencies.
In the crypto arena, Bitcoin is up about 3% and trades around $ 39,000 and Etherium is up more than 3% and trades around $ 2,850.
Alex Zabrzynski, Meitav Dash’s chief economist, notes in his weekly review that pretty good macro data, which does not yet indicate a weakness in demand, is almost certain to support a 0.5% rise in Fed interest rates at its meeting this week. This increase is already reflected in the markets. The contracts embody that the Fed will raise interest rates in the next 4 meetings until September by a cumulative 2% from the current level. Against this background, long-term yields on the US bond curve have again approached 3%. In our estimation, the rise in yields has not yet come to an end.
He further writes that “the risk of inflation in Europe is also increasing due to the rapid weakening of the euro, whose exchange rate fell in April by almost 5% as a result of widening interest rate differentials between the US and Europe. The other currencies also weakened sharply against the dollar, especially Japanese wine. “The weakening of the wine is also in line with the widening yield gap between the US and Japan.”