GLOBAL MARKET SNAPSHOT
Equity Markets: Global equities were broadly stronger with momentum picking up into the U.S. trading session, sending the S&P 500 and Nasdaq indexes to new all-time highs. While the small-cap Russell 2000 index sits well below its August 2018 highs, the index outperformed on the day as investors were bargain hunting, which also contributed to the outperformance of health care +1.6%, the poorest performing sector year-to-date. Earnings reports provided a tailwind with shares of Twitter +15.6% and Hasbro +14.2% leading the S&P higher after their respective releases. Reporting afterhours were Snap and eBay, which are getting a bid in extended trading. European markets reopened today after the long weekend with energy shares leading as they catchup to yesterday’s news that the U.S. will not extend waivers for Iranian oil.
Bond Markets: The bond market was mixed as Europe returned from the long weekend to see yields rise, while Treasuries retraced yesterday’s modest weakening.
Currency Markets: The U.S. dollar index gained +0.3%. Currencies don’t seem to reflect the same oil bullishness or risk-on sentiment as stocks as Canadian dollar -0.6%, Norwegian krone -0.5%, and Australian dollar -0.4% exhibited the most weakness among the G-10. Similar relationships held up in emerging markets as Colombian peso -0.8% and Chilean peso -0.6% lagged, while Indian rupee +0.1% edged out a gain against the strengthening greenback. Brazilian real +0.4% was the standout as the Brazilian pension bill is set to advance to its first vote in the lower house.
The Bloomberg Commodity Index slipped -0.4% as a stronger dollar served as a headwind. The rally in crude oil persisted with WTI rising +1.0% to $66.18 per barrel, nearly a six-month high.
New homes sales in the U.S. unexpectedly increased in March according to a report from the Census Bureau. The seasonally adjusted annual rate of sales of single-family homes increased to 692,000 from a downwardly revised 662,000 rate seen in February. This is 3.0% above the pace seen a year prior. The median sale price in March was $302,700, down -9.7% year-over-year.
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