RockCreek Daily Market Update

GLOBAL MARKET SNAPSHOT 

Equity Markets: 
Stocks opened lower following Chinese media taking a hardline approach toward the trade negotiation. The Communist Party Daily wrote overnight that “the trade war only makes China stronger and will never bring the country to its knee”. Equities managed to recover some of their early loss following some decent consumer survey data. In the afternoon, stocks moved back lower after CNBC reported some uncertainty about the next round of US-China negotiation. 

Bond Markets: 
Fixed income markets ended the session largely unchanged with the 10-year yield at 2.39%. Despite some positive news on European inflation, Bunds remained close to their all-time low at -0.11%.

Currency Markets:
The US dollar index finished the day marginally higher (up 0.2%). The British pound dropped by -0.6% as reports suggest the Brexit negotiation between the Labour and Conservative party are about to reach an unsuccessful conclusion.

Commodity Markets:  
The Bloomberg Commodities Index was down -0.7% today on the back of some retracement in oil prices following recent gains (Brent lower by -0.8%). Copper finished the day lower by -0.6% close to a 4-month low.


MACRO OVERVIEW

U.S. Consumer Sentiment as measured by the University of Michigan surged to a 15-year high today as the headline index printed at 102.4 (compared to 97.8 in April). Although most of the survey was compiled before the new round of tariff was imposed.

In Europe, the Consumer Price Index increased by 1.7% on an annual basis in April; led by an increase in energy prices. The core CPI measure (excluding food and energy) increased by 1.3% year-over-year from 0.8% in March.

 

 

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The information contained herein has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or to participate in any strategy. Nothing contained herein shall be relied upon as a promise or representation as to the past or future performance.   This material represents the views of RockCreek.  This information should not be construed as investment advice. Some of the information may be provided to discuss general market activity, industry or sector trends, or other broad-based economic, market, or political conditions.  Information and opinions are as of the date of this material only and are subject to change without notice.  RockCreek has no obligation to provide any updates or changes to such information. The opinions, forecasts, assumptions, estimates, and commentary contained in this material are based on information provided to RockCreek on both a formal and informal basis.  Further, any such opinions, forecasts, assumptions, estimates, and commentary are made only as of the date of this material, are subject to change at any time without prior notice and cannot be guaranteed as accurate.

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