GLOBAL MARKET SNAPSHOT
US markets traded negative into the close (after rising as much as 1% mid-day) after President Trump announced that he would hold a press conference on China and Hong Kong. This follows an earlier statement from the State Department that HK would no longer be treated as autonomous from China. There were still some gainers on the day as Dollar Tree rose on better-than-expected earnings, and Boeing rallied after announcing it would cut up to 13,000 jobs. European stocks, having closed earlier in the day, finished on a high note with the EuroStoxx 50 up 1.4% and the DAX up 1.1%. Emerging markets were mixed, though LatAm was mostly weaker. Brazil faces continued stress from the Coronavirus as its daily death toll surpassed the US for the first time.
The US yield curve steepened slightly as yields rose in the long end. European 10yr bonds saw a bid across the board, particularly in the periphery, while the UK saw yields rise by 2bps.
The U.S. dollar index fell today as the Euro, Swiss Franc, and Scandinavian currencies all rallied. The Pound moved higher today, though remains down around 3% for the month.
The Bloomberg Commodity Index was mostly flat today. Crude prices moved higher by around 2% despite data showing a larger build in supply than expected. WTI is higher by over 50% on the month, though remains at depressed levels ($33.71) compared to the pre-COVID norm.
The Labor Department released initial jobless claims this morning, showing a continuation in the decline following the peak in late March (this will be the 8th straight week of declines). But at 2.1 million new claims, the absolute number is still staggering, and brings the total receiving unemployment benefits to 21.1 million.
The Commerce Department also released data today showing annualized GDP for the first quarter fell by 5% (a downward revision from previous estimates of a ~4.8% contraction). Additionally, the Department announced that Durable Goods orders fell over 17% in April as compared to March.
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