In US, the New York ISM survey rose from 50.0 to 58.1 in April,
correcting March’s sharp fall. Factory orders (+2.1%m/m) were a touch higher
than expected (+2.0%).
·
Federal Reserve Bank of Chicago President Charles Evans is
reluctant to raise interest rates after data confirmed the economy hit a rough
patch for the second winter in a row. Evans said that the economic activity
appears to be on a solid, sustainable growth path, which, on its own, would
support a rate hike soon. "However, the weak first-quarter data do give me
pause, and I would like to see confirmation that they are indeed a transitory
aberration," he added. "I likely will not feel confident enough to
begin to raise rates until early next year."
·
Only minor data in Euro area, with Sentix Investor Confidence
down a shade from 20.0 to 19.6, but not as weak as expectations (19.1). The
final reading of the Markit Manufacturing PMI for April was revised up from
51.9 to 52.0.
·
In the currency market, EUR and GBP underperformed while the USD
gave back a little ground on other crosses. A stable night with the UK on
holiday.
·
The bond market rout continues, with German bunds up another 8
bps to 0.45%, as are yields across Europe, and in the US. Equities have had a
solid night.
·
Equities had a solid night across the board. In the US, the Dow
Jones, S&P 500 and NASDAQ were up 0.26%, 0.29% and 0.23% respectively, with
only secondary data driving the
market.
·
Crude oil was weaker. Concerns over increasing supply lingered
after news that Iraq had exported the most oil in three decades last month.
Liquidity was low in the Brent market due to the public holiday in the UK. WTI
found little support despite a weaker USD and another big fall in the oil rig
count.
Gold found some support from the weaker USD, although the price action
was muted. The market will remain focused on the US payrolls number to be
released this week. A weak print could see gold push above USD1,200/oz.
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