Market Roundup
• Trump tariff threat leaves U.S.-China talks in limbo as markets fall
• Dollar rides safe-haven flows on Trump tariff threats; yen up
• Fed's Harker sees downward inflation trend as 'transitory'
• US Apr Employment Trends, 110.8, 111.0 previous
• Tiered ECB rate needs monetary policy case: Praet
• Bank of Canada says housing solid, wants more mortgage flexibility
• Oil prices rebound from one-month low after Trump's tariff threat
Looking Ahead - Economic Data (GMT)
• (ET 08:30 / GMT 00:30 Japan Apr Nikkei Mfg PMI, 49.5 previous
• (ET 0930/ GMT 01:30) Australia Mar Retail Sales MM, 0.2% forecast, 0.8% previous
• (ET 0930/ GMT 01:30) Australia Q1 Retail Trade, 0.3% forecast, 0.1% previous
• (ET 0930/ GMT 01:30) Australia Mar Trade Balance G&S (A$), 4,300 mln forecast,, 4,801 mln previous
• (ET 00:30/ GMT 03:00 New Zealand Apr Reserve Assets Total, 27,716 mln previous
• (ET 00:30/ GMT 04:30 Australia May RBA Cash Rate, 1.50% forecast,, 1.50% previous
• (ET 00:40 / GMT 08:00 China Apr FX Reserves (Monthly), 3.100 tln forecast,, 3.099tln previous
Looking Ahead - Events, Other Releases (GMT)
• (ET 02:30 / GMT 06:30) French Finance Minister Bruno Le Maire hosts a high-level forum on debt, with IMF Managing Director Christine Lagarde, Japan Finance Minister Taro Aso in Paris, France
• (ET0 3:30 / GMT 07:30) Swedish Central Bank minutes from the monetary policy meeting will be published in Stockholm
• ( ET 06:15 / GMT10:15) Governor of the Swedish National Bank Stefan Ingves speaks at the Swedish Economics Association in Stockholm
• (ET 01:3 5/ GMT15:35) Fed's Quarles speaks at Yale University on financial regulation in New Haven, United States
Currency Summaries
EUR/USD: The euro edged higher against the U.S. dollar on Monday, as renewed escalation in the Sino-U.S trade war and high volatility in global equities weighed on dollar. The euro was up 0.05 percent at $1.1199, erasing an earlier loss tied partly trade tensions. An index that tracks the dollar versus a basket of six major currencies was up 0.03 at 96.50. Immediate resistance can be seen at 1.1227 (21 DMA), an upside break can trigger rise towards 1.1227 (50 DAM).On the downside, immediate support is seen at 1.1135 (May 3rd low), a break below could take the pair towards 1.1093 (Lower Bollinger Bands).
GBP/USD: Sterling slipped lower against the dollar on Monday, after opposition Labor Party accused Prime Minister Theresa May of leaking details of the compromise under discussion and jeopardizing talks. May on Sunday stepped up calls for Labour Party leader Jeremy Corbyn to agree a cross-party deal to leave the European Union, following poor results for both parties in local elections last week.In late US trade, sterling was down 0.56 percent at $1.3097. Immediate resistance can be seen at 1.3157 (Ichimoku Cloud Top), an upside break can trigger rise towards 1.3194 (Higher Bollinger Band).On the downside, immediate support is seen at 1.3073 (5 DMA), a break below could take the pair towards 1.3017 (21 DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday, as oil prices rose, while worries over the trade war between the United States and China helped Canadian dollar. Gains for the loonie came after Trump threatened to increase tariffs on Chinese exports, which led to dollar sell-off. At (2048 GMT),the Canadian dollar was last trading 0.19 percent higher to the greenback at 1.3445. The currency earlier had hit low of 1.3490. Immediate resistance can be seen at 1.3494 (Daily high), an upside break can trigger rise towards 1.3538 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.3394 (21 DMA), a break below could take the pair towards 1.3340 (100 DMA).
USD/JPY: The dollar declined against Japanese yen on Monday, as concerns about a trade dispute between United States and China and wild swings in global stock markets weighed on risk appetite. U.S. President Donald Trump threatened to raise tariffs on billions of dollars worth of Chinese goods this week, increasing volatility across markets. Investors feared that derailed trade talks between Washington and Beijing will effect global economic growth. At (2055 GMT), the dollar was last trading 0.47 percent lower versus the Japanese yen at 111.63.Strong resistance can be seen at 111.00 (Psychological level), an upside break can trigger rise towards 111.23 (5 DMA).On the downside, immediate support is seen at 110.30 (Ichimoku Cloud Base), a break below could take the pair towards 110.00 (Psychological level).
Equities Recap
European stocks slumped on Monday after U.S. President Donald Trump unexpectedly said at the weekend that he will increase tariffs on Chinese goods, pushing down shares as investors sought safety in less directly affected assets.
The pan-European FTSEurofirst 300 ended the day up by 0.94 percent, Germany's Dax ended down by 0.9 percent, France’s CAC finished the day down by 1.1 percent.
U.S. stocks fell on Monday after President Donald Trump threatened to raise tariffs on Chinese goods, though they pared much of their early losses as healthcare shares rose and some investors remained confident of an eventual trade agreement.
Dow Jones closed down by 0.26 percent, S&P 500 ended down 0.44 percent, Nasdaq finished the day down by 0.48 percent.
Treasuries Recap
U.S. Treasury yields fell on Monday, as investors favored low-risk government bonds over stocks and other risky assets due to worries about a global slowdown stemming from renewed trade tension between China and the United States.
In late U.S. trading, the yields on benchmark 10-year Treasury notes were 2.4998%, down 3 basis points from late on Friday, while the two-year yields were 2.3107%, down 2.8 basis points.
Commodities Recap
Gold edged up on Monday as a slide in global share markets after Trump administration's threat of further tariffs on China prompted investors to favor safe-haven assets, but bullion's upside was capped by a firm dollar.
Spot gold gained 0.2 percent to $1,281.76 per ounce as of 02:22 p.m. EDT (1822 GMT). U.S. gold futures settled up 0.2 percent at $1,283.8 an ounce.
Oil futures edged higher in volatile trade on Monday as rising tensions between the United States and Iran buoyed prices after they touched a one-month low following U.S. President Donald Trump's threat that he may raise tariffs on Chinese goods.
Brent crude futures rose 39 cents to settle at $71.24 a barrel. The global benchmark earlier sank to $68.79 a barrel, its lowest since April 2.
U.S. West Texas Intermediate (WTI) crude futures rose 31 cents to settle at $62.25 a barrel. WTI's session low was $60.04 a barrel, the weakest since March 29.
