European Central Bank (ECB) officials are scheduled to speak on Tuesday. What other events are traders focused on? You can stay up to date with the following 29 May Market Moving Fundamental Events Analysis from HotForex.
29 May, HotForex – 10-year Treasury yields fell below 2.9% for the first time this month before coming back from overnight lows to currently 2.902%, down -2.9 bp on the day. 10-year JGBs are down -0.4 bp at 0.028%.
Italy angst triggered risk aversion in holiday thin markets and as the dip in yields weighed on the dollar, the strengthened yen put further pressure on Japanese stock markets.
Asian Market Wrap
Topix and Nikkei are down -0.75% and -0.97% respectively. Hang Seng and CSI 300 both lost -0.65%, the ASX outperformed and is posting slight gains. Asian stock markets are also mostly down, although the NASDAQ managed to make some headway as U.S. markets prepare to come back from yesterday’s holiday. Overall risk aversion continues to dominate amid political turmoil in Europe and as the end U.S. exemptions on tariffs on steel and aluminium loom on the horizon.
At hopes that the U.S. – North Korea summit will take place after all remains alive as a diplomacy seems to heat up. Oil prices remained under pressure as Saudi Arabia and Russia mull higher output to ease concerns over supply shortages. The WTI future is trading at USD 66.72 per barrel, after falling to a low of USD 65.80.
European Market Outlook
In Europe, the Italian 10-year meanwhile is already up a further 13 bp and at 2.788% set to overtake U.S. yields for the first time since 2014 as the ECB remains quiet on the sidelines and the impact of Draghi’s promise to do “all it takes”, starts to be priced out. Portuguese 10-year yields are also up 13 bp already this morning.
In Italy 2-year bonds are selling even faster and the yield is up nearly 50 bp at 1.33%. There are a number of ECB speakers today and with the bond market rout widening pressure on the central bank to step in with some form of verbal intervention is mounting. Stock futures are also selling off and financial market turmoil will overshadow today’s data calendar, which includes Eurozone M3 as well as Italian confidence data.
Main Macro 29 May Market Moving Fundamental Events Analysis
- EU M3 Money Supply – Expectations – at 3.9% y/y from 3.7% y/y seen in April.
- US S&P/CS Composite-20 HPI – Expectations – S&P/Case-Shiller Home Price Indices expected slightly lower at 6.5% y/y in March from 6.8% y/y in April.
- US CB Consumer Confidence – Expectations – 128.0 in May, down only slightly from a strong 128.7 reading in April and the 17-year high of 130.0 in February.
- RBNZ Financial Stability Report
Support and Resistance levels
This article about 29 May Market Moving Fundamental Events Analysis was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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