Entering into US session, market sentiments are generally stabilized today. While Asian stocks ended lower, major European indices are trading higher while DOW futures point to mild recovery. China confirmed that they’re still in negotiation with the US on trade. Trump also said again that a deal is close. Investors are temporarily holding their nerve, awaiting new developments. Nevertheless, further decline in German 10-year yield today is a sign of cautiousness. Gold is also holding firm at around 1300.
Reactions to economic data are rather muted today. UK unemployment dropped to fresh 44-year low of 3.8% in March. Eurozone industrial production contracted -0.3% in March. German ZEW economic sentiment deteriorated to -2.1 in May. But these data triggered little movements in the markets. Euro is relatively firm while Sterling is weak.
In the currency markets, currently, Yen is the softest one for today, followed by Sterling and the Swiss Franc. Though, the retreat in Yen is rather shallow today and more upside is in favor. Rally could resume very soon. New Zealand Dollar is the strongest one, followed by Canadian and then Dollar.
In Europe, currently:
- FTSE is up 0.97%.
- DAX is up 0.54%.
- CAC is up 1.17%.
- German 10-year yield is down -0.0079 at -0.075.
Earlier in Asia:
- Nikkei dropped -0.59%.
- Hong Kong HSI dropped -1.50%.
- China Shanghai SSE dropped -0.69%.
- Singapore Strait Times dropped -0.33%.
- Japan 10-year JGB yield dropped -0.0061 to -0.052.