Tuesday 2nd May: European Open Briefing

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Tuesday 2nd May: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei gained 0.70 %, Shanghai Composite fell 0.25 %, Hang Seng rose 0.30 %, ASX 200 lost 0.60 %
  • Commodities: Gold at $1258 (+0.20 %), Silver at $16.97 (+0.80 %), WTI Oil at $48.75 (-0.20 %), Brent Oil at $51.50 (-0.10 %)
  • Rates: US 10-year yield at 2.32, UK 10-year yield at 1.09, German 10-year yield at 0.32

News & Data

  • Japanese Nikkei Services PMI Apr: 52.2 (prev 52.9)
  • Japanese Nikkei Composite PMI Apr: 52.9 (prev 52.9)
  • Australia ANZ Roy Morgan Consumer Confidence 30-Apr: 111.3 (prev 111.2)
  • South Korean CPI (MoM) Apr: -0.1% (exp 0.1%; prev 0.0%)
  • South Korean CPI (YoY) Apr: 1.9% (exp 2.1%; prev 2.2%)
  • South Korean Nikkei Manufacturing PMI Apr: 49.4 (prev 48.4)
  • PBoC Fixes USDCNY Reference Rate At 6.8956 (prev fix 6.8931 prev close 6.8970)

Markets Update:

Asian stock markets were mixed. A weak Chinese manufacturing PMI release put Chinese markets under pressure. The ASX 200 declined as well. Meanwhile, the Nikkei and Hang Seng Index managed to close the day with a gain.

EUR/USD is still consolidating. Flows were light yesterday, as most of European markets were closed for a public holiday. Volatility is likely to pick up again today, and there is a fair number of data releases as well. Key support is noted at 1.0780, while resistance is seen at 1.0950 and 1.10.

Similar price action was seen in GBP/USD, which consolidated between 1.2880 and 1.2910. The outlook for the pair is still positive, and a test of 1.30 seems likely in the near-term. Meanwhile, USD/JPY remains bid. It is approaching 112, and there is a key resistance level around 112.20. A break above would signal that the pair could reach 113 quickly.

Upcoming Events:

  • 08:45 GMT – Italian Manufacturing PMI
  • 08:50 GMT – French Manufacturing PMI
  • 08:55 GMT – German Manufacturing PMI
  • 09:00 GMT – Euro Zone Manufacturing PMI
  • 09:30 GMT – UK Manufacturing PMI

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