Wednesday 3rd May: European Open Briefing

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Wednesday 3rd May: European Open Briefing 1

Global Markets:

  • Asian stock markets: Shanghai Composite down 0.35 %, ASX 200 lost 1.00 %, Nikkei and Hang Seng closed for holiday
  • Commodities: Gold at $1257 (+0.05 %), Silver at $16.91 (+0.50 %), WTI Oil at $48.10 (+0.85 %), Brent Oil at $50.95 (+1.00 %)
  • Rates: US 10-year yield at 2.29, UK 10-year yield at 1.09, German 10-year yield at 0.32

News & Data

  • Australian AIG Services Index Apr: 53.0 (prev 51.7)
  • New Zealand Employment Change (QoQ) Q1: 1.2% (exp 0.8%; prev 0.8%; rev prev 0.7%)
  • New Zealand (YoY) Q1: 5.7% (exp 5.3%; prev 5.8%)
  • New Zealand Unemployment Rate Q1: 4.9% (exp 5.1%; prev 5.2%)
  • New Zealand Participation Rate Q1: 70.6% (exp 70.5%; prev 70.5%)
  • PBoC Fixes USDCNY Reference Rate At 6.8892 (prev fix 6.8946 prev close 6.8965)
  • Asia stocks ride global momentum, dollar up on June Fed rate hike bets – RTRS
  • Oil rebounds on U.S. stocks drawdown, declining OPEC compliance weighs – RTRS

Markets Update:

Flows were light in the Asian session, as Japanese and Hong Kong markets were closed. Meanwhile, Chinese and Australian stock markets declined.

In FX, the New Zealand Dollar rose after stronger than expected employment data. The unemployment rate fell from 5.2 % to 4.9 %. NZD/USD rose from 0.6930 to 0.6970. A break above 0.6980 resistance would suggest that the currency pair is likely to recover further. The next notable resistance level then lies at 0.7050.

The Australian Dollar failed to follow the NZD higher. AUD/USD fell from 0.7545 to 0.7505, and some pressure came also from AUD/NZD selling.

The US central bank will decide on interest rates today. No changes are expected, and it is unlikely that there will be a surprise. There will be no press conference for today, but the FOMC will release a statement at 19:00 BST.

Upcoming Events:

  • 08:55 BST – German Unemployment Rate
  • 08:55 BST – German Unemployment Change
  • 09:30 BST – UK Construction PMI
  • 10:00 BST – Euro Zone GDP
  • 13:15 BST – US ADP Nonfarm Employment Change
  • 14:45 BST – US Services PMI
  • 15:00 BST – US ISM Non-Manufacturing PMI
  • 15:30 BST – US Crude Oil Inventories
  • 19:00 BST – Federal Reserve Rate Decision
  • 19:00 BST – FOMC Statement

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