A daily summary and commentary of events and factors that affect the global markets, with a particular emphasis on the foreign exchange markets.
A Bit of a Breather
Share this story:
David Atkinson Foreign Exchange Sales Manager
Markets came back from the brink this morning, with equities indicating a modest recovery from yesterday's record sell-off. Bond yields have followed suit with the 10-year safely back from those 0.31% all-time lows yesterday, oil prices seem to have stabilized, and the safe-haven currencies like the Japanese yen have given back some of their gains from yesterday. The euro is trading in the 1.13s after having spent most of yesterday a cent higher.
Part of the recovery is no doubt just pure overshoot, but news that the administration was preparing a fairly comprehensive package of economic stimulus measures no doubt contributed to the rally. Details will be forthcoming today, and yes, the markets will put some sort of judgment on what it hears coming out of Washington. There are also some significant Democratic primaries today, which will be on interest to markets but certainly less so than COVID-19 and related response news.
In a way, today is like some mid-stream section when analyzing markets. There is not much data, which would be ignored anyway. Market participants are wondering what is happening behind the scenes. Will the Saudis and Russians find a way to work together on oil prices? Will Democrats and Republicans really be able to get an economic rescue package ready? As to COVID-19, many countries seem to have realized their situations too late and are turning to delay strategies rather than containment strategies.
As always with a virus, there will be a peak time of infections and an understanding of where the world is with this. Asia has already gone through that for the most part and Europe and Iran are in the middle of the bump higher. The U.S. will have something coming as well. This will be a story until we can all get to warmer weather and reassess where we are then.
Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos!
Follow City National Bank on social media:
Non-deposit investment products:
Are not FDIC insured,
Are not deposits or other obligations of City National Bank and are not guaranteed by City National Bank, and
Are subject to investment risks, including possible loss of the principal invested.
This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. City National Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting.
Now accepting scholarship apps Celebrating 40 years of service -- A loan to an innovative company -- Affording your dream home -- Mergers and a new branch in Raleigh View this email in your browser Forward to a friend
Your Market News update for May 30, 2019 | View online Market News News that's moving the market now As Trade-War Worries Linger, Market Seems to Lack Buying Conviction May 30, 2019 8:40 AM | JJ Kinahan 6 min read | Daily Market Update