Economic Indicators & Central Banks:
- The Dow topped 40,000 for the first time ever, but was unable to close with that historic handle. Concurrently, the S&P tried for its 24th record high this year but failed too.
- The rise in Treasury yields after stronger than expected import prices, and a drumbeat from Fed officials that rates need to remain high for longer, encouraged profit taking.
- Most Asian equity markets and European futures have followed Wall Street lower, after US data dented rate cut hikes.
- Chinese data showing slowed consumption and a drop in home sales, although industrial production numbers looked relatively robust.
- Japan’s core consumer inflation slowed for a 2nd month in a row in April from a year earlier, while the core consumer prices index (CPI) is expected to decelerate to 2.2% from 2.6% in March, the lowest level in 3 months, but still at or above the central bank’s 2% target for more than two years.
Financial Markets Performance:
- The USDIndex firmed slightly to 104.518 and up from the day’s nadir of 104.080. But it held a 104 handle for a second straight day. It traded above the 105 level from April 10 until May 15.
- Silver has surged nearly 25% this year, outpacing Gold and becoming a top-performing commodity, though it remains relatively inexpensive compared to gold. Both metals have hit record highs due to central-bank buying and increased interest in China.
- USOil is 0.75% higher at $79.23.
Market Trends:
- All three major US indexes closed slightly in the red after posting all-time highs on Wednesday.
- The NASDAQ closed with a -0.26% decline, while the S&P500 lost -0.21%, and the Dow was off -0.1% at 39,869. It was a corrective day for Treasuries too. Bonds unwound part of their recent rally that took rates down to the lows since early April.
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Andria Pichidi
Market Analyst
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