Note and podcast on the opening of the American market from the @Newsquawk team.


US Market Open: European spot markets started the week lower across the board

Full note

  • European spot markets started the week weaker across the board with relatively broad performance seen across the majors
  • Twitter is reportedly reviewing Elon Musk’s offer in which a potential deal could be made as soon as this week, WSJ sources say
  • US futures are lower in line with overall market sentiment, while NQ is slightly more cushioned by the earlier drop in yields.
  • DXY set a new 2022 high at 101.750 amid a safety flight and a sharp drop in crude alongside other commodities
  • French President Macron won the second round of the presidential election with 58.6% of the vote against Le Pen at 41.4%.
  • Looking ahead, highlights include a speech from ECB’s Panetta, Activision Blizzard earnings, Coca-Cola

EUROPEAN TRADE

SHARES

European spot markets started the week weaker across the board with a relatively broad performance seen across the majors.

Sectors are down across the board with a clear defensive focus: energy and basic resources are at the bottom of the pack amid a sharp decline in underlying commodities

US futures are lower in line with overall market sentiment, while NQ is slightly more cushioned by the earlier drop in yields.

Twitter is reportedly reviewing Elon Musk’s candidacy and is more receptive to a deal with the parties meeting on Sunday to discuss the proposal. It was separately reported that Twitter is facing increasing pressure from shareholders to negotiate with Elon Musk in its takeover bid and that the company is in talks with Elon Musk in which a potential deal could be reached as early as this week. , according to WSJ.

Twitter (+0.7% before marketing) would reconsider the offer of Elon Musk, via WSJ.

Effects

DXY sets a new high in 2022 at 101,750 amid a flight of safety and a sharp drop in crude alongside other commodities.

The Yen is back in favor as risk sentiment deteriorates regardless of denials of the joint Japanese and US intervention discussion – Usd/Jpy towards the base of the 128.87-127.89 range.

Aussie underperforms on Anzac day on sharp drop in copper and iron ore – Aud/Usd tests 0.7150 and Aud/Nzd breaks below 1.0850 vs. 1.0940 at one point in the night.

The yuan extends its depreciation as Covid spreads to a Beijing district and the PBoC continues to lower the Cny midpoint benchmark rate – Usd/Cnh to just below 6.6000, Usd/Cny eyeing 6.5650.

Euro avoids 1.0700 test, narrowly, further cuts losses after surprisingly upbeat Ifo survey, on surface – Eur/Usd bounces back to around 1.0750, but still well below the high Macron’s victory.

The Pound loses Fib support on the way to 1.2800 and sub-8400 against the Dollar and Euro respectively.

FIXED INCOME

Debt futures firm as risk appetite wanes, but bonds fade past 154.50 for Bunds, 119.00 for Gilts and 119-25 for T- note at 10 years.

Core EZ bonds are losing momentum after the beatings of the German Ifo survey and despite less encouraging accompanying statements.

French OATs off-peak in the 147.38-146.28 range posted on confirmation of Macron’s victory over Le Pen to retain the presidency.

The European Commission sells EUR 2.499 billion (exp. EUR 2.500 billion) 0.4% 2037 NGEU; b/c 2.05x (prev 1.49x), average return 1.626% (prev 0.375%).

MERCHANDISE

WTI and Brent June contacts have continued to decline since futures trading resumed.

Spot gold has been confined to a range near $5/oz since the European open, as the impact of a stronger dollar offset the effects of lower yields at the time.

Base metals are in a sea of ​​red as China’s lockdown issues hit the demand side of the equation – with LME aluminum and zinc the laggards at the time of writing.

NOTABLE TITLES

French President Macron won the second round of the presidential election with 58.6% of the vote against Le Pen at 41.4%, while Le Pen conceded defeat after initial screenings, according to Reuters and Sky News.

ECB President Lagarde said interest rate hikes won’t drive down energy prices, according to Barron’s.

ECB policymakers are said to be keen to end bond purchases as soon as possible and possibly raise rates in July but no later than August, as they tilt towards two rate moves this year, three of which are also a possibility , according to Reuters sources. However, an ECB spokesman declined to comment on the timing of the end of bond purchases and potential increases in interest rates.

The EU is reportedly preparing to set up a new trade and technology council with India, FT sources say. The new forum could be unveiled on Monday during the visit of the President of the European Commission to India.

EU to aggressively police online content from Big Tech platforms such as Google (GOOG) and Meta’s Facebook (FB), FT says


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Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
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