From Marc to Market:
Overview: The capital markets are continuing to digest the implications of the US-China 90-day cooling off period. There were dramatic moves yesterday, and with a few exceptions, a consolidative tone has emerged today. The domestic US political focus is shifting to the budget, while the May CPI is due today, and it is expected to be little changed. The dollar is softer against the G10 currencies but the Canadian dollar. While there was no follow-through dollar buying after yesterday's surge, the pullback has been rather shallow. Against emerging market currencies, the dollar is mixed. Most of the Asian currencies weakened, though not the Chinese yuan, central European currencies and the Mexican peso.
Asia Pacific equities advanced, but there were two notable exceptions: Hong Kong and mainland shares that trade there were off around 2%. The other exception is India, where its main indices are around1.5% lower in late trade. Europe's Stoxx 600 is up about 0.2% after yesterday's 1.2% surge. US index futures are pulling back by 0.3%-0.5%. European benchmark 10-year yields are 2-3 bp higher, while the 10-year US Treasury yield is off a couple of basis points to around 4.45%. Gold has stabilized. After holding $3200 yesterday, it recovered to almost $3266 today and is hovering above $3250 in late morning turnover in Europe. June WTI reached $63.60 yesterday and recorded a low near $61.65 today. It has recovered and is near $62.40.....*****
....The US reports April CPI today. The median forecast in Bloomberg's survey anticipates a 0.3% rise in both the headline and core rates. Given the base effect, the year-over-year rates are expected to be steady at 2.4% and 2.8%, respectively. A 0.3% increase in the headline rate puts the annual rate through April at about 2.7%, down from 3.9% in the first four months of 2024. A 0.3% rise in the core rate translates into 3% annualized rate, down from 4.5% in the first four months of last year.....
....MUCH MORE
