Volumes are always low when many markets are closed and that is what we saw in todays trading. Under those conditions the Nikkei returned a positive performance as the Yen continued Fridays heavy theme having spent much of the day in the high 111’s. This is not a huge move but a weaker currency will help exporters and in quiet markets, this has a larger effect than under normal conditions. Energy again tended to drift in lethargic trade passing over to Europe down around -0.25% with concerns still surrounding the amount of stock inventory. This week we have the Australian central bank meeting for Asia but also the FED and Fridays Payrolls number.
US market was abuzz with the latest talk that President Trump stated in a Bloomberg interview that he was at breaking-up the big banks. Stocks saw a choppy trade with moves in either direction. The NASDAQ was the only true directional mover closing up +0.75% at yet another record level. The S+P gained on the day closing +0.2% better with Financials and Technology setting the pace. Although the FED is due to announce on Wednesday the market is pricing in very little chance of a move. The Short-Term futures are indicating around a 60% chance of a move at the end of the summer. We shall see how the earnings balance continues this week as we see some large Tech’s release Q1 numbers. Still lots to play for this week with Janet Yellen also speaking at an event on Friday after the payrolls number.
2’s closed 1.27%, 10’s at 2.32%, 30yrs at 3%. More Tuesday when we see core markets reopen after the May Bank Holiday weekend.
