Fixed Income Market Overview
The U.S. 2-year Treasury yield surged to approximately 5% after robust manufacturing sector data, with the 10-year Treasury yield also climbing. This movement was triggered by the Philadelphia Federal Reserve’s manufacturing survey, indicating a significant jump in April to 15.5, surpassing economists’ forecasts. Despite concerns over inflation, uncertainty looms regarding the timing and frequency of interest rate adjustments, as emphasized by recent remarks from Fed Chairman Jerome Powell.
On the European front, ECB policymaker François Villeroy de Galhau advocates for an interest rate cut in June to preempt falling behind the inflation curve. Echoing this sentiment, ECB President Christine Lagarde suggests an imminent moderation of rates, citing confidence in the disinflationary process. However, geopolitical tensions, particularly surrounding Iran-Israel and Russia-Ukraine dynamics, pose significant risks to this course of action, according to various ECB policymakers, including Robert Holzmann and Olli Rehn. Despite the increasing likelihood of a
June rate cut, uncertainties persist, notably regarding inflation projections and the evolving geopolitical landscape.
BP trims down executive team picks new head of its gas and low carbon energy business.
Trump Media shares soar in second day of strong gains.
Huawei Unveils New Phone Lineup to Ramp Up the Pressure on Apple.
Infosys Sales Forecast Falls Short as Clients Stay Cautious.
Spanish beauty group Puig aims for €14bn IPO.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 37,775.38 | 22.07 | 0.06%↑ |
| NASDAQ | 17,394.31 | -99.31 | -0.57%↓ |
| SNP 500 | 5,011.12 | -11.09 | -0.22%↓ |
| NIKKEI | 38,079.70 | 117.90 | 0.31%↑ |
| HIS | 16,385.87 | 134.03 | 0.82%↑ |
| VIX | 18.00 | -0.21 | -1.15%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.63% | 0.04 |
| US 30-YR | 4.73% | 0.03 |
| US 5-YR | 4.68% | 0.06 |
| JPN 10-YR | 0.87% | -0.02 |
| UK 10-YR | 4.28% | 0.02 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 82.73 | 0.04 | 0.05%↑ |
| NAT GAS | 1.757 | 0.045 | 2.63%↑ |
| GOLD | 2,398.00 | 9.60 | 0.40%↑ |
| SILVER | 28.38 | -0.02 | -0.07%↓ |
| COPPER | 4.437 | 0.097 | 2.24%↑ |
Equity Market Overview
Cisco Systems
Cisco Systems introduced HyperShield, a new security architecture leveraging AI to safeguard data centers, clouds, and IT environments. Following Cisco’s acquisition of Splunk and partnership with Nvidia, HyperShield aims to address cybersecurity challenges in an era dominated by AI. Unlike traditional security measures, HyperShield functions as a fabric rather than a fence, enhancing visibility and autonomously segmenting networks for improved performance and security. With features like autonomous segmentation and self-qualifying upgrades, HyperShield targets critical infrastructure and aims to shorten the time between vulnerability detection and patching using AI and machine learning.
EasyJet
EasyJet is optimistic about achieving another summer of record profits despite the escalating conflict in the Middle East, with bookings for the upcoming summer season showing strong momentum and ticket prices tracking higher than last year. CEO Johan Lundgren expressed confidence in the airline’s ability to deliver solid performance, although no formal forecasts have been made for the summer. Despite geopolitical tensions, there has been no noticeable impact on bookings, unlike the disruptions experienced last year due to regional conflicts. The airline forecasts narrower pre-tax losses for the six months ending in March, with expected revenue growth driven by its package holiday arm.
TSMC
Taiwan Semiconductor Manufacturing Company (TSMC) exceeded revenue and profit expectations in the first quarter due to robust demand for advanced chips, particularly those used in AI applications. Net revenue reached NT$592.64 billion, and net income was NT$225.49 billion, both surpassing consensus estimates. TSMC anticipates strong demand for 3-nanometer and 5- nanometer technologies in the second quarter, with CEO C.C. Wei expressing optimism for healthy growth in 2024. The company plans to commence mass production of 2-nanometer chips in 2025. Despite challenges like the recent earthquake in Taiwan, TSMC remains well-positioned for growth, with substantial government funding granted for semiconductor development.
