Fixed Income Market Overview
U.S. Treasury Secretary Janet Yellen on Friday, expressed concern over rising living costs, emphasizing persistent inflation’s impact on voters ahead of November’s election. Despite recent wage growth, high prices for housing and everyday goods remain problematic. Yellen’s remarks come as polls show President Joe Biden trailing Donald Trump, with inflation still a top concern among voters. Meanwhile, U.S. Treasury yields rose following better-than-expected economic data, including strong services and manufacturing activity and a drop in weekly jobless claims. The Fed’s April meeting minutes highlighted uncertainty about the timing of easing interest rates, given ongoing inflation concerns.
BlackRock encouraged Anglo to extend talks with BHP, source says.
ABN Amro agrees €672mn deal with China’s Fosun for German private bank.
Jio Financial plans $4.33 bln deal with Reliance Retail.
Gold slips 1% as US dollar, Treasury yields tick higher.
Julius Baer, EFG stopped takeover talks after initial approach, sources say.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,069.59 | 4.33 | 0.01%↑ |
| NASDAQ | 18,808.35 | 184.96 | 0.99%↑ |
| SNP 500 | 5,304.72 | 36.88 | 0.70%↑ |
| NIKKEI | 38,900.02 | 253.91 | 0.66%↑ |
| VIX | 11.93 | 0.00 | 0.00% |
| HIS | 18,827.35 | 218.41 | 1.17%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.47% | 0.00 |
| US 30-YR | 4.58% | 0.00 |
| US 5-YR | 4.53% | 0.00 |
| JPN 10-YR | 1.03% | 0.02 |
| UK 10-YR | 4.27% | 0.00 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 77.72 | 0.85 | 1.11%↑ |
| NAT GAS | 2.773 | -0.150 | -5.13%↓ |
| GOLD | 2,334.50 | -2.70 | -0.12%↓ |
| SILVER | 30.50 | 0.04 | 0.14%↑ |
| COPPER | 4.754 | -0.039 | -0.81%↓ |
Equity Market Overview
U.S. stocks rallied on Friday, driven by upbeat economic data and investor positioning ahead of the Memorial Day weekend. The Nasdaq and S&P 500 advanced, while the Dow saw a slight increase. This came after a week marked by hawkish Federal Reserve meeting minutes and strong economic indicators hinting at potential inflation. Nvidia’s impressive earnings report also boosted enthusiasm for AI stocks. Investors are adjusting to the prospect of higher interest rates for longer, with only one rate cut now expected in 2024. Durable goods orders exceeded expectations, and consumer sentiment improved. Treasury yields were mixed, and the dollar dipped slightly against global currencies. Crude oil prices rebounded, while gold prices rose but marked their first weekly decline in three weeks.
