Financial Markets Daily Report 06 May 2021
During a volatile session, stocks almost wiped out their initial gains as technology shares turned lower, offsetting optimism over solid corporate earnings and positive economic data (service ISM and ADP employment surveys).
- During a volatile session, stocks almost wiped out their initial gains as technology shares turned lower, offsetting optimism over solid corporate earnings and positive economic data (service ISM and ADP employment surveys).
- Fed speakers tried to tone down concerns about policy interest rates, following comments by Treasury Secretary Yellen earlier on the week. This reflected in a further decline in the benchmark 10-year U.S. Treasury, which edged down to 1.57%. In addition, the 5-year US breakeven rate jumped to the highest since 2008.
- Oil fluctuated as traders assessed an increase in gasoline stockpiles. Meanwhile, the surge in commodity prices continues to fuel debate over whether price pressures could get out of hand, amid rising shipping costs worldwide.
- The economic calendar is light today, after the release of factory orders for Germany (+3% in March). Markets also do not expect major announcements by central banks holding policy meetings today (UK, Turkey, Norway).