EU Daily Market Wrap - 10th May 2019

EU Daily Market Wrap - 10th May 2019

Today's Highlights

  • UK Q1 GDP picks up at 0.5% (Prev. 0.2%)

  • US Core CPI in April below expectations

  • US-China still in talks amid Trump tests investors nerves on Twitter

Macro Review

The week concludes on the same note as we started on Monday with US-China talks taking the limelight as negotiations reach a crucial phase. The morning started off with the release of UK Q1 GDP numbers showing solid growth - 0.5 % in line with expectations - especially in the manufacturing and industrial sector. The afternoon saw the release of the US Core CPI data confirming the recent deflationary trend. Core CPI MoM was at 0.1% vs 0.2% expected, whereas the Core CPI YoY was in line at 2.1%. 

US Equities remained poised for their worse week in 2019 as investors repriced thr latest developments on the trade negotiations. For now, the market remains convinced of a deal getting done eventually, the recent tone of the US President on Twitter has no doubt increased tensions and the prospect of the whole deal going out of the window has initiated a new risk-off feel across asset classes. The SP500 retested the 2840 level to the downside after a volatile day.

The Dollar Index traded lower below the 97 level after the release of the US CPI, still showing signs of lacklustre internal demand. EUR closed in positive territory just below the 1.1300 level after a range bound session. The rest of G10 USD counterparts followed similar patterns supported by a weaker dollar. JPY printed new highs for the week amid risk-off tone. 

The commodity complex traded mixed, with Crude Oil choppy and contained by the 60 level to the downside and Gold up above the 1280 level amid USD weakness and Risk-off tone.

EU Close

If you missed the morning briefing from the desk click HERE

Hope you enjoyed the session and have a great weekend.

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