EU Daily Market Wrap - 20th May 2019

EU Daily Market Wrap - 20th May 2019

Today's Highlights

  • Australian Conservatives Secure Majority at general elections

  • UK May to outline departure date after Brexit deal passes

  • Saudi willing to cut but Russia open to change in policy

  • Iran claim to have increased enrichment of Uranium fourfold 

  • US Fed National Activity Index plunges to 3-Year low

Macro Review

The week starts with some good news on the Australian political front after the Conservative party secured a full-majority in parliament upsetting odds which gave opposition leader ahead in polls. Looking over European politics, UK May has said today to set a deadline for her departure after a Brexit deal passes,this comes in the context of recent polls giving the Brexit Party at 36% in Wales. Rising geopolitical tensions over the Middle-east region in focus this week after Iran announced to quadruple the rate of production of enriched uranium, breaking US Sanctions and increasing the chance of retaliation from the US. 

Global equities remain under selling pressure dragged by the technology and semi-conductor sector after Trump threats to choke Huawei selling network. The reaction was negative in Europe with the Dax retesting the key 12000 level to the downside as well as in the US where SP500 traded negative throughout the session, however showing signs on resilience after European traders left the market.

The USD Dollar traded a touch weaker today, amid profit taking ahead of a busy week on the calendar with the European Election and FOMC minutes due later this week. AUD was the main outperformed after Conservative party surprising win in National elections. The weakness in the US dollar was also weighed by worse than excepted US data after the Chicago Fed Activity index plunged to 3-years low (-0.45, Prev -0.15, Rev 0.05).

Crude Oil remained elevated above the 63 level amid rising tensions in the Middle East.

Gold traded range bound amid mixed tone from Wall Street.

EU Close

If you missed the morning briefing from the desk click HERE

Hope you enjoyed the session.

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