EU PMI misses expectations
China says the nation will not make concessions on major issues
ECB states inflation in uncomfortably below target
Mounting rumors suggest PM May ready to resign tomorrow
It has been another risk-off day in the market after China hardened its stance toward the US saying it won't back down on major concessions. The reaction was negative across global equities with money flowing into safe heavens. Today polls are open in UK and Netherlands for the first voting day of the European Parliamentary Elections which will conclude on Sunday May 26th at 10 pm BST. Check out HERE for a deeper analysis of what to expect from this round of EU elections. PM May remains under pressure after the Leader of the House of Commons Leadsom resigned last night rising pressure on her departure.
Wall Street closed the EU session in red after the China Minister of Commerce remarks. SP500 broke below the 2815 level also support of May 15th and Dow Jones is now poised to have its worst monthly performance since December.
The USD dollar traded lower today after a volatile session amid options' chunks expiration and weak US data with the Manufacturing PMI at 116 months low (50.6, Prev. 50.3). EUR shoot back above the 1.12 level after a heavy morning. GBP stabilized above the 1.26 level as major risks have been discounted by traders. JPY traded a weekly highs amid risk-off tone.
Crude collapsed below the 60 level after a 5% drop below the 200 DMA level as Russia is plans to avoid cuts and trade war fades remains at the front row of demand risks. Gold shot higher above the 1280 level amid risk-off and mild dollar weakness
If you missed the morning briefing from the desk click HERE
Hope you enjoyed the session.