EU Daily Market Wrap - 8th May 2019

EU Daily Market Wrap - 8th May 2019

Today's Highlights

  • CNY Exports unexpectedly fell and imports raise;

  • US raises tariffs on Chinese imports but "China still wants a deal";

  • Turkey to rerun municipal elections in Istanbul;

  • Bullish Oil Data after surprise draw in Crude;

Macro Review

The market remains choppy after another day of trade confusions between US and China after Trump confirmed the increase in tariffs on $200 bln of Chinese goods. However later in the session US Sarah Sanders said that China still wants a deal". Global equities were whipsawed stuck between Trump threats and China endurance. Just at the close China said "It may take countermeasures on US Tariff Move" adding more confusion to an already murky picture.

Global stocks continued to show signs of weakness after recent comments on Trade with US Indices trading very close to last nights lows despite the 30 points rebound seen in SP500 from the 2862.50 level also resistance of 20th March 2019. However,  European Shares traded positive amid as major exporters benefit from domestic currency deprecation. 

The FX space was also mixed as confusing talks on traded lacked to give a clear direction to the US Dollar. EUR was contained by the 1.12500 level to the upside, whereas GBP found support after a retest of the 1.300 handle to the downside. AUD was choppy after conflicting trade comments, whereas JPY traded higher amid renewed risk-off tone. USD Index remained firm above the 97 level supported by weakness in the EM space as Turkey returns to pools in Istanbul. 

Crude Oil jumped to $62 amid bullish DoE data highlighting a surprise draw in Crude inventories and a down-tick in US Weekly production. 

Gold paired back some of last week's gain amid a stronger dollar. 

The Day Ahead

  • CNY Inflation Rate (overnight);

  • US PPI, Balance of Trade (1.30 pm);

  • US-China talks;

EU Close

If you missed the morning briefing from the desk click HERE

Hope you enjoyed the session.

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