Headlines: USD/JPY nudges back up towards 158.00 mark as dollar holds firmer on the week Gold continues to consolidate amid prolonged US-Iran stalemate, hawkish Fed risk ECB’s Villeroy: We don’t have enough information on core inflation yet ECB’s Muller: The ECB will need a fast…
solution on Hormuz to hold in June ECB’s Rehn: Monetary policy should not be based on oil prices alone French headline inflation surges in April as energy prices accelerate Germany wholesale prices push higher in April as Middle East conflict reverberates Eurozone Q1 GDP second estimate +0.1% vs +0.1% q/q prelim Markets: WTI crude down 0.4% to $101.75, keeps above the $100 mark European stocks more mixed; DAX up 0.8%, CAC 40 down 0.3% US futures steady with S&P 500 futures up 0.2% USD and CAD lead, NZD lags on the day US 10-year yields flat at 4.47% Gold down 0.2% to $4,703 while silver is up 1% to $87.38 It was a quieter session as markets kept the calm despite the US-Iran conflict continuing to play out. There’s no fresh progress as the focus and attention now shifts towards the east, with US president Trump making his trip to China
The latest from the Chinese state media is that Trump has arrived in Beijing. He will be meeting with China president Xi Jinping over the next two days, so expect key headlines to flow during the Asia and European sessions if there will be anything. But for today, there wasn’t much happening in markets as tensions continue to simmer.
Oil prices are steadier and not doing much with WTI crude keeping above the $100 mark. The commodity is down 0.4% to $101.75 but not keeping elevated in holding above triple digits for now. Elsewhere, the mood in the equities market is also steadier with European indices holding more mixed but with some slight gains at the balance.