• European indices posted gains today, supported by optimism from the U.S. stock market. The German DAX performed best, rising over 0.6%. The UK’s FTSE 100 added a modest 0.2%, while Italy’s IT40 and Switzerland’s SMI remained near yesterday’s closing levels. The broader European index also closed around the same levels as the previous day.
• U.S. indices are advancing today, approaching record highs. The S&P 500 is up 0.7%, the Dow Jones gains 0.8%, the Nasdaq rises nearly 0.9%, and the Russell 2000 leads with a gain of over 1%.
• Meta Platforms is up more than 2% amid reports of a potential acquisition of PlayAI, a deal that could help the company strengthen its position in the AI development race.
• Final Q1 U.S. GDP came in at -0.5%, missing the -0.2% forecast and falling from the previous 2.4% reading.
• The weak figure was mainly driven by a surge in imports triggered by fears of sharply rising tariffs in the U.S., which weighed on GDP dynamics. Other components—consumption, investment, and federal spending—recorded growth.
• The U.S. trade balance for May came in at -$96.59 billion, wider than the forecast of -$86.30 billion and up from -$86.97 billion in April.
• Jobless claims were slightly below expectations, though the overall number remains elevated. Initial claims this week totaled 236,000, compared to 244,000 expected.
• Durable goods orders surged in May, largely due to aircraft orders. The monthly print came in at 16.4% m/m, well above the 8.6% forecast and rebounding from a -6.6% drop in April. Core durable goods orders (excluding transportation) rose 0.5% vs. 0.1% expected.
• Donald Trump hinted at possibly accelerating the announcement of a new Fed chair. While this wouldn't cut Powell’s current term short, it may affect market expectations regarding the future path of interest rates. This helped push the dollar lower and further weighed on U.S. Treasury yields.
• Yields on 10-year U.S. Treasuries dropped to around 4.25% today, marking the lowest level since early May. As a result, the EUR/USD climbed to levels not seen since September 2021.
• Natural gas futures fell sharply after data showed U.S. gas inventories exceeded forecasts. Since early May, inventories have remained above the five-year average, and the gap continues to widen. Inventories increased by 96 billion cubic feet, compared to 88 billion expected and 95 billion in the prior week. Gas prices are down nearly 2% today, after falling as much as 4.5% intraday.
• Crude oil prices rose slightly, gaining 0.7% to around $67 per barrel. While uncertainty persists around Iran’s nuclear program, the geopolitical risk premium for oil has clearly declined in the short term.
• Sugar futures dropped to 4-year lows, pressured by forecasts of heavy monsoon rains in key producing and exporting countries, namely India and Thailand.
• In the precious metals market, gold remains stable, silver gains slightly to climb above $36.60/oz, while more substantial increases are seen in platinum futures (+5%) and palladium (+7%).
• Pending home sales in the U.S. rose 1.8% m/m, beating expectations of 0.13% and sharply rebounding from -6.3% previously.The housing index rose to 72.6, up from 71.3 in the previous reading.
• Sentiment in the cryptocurrency market remains muted. However, Bitcoin continues to trade around the $107,000 level. Today’s weaker dollar has not translated into gains for the leading cryptocurrency.