• European indices closed mostly in the green today (DAX: +0.4%, CAC 40: +0.75%, FTSE 100: +0.94%, IBEX 35: +1.6%, FTSE MIB: +0.9%). The biggest gains were recorded by utility, communication services, and healthcare stocks. The Euro Stoxx 600 index posted its fourth consecutive daily gain (+0.7%).
• Consumer sentiment in the Eurozone rose above expectations in May, coming in at -15.2 (forecast: -16.0, previous: -16.7).
• U.S. indices dipped slightly during Tuesday’s session, ranging from -0.2% to -0.3%. Volatility among Big Tech stocks is limited today, but Sibanye-Stillwater surged 14% on the back of rising precious metals prices.
• Pfizer gained 2% after securing a $1.25 billion licensing deal for a Chinese cancer therapy. The U.S. biotech giant will handle the drug's production domestically and distribute the therapy globally. Final-stage clinical trials are expected to take place later this year in China.
• Canadian data revealed higher-than-expected annual CPI inflation in April, at 1.7% (forecast: 1.6%, prior: 2.3%). Month-over-month, prices fell 0.1%, compared to a forecast of -0.2% and a 0.3% increase in March.
• The U.S. dollar continued to depreciate against most G10 currencies (USDIDX: -0.25%). The exception was the Australian dollar (AUDUSD: -0.6%), which gave back some recent gains after Australia’s 25 bp rate cut and signals of further monetary easing.
• Safe-haven currencies extended gains: Japanese yen (USDJPY: -0.12%), Swiss franc (USDCHF: -0.43%), The euro rose 0.3% to 1.1273. 10-year U.S. Treasury yields dropped below 4.5%, currently at 4.47%.
• Despite the absence of U.S. weather support, U.S. natural gas futures surged nearly 10%, fueled by Norwegian supply outages, weaker U.S. dollar and diminished hopes for a quick ceasefire between Ukraine and Russia
• Gold prices rose over 1.6%, but platinum led the metals market, jumping over 5% after breaking out of consolidation.
• The move was driven by strong demand and increased interest from China’s jewelry sector.
• Chicago wheat futures climbed over 3%, as fears over declining global supply grew in response to spring frost damage in Russia, drought conditions in China and lower U.S. crop quality ratings from the USDA
• Bitcoin broke above $106,000, while broader crypto market sentiment remains optimistic. The U.S. dollar edged lower, and the EURUSD pair gained around 0.1%.
• Fed members Hammack and Musalem emphasized that the risk of a stagflationary scenario in the U.S. remains.They noted that consumer prices are likely to rise, despite the easing of tariffs between the U.S. and China. Their remarks suggest that the Fed remains cautious about potential rate cuts this year.
• The People’s Bank of China held interest rates unchanged today, in line with market expectations. Chinese indices outperformed major global benchmarks, with CHN.cash and HK.cash gaining between 1.2% and 1.4%.