Equity Markets
US stocks ended mixed on Monday as investors mulled the reopening plans and the “new normal”. Health and technology stocks were among the best performers.
- Dow Jones Average Industrial lost 109 points or 0.5% to 24,222.
- S&P500 ended relatively flat at 2,930.
- Nasdaq Composite added 71 points or 0.8% to 9,192.
Currency Markets
In the FX space, the US dollar started the week on a strong note. All G10 currencies were weaker against the greenback and Japanese Yen, and the Antipodeans were among the worst performers.
Amid a relatively empty calendar on Monday, the Aussie dollar was mostly left at the broader sentiment of the markets and a stronger US dollar. After having gained more than 150 pips last week, the AUDUSD pair dropped below the 0.65 level.
In the middle of a pandemic, the shared currency is also bearing the brunt of the standoff between the EU and Germany, following a critical ruling on European Central Bank policy by Germany’s constitutional court. The EURUSD pair fell on Monday and is currently trading at 1.0808.
Commodities
Crude oil prices have recovered some ground since production cuts have kicked in at the beginning of the month. The recent reports have shown that inventories levels are increasing at a decreasing rate, which will eventually slow down the speed at which storage tanks are being filled.
However, the oil market is still facing a glut, which is weighing on oil prices. On-land storage facilities are mostly operating at full capacity and there are now 165 million barrels of crude oil in floating storage at sea.
WTI Crude oil (Nymex) added 1.86% and is currently trading at $24.60, while Brent Crude (ICE) is trading at 29.63, down by 4.33%.
Gold
The precious metal is struggling to find a firm direction to the upside amid reopening plans and a stronger US dollar. However, geopolitical tensions between the US and China and Germany and the EU are helping the XAUUSD pair to consolidate just below the $1,700 mark.
Key Economic Events
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Upcoming Earnings Report
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Company
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Reporting Time
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Teleconference/ Webcast Time
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Toyota Motor Corporation (TMC)
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Tuesday, 12 May 2020
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Conference call 1:10 PM (JST)
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Upcoming Webinars
Inner Circle Group Coaching Session: Turning Fundamental Thinking into Practical Trading Ideas Wednesday 13 May, 8:00 PM – 9:00 PM AEST | Register now
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