To the scoreboard:
- Dow: 24,768.93 +62.52 (+0.25%)
- S&P 500: 2,722.46 +11.01 (+0.41%)
- AUD/USD: 0.7518 +0.0046 (+0.62%)
- ASX200 SPI futures (June contracts): 6,110 (+11)
1. US Stocks rose overnight, on the heels of a strong data print for industrial production in April. Retail shares led the way, led by an 11% gain in Macy’s after its earnings results beat expectations.
2. Despite renewed geo-political tensions in North Korea and a continued rise in bond yields, most European markets also pushed higher. However, Italian stocks fell more than 2% amid reports that the anti-establishment Five Star/League coalition had drafted plans to ask the European Central Bank for a €250 billion debt write-down.
3. Political developments in Italy caused some chaos in bond markets, with the yield on 10-year Italian government bonds rising almost 20 basis points to 2.12%. Benchmark US 10-years also rose and are trading above 3.10% this morning. Here’s the move in Italian bonds:
4. The USD continues to push higher, although the US dollar index retreated from its five-month high overnight as the euro came off its lows. And higher prices for oil and copper helped provide support for the Aussie, which is back above US75 cents this morning.
5. It’s jobs day: Employment figures for April will be released at 11:30am. It follows yesterday’s mediocre wage data which saw the AUD briefly fall below 0.7450 US cents. While employment growth is slowing, economists still expect a monthly gain of 20,000 jobs. David Scutt’s 10-second guide has more.
6. Oil prices rose on a report that US crude stockpiles fell for a second week. The price of crude held close to its highest level since 2014 after the Energy Information Administration reported US inventories dropped by 1.4 million barrels in the week ending May 11.
Have a great day.