To the scoreboard:
- Dow: 24,542.54 +182.33 (+0.75%)
- S&P 500: 2,697.79 +25.87 (+0.97%)
- AUD/USD: 0.7460 +0.0001 (+0.01%)
- ASX200 SPI futures (June contracts): 6,110 (+21)
1. Oil prices jumped again after a bigger than expected draw-down in US crude inventories. Tighter supply combined with the recent US-Iran tension left benchmark crude at a three-year high above $US77 a barrel.
2. The sharp rise in oil saw energy stocks underpin a solid gain on the S&P500, as tech stocks also gained. European markets had a good session and the ASX looks set to push towards 6,100 this morning on the back of a strong global lead.
3. Ripples from the oil price move were also felt in bond markets, as the potential inflationary impact saw US 2-year bond yields rise to a 2018 high of 2.53% while US 10-years are back at the 3% mark.
4. In currencies, the US dollar gave back some its recent gains late in the session as the Aussie bounced off last night’s low. And the Kiwi dollar is sharply lower after dovish forecasts from the Reserve Bank of New Zealand in this morning’s interest rate announcement.
5. There’s been a surprise election result in Malaysia, with former Prime Minister Mohamed Mahathir regaining power. The AFR reports that an iShares MSCI Malaysia ETF fell to the lowest level since February overnight when signs pointed to a Mahathir victory, but markets are expected to be closed today and tomorrow after the government declared public holidays.
6. Today in Asian trade there’s inflation data out of China, before the focus turns to the Bank of England’s monetary policy announcement tonight. Overnight, UK retail sales fell at their sharpest rate since 1995. Markets will also be watching for April inflation data in the US.
Have a great day.
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