To the scoreboard:
- Dow: 25,241.41 +95.02 (+0.38%)
- S&P 500: 2,770.37 -1.98 (-0.07%)
- AUD/USD: 0.7626 -0.0041 (-0.53%)
- ASX200 SPI futures (June contracts): 6,054 (-8)
1. US stocks were mixed overnight ahead of the G7 summit in Quebec, as this week’s tech-led rally came to an end. After opening at a new all-time high, the NASDAQ fell by 0.7%, leading falls on the broader index. European markets also fell amid rising bond yields and a strengthening euro.
2. Oil prices got back on the move, as benchmark crude rose by more than 2% to above $US77 a barrel amid reports that Venezuala had fallen behind on its delivery schedule.
3. In bond markets, German 10-year bond yields climbed back over 0.5% for the first time in two weeks while Italian 10-years climbed back over 3%. Conversely, US 10-year bonds closed lower at 2.92% after fluctuating by up to 15 basis points during the session.
4. Following the more bullish commentary by the ECB this week, the euro is off it’s overnight high but still holding at around $US1.18 this morning. The AUD was unable to break through key technical support in the wake of Wednesday’s strong GDP report, closing 0.53% lower.
5. On the trade front, the US and China reached a deal on Chinese telecom company ZTE. The company is required to pay a $US1 billion fine in a settlement that lifts crippling sanctions, after the company was last month forced to shut down major operations.
6. And analysts at Macquarie have highlighted tremors in China’s bond market amid the ongoing government crackdown on excessive leverage, with credit spreads on Chinese corporate bonds rising to the highest level in two years.
Have a great weekend.