Equity Markets Rise Ahead Of French Election, ASX Futures +30

Thursday was a fairly quiet night for economic data with no key data released to guide markets leaving investors to focus on U.S. earnings. Both the S&P500 & Nasdaq100 gained +0.76% & +0.81% respectively with the Nasdaq100 closing at a record high. The U.S. dollar index reversed initial declines of up to -0.36% to close +0.07% higher with both the two & ten-year treasury yields rising +2 & +3 basis points respectively.

The spread between French & German bond yields narrowed, although remained relatively high ahead of the first round of the Presidential election held this Sunday. The spread on the two-year yields narrowed to +0.396% and the ten dropped to +0.622% after having risen from +0.06% & +0.3% respectively prior to the focus on the elections. Polls suggest the race remains tight with the latest showing Independent Emmanuel Macron leading with 23% followed by Marine Le Pen on 22%, Francois Fillion on 20% and Jean-Luc Melenchon on 19%.

The Euro gave back most of the initial gains to close relatively flat, up just +0.05%. European equity markets were higher with the Euro Stoxx 600 up +0.22% as were both thee DAX30 +0.09% and CAC40 +1.48%. Tonight the focus will be on Euro-zone PMI reports covering services, manufacturing which should provide further insight to whether the broadening of the EU recovery has been extended.

Locally the ASX200 index broke a three day losing streak to close up +17.38 points or +0.30% and we can expect to follow the positive lead from Wall Street overnight with ASX SPI200 futures up +30 points in overnight trading.If you’re interested in trading global markets and still need practice, click here to open a free $100,000 Rivkin Trader account. 

Data releases:

·         Japanese Nikkei Manufacturing PMI (MoM Apr) 10:30am AEDT

·         Euro-zone Services, Manufacturing & Composite PMI (MoM Apr) 6:00pm AEDT

·         U.K. Retail Sales (MoM & YoY Apr) 6:30pm AEDT

·         Canadian CPI (MoM & YoY Mar) 10:30pm AEDT

·         U.S. Markit Services, Manufacturing & Composite PMI (MoM Apr) 11:45pm AEDT

·         U.S. Baker Hughes Rig Count (Apr 21) 3:00am AEDT

 

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This article was written by James Woods - Global Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via james.woods@rivkin.com.au or by phoning +612 8302 3631.

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