China

EURUSD FXE
Currencies

Markets are off to a positive start in the early week, with two key developments over the weekend seen as the primary drivers for the initial surge in risk correlated assets. The news that EU assistance to the Spanish banking sector in the amount of Eur100B has well exceeded estimates of most analysts, while Chinese data was not as bad as many had feared. Both of these developments have resulted in a market rally driven by the expectation that the global economy will continue to be supported by proponomics.

New Zealand Dollar Rebound Threatened by Dovish RBNZ
Stocks

The New Zealand Dollar was the second best performer this week, finishing just 0.12 percent lower against the top performer, the Australian Dollar. The Kiwi crushed the safe haven currencies, the Japanese Yen and the US Dollar, appreciating by 3.72 percent and 2.05 percent, respectively. As Currency Strategist Ilya Spivak frequently notes, the New Zealand Dollar has a very tight correlation to the MSCI World Stock Index, so the commodity currency is at bay to global risk trends.

Australian Dollar and British Pound Outperform on PBoC, BoE
Currencies

After yesterday’s massive rally – in fact the biggest rally since December by the Australian Dollar and the Dow Jones Industrial Average since December 20, 2011 – it would appear that all global issues have been resolved.

U.S. Stock Market
Commodities

Futures are suggesting the markets could build on yesterday’s bounce.  Futures are up ahead of the open with S&P fair value at +13.00 and NASDAQ fair value at +21.80.

Breaking News - China Rate Decision
Commodities

Breaking News China and England Rate Decisions

Global Economy Vulnerable As Risk Off Headlines Widespread
Currencies

JP Morgan losses seriously diminish credibility in banking sector Political saga in Eurozone continues to shake investor confidence China economic data disappoints and weighs further on risk correlated assets Commodity bloc and emerging market FX exposed German; UK inflation mixed The intense risk-off price action that we saw over the past several sessions looked like it might be poised for reprieve into North America on Thursday, before markets got wind

US Dollar Rally May Find Added Fuel in Global Slowdown Fears
Currencies

Most of the major currency pairs continue to show significant correlations with the MSCI World Stock Index, suggesting that broad-based risk appetite trends remain dominant as drivers of price action. This puts thematic macro-level concerns – specifically, the durability of the US recovery and its ability to offset headwinds from Europe and China facing global growth – squarely at the forefront. The US economic calendar is relatively quiet, with headline event risk clustered at the end of the week as PPI and UofM Consumer Confidence readings cross the wires on Friday. This puts the onus on evaluating the extent of downward pressure.

Aussie Sold Aggressively Post Shocking RBA Rate Decision; Euro Still Bid
Commodities

– RBA shocks markets and cuts by 50bps to 3.75% – Decision surprising given RBA track record – Aussie sold aggressively across the board in response – UK manufacturing PMIs disappoint; weighs on Pound

U.S. Stock Market
Commodities

Futures Ahead of the Open S&P fair value: +0.20 NASDAQ fair value: +1.00 Europe volume will be limited with May Day holiday, however, the UK’s FTSE will be open for trading. Currently up 0.39%. UK Manufacturing PMI fell to 50.5 on a downwardly revised 51.9 for the prior month.