Treasuries Declined, while Commodities Hit Highest Level since 2012
US futures dropped on Tuesday, as technology shares weighed on equities, following the decline of large companies: Tesla shed 3.46%, while Amazon gave up 2.33%. The Stoxx 600 Index retreated, brought lower by HelloFresh, an online food delivery company, and Infineon Technologies AG, a semiconductor firm. The first sank 4.7%, whereas the latter took a dive of 4.36%.
European stocks drifted. Travel firms soared after the European Union said that it would reopen its borders, which had long been closed due to the raging coronavirus pandemic. Asian markets fared better on Tuesday: shares jumped in South Korea, Hong Kong, and Australia.
Treasuries sank alongside the majority of European bonds. Commodities approached the highest level since 2012. The US dollar staged an impressive rebound. Ethereum extended its yesterday’s gains and suppressed its own record. Its rival Bitcoin meanwhile declined.
India and parts of Southeast Asia continue struggling with the fierce second wave of the pandemic. As their health-care systems are not coping with the severity of the outbreak, the countries are in urgent need of help from others.
These are the main moves in the markets on Tuesday:
Futures on the S&P 500 Index slid 0.3% in the morning during the European trading session. The Stoxx Europe 600 remained unchanged. The FTSE in London added 0.6%. The DAX in Germany lost 0.5%. The CAC in France advanced 0.33%. The MSCI Asia Pacific Index gave up 0.1%. The MSCI Emerging Market Index was little changed. The Nikkei was 0.885 lower, while the Topix dipped 0.57%. The Hang Seng soared 0.7%. The S&P/ASX 200 in Australia advanced 0.56%.
The US Dollar Index rose 0.4%. The euro dwindled 0.4% to $1.2014. The British pound edged 0.3% lower to $1.3863. The onshore yuan remained unchanged at 6.475 per dollar. The Japanese yen gave up 0.3% to 109.43 per dollar. The AUD/USD pair moved 0.23% lower to 0.7711. USD/CAD changed hands at 1.2321, up 0.34%. The USD/CHF pair added 0.47% to trade at 0.9152.
West Texas Intermediate crude inched 0.1% higher to $64.57 a barrel. Brent crude grew 0.2% to $67.67 a barrel. Gold decreased 0.4% to trade at $1,785.50 an ounce. Silver dropped 0.2% to $26.89 per ounce. Platinum gained 0.7% to $1,241.03. Copper slipped 0.19% to trade at $452.00.
The yield on 10-year Treasuries advanced two basis points to 1.61%. The yield on two-year Treasuries increased one basis point to 0.16%. Germany’s 10-year yield added less than one basis point to -0.20%. Britain’s 10-year yield declined less than one basis point to 0.84%. Japan’s 10-year yield stayed unchanged at 0.097%.
Traders should watch the following events this week:
- U.S. trade balance, factory orders, durable goods are due on Tuesday.
- Chicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic Club on Wednesday.
- The Bank of England rate decision is released on Thursday.
- The April U.S. employment report is published on Friday.
Have a profitable trading day!