Japanese Yen Is Soft, Shares Higher

Market Reviews

Japanese Yen stays the softest for the week, despite its attempts to reinforce. Stocks, on the other hand, increased. DOW increased 346.41 points (1.40%) at 25146.39. S&P 500 was up 023.55 points (0.86%) at 2772.35. NASDAQ grew 51.38 points (0.67%) at the maximum of 7689.24. Nikkei rose 0.84%. HSI lifted 0.55%. Meanwhile, 10 year yield was up 0.056 to 2.975, aligning 3.000 handle. The greenback is still soft. The single currency is the firmest, waiting for ECB’s QE exit discussion. Aussie is strong as well.

Emmanuel Macron (French President) and Justin Trudeau (Canadian Prime Minister) agreed on going for “strong multilateralism” after meeting in Canada. The leaders promised to: “support a strong, responsible, transparent multilateralism to face the global challenges.” Macron said the meeting was: “an opportunity to talk about the relations between Canada and France that are going very well, but also to highlight the challenges that we are going to have around the G7 table, and to make sure we are aligned.”

Tomorrow, Canada will host a 2-day G7 summit, which is expected to focus exclusively on US protectionist trade policy. Angela Merkel admitted the discussion will be difficult, saying “it is apparent that we have a serious problem with multilateral agreements here, and so there will be contentious discussions.” Emmanuel Macron, in his turn, told US that he refused signing a joint statement out of the G7 summit if there was no progress on tariffs, Iran nuclear deal and the Paris climate accord.

Australian trade surplus fell to 0.98 billion Aussie in April. Japanese leading indicator increased to 105.6. Today, Swiss will publish jobless rate and foreign currency reserves, Germany will announce factor orders, the Eurozone will present final Gross Domestic Product of the first quarter and US will issue initial unemployment claims.