Close May 20
In European Equity Markets the pan-European STOXX 600 fell of Chinese technology companies. Travel and leisure stocks slipped 1.8% on the back of disappointing full-year results from Ryanair. The company posted its weakest annual profit in four years and said earnings could fall further next year, as Europe’s largest budget airline battles overcapacity, Brexit and delays in delivery of the Boeing 737 Max. Shares traded 2.7% lower in the afternoon session. Infineon peers also endured a tough session, with Austrian chipmaker AMS bottom of the STOXX 600 with a 12% fall.
In Currency Markets sterling inched above five-month lows on Monday as British Prime Minister Theresa May makes a last-ditch attempt to get a Brexit deal through parliament before she leaves office, though scepticism from the opposition Labour Party capped gains. Though there is broad scepticism that any such deal will go through, sterling did rise 0.3% higher against the dollar to $1.2754, though this is only after having fell 2.2% last week, its worst week since October 2017. The British currency was also up 0.2% against the euro on Monday at 87.51 pence.
In Commodities Markets oil prices edged up to near multi-week highs on Monday as OPEC indicated it was likely to maintain production cuts that have helped boost prices this year, while escalating Middle East tensions provided further support. Brent crude was up by 21 cents at $72.42 a barrel, having earlier touched $73.40, the highest since April 26. OPEC data indicates oil inventories in the developed world rose by 3.3 million barrels month-on-month in March, and were 22.8 million barrels above their five-year average.
In US Equity Markets stocks fell on Monday, as a crackdown on China’s Huawei Technologies raised concerns of a bigger impact on chip-makers and added to fears of an escalation in trade war between the two nations. Apple Inc fell 3.84%, weighing the most on the three main indexes. The S&P 500 technology sector fell 1.95%, the biggest drop among the nine major S&P sectors trading lower. The S&P 500 was down 0.73%, at 2,838.64 and the Nasdaq Composite fell 1.61%, at 7,690.51. Verizon Communications Inc’s 3.5% gain helped the Dow index limit some losses.
In Bond Markets U.S. Treasury yields slipped on Monday, with long-dated debt falling for a second straight session and Wall Street stocks weaker, as risk appetite diminished amid ongoing trade tension between the United States and China. U.S. 10-year note yields fell to 2.38%, down from 2.39% late on Friday. Yields on U.S. 30-year bonds were also lower at 2.81% , down from 2.82% on Friday. On the short end of the curve, however, U.S. 2-year yields were slightly up at 2.206%, compared with Friday's 2.202%
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