Close May7th

In European Equity Markets stocks fell on Monday, after President Donald Trump said the U.S. would hike tariffs on goods from China. Germany’s DAX and France’s CAC closed down by around 1%, trimming some heavy losses seen earlier in the session. The decline was quite significant in auto stocks, which fell more than 2% by the end of the session. In the corporate world, ThyssenKrupp said it is still looking to reach an agreement with European antitrust regulators on a planned joint venture with Tata Steel, Reuters reported. The stock fell 3.5%.

In Currency Markets the U.S. dollar firmed against most major currencies on Monday but lost ground to the Japanese yen after U.S. President Donald Trump said he would sharply raise tariffs on Chinese goods this week, risking the derailment of trade talks between Washington and Beijing. Asian currencies were largely weaker with the Chinese yuan slipping almost 1% to near its lowest levels this year, around 6.80 per dollar. Both the Mexican peso and the Turkish lira fell against the U.S. currency.

In Commodities Markets oil prices fell on Monday after U.S. President Donald Trump said he would sharply raise tariffs on Chinese goods, risking derailment of trade talks between the world’s two largest economies, which renewed worries about global oil demand. Brent crude futures fell 16 cents to $70.69 a barrel. The global benchmark earlier sank to $68.79 a barrel, the lowest since April 2. U.S. West Texas Intermediate (WTI) crude futures lost 29 cents to $61.65 a barrel. WTI’s session low was $60.04 a barrel, the weakest since March 29.

In US Equity Markets stocks posted broad-based declines on Monday, but bounced back from session lows, after President Donald Trump’s surprise threat to raise tariffs on Chinese goods this week, sparking a flight from riskier assets. The S&P 500 was down 0.90%, at 2,919.05 and the Nasdaq Composite fell 0.99%, at 8,082.96. In a bright spot, Anadarko Petroleum Corp rose 3.6% after Occidental Petroleum Corp increased the cash component of its $38 billion bid, removing a need for any deal to receive the approval of Occidental’s shareholders.

In Bond Markets U.S. Treasury yields held at lower levels in early U.S. trading on Monday, as investors favored low-risk government bonds over stocks and other risky assets due to renewed trade tension between China and the United States. The yields on benchmark 10-year Treasury notes were 2.4818%, down 4.8 basis points from late on Friday, while the two-year yields were 2.2884%, down 5.1 basis points. The U.S. Treasury Department will sell $84 billion in coupon-bearing debt including $38 billion in three-year notes , $27 billion in 10-year notes and $19 billion in 30-year bonds.