Open May7th

​In Asian Equity Markets the Nikkei 225 in Japan, which returned to the first day of trade following an extended holiday period, fell 0.89% in early trade as shares of index heavyweight Fanuc declined more than 3%. Over in South Korea, where markets were closed on Monday, the Kospi fell 1.33% as shares of chip maker SK Hynix declined 1.49%. Australia’s ASX 200, on the other hand, bucked the trend to rise 0.42%. Indices in China were flat and falling more than 5% on Monday, following a re-escalation in U.S.-China trade tensions.



In Currency Markets the U.S. dollar fell to a five-week low against the yen and fell versus other currencies on Monday 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. Against the Japanese yen, which tends to benefit during geopolitical or financial stress as Japan is the world’s biggest creditor nation, the dollar fell 0.2% to 110.88 yen. Sterling, meanwhile, fell 0.6% to $1.3101 and reversed some of Friday’s gains.



In Commodities Markets oil futures edged higher in volatile trade on Monday as rising tensions between the United States and Iran buoyed prices after they touched a one-month low following U.S. President Donald Trump’s threat that he may raise tariffs on Chinese goods. Brent crude futures rose 39 cents to settle at $71.24 a barrel. The global benchmark earlier sank to $68.79 a barrel, its lowest since April 2. U.S. West Texas Intermediate (WTI) crude futures rose 31 cents to settle at $62.25 a barrel. WTI’s session low was $60.04 a barrel, the weakest since March 29.



In US Equity Markets stocks fell on Monday after President Donald Trump pledged to raise tariffs on Chinese goods, though Wall Street finished well off its session lows as some investors saw Trump’s comments as a bargaining tactic and expressed confidence in an eventual trade agreement. The S&P 500 lost 0.45%, to 2,932.47 and the Nasdaq Composite fell 0.5%, to 8,123.29. Boeing Co, the single largest U.S. exporter to China, fell 1.3%. Chipmakers, which get a sizable portion of their revenue from China, also fell. The Philadelphia chip index slid 1.7%.



In Bond Markets U.S. Treasury yields fell on Monday, as investors favored low-risk government bonds over stocks and other risky assets due to worries about a global slowdown stemming from renewed trade tension between China and the United States. The yields on benchmark 10-year Treasury notes were 2.4998%, down 3 basis points from late on Friday, while the two-year yields were 2.3107%, down 2.8 basis points. The U.S. Treasury Department will sell $84 billion in coupon-bearing debt including $38 billion in three-year notes on Tuesday.