The Morning Snapshot

The Morning Snapshot 6/1/16

US equity markets opened lower, with the S&P 500 -0.5% as China’s 50.1 PMI figure for May added to evidence that growth remains subdued after the economy expanded at the slowest pace in more than two decades. Manufacturing gauges for…

Domestic Stock Futures Higher on Bernanke’s Comments

Sentiment is higher this morning after Bernanke’s speech yesterday that came after market close in which he called for maintaining accommodation, with S&P 500 futures higher by +1%. The dollar is lower versus 21 of 23 major peers, weighed by market participants scaling back extreme long positions after the FOMC minutes were released yesterday; the dollar index is trading down by -1.2% . Most commodities, save crude oil and natural gas, are catching a bid on the day. Treasuries are gaining as are most sovereign bonds globally, with tens falling -4bps to 2.59%.

Sentiment Higher After Alcoa Earnings Beat Estimates

Sentiment is higher across most global asset classes after Alcoa’s earnings report sparked a wave of risk asset purchases with most emerging market currencies outperforming, while the dollar, franc, and yen are selling. The euro is underperforming most of its peers despite Greece winning the release of €3B in aid on continued stringent terms. Equities are higher while most sovereign yields are falling and relative the German Bund most yield spreads are tightening. Chinese consumer and producer prices are weighing on aluminum and copper, while crude oil continues a second day of declines. U.S. treasuries resumed declines that pushed yields to the highest levels since Aug. 2010.