Global markets diverged in overnight trading. Key industrial commodities rose and safe haven assets came under pressure as further evidence of an industrial upswing drove trading. However stocks had a mixed session. European investors piled in on an improving outlook and little local pressure on interest rates.
US investors took a different view, fearing potential trade problems and the impact of higher interest rates. US ten year bond yields hit fresh multi-year highs and gold remains under pressure.
Brent crude traded above $80 a barrel for the first time in more than three years. Nickel, lead and copper all rose as the US leading index made further gains in April. UK indices hit all-time highs and many continental markets are within a few percent of the same, following reports the UK will remain part of the EU customs union after 2021.
Asia Pacific markets may shrug off US stock weakness after falls across the region yesterday. The US dollar continued its rise overnight and currency factors may see local indices outstrip flat to slightly higher indications from futures trading.
CSL is arguably Australia’s most successful company over the last two decades. This morning it delivered for shareholders again, lifting profit guidance for this year by around 10%. Recent share price weakness may reverse sharply today.
Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.
