- U.S. GDP -32.9%, worst result on record
- Equities mixed, commodities slightly weaker
- USD smashed on the GDP data
Bias: Risk off
U.S. stocks finished the result session mixed, with high tech’s outperforming broader measures ahead of a tech heavy earnings docket. Early weakness was seen after the U.S. printed its worst GDP result on record amid the Corona Virus. After hours, earnings from Apple, Amazon and Facebook were all better than expected, while Alphabet (Google) showed mixed results.
A horrible U.S. GDP number put pressure on the big dollar, which resulted in a fresh two-year high for the Euro. Sterling was also higher, while commodity currencies lagged on the weaker gold price.
Oil and gold prices were slightly weaker but remain well supported.
With today being end of month, expect position adjustment to dominate trade. Data today sees Japanese Unemployment and Industrial Production, along with Chinese PMI and the U.S. Employment Cost Index.