5th May 2020 Overnight Market Wrap

5th May 2020 Overnight Market Wrap

Key Points

  • U.S. stocks bounced well overnight, supported by a firmer oil price
  • Oil closed back above $20/bbl
  • Currencies holding tight ranges

Bias: Risk neutral

Commentary

US stocks posted a strong session Monday night, with the market largely ignoring continued U.S./China Corona Virus tensions to instead focus on the fact that Crude Oil finished above $20/bbl. Bias seems to be that the market has now moved on from Corona Virus concerns and are instead focused back on trying to bounce back after the recent weakness.

Weaker than expected data in the Euro-zone saw the Euro on the offer overnight, although it has largely held within recent ranges. Cable is trading an ever-diminishing range amid a lack of fre3sh incentives, while the Yen climbed against the Dollar and the Euro.

Oil prices rose overnight to settle back above the $20/bbl level, while gold also rose on continued U.S./China tensions. Trade was described as light volume across commodities.

Bias

Except a relatively quiet session in Asia, with mixed signals from overnight set to combine with a Japanese public holiday to cool trader risk appetites. The RBA will meet today (no change expected), while data sees Euro-zone PPI and the U.S. Trade Balance and PMI.

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