Market Rebound
Markets opened relatively quietly with U.S equities selling off within the early hours of the U.S session. Rising fears surrounding China’s COVID-19 cases set off the continued sell-off in equities with the cases sprouting fears of further lockdown measures affecting global supply chains. After confirmation of Elon Musk buying Twitter U.S equities brushed off fears and pushed all major indices into the green. However, this sudden reversal is seen as only temporary relief to the markets, as major macro indicators point toward an underperforming equity market as the Fed continue to tighten financial conditions and growth forecasts lower.
Dollar surge, cable and euro lower
As the dollar edged higher yesterday rates on the euro and pound continued to disappoint, stretching both pairs into negative territory. The euro is down to 2020 year lows with cable also at levels not seen since September ‘20. Despite Macron’s successful election win the euro failed to hold steady as the growth outlook continued to paint a worrying picture.
With a quiet week of economic data ahead we turn towards the month of May to give us further direction on currency movement.
Global growth worries
Commodities closed the day lower as forecasts of global growth continued to pin down commodities such as copper and oil which are great indicators of global consumption levels. As fears surrounding China's lockdown and a global slowdown in economic output rise such commodities will be the first to indicate this in their prices.
