OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM17 +0.28%) this morning are up +0.28% and European stocks are up +0.34% as a rebound in crude oil prices from Wednesday’s 2-week low boosts energy producing stocks. May WTI crude oil (CLK17 +0.89%) is up +0.97% on optimism that OPEC will extend its crude production cuts past June. Oman’s oil minister said that Gulf Arab oil producers have agreement to extend production cuts and Saudi Arabia’s energy minister confirmed the initial deal. Signs of strength in the global economy also supported stock gains after Japan Mar exports jumped +12.0% y/y, the largest increase in 2-years. Asian stocks settled mostly higher: Japan -0.01%, Hong Kong +0.97%, China +0.04%, Taiwan -0.08%, Australia +0.30%, Singapore +0.37%, South Korea +0.46%, India +0.29%.
The dollar index (DXY00 -0.11%) is down -0.19% at a 3-week low. EUR/USD (^EURUSD) is up +0.27% at a 3-week high on short covering ahead of Sunday’s first round of voting in France’s presidential election where the two leading candidates will run off in a winner-take-all contest on May 7. USD/JPY (^USDJPY) is up +0.18%.
Jun 10-year T-note prices (ZNM17 -0.14%) are down -5 ticks.
ECB Governing Council member Villeroy de Galhau said “our current monetary policy stance remains fully appropriate based on current information” and “should not be adjusted before we see more concrete signs that inflation can be sustained at levels closer to our target.”
The Japan Mar trade balance was in surplus by +614.7 billion yen, wider than expectations of +608.0 billion yen. Mar exports rose +12.0% y/y, stronger than expectations of +6.2% y/y and the biggest increase in 2-years. Mar imports rose +15.8% y/y, stronger than expectations of +10.0% y/y and the largest increase in 3-years.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +6,000 to 240,000, previous -1,000 to 234,000) and continuing claims (expected -4,000 to 2.024 million, previous -7,000 to 2.028 million), (2) Apr Philadelphia Fed business outlook index (expected -7.0 to 25.8, Mar -10.5 to 32.8), (3) Mar leading indicators (expected +0.2%, Feb +0.6%), (4) Treasury auctions $16 billion of 5-year TIPS, and (5) USDA weekly Export Sales.
