A successful corporate earnings season and decreased political risks – after centralist Emmanuel Macron beat Eurosceptic Marine Le Pen in France’s presidential election – have helped support a rally in equity markets.
The lack of risk in the market has tipped Wall Street’s measure of risk, the Vix, to its lowest point since December 1993.
- CAC 40 is at €5382.50
- DAX 30 is at €12766
- FTSE 100 is at £7289
- FTSE MIB is at €21315
- Nasdaq 100 is at $5657
- S&P 500 is at $2396
- DJ 30 is at $20963
Currency Cove
The Australian dollar was the worst performing major currency today after March retail sales fell by 0.1%, much weaker than expectations of 0.3% growth. The Aussie dollar is at $0.73 against its US counterpart.
Additionally, the pound is under pressure after news broke that UK retailers enjoyed healthy sales growth in April. On Monday, sterling hit a seven-month intraday high of $1.298 on the hopes that the Conservative party will triumph in next month’s election and with them, bring a softer Brexit. However, now, the pound is suffering a 0.2% decline at $1.29.
The euro has dipped 0.2% at $1.08, after touching $1.10 in the hours after the French election results.
Commodity Cove
Oil prices are under pressure even as Saudi Arabia assured that cartel OPEC would endeavour to cut production. Crude oil is at $46.45 and the international benchmark Brent oil is at $49.40. Crude oil inventories will be released tomorrow and are expected to be -2 million barrels.
Gold has shed 0.1% at $1225 per ounce as perceived risk in the market subsides.