Reply To: Traders Market Weekly: Bear Jitters as Risk Factors Deepen

#37040
Truman
Participant

In Asia, both China and Japan finished with better than 1% gains. The Shanghai Composite got a boost when the PBOC cut its benchmark reference rate. Although the central bank kept the one-year lending rate steady at 3.7%, it lowered the five-year prime rate by 15 bps to 4.45%. The Hang Seng responded in kind with a 3% move of its own. In Japan, the Nikkei posted an advance of 1.3%. The Core CPI for April was inline with expectations at 2.1%. Metals and mining names were among the best groups with Japan Steel Works, Pacific Metals and Toho Zinc finishing 5-7% higher.

In Europe, the major bourses are following this morning’s wave higher in equities. The markets have shrugged off hotter than expected PPI data from Germany. The April print saw prices rise 2.8%, far exceeding the forecast of 1.4%. The UK saw better than expected Retail Sales for April. Automotive stocks are hot with names such as Volkswagen, Stellantis and Renault surging 3-4%.