Daily Market Reviews

Economic Calendar for May 25, 2017



Time (GMT) Currency Event Previous Forecast
All Day CHF Bank Holiday    
All Day EUR French Bank Holiday    
All Day EUR German Bank Holiday    
08:30 GBP Second Estimate GDP q/q 0.3% 0.3%
All Day ALL OPEC Meetings    
12:30 USD Unemployment Claims 232K 238K
23:30 JPY Tokyo Core CPI y/y -0.1% 0.0%


Global Commentary


Asian markets ended broadly higher on Wednesday, with even Chinese markets rising after their first credit downgrade in nearly 30 years.  The Shanghai Composite on mainland China fought back from an early loss of 1% after ratings firm Moody’s downgraded the country’s credit for the first time since 1989, and closed the session 0.06% higher.  Hong Kong’s Hang Seng followed the mainland lower, and later mirrored its recovery to end the day 0.10% higher.  Australia’s S&P/ASX 200 was also negatively impacted by the credit downgrade early, but later bounced back to close out the day with a 0.15% gain.  The best performance in the region came from Japan, where the Nikkei added 0.66% in response to weakness from the Yen versus the U.S. dollar.  In South Korea the Kospi gained 0.24%, while the Straits Times Index in Singapore ended 0.27% higher.  European markets were broadly higher on Wednesday, but mixed on a country specific basis as investors remained cautious ahead of the release of the latest Federal Reserve meeting minutes and a late day speech by ECB president Mario Draghi.  The pan-European Stoxx Europe 600 ended the session 0.09% higher, but Germany’s DAX and the French CAC 40 were both 0.13% lower at the close.  London’s FTSE added 0.40% as it erased early losses and outperformed European Union markets.  Markets in the U.S. hovered just above unchanged levels for much of the day before jumping following the release of the latest Federal Reserve meeting minutes as they pointed to broad based agreement on shrinking the Federal Reserve balance sheet and raising interest rates at the June meeting.  At the close the S&P 500 was higher by 0.25%, the Dow was up by 0.36%, and the Nasdaq had a 0.40% gain.



EUR – The Euro reversed its weakness from the previous session and firmed against the USD and Pound on Wednesday, while ending the day nearly unchanged versus the Yen after ECB president Mario Draghi spoke in Madrid and said he sees improvement in the Eurozone economy as a result of loose monetary policy.

GBP – The Pound softened modestly against the Euro and Yen on Wednesday, but managed to come off lows and firm somewhat versus the U.S. dollar.

USD – Despite the latest Federal Reserve meeting minutes showing support for a June interest rate hike in the U.S., the USD ended the day broadly softer versus rival currencies.

JPY – The Yen was mostly stronger on Wednesday, firming versus the Pound and USD, but ending nearly unchanged against the Euro.

TRY – The Lira firmed against the Pound and USD in choppy trade on Wednesday, while ending the day nearly unchanged versus the Euro and Yen.

RUB – The Ruble softened against the Euro and Yen, while ending the day close to unchanged versus the Pound and USD.


Metals – Precious metals fell on Wednesday ahead of the highly anticipated Federal Reserve meeting minutes as traders are expecting interest rates to rise this coming June.  June gold lost $2.40, or 0.2%, to settle at $1,253.10 an ounce.  July silver fell $0.022, or 0.1%, to finish at $17.117 an ounce.

Oil – Crude fell for the first time in six sessions on Wednesday as traders began to take profits following the recent gains in the commodity in anticipation of a production cut extension by OPEC.  The drop also came as the U.S. Energy Information Agency reported a seventh consecutive week of falling U.S. crude inventory levels.  July West Texas Intermediate crude shed $0.11, or 0.2%, to settle at $51.36 a barrel.




S&P500 – The S&P traded along unchanged levels on Wednesday as investors awaited the release of the latest Federal Reserve meeting minutes.  Once the meeting minutes were released showing a June interest rate hike is likely the market moved higher, closing with a gain for the fifth session in a row as it tacked on 0.25% and reached a new record high.


DAX – The DAX traded back and forth in a tight and choppy range on Wednesday as investors couldn’t pick a direction ahead of a speech by ECB president Mario Draghi and the release of the latest Federal Reserve meeting minutes in the U.S. later in the day.  At the close the DAX was off its session lows, but still posted a loss of 0.13% for the day.

Nikkei – The Nikkei began the day substantially higher, but fell in early trade in sympathy with Chinese losses following the credit downgrade of the Chinese government.  After trading in a tight range for most of the remaining session the Nikkei turned higher in the final hour of trade and finished 0.66% higher, leading gains across the Asian region.


Nike Inc. – Shares of the sports apparel maker rallied along with the broader market following the U.S. presidential election, nearly reaching the previous highs near $60 a share before dropping back throughout much of 2017.  Recently the stock has traded down to $52 a share and looks as if it will test the support at the $50 a share level.  It’s likely that support will hold and allow the stock to bounce, as it is a solid support level for the stock.  Once we do get a bounce we should see shares trading back to the $55 a share level before encountering much in the way of resistance.  Sales and revenues remain solid for Nike, and the summer is always a strong sales season for the company, so we may need to wait until results for the third quarter are released before we see any real rally in shares.