Euro-Area Manufacturing Makes Slight Rebound as Economies Reopen
UNITED STATES
US stocks closed modestly higher on Monday despite the protests that have rocked cities. The NASDAQ closed 0.65% higher while the S&P and the DOW closed 0.37% and 0.36% higher, respectively. Yield on 10Y USTs closed higher at 0.6591%.
UNITED KINGDOM
UK residential properties recorded their largest price drop since the financial crisis in May as household incomes were significantly disrupted by the coronavirus. Prices fell 1.7% compared to April with some analysts commenting that it could be “the start of a protracted decline” in prices, reversing the strong start to the year the property market had exhibited. The pound closed firmer at $1.2492 while yield on 10Y UKTs closed higher at 0.231%.
EUROPEAN UNION
Euro-area manufacturing made some recovery in May with PMI coming in at 39.4 from April’s record low of 33.4. The figure remains firmly in contraction territory and perhaps shows the pace at which economies will pick up from the lockdowns. Germany also has a slight uptick at 36.6 from April’s 34.5. The euro closed higher at $1.1136 while yield on 10Y DBRs closed higher at -0.402%.
ASIA
Asian markets were higher on Tuesday with the NIKKEI leading gains of the major bourses, up 1.19%. The HANG SENG closed 0.91% higher while the ASX and CSI had comparatively modest gains of 0.27% and 0.20% respectively.
LATAM
The real was the worst-performing major EM currency on Monday as protestors clashed in major cities amid growing tensions President Bolsonaro and the judiciary. The currency slid 0.56% to close at 5.3663 to the dollar and would have slid further had the central bank not stepped in to sell a cumulative $530 million in spot auctions. BRAZIL 29s were slightly higher, trading in the mid 103s.
SSA
South Africa’s vehicle sales rebounded in May following a dismal figure of only 570 total sales in April. About 13,000 vehicles were sold for the month as the economy started reopening after a near-total lockdown in April. The uptick in vehicle sales was also complemented by a manufacturing reverting to expansionary territory for the month, coming in at 50.2. The rand closed firmer at 17.3683 to the dollar while SOAF 29s traded up, in the mid 92s.