The Daily View – 25. April 2018

  • Overnight, the US Dollar traded mostly stronger against its G10 peers, particularly against AUD and NZD
  • 10y UST yields bounced off of 3% on Tuesday but came back and was pretty much at 3% at the close in the US
  • Oil prices on Wednesday fell back from more than three-year highs, after the API reported that inventories rose by 1.099 mn barrels last week, compared to expectations for a 2.648 mn barrel decline
  • The Dow Jones declined quite sharply on Tuesday as a warning from Caterpillar and higher US bond yields weighed on the market. Caterpillar warned that margins may have peaked in the first quarter due to rising manufacturing costs. Not surprisingly, Asian stock markets have also been trading on the weak side
  • US President Donald Trump said on Tuesday that talks on a revised Nafta deal are “doing very nicely” as ministers from the US, Mexico and Canada meet in Washington to try to push for an agreement by early May