Market action overnight had a European focus, with the US and UK on holiday. Markets were relieved that the weekend’s European elections resulted in less support for populist/anti-EU parties than feared, lifting the Eurostoxx 50 equities index by 0.5%, and pushing German and French bond yields lower.

Markets mainly eked narrow ranges ahead of the long weekend in the US. The S&P500 closed up 0.1%, and bond yields were contained, although major currencies firmed against the USD, and oil rose 1%.

Sentiment deteriorated as the US-China trade war intensified. The S&P500 is down 1.2%, and oil (-5%), bond yields and the US dollar fell.

Markets remained in a cautious mood. The S&P500 is down 0.2%, and bond yields are lower, while major currencies were contained. There was little fresh news on the trade war, and the FOMC minutes reiterated the Fed’s patient stance.

US equities rose overnight, the S&P500 up 0.9% as markets continued to fluctuate on US-China trade war news. Yesterday, the US temporarily eased some restrictions on Chinese firm Huawei, lifting stocks. US bond yields and the US dollar also rose.

US equities fell overnight, the S&P500 down 0.8% and the NASDAQ 100 down 1.7%, as US-China trade tensions continued to dampen sentiment. US technology stocks were hurt as firms reportedly started cutting supplies to Chinese firm Huawei in compliance with Pres. Trump’s order. Currency and interest rate markets were contained.

Sentiment was downbeat overall on Friday, the S&P500 closing down 0.6%, and the US dollar higher. US-China trade tensions appeared to dominate news of trade gestures to other countries. The AUD bounced this morning following the weekend’s Federal election.

Sentiment in equity markets remained upbeat, the S&P500 currently up 1.1%, despite the Trump Administration’s attack on Chinese firm Huawei. Bond yields and the US dollar also rose, helped by a solid batch of US economic data.

Sentiment was mixed among asset classes overnight. Disappointing US data pushed bond yields and risky currencies lower, but news that the US would delay tariffs on car imports caused a partial reversal, the S&P500 currently up 0.7%.

Sentiment improved following the more conciliatory comments from Pres. Trump on US-China trade. The S&P500 is currently up 1.2%, and bond yields are slightly higher.