US stocks closed higher overnight on positive of jobless claims suggesting a cooling of the US labor market. Dow up 169 points (+0.5%). Dow at best up 209. Dow at worst down 35 points. S&P 500 up 0.62% hitting a fresh closing high for the year. NASDAQ led the market up 1.02%. VIX Volatility Index fell to a fresh post-pandemic low, down 2.1% ahead of an eventful economic and policy calendar next week. US treasury yields edge lower, 10Y yield down 6.6bps, 2Y yield off 3.3bps, while gold prices steadied up 1.45% following the previous day’s 1.18% fall.  Meanwhile, the USD Index fell 0.73% and the Aussie dollar was flat. ASX to rise today, with SPI futures up 29 points (+0.41%).

In European markets, STOXX 50 +0.1%, FTSE -0.3%, CAC +0.3%, and DAX +0.2%. Money markets pricing in a 72.2% chance of the Fed pausing next week compared to 79.6% just a week earlier. Tesla shares up 4.58% on news GM will join Ford in adopting Tesla’s charging plug standard and give GM electric vehicle buys access to Tesla’s network under an agreement. Gamestock fell 17.9% on poor sales results and the dismal of its fifth CEO in five years.

HEADLINES

• GM adopts Tesla's charging system, praised by Wall Street.
• Carvana shares surge on positive Q2 outlook.
• US unemployment claims reach 1.5-year high with caution due to Memorial Day.
• IMF advises continued tightening by Fed and central banks to reduce inflation.
• US household wealth hits one-year high driven by stocks and Treasuries.
• Bunge finalizes $30 bn merger with Viterra, creating agricultural trading giant.
• Toshiba board recommends $14 billion buyout to shareholders.

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