May 2019 in Figures
June 1, 2019
The month of May exemplified the global interdependence national financial markets, and the unifying force was rising risk aversion. Whereas equities had climbed broadly in April, all the ones shown below dropped just about as sharply in May. Likewise, climbing 10-year sovereign debt yields in April were reversed last month, and except in the case of Japan, movements in May were even more pronounced than ones in April.
None of the central bank policy rates in the U.S., Euroland, Japan, Great Britain, or Switzerland changed during May, nor had any changes been anticipated. Keeping with the risk aversion theme of the month, the price of a troy ounce of gold closed out May at its highest daily closing level in eight weeks, and WTI oil dived 16.3% to its lowest close since mid-February.
Dollar movements during May were varied. The U.S. currency had dropped sharply against commodity-sensitive currencies back in January, but the subsequent dollar uptrend against the Canadian, Australian, and New Zealand monies was extended further in May. Sizable advances in the U.S. dollar were also recorded relative to sterling and the Chinese yuan. British Prime Minister May resigned after failing repeatedly to secure parliamentary unity behind her Brexit plan, creating even more uncertainty and trepidation about her country’s economic and political future. U.S. and Chinese trade negotiators drew further and further apart, giving way to a fresh escalation of their trade war. The dollar’s 2.5% net appreciation against the yuan was an unusually large shift for a single month.
| 10-Yr Yield | 05/31/19 | 04/30/19 | Chg in May |
| U.S. | 2.13% | 2.50% | -37 Basis Points |
| Germany | -0.21% | 0.01% | -22 |
| Japan | -0.10% | -0.06% | -4 |
| U.K. | 0.88% | 1.18% | -30 |
| Canada | 1.48% | 1.71% | -23 |
| Switzerland | -0.51% | -0.35% | -16 |
| CB Policy Rate | 05/31/19 | 04/30/19 | Chg in May |
| Fed funds target | 2.25/2.50% | 2.25/2.50% | 0 Basis Points |
| ECB deposit rate | -0.40% | -0.40% | 0 |
| BOJ policy rate | -0.10% | -0.10% | 0 |
| BOE Bank Rate | 0.75% | 0.75% | 0 |
| Swiss 3M Libor | -1.25/-0.25% | -1.25/-0.25% | 0 |
| FX | 05/31/19 | 04/30/19 | Pct Chg in $ |
| EUR/USD | 1.1169 | 1.1230 | +0.5% |
| USD/JPY | 108.35 | 111.38 | -2.7% |
| USD/CHF | 1.0013 | 1.0189 | -1.7% |
| GBP/USD | 1.2632 | 1.3038 | +3.2% |
| AUD/USD | 0.6935 | 0.7052 | +1.7% |
| NZD/USD | 0.6539 | 0.6681 | +2.2% |
| USD/CAD | 1.3518 | 1.3392 | +0.9% |
| USD/CNY | 6.9050 | 6.7346 | +2.5% |
| Equities | 05/31/19 | 04/30/19 | Chg in May |
| S&P 500 | 2752 | 2946 | -6.6% |
| Nasdaq | 7753 | 8095 | -4.2% |
| Djia | 24815 | 26593 | -6.7% |
| Dax | 11726 | 12344 | -5.0% |
| Nikkei | 20601 | 22259 | -7.4% |
| Ftse | 7162 | 7418 | -3.5% |
| Canada TSE | 16037 | 16581 | -3.3% |
| Swiss SMI | 9524 | 9770 | -2.5% |
| Commodities | 05/31/19 | 04/30/19 | Chg in May |
| Oil, $ per barrel | 53.50 | 63.91 | -16.3% |
| Gold, $ per ounce | 1305.80 | 1282.80 | +1.8% |
Copyright Larry Greenberg 2019. All rights reserved. No secondary distribution without express permission.
Tags: equities, foreign exchange, gold and oil, sovereign debt yields
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