MHMarkets ：MHM Today News

☆ At 22:00, USD Wholesale Inventories MoM (MAR)

☆ The following day at 2:00, the Federal Reserve will release the Senior Loan Officer Opinion Survey report, this report may help investors understand whether the U.S. banking industry has tightened lending standards, the degree of tightening and credit demand conditions.

☆ The following day at 4:00, the Federal Reserve will publish the 2023 Financial Stability Report.

☆ The following day at 04:45, Minneapolis Fed President Kashkari will host a discussion on the minimum wage, and watch for his thoughts on last Friday's strong non-farm payrolls data.

☆ Market closure reminder: London Stock Exchange is closed for one day for the coronation of Charles III.

Market Overview

Review of Global Market Trend

On Friday, as stronger-than-expected U.S. jobs data hit the market expectations of a Fed rate cut. Spot gold took a big dive and fell below the $2,000 mark before recovering and stabilizing above $2,010 to close down 1.63% at $2,016.91 per ounce. Spot silver fell along with gold, eventually closing down 1.43% at $25.67 per ounce.

After the release of the stronger-than-expected non-farm payrolls data, the dollar index once surged to an intraday high of 101.78, before giving back nearly all of its gains and turning lower, eventually closing down 0.16% at 101.28.

U.S. bond yields on Friday after a short pull back some of the gains, two-year U.S. bond yields stood above 3.9%, closing at 3.918%; 10-year U.S. bond yields rose back to 3.4% above, closing at 3.435%.

Crude oil rebounded on Friday, with both oils up more than 3%, but still recorded its third consecutive week of losses for the first time since November last year. WTI crude oil successfully stepped up to the $70 mark, eventually closing up 3.97% at $71.29 per barrel; Brent crude oil plate rallied back above $75, eventually closing up 3.84% at $75.27 per barrel.

U.S. stocks opened higher, with the Dow closing up 1.65%, the Nasdaq closing up 2.25% and the S&P 500 closing up 1.85%. Regional banking stocks rallied strongly, with Westpac Consolidated closing up 80%, Alerans West closing up 50%, and Apple closing up over 4% after earnings.

European stocks closed higher across the board, with Germany's DAX30 index closing up 1.44%; Britain's FTSE 100 index closed up 0.98%; Europe's Stoxx 50 index closed up 1.25%.

Market Focus

2. High temperatures in some parts of Vietnam break historical records.

3. Russia's Wagner Group to continue fighting in Bakhmut after being promised ammunition supplies.

4. U.S. Treasury Secretary Yellen reiterates Biden's willingness to negotiate separately on spending priorities; Biden to meet with congressional leaders on debt ceiling on May 9.

5. Saudi Arabia's oil revenue in the first quarter was about $47.7 billion.

6. The League of Arab States agreed to Syria's return to the Arab League.

7. Political turmoil, Slovakia's prime minister asked the president to remove him from office; Odor, deputy governor of the country's central bank, will be appointed as the new prime minister.

8. South Korea and Japan resume “shuttle diplomacy” and agree to deepen cooperation on chip and national security.

Institutional Perspective

01

Goldman Sachs

Goldman Sachs is cooperating with the U.S. investigation of Silicon Valley Bank.

02

SOCIETE GENERALE

Societe Generale: S&P 500 uptrend will continue once it breaks 4195/4220

May 3, Societe Generale said the S&P 500 is close to key graphic resistance 4195/4220, representing the February peak and the previous gap down. It has been within a bottom since October. Notably, the 50-DMA has crossed above the 200-DMA, forming a golden cross; this points to a potential upside. A breakout to the upside looks imminent. Once the index builds above 4195/4220, expect the uptrend to continue. The next potential targets could be last August's highs of 4320 and 4510.

03

MUFG

George Goncalves, head of U.S. macro strategy at Mitsubishi UFJ: This FOMC statement is consistent with the Fed's statement in 2006, when the Fed pushed the federal funds rate up to a peak of 5.25%. They never said outright “we're done (raising rates),” but in my opinion, this is the closest they've come to doing that.