Overview:
The recovered yesterday after dipping trading below the 20-day moving average for the first time in a month. The key area is the gap between the April 30 low (~2892.5) and the May 1 high (~2869).
reversed higher as well. June crude was off nearly 9% in the US morning and closed 7% higher on the day and above $21 for the first time since April 21, the day of negative oil prices. Equities are advancing further today, and oil is extending its gain. Japan, China, and South Korea markets were closed, but other bourses in the region advanced. Thailand was a notable exception. Europe’s Dow Jones is snapping a three-day decline, and US stocks are also firmer and poised to extend yesterday’s gain. With oil and equities moving higher, bonds have lost some appeal.
The German high court ruling raised questions over the ECB’s asset purchases program, and this weighed on peripheral yields, especially Italy, and triggered sales of the , which fell to around $1.0825 after poking…
