Most Asian markets closed lower, although the Japanese stock exchange was closed for a holiday (“Green Day”). Producers of raw materials reported losses due to falling metal prices following the publication of the PMI index for the manufacturing sector in China. This indicator dropped to 50.30, the lowest reading since September 2016, raising doubts about the growth of the country’s economy which is the world’s largest copper consumer.
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Sergey Golubev, 2017.05.06 13:38
Weekly Fundamental Forecast for S&P 500 (based on the article)
S&P 500 - "Looking ahead to next week, market participants will be reacting to the outcome of the French run-off election between Macron and Le Pen. The futures market will move on developments in European markets. If Macron wins we could see another gap higher as we did following the first-round results. But as discussed above, the ‘gap-n-trap’ scenario could see the CAC 40 fade long before the US open arrives. If that is the case, overnight futures gains could be erased by the time the US open rolls around. It’s just a scenario at this time, but one we’ll be tracking should things unfold in that direction. If Le Pen pulls the surprise victory, a gap-down and sell-off will likely be in play."
Yesterday, after the election results were known, the Euro appreciated against the Dollar for the highest level of the last 6 months and against the Yen for the highest value of the last year. The recent behavior of the markets already had discounted a victory of Macron, limiting now a further rally.