Breaking News

Top 5 Things To Know In The Market On Tuesday

EconomyMay 29, 2018 05:52AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Top 5 things to know today in financial markets - Here are the top five things you need to know in financial markets on Tuesday, May 29:

1. Sea Of Red In Europe As Italy Risk Rocks Markets

A deepening political crisis in Italy provoked a second day of heavy selling on European financial markets, with the euro cut to a 6-1/2 month low, stocks punished and short-term borrowing costs surging for the government in Rome.

Italy’s FTSE MIB led losses across the continent, with the index down around 3%.

Investors also fled Italian debt, as the 2-year bond yield soared by 172 percentage points to 2.42%, the biggest one-day rise since 1992.

Italy's anti-establishment parties abandoned plans to form a coalition government after the country's president, Sergio Mattarella, refused to accept their euroskeptic candidate for economy minister.

Mattarella then asked Carlo Cottarelli, a former International Monetary Fund official, to try to form a new government, with snap elections expected.

Financial markets fear that the elections, which could take place as early as August, may become a de facto referendum on Italian membership of the currency bloc and the country's role in the European Union.

That sparked the euro to slip below the $1.16 level for the first time since late 2017, while the gap between Italian and German 10-year bond yields - a measure of Italian risk - widened to its highest in over four years.

Meanwhile, political uncertainty in Spain hit Madrid-traded stocks, as Prime Minister Mariano Rajoy’s struggle to stay in power raised fears of new elections.

2. Dow Futures Drop 200 Points

U.S. stock futures pointed to a sharply lower open, as investors returning to their desk after a long weekend monitored political turmoil in Italy, while awaiting fresh data and earnings.

At 5:50AM ET, the blue-chip Dow futures sank 200 points, or about 0.8%, the S&P 500 futures slumped 21 points, or nearly 0.8%, while the tech-heavy Nasdaq 100 futures indicated a decline 47 points, or roughly 0.7%.

U.S. stocks were closed Monday due to the Memorial Day holiday.

On the earnings front, Booz Allen Hamilton (NYSE:BAH) and Momo (NASDAQ:MOMO) are scheduled to publish their latest corporate results ahead of the open, while (NYSE:CRM) and HP (NYSE:HPE) are due after the bell.

In data, the S&P/Case-Shiller house price index (HPI) is set to be released at 9AM ET, followed by consumer confidence at 10AM ET and the Dallas Fed's manufacturing survey at 10:30AM ET.

3. Treasurys Rally Amid Risk-Off Mood

In another sign that investors were flocking to safer bets, U.S. government debt prices posted sharp gains.

The yield on the benchmark 10-year Treasury note fell to a six-week low of 2.799%. It last stood at around 2.85%, down 8.6 basis points.

The yield on the 30-year Treasury bond was also deep in the red at 3.02%.

Core European bond prices also rallied amid the risk-off atmosphere across global markets.

Germany's 10-Year dipped 6.0 basis points to 0.27%, hitting the lowest in more than five months with its fifth straight decline.

4. Dollar Jumps To Near 7-Month Highs

The lack of risk appetite ploughed cash into the U.S. dollar, lifting the dollar index, which benchmarks the greenback against a basket of six global currencies, to 94.91, the highest since November 7.

But against safe haven yen, it dipped 0.6% to a three-week trough of 108.75 (USD/JPY).

The euro sank 0.9% against the dollar to 1.1519 (EUR/USD), the weakest in almost seven months.

The British pound fell 0.5% to 1.3240 (GBP/USD), the weakest in about six months.

5. Oil Prices Stay Under Pressure

Crude prices continued to struggle near their lowest levels in around six weeks, amid expectations that Saudi Arabia and Russia would pump more oil to ease a potential shortfall in supply.

Brent crude futures were up 20 cents, or around 0.3%, at $75.50 a barrel, within sight of their lowest since May 8 at $74.53 reached in the last session.

U.S. West Texas Intermediate WTI crude was down $1.36, or 2%, at $66.53 a barrel, sitting around its lowest since April 17.

The U.S. benchmark did not settle on Monday due to the Memorial Day holiday.

Top 5 Things To Know In The Market On Tuesday

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email