The U.K. will take part in EU elections since their exit from the union has not been finalized. There are still calls for Prime Minister Theresa May to step down, though she claims to see an end to the turmoil. Talks with Tories have continued, while anticipation of another referrendum looms large. The pound still made gains amid the rumors.
The euro turned weaker after the European Commission slashed its growth forecasts for the euro area and warned that escalating trade tensions could worsen the outlook. Due to a slowdown in the global economy, unresolved trade disputes and “exceptional weakness” in manufacturing the forecasts reflect more pronounced weakness in the region. Meanwhile sentiment has taken a hit from disruptions in the auto industry, social unrest, and uncertainty related to Brexit.
In Asia, Korean and Japanese shares slid as both markets reopened after holidays, though stocks in Shanghai and Hong Kong climbed. However, investor sentiment around China remains fragile as traders wait for the next development in the trade dispute. China’s government confirmed Tuesday that Vice Premier Liu He would visit the the U.S. for trade talks on May 9 and 10. At the same time, the country was said to be preparing retaliatory tariffs on American imports if Trump carries out his threat of further duties.
Times in GMT
NZD RBNZ Interest Rate Decision
Predicted: 1.50% Previous: 1.75%
NZD RBNZ Rate Statement
NZD RBNZ Press Conference
EUR ECB President Draghi Speaks
EUR ECB Publishes Account of Monetary Policy Meeting
USD Crude Oil Inventories
Predicted: 0.744M Previous: 9.934M
Euro STOXX 50
The European index’s 1D chart has shown a Three Outside Down signal indicating a likely reversal to a downtrend.
Cable’s 1D chart has shown a Two Inside Down pattern indicating a downtrend.