Market Commentary: Tuesday 7th May

Over the long UK weekend, the equity markets have buoyed optimism that the Federal Reserve will start cutting interest rates this year, both the Fed Bank of Richmond President Thomas Barkin and his New York counterpart John Williams said yesterday that 'there will be rate cuts' — but the decision on when will depend on the totality of the data.

Overnight the RBA kept rates on hold at a 12 year high of 4.35% in the RBA press conference. Governor Bullock opened her speech by describing that things are a bit bumpy and challenging. “The board is not ruling anything in or out ... The best thing that the RBA can do for all Australians is to get inflation back to range." She kept a neutral tone, saying that "policy is restrictive and that we don't necessarily have to tighten again but we cannot rule anything in or out ... we might have to raise or we might not." The currency fell from 0.6630 to 0.6600 and opens at 0.6590 this morning. The other currency mover have been the Yen at that open at 154.50 today and still looks like it will head back to the intervention levels of last week.

In other markets, the yield on 10-year Treasuries declined two basis points to 4.47%, Bitcoin rose 0.1% to $63,369.2, Ether fell 0.4% to $3,065.86, West Texas Intermediate crude rose 0.2% to $78.63 a barrel and Spot gold was little changed at $2320 per ounce. As for the day ahead we are data light, but we do have UBS earnings, BP earnings and Walt Disney as for the speakers we hear from the Minneapolis Fed President Neel Kashkari.

**For professional investors only** Any opinions, news, research, analyses, prices, or other information contained in this blog is provided as general market commentary and does not constitute (and should not be construed as containing) investment advice or an investment recommendation, or an offer of, or solicitation for, a transaction in any financial instrument. Some of this information may have been provided by third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. No representation or warranty, expressed or implied, is made or given by or on behalf of iSAM Securities or its directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this blog, and no responsibility or liability is accepted for any such information. As a result, any person acting on any information does so entirely at their own risk. iSAM Securities will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.