Market Commentary: Thursday 1st May

May Day today, with European stock markets closed, as well as local holidays in China, Hong Kong, Singapore, and India.

The hot streak in US equities is continuing. Anticipated earnings from Microsoft and Meta beat analysts’ expectations, which had remained high despite recent tensions. S&P 500 and Nasdaq 100 futures both rallied at least 1% in post-trade. Sentiment continues to improve, helped by positive signals around potential trade deals.

The US and Ukraine have also reached a deal over access to natural resources in Ukraine, which will support the US’s position in peace talks with Russia. Lower tensions, combined with the Saudi-led OPEC+ alliance pushing for a prolonged period of higher production, have led to oil settling below $60 a barrel.

Gold also remains on the back foot due to improved risk sentiment and growing expectations that the Fed’s rate cuts may come sooner than previously expected.

The BoJ held rates at 0.5% as expected this morning, while pushing back its projected timeline for reaching the 2% inflation target to 2027.

We have the usual US jobless claims later today, but the main focus is on tomorrow’s Non-Farm Payrolls (NFPs).

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