It was really a major test and any pretext could justify leveling on this kind of historical summit.
There were figures, rather satisfactory in the United States, and then there was the cracking of the US indices in the Wall Street afternoon.
It was first the symmetric of the day before (all gains erased in 5 hours) then the free fall over the last 90 minutes which precipitated the Dow Jones towards an annual low (-2.77% 32,977, i.e. – 4.7% on April), as well as the S&P500 (-3.63% 4,132, -7.8% on April), then the Nasdaq (-4.17% 12,334, i.e. -13.2% monthly, and especially , the worst April of the 21st century).
Such breakouts did not fail to affect the Dollar at the very end of the session: it fell to -0.7% against the Euro towards 1.0590 before stabilizing towards -0.4% at 1.0560 .
The greenback falls by -0.75% against the Yen towards 130 and by -1% against the Pound towards 1.2580
The second weakest currency was the Swiss Franc which lost -0.6% against the Euro (1.0270), -0.8% against the Yen, -1.1% against the Pound.
The Euro could have (but this is not the case) benefited from the increase in remuneration offered by the OATs which added +5 Pts of yield to 1.45% (+2 Pts weekly, worst level since August 2014), the Bunds +3.5 Pts 0.9350% (a znith was recorded at 0.956%, the 1.000% bar is approaching, unheard of since July 2014).
Because at the same time, the ’10 year old’ American stretched by +7 Pts to 2.930%, the ’30 year old’ crosses the bar of 3.00% in the end and the ’20 year old’ overflows the 3.20%.
The inversion of the curve is still the rule between ‘2032’ and maturities at 5 and 7 years (2.96 and 2.98% respectively), ‘7 years’ and ’30 years’ are parity this evening.
By scrutinizing the evolution of the greenback minute by minute on Friday afternoon, it seems that it benefited from the figures published at 2:30 p.m. and 3:30 p.m. pulled back to 1.0570 daily lows.
The positive effect of the US statistics did not last but for the record, consumer spending by American households increased by 1.1% in March.
The most watched component remains the ‘PCE’ price index (personal consumption expenditures) which adds +0.3 point +6.6% (annualis) but the ‘core PCE’ is ‘calm’ down by -0.1 point +5.2%.
Finally, Michigan’s Consumer Confidence Barometer rebounded sharply after April’s plunge: ‘UMICH’ came out at 65.2 this month, up from 59.4 in March, a gain of 9 .8%.
The University of Michigan highlights a sharp rise in the ‘consumer expectations’ component from 54.3 to 62.5 with the hope of a decline in the price of gasoline.
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