U.S. Indices were in the red for the large majority of the session on Tuesday, with the majority of sectors also residing in negative territory. Utilities and Energy were the only ones in the green, with the former buoyed by Constellation Energy (CEG) earnings and the latter by firmer oil prices. The crude complex was firmer, with prices rebounding from the earlier OPEC-induced downside, and also partially aided by the geopolitical developments amid Israel expanding its operations in Gaza and conflicting reports regarding the Houthis. Namely, a Houthi spokesman denied that the group will stop attacking Red Sea ships and stated that Trump’s statement that Houthis do not want to fight and the US will stop bombing is false. Trump added that he will take their word that they won’t be blowing up ships. Back to sectors, Health was the laggard, with vaccine and gene therapy names weighed on by reports that Vinay Prasad is tapped to run the FDA centre that regulates vaccines and gene therapies. The Dollar was weaker amid falling US Treasury yields, with all G10 FX gaining against the Dollar. The Euro and Sterling saw some strength in the Euro-Zone morning session after Reuters said the EU and the UK have agreed to hold annual summits to discuss their relationship. Later in the session, FT citing sources noted that the UK closes in on a US trade pact with lower tariff quotas for cars and steel. T-Notes chopped to the risk environment, German political chaos and supply, but rose to fresh session highs after the solid US 10 Year note auction. In data, US international trade for March fell to a deeper deficit than expected. In the updated Atlanta Fed GDPNow Model for Q2, it now estimates 2.2% growth vs. the prior 1.1% on May 1st. In addition, Canadian PM Carney and US President Trump met, and to open press, Trump said “no, it is what it is”, when asked if Carney could say anything to get the removal of tariffs. Nonetheless, after they met behind closed doors Senior Canadian government official said Carney’s lunch with US President Trump was constructive and Trump can’t have a Canada deal without tariffs being lifted. The US International Trade deficit in March rose to 140.5 billion from a deficit of 123.2 billion, larger than the expected deficit of USD 137 billion. Exports in March rose by USD 0.5 billion, but imports rose by USD 17.8 billion. The report also noted that the increase in the goods and services deficit reflected an increase in the goods deficit of USD 16.5 billion to USD 163.5 billion, and a decrease in the services surplus of USD 0.8 billion to USD 23 billion. Year-To-Date, the goods and services deficit increased 92.6% Y/Y, exports rose 5.2%, and imports rose by 23.3%. Looking at each trade partner, the deficit the US had with the EU was USD 48.3 billion, China USD 24.8 billion, Mexico USD 16.8 billion, Japan USD 5.8 billion, India USD 7.7 billion and Canada USD 4.9 billion. However, it had a surplus with the UK, Hong Kong, and Brazil among others. The rise in deficit in March likely continues to be driven by front-loading taking place ahead of the Liberation Day tariffs. Elsewhere, oil closed 3.4% higher while Gold surged, ending Tuesday with a further gain of 2.5%.
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For anyone following my Platinum Service it made 320 points yesterday and is now ahead by 1503 points for May after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1900 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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