Oil prices continue to rise and are now close to breaking through USD70

Danske Research Team Danske Bank A/S

Market movers today

There are no significant market movers today. Focus will be on the US and China relationship and the risk of a trade war between the two.
The EU Summit in Brussels continues today. A rate decision by the Russian Central Bank is due. The market consensus is for a rate cut of 25bp.
We have a number of rating reviews. We expect Spain to be upgraded by S&P.

Selected market news

The markets continue to be dominated by the fear of a trade war between China and US. China has responded with tariffs against the US, after the US announced tariffs of at least USD50bn. China has put tariffs of USD3bn on US goods, which includes pork and steel.

This sent equities tumbling yesterday and the Asian markets are all in negative territory this morning with a decline of 2-4%. Safe haven assets such as US Treasuries and Bunds have gained significantly. Treasuries continued their gains this morning in Asian trade and 10Y US Treasury yields are now close to breaking through 2.8%.

Oil prices continue to rise and are now close to breaking through USD70.

Yesterday, Spain's Luis de Guindos was, as expected, formally appointed as new ECB Vice President by EU leaders yesterday. We view de Guindos as less dovish than outgoing Vitor Constâncio, but still as a leaning dove. De Guindos will start on 1 June for a non-renewable eight-year period. We do not expect a market impact on the appointment.

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Danske Research Team

Danske Bank A/S

Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.

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