Emerging market equities set for strong monthly gains

Friday, May 30, 2014

Emerging market equities set for the longest stretch on monthly gains since 2009 as a new government in India and economic stimulus in China increased risk appetite and market sentiment. Russia and Ukraine’s equity markets climbed more than 10% in May, as easing political conditions in the region provided well-needed support.

The Hang Seng edged more than 0.1% higher this morning, finishing the month above 23,000, showing its biggest gain in six months. The Nikkei slid lower today but ended the month above the 14600 points.

Nikkei Index - Monthly performance

NKY Index (Nikkei 225)  2014-05-30 08-56-26 

Hang Seng Index - Montly performance

HSI Index (Hong Kong Hang Seng I 2014-05-30 08-56-09

The JPY strengthened for a third consecutive session against the US dollar, as inflation increased in Japan by 3.2% y/y in April, limiting any prospects for additional stimulus programme.

The Dow Jones Index and S&P 500 posted fresh gains yesterday, finishing the session 0.39% and 0.54% higher, respectively. The USD index consolidated around 80.4 in early trade this morning ahead of the release of US personal consumption, Chicago PMI and market sentiment from the University of Michigan/ Thomson Reuters survey.    

Dow Jones Index -monthly performance

INDU Index (Dow Jones Industrial 2014-05-30 09-00-25

German retail sales fell sharply by 0.9% in April against expectations of a 0.4% rise. European equity markets have been trading sideways in early trade this morning struggling for clear direction. The euro has edged higher trading above 1.36 against the USD.

Oil: Brent front month futures consolidated around $110 per barrel for a third straight session, as a steep decline in US gasoline stocks revived hopes of steady demand growth in the US economy despite the sharp build in crude oil inventories. According to the latest DOE weekly report, crude stocks increased by 1.6 million barrels against expectations of 483,000 barrels, while distillate and gasoline inventories declined by 196,000 and 1.8 million barrels, respectively.

Precious Metals: Gold steadied around $1250/ounce after a three-day losing streak, but was heading for its biggest weekly decline in two months as solid US economic data improved market sentiment across equities and commodities but dented gold’s appeal as an investment-hedge.

XAU- Gold Spot Daily Chart

XAU Curncy (Gold Spot   $_Oz )  D 2014-05-30 09-01-11


Events for today:









Retail Sales




Personal Income/consumption




Chicago PMI




Michigan Survey Final


All times UK Local Time

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