TradeTheNews.com: Weekly Wrap-up

 

-US equity indices have sustained modest gains in the four-day trading week (markets were closed for Memorial Day on Monday) on modest volume as investor attention has focused on big moves in bond and currency markets. With the fallout of the massive US budget taking its toll, yields on US Treasuries and currency trading in USD pairs took out key levels all week long. Bond guru Bill Gross summed up the situation in fixed income, noting that the "new normal" for Treasuries has arrived, warning that markets are wondering who will buy USTs moving forward. The EUR/USD closed out the week back above 1.41 for the first time in five months, helping to propel crude futures above $66/barrel.  Crude had its biggest one-month percentage gain in nearly a decade in the month of May, rising over 30%.  For its part OPEC met in Vienna and left its output levels unchanged, but said it would focus on continuing to improve compliance. Consumer confidence data surprised investors this week, with the Commerce Department reporting its May confidence reading well above expectations, hitting a seven month high.  That helped propel stocks to another weekly gain: for the week, the S&P 500 rose 3.6%, the DJIA gained 2.7% and the Nasdaq Composite climbed 4.9%.