US: US Court Blocks Trumps Liberation Day Tariffs, Risk Firms
May-28 23:26
Headlines have crossed that a US Federal court has blocked US President Trump's 'Liberation Day' tariffs. Risk appetite has improved following the headlines, with Eminis and Nasdaq futures extending gains. Eminis are now +1.30% (just off session highs and close to 5980). In the FX space, yen is off 0.40%, last near 145.45, with USD/UCHF up by 0.4% as well.
- Rtrs stated: "A U.S. federal court on Wednesday blocked President Donald Trump's "Liberation Day" tariffs from going into effect, ruling that the president overstepped his authority by imposing across-the-board taxes on imports from nations that sell more to the United States than they buy." It added "The Manhattan-based Court of International Trade said the U.S. Constitution gives the U.S. Congress exclusive powers to regulate commerce with other countries that are not trumped by the president's emergency powers to safeguard the U.S. economy."
- There are seven other lawsuit challenges going on in relation to tariff policies in 13 US states, RTRS notes.
- BBG adds that the ruling can be appealed by the Trump administration in Federal court.
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BONDS: NZGBS: Little Changed, Us tsys Rally As Texas Manf Survey Slumps
Apr-28 23:07
In local morning trade, NZGBs are little changed despite US tsys finishing near session bests Monday, with 2- to 10-year yields 2-5bps.
- Underlying bid as Dallas Fed's Texas Manufacturing Survey for April -- the weakest since the start of the Covid pandemic in 2020, as tariff uncertainty weighed heavily on manufacturers in the district, while price pressures remained elevated.
- Meanwhile, the US Treasury's latest borrowing/financing requirements estimates were slightly higher - but broadly in line with - MNI's estimates: $514B for the Apr-Jun quarter, and $554B for the Jul-Sep quarter.
- Finance Minister Willis said in her Pre-Budget speech that NZ’s government is cutting new spending in this year's budget due to US tariffs threatening global growth and the country's fiscal recovery. The operating allowance for Budget 2025 will be cut to NZ$1.3 billion from NZ$2.4 billion to allow for a return to budget surplus in 2029.
- NZ filled jobs rose 0.2% m/m in March versus a revised 0% in February.
- Swap rates are 1-2bps lower.
- RBNZ dated OIS pricing shows 27bps of easing priced for May, with a cumulative 82bps by November 2025.
- On Thursday, the NZ Treasury plans to sell NZ$250mn of the 4.50% May-30 bond, NZ$150mn of the 4.25% May-34 bond and NZ$50mn of the 5.00% May-54 bond.
MNI: UK APR BRC SHOP PRICES +0% M/M, -0.1% Y/Y
Apr-28 23:01
- MNI: UK APR BRC SHOP PRICES +0% M/M, -0.1% Y/Y
GOLD: Gold Jumps on Poor US Data
Apr-28 22:45
- Gold climbed into the US open to finish ahead having been lower for most part of the trading day.
- Gold finished higher by +0.73% at US$3,343.98, having been as low as $3,268.23 earlier in the day.
- As the USD continues to soften and bond yields rallied ahead of key US economic data on Wednesday, gold jumped as expectations for weaker data grew.
- Overnights’ data release, the Dallas Fed. Manufacturing Activity, fell to its lowest in 5 years with survey respondents showing executives describing the current situation as "chaos" as supply line disruptions decimate activity.
- This has reduced expectations for Wednesday’s data which sees employment , inflation and growth releases.
- Gold had started the week in the Asian trading session on the back foot, trending downwards before the Texas data which has refocused attention on the possibility that already the trade war may be showing up in US data.
