Spain 12-Month Letras Auction increased to 2.635% from previous 2.611%

Spain 6-Month Letras Auction down to 2.357% from previous 2.362%

BNY’s John Velis reviews the April Federal Open Market Committee (FOMC), highlighting four dissents against the easing bias and implications for future policy under incoming Chair Kevin Warsh.

Here is what you need to know on Tuesday, May 5:

ING analysts Warren Patterson and Ewa Manthey note that ICE Brent has surged as renewed conflict in the Persian Gulf raises concerns over supply disruptions.

OCBC strategists Sim Moh Siong and Christopher Wong highlights renewed weakness in Silver as Middle East tensions and higher Oil prices weigh on risk sentiment.

Spain Unemployment Change below expectations (-18.6K) in April: Actual (-62.668K)

Spain Unemployment Change below expectations (-18.6K) in April: Actual (-62.7K)

Danske Research Team notes that global equities fell, with the S&P 500 down 0.4% and Stoxx 600 off 1% on Iran-related headlines. The session was characterized as de-risking, with most sectors lower except tech and energy.

Switzerland Consumer Price Index (MoM) came in at 0.3% below forecasts (0.4%) in April

Switzerland Consumer Price Index (YoY) up to 0.6% in April from previous 0.3%

Singapore Retail Sales (MoM) rose from previous -4.1% to 3.7% in March

Singapore Retail Sales (YoY) fell from previous 8.3% to 4.8% in March

Australia RBA Interest Rate Decision meets forecasts (4.35%)

Indonesia Gross Domestic Product (QoQ) registered at -0.77% above expectations (-0.97%) in 1Q

Indonesia Gross Domestic Product (YoY) came in at 5.61%, above forecasts (5.3%) in 1Q

New Zealand ANZ Commodity Price dipped from previous 4.1% to -0.8% in April

The International Monetary Fund (IMF) managing director Kristalina Georgieva warned that inflation is already picking up and the global economy could face a “much worse outcome” if the war in the Middle East drags into 2027 and oil prices hit about $125 a barrel, Reuters reported on Tuesday.

The USD/CAD pair edges lower to near 1.3620 during the early Asian trading hours on Tuesday. Escalating tensions in the Middle East after the United Arab Emirates (UAE) reports missiles and drone threats from Iran underpin the commodity-linked Canadian Dollar (CAD).

Australia S&P Global Composite PMI above forecasts (50.1) in April: Actual (50.4)

Australia S&P Global Services PMI came in at 50.7, above forecasts (50.3) in April

MUFG’s Michael Wan flags a significant shift as China formally invokes its 2021 Blocking Statute for the first time, targeting recent US sanctions on five Chinese refineries linked to Iranian Oil.

Argentina Tax Revenue (MoM) fell from previous 16071B to 17B in April

OCBC strategists Sim Moh Siong and Christopher Wong report that USD/SGD fell into the New York close, helped by a sharp Brent decline and a pullback in USD/JPY, easing immediate inflation and yield concerns.

UOB’s Enrico Tanuwidjaja and Vincentius Ming Shen note Indonesia’s April inflation slowed to 2.42% year-on-year, below expectations but within Bank Indonesia’s (BI) target. They highlight post-holiday normalization, contained energy inflation thanks to subsidized fuel, and steady core inflation.

Joachim Nagel, member of the European Central Bank (ECB) and President of the Bundesbank, spoke in Frankfurt am Main, Germany, on Monday. He said that the longer the Middle East conflict lasts, the greater the risk of high inflation will reimain without ECB intervention.

DBS Group Research economist Ma Tieying upgrades Taiwan’s 2026 GDP growth forecast to 9.4% from 7.0%, citing stronger-than-expected AI-driven exports and resilient ICT demand. The report notes robust first-quarter GDP and expects quarterly growth to moderate later in 2026.

John Williams, President of the Federal Reserve (Fed) Bank of New York, said in a prepared speech at the Cynosure Group Spring Symposium in New York, United States (US) on Monday, that there is no way to know yet how the Iran war impact will play out for the United States economy.

Standard Chartered’s Hunter Chan and Shuang Ding expect robust external demand to support China’s April industrial production and trade, even as services and construction soften. They see higher Oil prices lifting PPI and energy CPI, while headline CPI stays at 1% year-on-year.

ABN Amro's Albert Jan Swart notes that Dutch manufacturing is expanding strongly, with the Nevi Dutch Manufacturing PMI jumping to its highest level since 2022 as companies stockpile due to Middle East supply disruptions.