Recap of May Financial Markets 6/2/11

May was volatile for many asset classes – and the futures & commodities markets were no exception. Some notes on May’s market action:

· Crude Oil: after hitting recent highs to end April ($115/barrel on the July contract), crude oil declined the first 5 days of May (including -9% in a single day) – as it lost -20% (to $95), before consolidating at $100/barrel.

· Gold: similar to crude, Gold hit highs at the end of April near 1580, then collapsed all the way to 1480 – before settling the month at 1540.

· Equity Markets: global stock markets were down in May, with the S&P ending down -1.1% (rallying from a low of -3.5% at mid-month). European markets underperformed due to debt worries.

· Currencies: the US dollar has shown strength as the markets try to sort out economic growth, debt problems, and other key forex drivers.

· Bonds: the fixed income market was one of the better markets for trading programs during May, as the “flight to safety” caused bonds to rise.