Global Markets:
- Asian Stock Markets : Nikkei up 1.64%, ASX up 0.53%
- Commodities : Gold at $1332.20 (-0.60%), Silver at $16.26 (+0.01%), WTI Oil at $68.35 (+0.49%), Brent Oil at $63.64 (+0.43%)
- Rates : US 10-year yield at 2.812, UK 10-year yield at 1.364, Germany 10-year yield at 0.502
News & Data:
- (AUD) Trade Balance 0.83B vs 0.68B expected
- (USD) Crude Oil Inventories -4.6M vs 1.4M expected
- (USD) ISM Non-Manufacturing PMI 58.8 vs 59 expected
- (USD) ADP Non-Farm Employment Change 241K vs 208K expected
- (EUR) Core CPI Flash Estimate y/y 1.00% vs 1.10% expected
- (EUR) CPI Flash Estimate y/y 1.40% vs 1.40% expected
- (GBP) Construction PMI 47 vs 50.9 expected
- BoJ releases Quarterly public opinion of Household Sentiment: Inflation expectations in Japan have remained unchanged from last forecast 3mths ago
- Trump is said to soften key NAFTA demand on automotive content
Markets Update:
Asian markets recovered from two-month lows, as fears of a full-blown trade war between China and the US eased. Risk sentiment was lifted as the United States expressed willingness to negotiate a resolution to the trade fight after the proposed U.S. tariffs on $50 billion in Chinese goods prompted a quick response from Beijing that it would retaliate by targeting key American imports.
Many investors viewed U.S. President Donald Trump’s latest tariffs plan as part of his negotiation strategy, rather than his final policy. Trading activity relatively light as Greater China bourses are closed for the Ching Ming Festival. Mainland markets will remain closed tomorrow.
Nikkei outperforming, with Topix sectors led by pharmaceuticals and precision instruments, though there are no major domestic themes. Australia strength led by the big banks, consumer staples and IT with materials little changed. KOSPI also up sharply, underpinned by major tech names.
As a result of the improved risk sentiment, the yen fell against the dollar, hitting weekly lows. At the same time, gold also retraced gains made earlier this week. Crude rebounded after US Crude Oil inventories surprised. The Canadian dollar and Mexican peso are trading higher, on expectations of a NAFTA trade deal.
Upcoming Events:
- 08:30 AM GMT – (GBP) Services PMI
- 12:30 PM GMT – (CAD) Trade Balance
- 12:30 PM GMT – (USD) Unemployment Claims
- 04:00 PM GMT – (CHF) Gov Board Member Maechler Speaks
- 05:00 PM GMT – (USD) FOMC Member Bostic Speaks
