Tuesday 10th March: Markets recover from yesterday’s firesale

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.85%, Shanghai Composite up 1.82%, Hang Seng up 1.62%, ASX up 3.11%
  • Commodities : Gold at $1664.00 (-0.70%), Silver at $17.08 (+0.12%), Brent Oil at $36.69 (+6.78%), WTI Oil at $33.12 (+6.39%)
  • Rates : US 10-year yield at 0.679, UK 10-year yield at 0.165, Germany 10-year yield at -0.758

News & Data:

  • (CNY) CPI y/y 5.20% vs 5.20% expected
  • (AUD) NAB Business Confidence -4 vs -1 previous
  • Dow futures point to opening surge of more than 700 points after Trump floats payroll tax cut
  • Xi makes 1st visit since outbreak to China’s epicenter Wuhan
  • Japan Abe: Will submit emergency measure package today, working on second package, will work with BOJ
  • New Zealand Finance Minister: RBNZ has room to cut rates

Markets Update:

Asian stock markets are mixed on Tuesday, with some of the markets recovering from steep losses earlier in the session amid hopes of stimulus from global central banks and governments to offset the impact of the coronavirus outbreak on the global economy.

U.S. President Donald Trump said he will meet with Senate and House Republicans later on Tuesday to discuss a possible payroll tax cut or “substantial relief” to offset the economic impact of the coronavirus outbreak.

In Japan, the Nikkei 225 bounced back strongly from its earlier drop as it rose 0.9% in afternoon trade while the Topix index rose 1.3%. The two indexes had declined more than 3% each earlier in the session. The Australian market climbed into positive territory after opening sharply lower, with investor sentiment boosted by hopes of stimulus measures.

Australia’s Prime Minister Scott Morrison too said his government will deliver a stimulus package this week to help overcome the impact of the coronavirus on the Australian economy. Mainland Chinese stocks were also higher, with the Shanghai composite up 1.8% while the Shenzhen composite added 2.5%. The Hang Seng index in Hong Kong jumped 1.6% in afternoon trade as shares of Chinese tech juggernauts Tencent and Alibaba rose 2.4% and 3.3%, respectively.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 95.807 after seeing levels above 97.2 last week. Crude prices on Monday saw their worst day since 1991, with international benchmark Brent crude futures plummeting 24% to $34.44 per barrel.

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