Global Markets:
- Asian Stock Markets : Nikkei down 1.57%, Shanghai Composite down 0.90%, Hang Seng down 1.27%, ASX up 7.00%
- Commodities : Gold at $1646.40 (-0.47%), Silver at $14.07 (-3.23%), Brent Oil at $26.48 (-5.26%), WTI Oil at $20.45 (-4.93%)
- Rates : US 10-year yield at 0.663, UK 10-year yield at 0.312, Germany 10-year yield at -0.515
News & Data:
- (USD) Revised UoM Inflation Expectations 2.20% vs 2.30% previous
- (USD) Revised UoM Consumer Sentiment 89.1 vs 90 expected
- (CAD) Overnight Rate 0.25% vs 0.75% previous
- (USD) Personal Spending m/m 0.20% vs 0.20% expected
- (USD) Personal Income m/m 0.60% vs 0.40% expected
- (USD) Core PCE Price Index m/m 0.20% vs 0.20% expected
CFTC Positioning Data:
- EUR long 61K vs 32K long last week. Longs increased by 29k
- GBP long 11K vs 19K long last week. Longs trimmed by 8K
- JPY long 24K vs 33K long last week. Longs trimmed by 9K
- CHF long 5K vs 7K long last week. Longs trimmed by 2K
- AUD short 25k vs 28K short last week. Shorts trimmed by 3K
- NZD short 16K vs 20K short last week. Shorts trimmed by 4K
- CAD short 29k vs 9K short last week. Longs increased by 20K.
Markets Update:
Asian stock markets, with the exception of Australia, are lower on Monday following the sharp losses on Wall Street Friday as worries about the rising number of coronavirus infections around the world and its impact on the global economy dampened sentiment.
The global number of coronavirus infection cases has risen to more than 720,000. The U.S. has surpassed China as the country with the most number of confirmed coronavirus infections, forcing President Donald Trump to extend the guidelines for national social distancing to April 30.
The Nikkei 225 in Japan fell 1.6%, as shares of index heavyweight and conglomerate Softbank Group dropped 5%. Mainland Chinese stocks were lower on the day, with the Shanghai composite down 0.9%. Over in South Korea, the Kospi finished its trading day just below the flatline.
Bucking the trend, the Australian market is advancing, as investors looked ahead to the announcement of more federal government stimulus measures to support the Australian economy amid the COVID-19 pandemic. ASX 200 led gains among the region’s major markets as it surged 7% to close.
Bond investors looked to be bracing for a long haul with yields at the very short end of the Treasury curve turning negative and those on 10-year notes dropping a steep 26 basis points last week to last stand at 0.65%. That drop has combined with efforts by the Federal Reserve to pump more U.S. dollars into markets, and dragged the currency off recent highs. Indeed, the dollar suffered its biggest weekly decline in more than a decade last week.
Upcoming Events:
Tuesday, March 31, 2020
- 12:00 AM GMT – (NZD) ANZ Business Confidence
- 01:00 AM GMT – (CNY) Manufacturing PMI
- 01:00 AM GMT – (CNY) Non-Manufacturing PMI
- 06:00 AM GMT – (GBP) Current Account
- 12:30 PM GMT – (CAD) GDP m/m
- 01:45 PM GMT – (USD) Chicago PMI
- 02:00 PM GMT – (USD) CB Consumer Confidence
Wednesday, April 01, 2020
- 12:30 AM GMT – (AUD) Monetary Policy Meeting Minutes
- 01:45 AM GMT – (CNY) Caixin Manufacturing PMI
- 12:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 02:00 PM GMT – (USD) ISM Manufacturing PMI
Thursday, April 02, 2020
- 12:30 PM GMT – (CAD) Trade Balance
- 12:30 PM GMT – (USD) Unemployment Claims
Friday, April 03, 2020
- 01:45 AM GMT – (CNY) Caixin Services PMI
- 08:30 AM GMT – (GBP) Final Services PMI
- 12:30 PM GMT – (USD) Average Hourly Earnings m/m
- 12:30 PM GMT – (USD) Non-Farm Employment Change
- 12:30 PM GMT – (USD) Unemployment Rate
- 02:00 PM GMT – (USD) ISM Non-Manufacturing PMI