Global Markets:
- Asian stock markets: Nikkei up 2.07%, Shanghai Composite down 0.17%, Hang Seng down 0.09%, ASX down 0.36%
- Commodities: Gold at $1320.50 (-0.02%), Silver at $16.505 (-0.19%), WTI Oil at $61.27 (-0.15%), Brent Oil at $64.89 (-0.12%)
- Rates: US 10-year yield at 2.879, UK 10-year yield at 1.499, German 10-year yield at 0.627
News & Data:
- (AUD) NAB Business Confidence 9 vs 11 previous
- (JPY) PPI y/y 2.50% vs 2.50% expected
- (NZD) FPI m/m -0.50% vs 1.20% previous
- (USD) Federal Budget Balance -215.2B vs -222.3B expected
- (USD) 10-y Bond Auction 2.89|2.5 vs 2.81|2.3 previous
- (JPY) Prelim Machine Tool Orders y/y 39.50% vs 48.80% previous
- Pressure grows on Abe; opposition boycott Diet debates
- Trump blocks Broadcom takeover bid for Qualcomm
Markets Update:
Asian markets mostly flat today, putting a halt to yesterday’s rally. This follows the loss of steam on Wall Street, perhaps in an anticipation of US CPI data later today. It is expected that today’s data will reflect a deceleration in inflation February, thereby calming rate hike fears. Most asset classes are trading direction-less today, and no large moves are expected in the session
Commodity weakness has caused miners to loss, thereby pulling the ASX down, as investors digested weaker than expected local economic data. In China, the sell-off of metal producers have slowed down, after steel demand concerns have eased – however, investors are still cautious. Nikkei has been the saving grace, however with Abe getting heat over the scandal involving the finance ministry and sale of state-owned land, it needs to be seen if it can keep up the gains.
While the dollar was seen to sag last night on the back of declining US bond yields, the dollar index was mostly flat today. The euro traded slightly higher, adding to overnight gains of 0.25%. JPY saw no support from the scandal in Japan, and the risk averseness prevailing has failed to pull up the currency much. In commodities, crude oil prices extended losses after sliding the previous day amid ongoing concerns over rising U.S. output. Also, OPEC members are said to be divided on what an appropriate oil price should be
Upcoming Events:
- 11:30 AM GMT – (GBP) Annual Budget Release
- 12:30 PM GMT – (USD) CPI m/m
- 12:30 PM GMT – (USD) Core CPI m/m
- 02:15 PM GMT – (CAD) BOC Gov Poloz Speaks
- 09:45 PM GMT – (NZD) Current Account
- 10:10 PM GMT – (AUD) RBA Assist Gov Kent Speaks
