Global Markets:
- Asian Stock Markets : Nikkei down 0.85%, Shanghai Composite down 0.18%, Hang Seng down 1.27%, ASX down 0.66%
- Commodities : Gold at $1328.40 (+0.10%), Silver at $16.64 (+0.05%), WTI Oil at $60.74 (+0.05%), Brent Oil at $64.56 (-0.12%)
- Rates : US 10-year yield at 2.830, UK 10-year yield at 1.484, Germany 10-year yield at 0.617
News & Data:
- (CNY) Fixed Asset Investment ytd/y 7.90% vs 7.00% expected
- (CNY) Industrial Production y/y 7.20% vs 6.20% expected
- (NZD) Current Account -2.77B vs -2.45B expected
- (USD) Core CPI m/m 0.20% vs 0.20% expected
- (USD) CPI m/m 0.20% vs 0.20% expected
- Google to ban all cryptocurrency-related advertising
- Japan PM Abe denies involvement by him, wife in discount land sale
Markets Update:
Asian markets traded lower today, as risk sentiment was affected by Rex Tillerson’s dismissal. Renewed concerns of a global trade war, triggered by the threat of new tariffs on Chinese imports, led to investors overlooking data showing that Asian economy had a great first 2 months this year.
Nikkei traded weaker – with the BoJ sounding caution over wage hikes. The political scandal involving Abe and his wife continues to unravel. Banks have been pulling down ASX, as an inquiry into the sector for potential fraud ensues. China has also been trading lower – while February data helped set aside concern of a growth slowdown in 2018, US – Sino relations dominated the trades, and the effect of the data was not to be seen.
While markets have been largely discounting the happenings in Trump’s White House, Secretary Tillerson was vocal in his support for the Iran deal, and for negotiations with North Korea – both at odds with President Trump. His exit has evoked fears on what the US Foreign Policy will look like in coming days, and whether we will have to worry about wars, in addition to a trade war.
The Dollar has been trading weaker – with the Euro and Sterling making overnight gains. Dollar weakness has been a support for most commodities, especially metals.
Upcoming Events:
- 08:00 AM GMT – (EUR) ECB President Draghi Speaks
- 12:30 PM GMT – (USD) Core Retail Sales m/m
- 12:30 PM GMT – (USD) PPI m/m
- 12:30 PM GMT – (USD) Retail Sales m/m
- 12:30 PM GMT – (USD) Core PPI m/m
- 02:30 PM GMT – (USD) Crude Oil Inventories
- 09:45 PM GMT – (NZD) GDP q/q
