Global Markets:
- Asian Stock Markets : Nikkei down 1.22%, Shanghai Composite up 0.74%, Hang Seng up 0.16%, ASX up 0.69%
- Commodities : Gold at $1596.65 (+0.12%), Silver at $16.79 (+0.29%), Brent Oil at $52.34 (+0.85%), WTI Oil at $47.37 (+1.33%)
- Rates : US 10-year yield at 1.126, UK 10-year yield at 0.406, Germany 10-year yield at -0.612
News & Data:
- (AUD) Cash Rate 0.50% vs 0.50% expected
- (AUD) Current Account 1.0B vs 2.3B expected
- (AUD) Building Approvals m/m -15.30% vs 1.10% expected
- (USD) ISM Manufacturing PMI 50.1 vs 50.5 expected
- (GBP) Final Manufacturing PMI 51.7 vs 51.9 expected
- (CNY) Caixin Manufacturing PMI 40.3 vs 46.1 expected
- (AUD) Company Operating Profits q/q -3.50% vs -1.20% expected
Markets Update:
Asian stock markets are in positive territory on Tuesday following the overnight rebound on Wall Street amid optimism that global central banks will take action to offset the impact of the coronavirus on global economic growth. Investors are also looking ahead to a teleconference call of the G-7 group of financial ministers and central bankers later today for coordinated policy action in response to the coronavirus. The global death toll from the virus has now risen to more than 3,000.
Mainland Chinese stocks rose on the day, with the Shanghai Composite trading higher by 0.74%. Hong Kong’s Hang Seng index was about 0.2% higher, as of its final hour of trading. In South Korea, the Kospi gained 0.6%. Australia’s S&P/ASX 200 closed 0.7%.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 97.444 after declining from levels around around 98 yesterday. April Fed funds rate futures still price in about 80% chance of a 0.50 percentage point cut this month and a total of almost 1 percentage point cuts by the end of year.
Expectations of Fed rate cuts prompted investors to cut their exposure to the dollar. Oil prices were higher in the afternoon of Asian trading hours, with international benchmark Brent crude futures up 0.9%.
Upcoming Events:
- 09:30 AM GMT – (GBP) BOE Gov Carney Speaks
- 10:00 AM GMT – (EUR) CPI Flash Estimate y/y
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