Global Markets:
- Asian stock markets: Nikkei down 0.73%, Shanghai Composite down 0.39%, Hang Seng down 1.27%, ASX down 1.01%
- Commodities: Gold at $1335.10 (-0.01%), Silver at $16.725 (-0.35%), WTI Oil at $62.05 (-0.88%), Brent Oil at $65.23 (-0.87%)
- Rates: US 10-year yield at 2.853, UK 10-year yield at 1.516, German 10-year yield at 0.680
News & Data:
- (JPY) Leading Indicators 104.80% vs 106.50% expected
- (AUD) GDP q/q 0.40% vs 0.50% expected
- (NZD) GDT Price Index -0.60% vs -0.50% previous
- (CAD) Ivey PMI 59.6 vs 56.3 expected
- Turnbull: PM 'best-placed' to handle US steel hike
- 2 Koreas to hold summit in April, North eyes nuclear talks with US
Markets Update:
Asian markets traded mixed today, as markets digested the news of Gary Cohn’s resignation. As White House economic advisor, Cohen was a key advocate for free trade, and the news is viewed by many as President Trump’s attempt to steamroll through with the import tariffs and other protectionist measures, thereby fanning fears of a trade war.
Risk sentiment deteriorated, and consequently, there was a rally in bond prices, with investors flocking to safety. The Nikkei, ASX and Hang Seng all were in the red, owing to the short term downward pressure.
The Shanghai Composite, trading flat, was the saving grace – primarily due to comments by the finance minister that the fiscal policy will remain to be proactive, even though deficit targets are lower.
The dollar index was in the red, around 0.2 lower. The dollar inched towards the 16 month low, which it had touched on Friday, paring gains from Tuesday, which were based on speculation that the tariffs might be watered down.
Commodities were also in the red, as investors worried about trade wars, and its impact on global growth. Gold, the safe haven yellow metal, however, was trading in the green, and is trading at a 10-day high.
Upcoming Events:
- 08:30 AM GMT – (GBP) Halifax HPI m/m
- 01:00 PM GMT – (USD) FOMC Member Bostic Speaks
- 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 01:20 PM GMT – (USD) FOMC Member Dudley Speaks
- 01:30 PM GMT – (CAD) Trade Balance
- 01:30 PM GMT – (CAD) Labor Productivity q/q
- 03:00 PM GMT – (CAD) BOC Rate Statement
- 03:00 PM GMT – (CAD) Overnight Rate
- 03:30 PM GMT – (USD) Crude Oil Inventories
- &more…
