Global Markets:
- Asian stock markets: Nikkei down 0.15 %, Shanghai Composite lost 1.05 %, Hang Seng declined 0.80 %, ASX 200 fell 0.75 %
- Commodities: Gold at $1288 (-0.45 %), Silver at $18.23 (-0.25 %), WTI Oil at $52.30 (-0.20 %), Brent Oil at $54.80 (-0.20 %)
- Rates: US 10-year yield at 2.18, UK 10-year yield at 1.01, German 10-year yield at 0.16
News & Data:
- Australia Westpac Leading Index (MoM) (Mar): 0.08 (prev -0.07)
- New Zealand Performance of Services (Mar): 59.0 (prev rev to 58.7 from 58.8)
- Sterling gets market’s vote, stocks cold shouldered
- Asia Stocks Slide After Brief Show of Resistance – BBG
- Japan 10-Year Yield Drops to Zero for First Time in Five Months – RTRS
Markets Update:
Asian stock markets came under pressure again, with most major indices down on the day. The Shanghai Composite lost more than 1 %. Meanwhile, Gold remained steady around $1290. The metal regained some strength after the Dollar weakened broadly yesterday.
After heavy losses yesterday, the Dollar managed to recover slightly in Asia. The British Pound remained bid nevertheless. The market was caught by surprise after UK PM May announced an election in June. GBP/USD jumped from 1.25 to 1.27, and later extended gains above 1.29. Short positioning has been at a record high last week according to the CFTC, so it is clearly a short squeeze.
Despite the Dollar weakness, the commodity currencies failed to benefit from it. The Australian Dollar consolidated around 0.7550 and overnight it fell back towards 0.7525 support. Given the low risk appetite, the outlook for the AUD remains negative.
Upcoming Events:
- 10:00 GMT – Euro Zone CPI
- 10:00 GMT – Euro Zone Trade Balance
- 15:30 GMT – US Crude Oil Inventories
- 23:45 GMT – New Zealand CPI
