Demand for risky assets has resumed again amid the prospects for a truce between the US and China. According to the Financial Times, Washington and Beijing are very close to reaching the final trade deal. The US continues to publish weak economic releases, which put additional pressure on the greenback. Thus, the ADP nonfarm employment change increased by 129K in March instead of 184K. The ISM non-manufacturing PMI dropped to 56.1 in March, while investors expected 58.1. The dollar index (#DX) updated local lows and closed in the negative zone (-0.23%).
The British pound has become stable after a significant rally the day before. Investors continue to assess the situation concerning Brexit. British Prime Minister Theresa May intends to meet with opposition leader Jeremy Corbyn to try to find a way out of the Brexit situation. The opposition Labour Party wants the kingdom to remain in the customs union with the EU. The pound is under pressure due to weak economic data. Thus, UK services PMI fell to 48.9 in March, while experts forecasted 51.0.
The “black gold” prices are testing annual highs. At the moment, futures for the WTI crude oil are consolidating near $62.30 per barrel.
Market Indicators
- Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.16%), #DIA (+0.12%), #QQQ (+0.57%).
- The 10-year US government bonds yield is at the level of 2.50-2.51%.
The news feed on 04.04.2019:
- ECB monetary policy meeting account at 14:30 (GMT+3:00);
- Initial jobless claims in the US at 14:30 (GMT+3:00);
- Canada Ivey PMI at 17:00 (GMT+3:00).
