Market Roundup
• US Indexes up: Dow 1.99%%, S&P 2.26%, Nasdaq 2.81%
•Canada's annual inflation rate tumbles to 0.9%
•Oil recovery does little salve to investor sentiment
• Canada Common CPI (YoY) 1.7%, 1.8% previous
• Canada March Core CPI (MoM) 1.6%,0.7% previous
• Canada CPI (MoM) 0.1%, -0.4% forecast, 0.4% previous
• Canada March CPI (YoY) 0.9%,1.2% forecast, 2.2% previous
• Canada Median CPI (YoY) 2.0%,2.1% previous
• Canada March New Housing Price Index (MoM) 0.3%, 0.4% previous
• US Feb House Price Index (MoM) 0.7%, 0.3% previous
• US Feb House Price Index (YoY) 5.7%, 5.2% previous
• US Crude Oil Inventories 15.022M, 15.150M forecast, 19.248M previous
Looking Ahead - Economic Data (GMT)
• 23:00 Australia Manufacturing PMI 49.7 previous
• 23:00 Australia Services PMI 38.5 previous
• 23:50 Japan Foreign Bonds Buying -201.3B previous
• 23:50 Japan Foreign Investments in Japanese Stocks-15.5B previous
• 00:30 Japan April Manufacturing PMI 44.8 previous
• 00:30 Japan Services PMI 33.8 previous
• 03:00 New Zealand Credit Card Spending (YoY) 2.5% previous
• 05:00 Japan Leading Index 92.1 forecast, 90.5 previous
Currency summaries
EUR/USD: The euro declined against dollar on Wednesday as euro was weighed down ahead of EU meeting tomorrow to discuss financial aid in the euro zone. EU heads of state will meet by video-conference tomorrow to discuss the bloc’s economic response to the novel coronavirus pandemic as lockdown measures to slow its spread are expected to lead to severe economic recession. Immediate resistance can be seen at 1.0891 (9 DMA), an upside break can trigger rise towards 1.0914 (21 DMA).On the downside, immediate support is seen at 1.0800 (Psychological level), a break below could take the pair towards 1.0754 (Lower BB).
GBP/USD: Sterling edged higher against dollar on Wednesday, as some traders bought back into a currency that had slipped to a two-week low the day before amid a flight to safe havens in financial markets following a crash in oil prices. The pound is still well above its mid-March lows, but the currency remains cheap, though its correlation to equities and other riskier assets make it a hazardous bet.The British currency was last up 0.3% both against the dollar and the euro, trading at $1.2318 and at 88 pence respectively. Immediate resistance can be seen at 1.2378 (21 DMA), an upside break can trigger rise towards 1.2403 (5 DMA).On the downside, immediate support is seen at 1.2200 (Lower BB), a break below could take the pair towards 1.2157 (April 7th low).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Wednesday as a rebound in oil prices overshadowed domestic data showing a five-year low for inflation. The price of oil, one of Canada's major exports, was supported by voluntary as well as the prospect of forced production cuts to tackle a glut caused by the coronavirus crisis. At (2012 GMT), the Canadian dollar was trading 0.17% higher at 1.4183 to the greenback. Immediate resistance can be seen at 1.4084(Jan 9th High), an upside break can trigger rise towards 1.4142 (21 DMA).On the downside, immediate support is seen at 1.3936 (30 DMA), a break below could take the pair towards 1.3900 (Psychological level).
USD/JPY: The dollar declined against the Japanese yen on Wednesday as safe-haven currencies remained in demand even as the markets began to stabilise while oil prices recovered from another slump. The dollar was down 0.2% against a basket of comparable currencies but still up around 0.4% on the week as investors sought safety amid market turmoil. The Japanese yen maintained its gains from the past week versus the dollar, up around 0.1%. Strong resistance can be seen at 107.85 (11 DMA), an upside break can trigger rise towards 108.24 (200 DMA).On the downside, immediate support is seen at 107.29 (April 22nd low), a break below could take the pair towards 106.75 (lower BB).
Equities Recap
European stock markets edged higher on Wednesday as Italy looked set to relax sweeping restrictions to contain the coronavirus, with investors remaining cautious about a swift recovery after more companies issued worrying financial forecasts.
UK's benchmark FTSE 100 closed up by 2.30 percent, Germany's Dax ended up by 1.61 percent, France’s CAC finished the day up by 1.25 percent.
Wall Street rose on Wednesday on hopes the coronavirus outbreak in the United States was close to its peak, with health insurers boosted by Democratic presidential candidate Bernie Sanders suspending his campaign.
Dow Jones closed up by 1.99 percent, S&P 500 ended up by 2.26 percent, Nasdaq finished up by 2.81 percent.
Treasuries Recap
A market shift back into equities on Wednesday drove up U.S. Treasury yields, but they remained at relatively low levels as bond investors' scepticism about efforts to restart the U.S. economy amid the COVID-19 pandemic limited gains.
The benchmark 10-year yield was up 4.8 basis points at 0.619% in afternoon trading.
Commodities Recap
Gold prices jumped 1% on Wednesday on hopes for more fiscal and monetary stimulus measures amid massive economic damage due to stay-at-home and business shutdown orders around the world to limit the spread of the novel coronavirus.
Spot gold climbed rose 1.24 % to $1,706.68 per ounce at 11:05 a.m. EDT (1505 GMT), which could be its biggest daily gain in a week. U.S. gold futures jumped 2.4% to $1,728.00.
