Market Roundup
- At least 19 killed in suspected attack at Ariana Grande concert in British arena.
- Britain suspends election campaign after suspected attack.
- British PM May to hold security meeting at 0800 GMT.
- Japan Fin Min Aso – Important for Japan to deliver free trade message at G7.
- Japan May flash manufacturing PMI 52.0, 6-month low, April final 52.7, export orders off.
- Japan March wages revised up to unchanged y/y from -0.4% (first drop in 10-mos).
- Trump budget plan slashes food stamps, healthcare for poor.
- Trump budget calls for Wall Street regulators to face restructuring.
- China's April imports from North Korea sink below $100 mln as coal ban bites.
- China urges North Korea not to violate U.N. resolutions.
- Merkel's CDU on 39 pct, 14 pct points ahead of the SPD.
Economic Data Ahead
- (0330 ET/0730 GMT) Germany May Markit manufacturing Flash PMI, 58.0 eyed; last 58.2.
- (0330 ET/0730 GMT) Germany May Markit Service Flash PMI, 55.5 eyed; last 55.4.
- (0330 ET/0730 GMT) Germany May Markit Composite Flash PMI, 56.6 eyed; last 56.7.
- (0400 ET/0800 GMT) Germany May Ifo Expectations, 105.4 eyed; last 105.2.
- (0400 ET/0800 GMT) Germany May Ifo Current Conditions, 121.2 eyed; last 121.1.
- (0400 ET/0800 GMT) Germany May Ifo Business Climate, 113.1 eyed; last 112.9.
- (0400 ET/0800 GMT) Euro zone May Markit Services Flash PMI, 56.4 eyed; last 56.4.
- (0400 ET/0800 GMT) Euro zone May Markit manufacturing Flash PMI, 56.5 eyed; last 56.7.
- (0400 ET/0800 GMT) Euro Zone May Markit Composite Flash PMI, 56.6 eyed; last 56.8.
- (0430 ET/0830 GMT) UK April PSNB m/m (GBP), 8.15 bln eyed; last 4.37 bln.
- (0430 ET/0830 GMT) UK April PSNB Ex Banks (GBP), 8.90 bln eyed; last 5.09 bln.
Key Events Ahead
- N/A Eurogroup Finance Ministers' meeting in Brussels (Final Day).
- N/A Norges Bank gov Olsen speaks at a conference.
- N/A Conference "DIW Women's Finance Summit 2017" at the DIW Berlin.
- (1030 ET/1430 GMT) Britain’s Hammond, Germany’s Schaeuble, Spain’s Guindos participate in panel discussion.
- (0630 ET/1030 GMT) Germany 2Y 5.000 bln auction.
- (0630 ET/1030 GMT) UK 19Y 0.850 bln auction.
- (1100 ET/1500 GMT) ECB's Benoit Coeure participates in a discussion .
- (1330 ET/1730 GMT) RBA DepGov Guy Debelle speaks at the BIS Symposium.
FX Recap
USD: The dollar index lost 0.1 percent to 96.882.
EUR/USD: The euro was 0.1 percent higher at $1.1247 after touching $1.1264 overnight; it’s highest since November 9. The euro hovered near a six-month high against the dollar on Tuesday after German Chancellor Angela Merkel said the currency was "too weak". Merkel said on Monday that the common currency is weak due to the European Central Bank's monetary policy, pointing out that this helped explain Germany's relatively high trade surplus. Pair made intraday high at 1.1254 and low at 1.1230 marks. Immediate support was seen 1.1161 and resistance was seen at 1.1263 marks.
USD/JPY: The Japanese yen trades marginally higher against U.S. dollar and was trading around 111.03 marks. The safe-haven yen advanced against major peers like the dollar and euro but its gains were modest. Pair made intraday high at 111.34 and low at 110.85 levels. A sustained close above 111.46 is required to take the parity higher towards 113.12, 115.37 and 117.42 marks. Alternatively, a daily close below 111.30 will drag the parity down towards 110.87/108.13 levels.
GBP/USD: The pound slipped against the yen after a suspected terrorist attack at a concert in Britain's city of Manchester. Prime Minister Theresa May said the incident was being treated as a terrorist attack. The pound slipped against the yen after a suspected terrorist attack at a concert in Britain's city of Manchester. Sterling was down 0.2 percent at 144.36 yen after weakening to as much as 144.06. It was little changed against the dollar at $1.2992 and a touch lower at 86.60 pence per euro. The pound had come under pressure overnight after opinion polls showed that Prime Minister Theresa May's lead had been halved going into an vote that she had been expected to win easily.
AUD/USD: The Australian dollar rose to a three-week peak of 75 U.S. cents. Pair made intraday high at 0.7508 and low at 0.7466 marks. Short term bias remains bullish till the time pair holds key support at 0.7428 marks. On the top side key resistance was seen at 0.7556 marks.
NZD/USD: The New Zealand dollar nudged up 0.2 percent to a one-month high of $0.7010. Intraday bias remains bullish for the moment. Key support was seen at 0.6913 mark while resistance was seen at 0.7039 marks.
Equities Recap
Japan’s Nikkei was trading 0.04 pct higher at 19,670.50 points.
Hong Kong’s Hang seng was trading 0.06 percent higher at 25,407.00 points.
Australia’s S&P ASX200 was trading 0.20 percent lower at 5,760 points.
Shanghai composite index to open down 0.2 pct at 3,069.39 points and China's CSI300 index to open down 0.2 pct at 3,405.03 points.
South Korea’s Kospi was trading 0.93 pct higher at 2,325.01 points.
Taiwan’s market was trading 0.26 percent higher at 10,023.31 points.
India’s NSE Nifty was trading around 0.58 percent lower at 9,384.55 points and BSE Sensex was trading at 0.40 percent lower at 30,451.77 points.
Commodities Recap
Oil prices fell on Tuesday after U.S. President Donald Trump proposed the sale of half the country's strategic oil reserves in his budget plan, just as producer club OPEC and its allies are cutting output to tighten the market. After rising in Asian morning trading, Brent crude futures reversed their gains and were at $53.66 per barrel at 0232 GMT, down 21 cents, or 0.4 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $50.94, down 19 cents, or 0.4 percent.
Gold prices were steady on Tuesday. Spot gold was up 0.1 percent at $1,261.62 per ounce by 0100 GMT. U.S. gold futures were flat at $1,261 an ounce. The metal has been supported as the dollar weakened against the euro amid political tensions in the U.S. due to the ongoing controversies involving President Donald Trump.
Treasuries Recap
New Zealand government bonds gained, sending yields 2.5 basis points lower along most of the curve.
Australian government bond futures gained, with the three-year bond contract up 2 ticks at 98.250. The 10-year contract added 4 ticks to 97.52.
10-year U.S. treasury yield was at 2.239 percent vs U.S. close of 2.254 percent on Monday.
