Market Roundup
- U.S. seeks China trade moves on autos, financials, chips.
- China sets yuan mid-point at 6.2816 per dollar, highest since 2015 devaluation.
- China's Jan-Feb industrial profits rise 16.1 pct y/y.
- Financial industry body presses China to further reform capital markets.
- Federal Reserve may review rules on lending to the poor.
- South Korea says watching Beijing 'very closely' amid reports of Kim visit.
- U.S., EU to expel more than 100 Russian diplomats over UK nerve attack.
- Former Japanese finance official Sagawa: no instructions from PM to alter land sale documents.
Economic Data Ahead
- (0400 ET/0800 GMT) Italy March manufacturing Business Confidence, 110 eyed; 110.6 last.
- (0400 ET/0800 GMT) Italy March Consumer Confidence, 115 eyed; 115.6 last.
Key Events Ahead
- (0300 ET/0700 GMT) Riksbank executive board meeting in Stockholm.
- (0400 ET/0800 GMT) Bank of Finland governor and ECB governing council member Erkki Liikanen is due to speak about monetary policy and global economy in a press conference in Helsinki.
- (0400 ET/0800 GMT) ECB releases monthly data on lending and money supply.
- (0530 ET/0930 GMT) BoE publishes record of the Financial Policy Committee meeting held on March 12.
- (1100 ET/1500 GMT) Atlanta Fed President Raphael Bostic participates in a conversation before the HOPE Global Forums 2018 annual meeting in Atlanta, Georgia.
FX Recap
USD: The dollar's index against a basket of six major peers held steady at 89.042, languishing near Monday's five-week low of 88.979.
EUR/USD: The euro rose 0.1 percent to $1.2457, clinging near Monday's high of $1.24615, which was the euro's strongest level since mid-February. Intraday bias remains slightly bullish till the time pair holds key support at 1.2350 mark. Initial resistance levels are seen at $1.2482 and $1.2555 marks respectively. On the other side, key support level is seen at $1.2350 mark.
USD/JPY: The safe haven Japanese yen sagged on Tuesday as optimism that the United States and China could begin negotiations on trade helped ease concerns about a trade war, reviving demand for riskier assets. The yen trades marginally lower and currently trading around 105.60 marks. It made intraday high at 105.75 and low at 105.38 levels. A sustained close above 105.40 is required to take the parity higher towards key resistances around 106.64, 107.90, 108.70, 110.48 and 112.96 marks. Alternatively, a daily close below 105.40 will drag the parity down towards key supports around 104.90, 103.20 and 101.45 marks respectively.
GBP/USD: The British pound rose against the dollar on Monday as investors became more convinced that the Bank of England would raise interest rates in May. The pound climbed 0.4 percent to $1.4244. Against the euro, sterling added 0.2 percent to 87.280 pence per euro. On the top side key resistance was seen at $1.4278 and support was seen at $1.4075 mark.
AUD/USD: The Aussie held almost flat against U.S. dollar at $0.7740. It faces stiff chart resistance at $0.7884 and $0.7988. Alternatively, key support level was seen at $0.7678 mark.
NZD/USD: The kiwi eased 0.15 percent to $0.7294. Pair made intraday high at $0.7303 and low at $0.7282 levels. A Sustained close above $0.7297 requires for upside rally. Alternatively, reversal from key resistance will take the parity down towards key supports around $0.7205 mark.
Equities Recap
Shanghai composite index to open up 1.0 pct at 3,164.80 points and China's CSI300 index to open up 1.2 pct at 3,927.49 points.
Japan’s Nikkei was trading around 2.50 pct higher at 21,284.55 points.
Australia’s S&P/ASX200 was trading 0.02 pct higher at 5,790.90 points.
Hong Kong’s Hang seng was trading 0.93 pct higher at 30,832.50 points.
South Korea’s Kospi was trading 0.56 percent higher at 2,450.23 points.
Taiwanese stock was trading around 1.11 percent higher at 10,960.77 points.
India’s NSE Nifty was trading around 0.48 percent higher at 10,178.60 points and BSE Sensex was trading at 0.42 percent higher at 33,213.44 points.
Commodities Recap
Oil prices rose on Tuesday, pushed up by concerns that tensions in the Middle East could lead to supply disruptions. Hopes that behind-the-scenes talks between the United States and China will prevent a looming trade war between the world's two biggest economies also supported global markets, including crude oil futures. U.S. West Texas Intermediate (WTI) crude futures were at $65.89 a barrel at 0407 GMT, up 34 cents, or 0.5 percent, from their previous close. Brent crude futures were at $70.34 per barrel, up 22 cents, or 0.3 percent.
Gold prices rose for a third session on Tuesday as the dollar languished near a five-week low, as investors eyed rising tensions between Russia and the West even as a U.S.- China trade spat appeared to ease. Spot gold edged up 0.1 percent to $1,354.51 per ounce at 0446 GMT, just off Monday's $1,355.97, the metal's highest level since Feb. 16. U.S. gold futures for April delivery were flat at $1,354.60 per ounce.
Treasuries Recap
New Zealand government bonds eased a tad, sending yields about half a tick higher at the long-end of the curve.
Australian government bond futures were mixed, with the three-year bond contract off half a tick at 97.8400 and the 10-year contract up by a similar amount at 97.3300.
