Market Roundup
- Trump call for new UN sanctions against North Korea (wrap).
- North Korea conducts large-scale artillery drills on anniversary.
- US CommSec Ross – US to impose 20% duties on Canadian softwood lumber.
- Trump flexible on border wall funding, could wait till fall, administration engaged in constructive stance on NAFTA behind scenes.
- BOJ Dep Gov Iwata – Conducting simulations on exit from stimulus, withheld publicizing tests to avoid market confusion.
- Japan March corporate service prices +0.6% m/m, +0.8% y/y, FY ’16-17 +0.4%.
- China Q1 urban registered unemployment 3.97%, end ’16 4.06%.
Economic Data Ahead
- (0245 ET/0645 GMT) France April business climate index, 104.0 eyed; last 104.0.
- (0330 ET/0730 GMT) Sweden March unemployment, 7.3% nsa eyed; last 7.4% nsa, 6.8% sa.
- (0430 ET/0830 GMT) UK March PSNB, GBP1.5 bln eyed; last GBP1.08 bln, PSNCR GBP12.88 bln.
- (0430 ET/0830 GMT) UK March - ex-banks, GBP3.2 bln eyed; last GBP1.80 bln.
- (0900 ET/1300 GMT) Belgium April leading indicator, -1.0 eyed; last -1.6.
- (0900 ET/1300 GMT) US February CaseShiller 20 HPI, +0.8% m/m, +5.7% y/y eyed; last +0.9%, +5.7%.
- (0900 ET/1300 GMT) US February FHFA monthly home prices; last unch m/m, +5.7% y/y, index 242.6.
- (1000 ET/1400 GMT) US April consumer confidence index, 122.5 eyed; last 125.6.
- (1000 ET/1400 GMT) US March new home sales, 580k units AR, -0.8% m/m eyed; last 590k, +6.1%.
- (1000 ET/1400 GMT) US April Richmond Fed mfg shipments/services/comp indices; last 17/9/22.
- (1030 ET/1430 GMT) US April Dallas Fed services revenues/outlook indices; last 15.2/13.2.
Key Events Ahead
- ANZAC Day – Australia and New Zealand market holidays.
- N/A Buba Dombrets speaks in Frankfurt.
- N/A BoS Gov Linde parliamentary testimony.
- N/A Norges Bank DepGov Nicolaisen speaks in Oslo.
- N/A Slovenia central bank board meeting.
- (0400 ET/0800 GMT) EU General Affairs Council meeting in Luxembourg.
- (0430 ET/0830 GMT) ECB Nouy in Brussels EU parliament ECON committee public hearing.
- (0500 ET/0900 GMT) Netherlands E2-3 bln 0.75% 2027 DSL auction.
- (0530 ET/0930 GMT) Germany E4 bl;n zero% 2019 Schatz auction.
- (0530 ET/0930 GMT) ECB zero% 7-day refi, E14.9 bln allotment eyed, E14.75 bln maturing.
FX Recap
USD: The dollar index was trading almost flat at 99.139 against previous close of 99.04 mark
EUR/USD: The euro edged lower on Tuesday, catching its breath after a relief rally sparked by the first round results of the French election. The euro slipped 0.1 percent to $1.0860, off Monday's peak of around $1.0940, its highest level since Nov. 10, after centrist Emmanuel Macron won the first round of the French presidential elections. Pair made intraday high at 1.0871 and low at 1.0851 marks. Immediate resistance was seen at $1.0953 level. A daily close below 1.0812 will drag the parity down towards 1.0557 levels.
USD/JPY: The yen edged down 0.1 percent to 110.12 against U.S. dollar, but remained below Monday's high of 110.51 yen, its strongest level since April 11. A sustained close above 109.74 is required to take the parity higher towards 110.92, 111.45, 112.19, 113.72, 115.37 and 117.42 marks. Alternatively, a daily close below 109.74 will drag the parity down towards 108.13 levels.
GBP/USD: The Sterling fell sharply against the euro on Monday as investors favoured Europe's currency over Britain's in a wave of relief sweeping financial markets following results of the first round of France's presidential election. The pound rallied nearly 2 percent last week, hitting four-month highs against the euro, after British Prime Minister Theresa May called for a UK general election in June.
AUD/USD: The Aussie was marginally lower against U.S. dollar and was trading around $0.7556 mark. Pair made intraday high at $0.7571 and low at $0.7551 marks. Immediate resistance was seen at $0.7610 and support was seen at $0.7515 marks.
NZD/USD: The kiwi erases previous gain against U.S. dollar and dropped to $0.6985 marks. A consistent close below $0.6985 targets key support at $0.6927 marks. Immediate resistance was seen at $0.7047 mark.
Equities Recap
Japan’s Nikkei was trading around 0.86 percent higher at 19,039 points.
Hong Kong’s Hang seng was trading 0.95 percent higher at 24,368 points.
Australian banks will be closed in observance of Anzac Day.
Seoul shares jump to highest in two years, up as much as 0.51 percent at 2,184.770.
Shanghai composite index to open down 0.2 pct at 3,123.89 points and China's CSI300 index to open down 0.1 pct at 3,427.73 points.
Taiwan’s market was trading 0.71 percent higher at 9,790.93 points.
India’s NSE Nifty was trading around 0.46 percent higher at 9,260.65 points and BSE Sensex was trading at 0.52 percent higher at 29,809.82 points.
Malaysia's benchmark stock index up as much as 0.56 percent; hits highest since may 26, 2015.
Indonesia stock index hits record high at 5,696.389, up as much as 0.56 percent.
Commodities Recap
Oil prices inched up on Tuesday but markets remain under pressure following six consecutive sessions of declines as traders lose confidence that pledged output cuts by major producers will rein in oversupply in a world awash with fuel. U.S. West Texas Intermediate (WTI) crude futures added 24 cents, or 0.5 percent, by 0305 GMT, but remained below the $50 mark pierced late last week, at $49.47 a barrel. Brent crude rose 26 cents, or 0.5 percent, to $51.86 per barrel.
Gold prices eased slightly on Tuesday, dropping for a second day, as investor sentiment remains skewed toward riskier assets in the wake of the French election results on Sunday, though geopolitical concerns are still supporting safe-haven demand. Spot gold was down 0.1 percent at $1,273.50 per ounce by 0338 GMT. U.S. gold futures were down 0.2 percent at $1,275.60.
Treasuries Recap
Australian government bond futures slipped, too, with the three-year bond contract down 2 ticks at 98.160. The 10-year contract fell 5 ticks to 97.385.
As a risk-on mood dominated, New Zealand government bonds eased sending yields about 5 basis points higher across the curve.
