Market Roundup
- EUR/USD 0.1%, USD/JPY 0.24%, GBP/USD 0.16%, EUR/GBP -0.09%
- DXY -0.1%, DAX -1.04%, FTSE -0.32%, Brent 0.46%, Gold -0.21%
- EZ Mar IHS Markit's Final Manufacturing PMI, 56.6, 56.6 forecast, 58.6 previous
- Great Britain Mar Markit/CIPS Manufacturing PMI, 55.1, 54.7 forecast, 55.2 previous
- Germany Mar Markit/BME Manufacturing PMI, 58.2, 58.4 forecast, 58.4 previous
- Germany Feb Retail Sales Real MM, -0.7%, +0.6% forecast, -0.7% previous
- Germany Feb Retail Sales Real YY, +1.3%, 2.2% forecast, +2.3% previous
- Italy Mar Markit Manufacturing PMI, 53.7, 53.6 forecast, 53.6 previous
- Italy Mar Markit/ADACI Manufacturing PMI, 55.1, 55.4 forecast, 56.8 previous
- Spain Mar Manufacturing PMI, 54.8, 54.8 forecast, 56.0 previous
- France Feb Budget Bal EUR, -28.4 bln, -10.76 bln previous
- New York Fed to launch U.S. Libor contender, slow takeup seen
- Australia's central bank sits tight in "masterful" inaction
- China ready for proportionate response to U.S. tariffs- envoy
- China hopes U.S.-N.Korea summit can avoid "disruptive factors"
- Gold prices slip after Monday's surge
- Oil recovers from steep drop, but trade and output concerns linger
Economic Data Ahead
- (0945 ET/1345 GMT) The NAPM-New York releases ISM-New York Index for the month of March. The index stood at 54.5 in the previous month.
- (1530 ET/1930 GMT) Autodata Corp is expected to report that U.S. auto sales figures dropped to an annualized rate of 16.90 million units in March from 17.08 million units in February.
- (1630 ET/2030 GMT) API reports its weekly crude oil stock.
Key Events Ahead
- (0930 ET/1330 GMT) Federal Reserve Bank of Minneapolis President Neel Kashkari will participate in a moderated Q&A session at the Regional Economic Indicators Forum, in Duluth, Minnesota.
- (1630 ET/2030 GMT) Federal Reserve Governor Lael Brainard is set to give a lecture on "Financial Stability" at the New York University Stern School of Business.
FX Beat
DXY: The dollar index steadied as market concerns about the global growth outlook due to escalating trade tensions between the US-China started to ease. The greenback against a basket of currencies trades 0.1 percent up at 90.10, having touched a high of 90.18 on Thursday, its highest since Mar. 21. FxWirePro's Hourly Dollar Strength Index stood at 9.61 (Neutral) by 1000 GMT.
EUR/USD: The euro rose above the 1.2300 handle after data showed Eurozone Markit final manufacturing Purchasing Managers' Index came in at 56.6 in March from 58.6, in line with an earlier flash estimate and above the 50 mark that separates growth from contraction. The European currency traded 0.1 percent up at 1.2310, having touched a high of 1.2476 last week, its highest since Feb. 16. FxWirePro's Hourly Euro Strength Index stood at -104.09 (Highly Bearish) by 1000 GMT. Immediate resistance is located at 1.2373 (Mar. 23 High), a break above targets 1.2412 (Mar. 14 High). On the downside, support is seen at 1.2283 (Mar. 29 Low), a break below could drag it lower 1.2258 (Mar. 19 Low).
USD/JPY: The dollar regained the 106.00 handle amid a renewed pickup in the US Treasury bond yields. However, increasing trade tensions between the U.S. and China limited the upside in the major. The major was trading 0.4 percent up at 106.25, having hit a high of 107.01 on Wednesday, its highest since Mar. 13. FxWirePro's Hourly Yen Strength Index stood at -4.78 (Neutral) by 1000 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the FOMC members Kashkari and Brainard's speech. Immediate resistance is located at 106.64 (Mar. 21 High), a break above targets 107.05 (Mar. 9 High). On the downside, support is seen at 105.60 (Mar. 16 Low), a break below could take it lower 105.45 (Mar. 7 Low).
GBP/USD: Sterling rose to a 5-day high after data showed British manufacturing activity grew at a faster pace, indicating that the British economy is building momentum to fuel expectations of an interest rate rise next month. Britain's Markit manufacturing PMI rose to 55.1 in March, up from revised 55.0 and beating forecast 54.7. The major traded 0.05 percent up at 1.4040, having hit a low of 1.4011 last week, it’s lowest since Mar. 21. FxWirePro's Hourly Sterling Strength Index stood at 0.64 (Neutral) by 1000 GMT. Immediate resistance is located at 1.4092 (10-DMA), a break above could take it near 1.4171 (Mar. 23 High). On the downside, support is seen at 1.3982 (Mar 20 Low), a break below targets 1.3931 (Feb. 20 Low). Against the euro, the pound was trading 0.05 percent up at 87.55 pence, having hit a low of 87.97 pence last week, it’s lowest since Mar 20.
USD/CHF: The Swiss franc eased, extendi8ng previous session losses, as the greenback lost ground on worries over a trade war. The major trades 0.2 percent up at 0.9566, having touched a high of 0.9583 on Thursday, it’s highest since Jan. 23. FxWirePro's Hourly Swiss Franc Strength Index stood at -146.30 (Highly Bearish) by 1000 GMT. On the higher side, near-term resistance is around 0.9600 and any break above will take the pair to next level till 0.9640 (Jan 22 High). The near-term support is around 0.9515 (10-DMA) and any close below that level will drag it till 0.9491 (21-DMA).
Equities Recap
European shares plunged, weighed down by trade tensions and mounting pressure on big technology companies, while the greenback steadied following a rebound in the U.S. Treasury yields.
The pan-European STOXX 600 index dropped 0.9 percent to 367.38 points, while the FTSEurofirst 300 index slumped 0.7 percent to 1,442.15 points.
Britain's FTSE 100 trades 0.4 percent down at 7,029.40 points, while mid-cap FTSE 250 fell 0.9 percent to 19,294.81 points.
Germany's DAX declined 1.4 percent at 11,933.75 points; France's CAC 40 trades 0.8 percent higher at 5,124.55 points.
Commodities Recap
Crude oil rose, bolstered by the prospect of a potential slowdown in U.S. crude production growth, however, higher Russian output weighed on market sentiment. International benchmark Brent crude was trading 0.7 percent up at $67.94 per barrel by 1013 GMT, having hit a low of $67.49 the day before, its lowest since Mar. 21. U.S. West Texas Intermediate was trading 0.8 percent up at $63.32 a barrel, after falling as low as $62.84 on Monday, its weakest since Mar. 20.
Gold prices declined after gaining more than 1 percent in the previous session on concerns over a trade war between China and the United States. Spot gold was down 0.3 percent at $1,337.67 per ounce by 1017 GMT, having advanced 1.3 percent on Monday, recording its biggest one-day percentage gain in a week. U.S. gold futures eased 0.3 percent to $1,343.60 an ounce.
Treasuries Recap
The U.S. Treasuries slumped as market concerns about the global growth outlook due to escalating trade tensions between the US and China start to cool down while the threat of government regulation has fuelled worries over the outlook of technology shares. The yield on the benchmark 10-year Treasuries jumped nearly 3 basis points to 2.75 percent, the super-long 30-year bond yields surged close to 2-1/2 basis points to 2.99 percent and the yield on the short-term 2-year traded 2 basis points higher at 2.26 percent
The UK gilts remained mixed even as the country’s manufacturing PMI for the month of March came in above market expectations, also tad up from the previous reading in February. The yield on the benchmark 10-year gilts, slid nearly 1 basis point to 1.34 percent, the super-long 30-year bond yields hovered around 1.70 percent and the yield on the short-term 2-year traded nearly 1 basis point higher at 0.83 percent
The German bunds slid after investors have largely shrugged-off the lower-than-expected manufacturing PMI for the month of March, with eyes on eurozone’s consumer price inflation (CPI), scheduled to be released on April 4 by 09:00GMT. The German 10-year bond yields, which move inversely to its price, jumped nearly 1-1/2 basis points to 0.50 percent, the yield on 30-year note surged also surged nearly 1-1/2 basis points to 1.16 percent and the yield on short-term 2-year too traded 1-1/2 basis points higher at -0.58 percent.
The New Zealand government bonds closed mixed amid a muted trading session that witnessed no data of any major economic significance. The yield on New Zealand’s benchmark 10-year Treasury note, which moves inversely to its price, rose 1/2 basis point to 2.74 percent, the yield on the long-term 30-year note slid 1/2 basis point to 3.34 percent and the yield on short-term 2-year closed 1-1/2 basis points higher at 1.89 percent
The Japanese government bonds gained after the country’s 10-year auction was perceived softer than the prior auction, with the yield rate bid at 0.03 percent, compared to 0.061 percent in the previous auction. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell nearly 1-1/2 basis points to 0.03 percent, the yield on the long-term 30-year note also slumped 1-1/2 basis points to 0.72 percent and the yield on short-term 2-year traded tad lower at -0.13 percent.
