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Asia Roundup: Antipodeans decline as Chinese CPI eases, greenback gains despite dovish Fed minutes, Asian shares plunge - Thursday, April 11th, 2019

Market Roundup

  • EU gives May till October for Brexit, seeking clarity
     
  • China producer inflation picks up for first time in 9 months, eases deflation worries
     
  • U.S., China agree to establish trade deal enforcement offices -Mnuchin
     
  • Citing global slowdown, Fed sees no changes to rates in 2019
     
  • Australians go to the polls in a 'fair go' election on May 18
     

Economic Data Ahead

  • No major economic data releases

Key Events Ahead

  • N/A ECB's Draghi and Benoit Coeure in the IMF/World Bank spring meetings in Washington, D.C.
     
  • N/A BoE's Broadbent and Deputy Governor for Prudential Regulation Sam Woods participate in IMF Spring Meetings, Washington
     
  • (0830 ET/1230 GMT) ECB's Villeroy de Galhau speaks at Washington
     
  • (0845 ET/1245 GMT) World Bank Interim President Kristalina Georgieva holds a press briefing ahead of IMF-World Bank Spring Meetings
     
  • (0930 ET/1330 GMT) Fed's Clarida speaks before the Institute of International Finance Washington Policy Summit, Washington
     
  • (0940 ET/1340 GMT) Fed's Bullard gives presentation before the "Breakfast With the Fed" event in Tupelo, Mississippi
     
  • (0945 ET/1345 GMT) Fed's Williams speaks before the Association for Neighborhood & Housing Development 2019 Annual Conference
     
  • (1300 ET/1700 GMT) Bank of Canada Senior Deputy Governor Carolyn Wilkins participates in a panel discussion at the World Bank
     
  • (1300 ET/1700 GMT) German Economy Minister Peter Altmaier speaks at an event in Berlin organized by Germany's Focus weekly magazine
     
  • (1400 ET/1800 GMT) Fed's Kashkari holds a Q&A via Twitter
     
  • (1600 ET/2000 GMT) Fed's Michelle Bowman speaks before a Fed Family Luncheon hosted by the Federal Reserve Bank of San Francisco
     

FX Beat

DXY: The dollar index steadied after plunging to a near 2-week low in the prior session as minutes from Federal Reserve's March 19-20 meeting showed policymakers agreed to be patient about any changes to interest rate policy as they saw the U.S. economy weathering a global slowdown without a recession in the next few years. The greenback against a basket of currencies traded 0.05 percent up at 96.93, having touched a low of 96.85 on Wednesday, its lowest since Mar. 28. FxWirePro's Hourly Dollar Strength Index stood at -100.36 (Highly Bearish) by 0500 GMT.

EUR/USD: The euro rose, extending previous session gains after ECB President Mario Draghi raised the prospect of more support for the struggling eurozone economy if its slowdown persisted. The European currency traded 0.5 percent up at 1.1279, having touched a high of 1.1287 on Thursday, its highest since Mar. 26. FxWirePro's Hourly Euro Strength Index stood at 5.84 (Neutral) by 0500 GMT. Investors’ attention will remain on data from the Eurozone economies, ahead of the U.S. producer price index, unemployment benefit claims and Fed officials' speech. Immediate resistance is located at 1.1331 (Mar. 25 High), a break above targets 1.1361 (Mar. 19 High). On the downside, support is seen at 1.1213 (Mar. 28 Low), a break below could drag it till 1.1176 (Mar. 7 Low).

USD/JPY: The dollar bounced, halting a 3-day losing streak after data released yesterday showed U.S. consumer prices increased by the most in 14 months in March. Moreover, the risk sentiment improved as Federal Reserve policymakers debated possible policy moves the central bank could make after it ends its balance sheet reduction programme by September. The major was trading 0.1 percent up at 111.07, having hit a low of 110.84 on Wednesday, its lowest since Apr. 1. FxWirePro's Hourly Yen Strength Index stood at 17.99 (Neutral) by 0500 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. producer price index, unemployment benefit claims and Fed officials' speech. Immediate resistance is located at 111.44 (Apr. 1 High), a break above targets 111.92 (Mar. 6 High). On the downside, support is seen at 110.53 (Mar. 20 Low), a break below could take it lower at 110.01 (Mar. 28 Low).

GBP/USD: Sterling steadied above the 1.3100 handle, after European Union leaders gave Britain six more months to leave the EU bloc, indicating that Britain will not crash out on Friday without a treaty to smooth its passage. The major traded 0.1 percent up at 1.3106, having hit a low of 1.2986 on Friday; it’s lowest since Mar. 29. FxWirePro's Hourly Sterling Strength Index stood at 97.39 (Slightly Bullish) 0500 GMT. Investors’ attention will remain on the U.S. fundamental drivers, amid a lack of economic data from the UK docket. Immediate resistance is located at 1.3121 (Apr. 5 High), a break above could take it near 1.3149 (Apr. 1 High). On the downside, support is seen at 1.3030 (Apr. 9 Low), a break below targets 1.3003 (Mar. 21 Low). Against the euro, the pound was trading flat at 86.09 pence, having hit a low of 86.51 on Tuesday, it’s lowest since Mar. 22.

AUD/USD: The Australian dollar eased after rising to a 6-week peak in the previous session after data showed the Chinese consumer price index declined 0.4 percent in March from 1.0 percent. The Aussie trades 0.1 percent down at 0.7161, having hit a high of 0.7174 on Tuesday; it’s highest since Feb. 27. FxWirePro's Hourly Aussie Strength Index stood at 156.26 (Highly Bullish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7070 (Mar. 29 Low), a break below targets 0.7041 (Mar. 14 Low). On the upside, resistance is located at 0.7168 (Mar. 21 High), a break above could take it near 0.7198 (Feb. 27 High).

NZD/USD: The New Zealand dollar edged lower after rising for three straight sessions, as the greenback rebounded from a near 2-week low. The Kiwi trades 0.1 percent down at 0.6758, having touched a low of 0.6718 on Friday, its lowest level Jan. 22. FxWirePro's Hourly Kiwi Strength Index was at 111.58 (Highly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6799 (Apr. 4 High), a break above could take it near 0.6827 (Mar. 5 High). On the downside, support is seen at 0.6706 (Jan. 22 Low), a break below could drag it below 0.6668 (Jan. 4 Low).

Equities Recap

Asian shares tumbled, drifting further away from 8-month highs as European and U.S. central banks reinforced investor worries about the global economic outlook and trade protectionism.

MSCI's broadest index of Asia-Pacific shares outside Japan declined 0.3 percent.

Tokyo's Nikkei rose 0.1 percent to 21,711.38 points, Australia's S&P/ASX 200 index fell 0.4 percent to 6,198.70 points and South Korea's KOSPI surged 0.05 percent to 2,224.44 points.

Shanghai composite index declined 1.5 percent to 3,192.41 points, while CSI 300 index traded 2.1 percent down at 4,000.83 points.

Hong Kong’s Hang Seng traded 0.7 percent lower at 29,888.92 points. Taiwan shares shed 0.6 percent to 10,808.77 points

Commodities Recap

Crude oil prices declined as U.S. crude stockpiles surged to their highest levels in almost 17 months amid record production, while economic concerns raised doubt over growth in demand for fuel. International benchmark Brent crude was trading 0.2 percent down at $71.41 per barrel by 0458 GMT, having hit a high of $71.76 on Wednesday, its highest since Nov. 8. U.S. West Texas Intermediate was trading 0.3 percent down at $64.25 a barrel, after rising as high as $64.77 on Tuesday, its highest since the Nov. 1.

Gold prices eased, but were trading close to a 2-week peak recorded in the prior session as dovish U.S. and European central banks fanned concerns on economic slowdown. Spot gold was down 0.1 percent at $1,306.97 per ounce by 0503 GMT, having touched a high of $1,310.47 on Thursday, its highest since March 28. U.S. gold futures were down about 0.3 percent at $1,310.20 an ounce.

Treasuries Recap

The Japanese government bond prices were mostly firmery, with the 40-year yield hitting a 2-1/2-year low. The benchmark 10-year cash JGB yield fell half a basis point to minus 0.065 percent. In the super-long zone, the 40-year yield shed two basis points to 0.525 percent, its lowest level since early October 2016. The 30-year fell 1.5 basis points to 0.510 percent, while the 20-year yield dropped half a basis point to 0.340 percent.

The Australian government bond futures were quiet, with the three-year bond contract flat at 98.6000. The 10-year contract rose 1.5 ticks to 98.1350.

The yields on New Zealand's two-year bonds at 1.53 percent remain well below the 1.75 percent cash rate.

The Canadian government bond prices were higher across a flatter yield curve, with the two-year rising 4.5 Canadian cents to yield 1.581 percent and the 10-year climbed 37 Canadian cents to yield 1.687 percent.

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2019-05-27 02:34:53
0m

May 27 01:30 UTC Released

CNSales Turnover

Actual

-3.7 Percent

Forecast

Previous

13.9 Percent

May 27 01:30 UTC Released

CNTurnover/sales cum Y/Y

Actual

-3.4 Percent

Forecast

Previous

-3.3 Percent

January 31 00:00 UTC 692881692881m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 692881692881m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 704701704701m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 692881692881m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 704701704701m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 692881692881m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 692881692881m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 692881692881m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

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