Market Roundup
- India Apr 2019 Nikkei markit manufacturing PMI decrease to 51.8 (forecast 52.5) vs previous 52.6.
- U.S., China reported near deal to end some tariffs; talks 'productive'.
- Barr cancels second day of testimony, escalating battle with U.S. Congress.
- U.S. Fed sees no strong case for hiking or cutting rates.
- UK's May fires defence secretary over Huawei leak.
- Bank of England to keep rates steady, despite Brexit delay.
- Asia factory activity "bottoming out" but policy support still needed.
- Maduro hangs on as Venezuelan protests peter out.
- NZ Mar Building Consents, -6.9%, 1.9% previos, 1.7% revised.
Economic Data Ahead
- (0350 ET/0750 GMT) France April Markit manufacturing PMI, 49.6 forecast, 49.6 previous.
- (0355 ET/0755 GMT) Germany April Markit/BME manufacturing PMI, 44.5 forecast, 44.5 previous.
- (0400 ET/0800 GMT) EU April Markit manufacturing Final PMI, 47.8 forecast, 47.8 previous.
- (0500 ET/0900 GMT) UK April Markit/CIPS Construction PMI, 50.3 forecast, 49.7 previous.
Key Events Ahead
- (0530 ET/0930 GMT) French Finance Minister Bruno Le Maire and German Economy Minister Peter Altmaier address a news conference on European Industrial Policy at the Bercy Ministry in Paris.
- (0700 ET/1100 GMT) Bank of England to release inflation report in London.
- (0700 ET/1100 GMT) Bank of England announces rate decision and publishes the minutes of the meeting, after the rate decision in London.
- (1330 ET/1730 GMT) The European Central Bank's chief economist, Peter Praet, takes part in a "fireside chat" at a conference organised by the central bank of Austria in Vienna.
- (1800 ET/2200 GMT) Austria's central bank ONB and the European Money and Finance Forum SUERF to host a two-day conference on the European economic and monetary union.
FX Recap
USD: Against a basket of currencies, the dollar was flat at 97.60 and still not far from last week's near two-year peak of 98.330.
EUR/USD: The euro was back at $1.1200, after reaching as high as $1.1265. It made intraday high at $1.1209 and low at $1.1193 mark. A consistent close below $1.1193 will drag the parity down towards key supports around $1.1175, $1.1080 and $1.0852 levels respectively. Alternatively, reversal from key support will drag the parity higher towards key resistances around $1.1390, $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively.
USD/JPY: The Japanese yen trades almost flat around 111.54 mark as Japanese banks will remain closed for a week. It made intraday high at 111.66 and low at 111.34 levels. A sustained close above 112.17 is required to take the parity higher towards key resistances around 112.60 and 113.98 marks respectively. Alternatively, a daily close below 111.37 will drag the parity down towards key support around 110.80, 109.70, 107.50 and 104.20 marks respectively.
GBP/USD: The pound was last at $1.3054 in Asia, having been as high as $1.3102 overnight. The pound hit a two-week high on Wednesday as investors sensed in comments by Prime Minister Theresa May signs of progress in Brexit talks between the British government and the main opposition party. Sterling neared $1.31 after May said her plan to negotiate a customs arrangement with the EU was similar to that of the Labour Party and called for an end to uncertainty. Pair made intraday high at $1.3060 and low at $1.3038 mark. A sustained close below $1.2897 requires for dragging the parity down towards key support around $1.2772 and $1.25 mark respectively. On the other side, key resistances are seen at $1.3049, $1.3187, $1.3215, $1.3362 and $1.3490 levels respectively.
AUD/USD: The Aussie dollar nudged up to $0.7021, having slipped 0.5 percent overnight to as low as $0.7007.The pair made intraday high at $0.7028 and low at $0.7010 levels. A consistent close below $0.7015 requires for downside rally.
NZD/USD: The kiwi dollar was holding on at $0.6630, after losing 0.8 percent overnight to a trough of $0.6617. A sustained close above $0.6673 requires for the upside rally. Alternatively, key support was seen at $0.6580 mark.
Equities Recap
Australia’s S&P/ASX200 was trading 0.67 pct lower at 6,332.55 points.
Hong Kong's hang seng index was trading 0.56 percent higher at 29,866.22 points.
South Korea’s Kospi was trading 0.42 percent higher at 2,212.58 points.
Taiwan stock was trading 0.09 percent lower at 10,942.61 points.
India’s NSE was trading 0.34 pct higher at 11,788.45 points and BSE Sensex was trading 0.38 pct higher at 39,174.55 points.
Commodities Recap
Oil prices fell on Thursday, pulled down by record U.S. crude production that led to a surge in stockpiles. Outside the United States, however, oil markets remained tense as exemptions to U.S. sanctions on Iran expired, a political crisis in Venezuela escalates, and as producer club OPEC keeps withholding supply. Spot Brent crude oil futures were at $71.91 per barrel at 0239 GMT, 27 cents, or 0.4 percent, below their last close. U.S. West Texas Intermediate (WTI) crude futures were down 19 cents, or 0.3 percent, at $63.41 per barrel.
Gold prices dropped to a one-week low on Wednesday as the dollar rebounded after U.S. Federal Reserve reduced expectations of a rate cut this year, with the safe-haven metal also pressured as the central bank signaled strong economic growth. Spot gold slipped 0.6% to $1,276.36 per ounce as of 5:02 p.m. EDT (2102 GMT), after falling as much as 0.8% to a session low of $1,272.74 earlier, its lowest since April 24. U.S. gold futures settled 0.1% lower at $1,284.20 an ounce.
Treasuries Recap
Australian three-year yields of 1.29 percent are well short of the cash rate. Three-year bond futures were off 1.5 ticks on Thursday at 98.730, while the 10-year contract dipped half a tick to 98.2000.
