Global Markets:
- Asian Stock Markets : Nikkei up 0.52%, Shanghai Composite up 0.75%, Hang Seng down 0.25%, ASX up 0.63%
- Commodities : Gold at $1971.95 (-0.72%), Silver at $23.82 (-1.40%), Brent Oil at $84.14 (+5.32%), WTI Oil at $79.61 (+5.21%)
- Rates : US 10-year yield at 3.524, UK 10-year yield at 3.493, Germany 10-year yield at 2.314
News & Data:
- (USD) Revised UoM Consumer Sentiment 62 vs 63.1 expected
- (USD) Chicago PMI 43.8 vs 43.1 expected
- (USD) Core PCE Price Index m/m 0.30% vs 0.40% expected
- (CAD) GDP m/m 0.50% vs 0.40% expected
- (EUR) Core CPI Flash Estimate y/y 5.70% vs 5.70% expected
- (EUR) CPI Flash Estimate y/y 6.90% vs 7.10% expected
Markets Update:
Asian markets were mixed on Monday as investors weighed the impact of higher oil prices and softer inflation data on the global economy. Oil prices soared more than 5% after OPEC+ announced a surprise production cut of 1.15 million barrels per day from May until the end of the year, adding to inflationary pressures and fuel costs. The move was seen as a challenge to the Biden administration, which had urged the group to increase output to ease supply constraints. The US dollar rose against the Japanese yen and other major currencies as bond yields fell on Friday after the US core PCE inflation, the Fed’s preferred measure, ticked down to 4.6% in February, easing some concerns about aggressive rate hikes.
In Japan, the Nikkei 225 index gained 0.6% despite a decline in business sentiment among big manufacturers in the first quarter of this year, according to the Bank of Japan’s Tankan survey. The index was boosted by gains in consumer discretionary and tech stocks, following a strong performance by their US counterparts on Friday. In China, the CSI 300 index rose 0.3% as official PMI data showed a continuous economic recovery and strength in the services sector. The manufacturing PMI came in better than expected at 51.9 in March, while the non-manufacturing PMI surged to 56.3, indicating robust domestic demand. In Hong Kong, the Hang Seng index slipped 0.3% as energy and financial stocks weighed on the market.
In Australia, the S&P/ASX 200 index advanced 0.7% as mining and health care stocks led the gains. The market shrugged off a drop in retail sales in February and a rise in new Covid-19 cases in Queensland. In other parts of Asia, markets were mixed with Taiwan rising and Thailand falling.
Gold prices edged lower on Monday as the US dollar strengthened and investors awaited more cues from central banks on monetary policy.
Upcoming Events:
Monday, April 03, 2023
- All Day – (All) OPEC-JMMC Meetings
- 02:00 PM GMT – (USD) ISM Manufacturing PMI
- 02:00 PM GMT – (USD) ISM Manufacturing Prices
- 02:30 PM GMT – (CAD) BOC Business Outlook Survey
Tuesday, April 04, 2023
- 04:30 AM GMT – (AUD) Cash Rate
- 04:30 AM GMT – (AUD) RBA Rate Statement
- 02:00 PM GMT – (USD) JOLTS Job Openings
Wednesday, April 05, 2023
- 02:00 AM GMT – (NZD) Official Cash Rate
- 02:00 AM GMT – (NZD) RBNZ Rate Statement
- 02:30 AM GMT – (AUD) RBA Gov Lowe Speaks
- 12:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 02:00 PM GMT – (USD) ISM Services PMI
Thursday, April 06, 2023
- 12:30 PM GMT – (CAD) Employment Change
- 12:30 PM GMT – (CAD) Unemployment Rate
- 12:30 PM GMT – (USD) Unemployment Claims
- 02:00 PM GMT – (CAD) Ivey PMI
Friday, April 07, 2023
- 12:30 PM GMT – (USD) Average Hourly Earnings m/m
- 12:30 PM GMT – (USD) Non-Farm Employment Change
- 12:30 PM GMT – (USD) Unemployment Rate
