Global Markets:
- Asian Stock Markets : Nikkei down 0.36%, Shanghai Composite up 0.65%, Hang Seng up 0.56%, ASX up 1.02%
- Commodities : Gold at $1985.65 (+0.06%), Silver at $23.78 (+1.35%), Brent Oil at $77.76 (+0.22%), WTI Oil at $73.19 (+0.30%)
- Rates : US 10-year yield at 3.547, UK 10-year yield at 3.456, Germany 10-year yield at 2.246
News & Data:
- (EUR) Spanish Flash CPI y/y 3.30% vs 3.90% expected
- (USD) Pending Home Sales m/m 0.80% vs -2.90% expected
- (AUD) CPI y/y 6.80% vs 7.20% expected
Markets Update:
Asian markets ended the first quarter on a positive note, as investors shrugged off concerns about rising COVID-19 cases and tighter lockdowns in some countries and focused on the prospects of a global economic recovery. The Federal Reserve’s dovish tone after its latest rate hike also boosted sentiment, as it signaled a more gradual and cautious approach to monetary policy normalization. The Bank of England is expected to tighten policy further later in the day.
Among the major indices, Australia’s S&P/ASX 200 added 1.0%. The index was lifted by gains in energy, materials and financials sectors, as commodity prices remained elevated and bank stocks recovered from recent losses. South Korea’s Kospi rose 0.7%, Hong Kong’s Hang Seng gained 0.6%, and China’s Shanghai Composite advanced 0.7%. Japan’s Nikkei 225 was the only laggard, shedding 0.4%. The index was weighed down by concerns about Japan’s slow vaccination rollout and rising COVID-19 infections, which prompted some local governments to impose stricter measures to curb the spread of the virus. The index was also pressured by a stronger yen, which appreciated against the US dollar, as investors sought safety amid global market volatility.
In commodities, gold firmed up above $1,970 an ounce, as the Fed’s dovish tone boosted its appeal as a hedge against inflation and currency weakness. Crude oil fell below $70 a barrel, as rising US inventories and OPEC+ supply weighed on the market. The US dollar index, which measures the greenback against a basket of six major currencies, slipped to 91.8, as investors pared back their expectations for more rate hikes this year.
Upcoming Events:
- 12:30 PM GMT – (USD) Final GDP q/q
- 12:30 PM GMT – (USD) Unemployment Claims
- 12:30 PM GMT – (USD) Final GDP Price Index q/q
- 04:00 PM GMT – (CHF) Gov Board Member Maechler Speaks
- 07:45 PM GMT – (USD) Treasury Sec Yellen Speaks
- 11:30 PM GMT – (JPY) Tokyo Core CPI y/y
