Global Markets:
- Asian Stock Markets : Nikkei up 2.55%, Shanghai Composite up 1.01%, Hang Seng up 1.97%, ASX up 2.93%
- Commodities : Gold at $1726.70 (-0.51%), Silver at $17.90 (+1.17%), Brent Oil at $36.05 (+1.46%), WTI Oil at $34.12 (+2.62%)
- Rates : US 10-year yield at 0.695, UK 10-year yield at 0.181, Germany 10-year yield at -0.447
News & Data:
- (CHF) Trade Balance 4.04B vs 3.89B expected
- (EUR) German GfK Consumer Climate -18.9 vs -19.1 expected
- (JPY) BOJ Core CPI y/y -0.10% vs 0.00% expected
- (JPY) All Industries Activity m/m -3.80% vs -3.90% expected
- (JPY) SPPI y/y 1.00% vs 1.30% expected
- (NZD) Trade Balance 1267M vs 1250M expected
- (EUR) Belgian NBB Business Climate -34.4 vs -29.7 expected
- (EUR) German ifo Business Climate 79.5 vs 78.3 expected
- (EUR) German Final GDP q/q -2.20% vs -2.20% expected
Markets Update:
Asian stock markets, led by Japan, are mostly higher on Tuesday despite the absence of fresh cues from Wall Street, which was closed overnight for a holiday. Optimism about a global economic recovery as countries such as Japan and Spain ease lockdown restrictions and a survey showing an improvement in German business confidence lifted stocks. News that U.S. biotech firm Novavax has commenced the first human trial of its experimental coronavirus vaccine also bolstered sentiment.
Hong Kong’s Hang Seng index also saw robust gains, rising 2%. Mainland Chinese stocks advanced on the day, with the Shanghai composite up 1%. Japanese shares led gains among major markets in the region, with the Nikkei 225 up 2.6%. Meanwhile, shares in Australia jumped, with the S&P/ASX 200 up 2.9%.
The U.S. dollar index, which tracks the greenback against a basket of its peers, last traded at 99.575 after declining from levels above 100 last week. Yields on U.S. 10-year notes were trading at 0.67% having recovered from a blip up to 0.68% last week when the market absorbed a tidal wave of new issuance. The decline in U.S. yields might have been a burden for the dollar but with rates everywhere near or less than zero, major currencies have been holding to tight ranges.
Oil prices were supported by falling supplies as OPEC cut production and the number of U.S. and Canadian rigs dropped to record lows for the third week running.
Upcoming Events:
- 01:00 PM GMT – (EUR) ECB Financial Stability Review
- 02:00 PM GMT – (USD) CB Consumer Confidence
- 09:00 PM GMT – (CAD) BOC Gov Poloz Speaks
- 09:00 PM GMT – (NZD) RBNZ Financial Stability Report