Global Markets:
- Asian stock markets: Nikkei up 0.55 %, Shanghai Composite gained 0.25 %, Hang Seng and ASX both rose 0.35 %
- Commodities: Gold at $1102 (-0.40 %), Silver at $14.74 (-0.14 %), WTI Oil at $50.30 (-0.30 %), Brent Oil at $56.65 (+0.20 %)
- Rates: US 10 year yield at 2.37, UK 10 year yield at 2.07, German 10 year yield at 0.76
News & Data:
- Japan Tankan Index 14.0, Previous: 14.0
- RBA: Steady policy appropriate given current and prospective conditions
- RBA: Would review coming data to judge if rates remain appropriate
- RBA: Further fall in AUD likely, necessary to provide assistance to economy
- RBA: Employment growth, slowdown in population helped keep jobless rate stable
- RBA: ABS vacancies data suggested jobless rate to stay steady or even decline
- BoJ: A few members said effects of QQE might be diminishing, considering long-term interest rates had temporarily risen to the range of 0.5-0.6 percent
- MAS: Singapore core inflation is expected to be in lower half of 0.5-1.5 pct range
Markets Update:
Overnight, both the Reserve Bank of Australia and the Bank of Japan released the minutes of their last meeting. Some BoJ members said that the effects of QQE might be diminishing, but most of them agreed that no change in policy is required. No surprises here and the USD/JPY remained steady. The RBA minutes didn’t contain any surprises either. The bank noted that a further fall in AUD will be necessary and that keeping rates steady seems appropriate for now. NZD/USD had the biggest move overnight, just one day ahead of the RBNZ meeting.
In the commodities markets, precious metals are still under pressure. Gold recovered almost to $1120 yesterday, after reaching a fresh multi-year low at $1080, but momentum quickly waned, pushing the yellow metal back to $1100. Oil prices are heading lower as well, as the recent Iran deal continues to add to the already bearish sentiment.
Looking ahead, the econ calendar is light, with no major data releases, so it could be a quiet trading day.
Upcoming Events:
- 07:00 BST – Swiss Trade Balance
- 13:55 BST – US Redbook
