ECONOMY
On Monday, Asian shares were off to a cautious start as investors pinned their hopes on any signs of a thaw in China-U.S. trade negotiations while oil prices firmed on worries over heightened tensions between the United States and Iran.
Brussels will this week hold off on launching a disciplinary process against Italy's rising debt levels, buying time for Rome's populist government to reach a deal and avoid being hit with budget sanctions.
By the end of September, the European Central Bank will either cut its deposit rate or ease its forward guidance further by pledging to keep interest rates lower for longer, according to a majority of economists in a Reuters poll.
New Zealand’s central bank is expected to hold interest rates steady on Wednesday, but keep the door open for further easing to support growth in the face of slowing external demand and broadening global pressure from a heated Sino-U.S. trade war.
Britain will see the slowest growth in consumer spending in 2019 in six years, piling even more pressure on retailers, EY ITEM Club forecast on Monday.
U.S. President Donald Trump said on Sunday he was not seeking war with Tehran after a senior Iranian military commander warned any conflict in the Gulf region could spread uncontrollably and threaten the lives of U.S. troops.
BONDS
The 10-year Treasury note yield at par, climbed 6.5 basis points to 2.066%, trimming the benchmark rate’s weekly decline to 2.6 basis points. It staged its biggest daily yield increase since April 1, a day after falling below the 2% level to a two and half year low.
The 2-year note yield +0.90% picked up 5.3 basis points to 1.782%, cutting its weekly yield fall to 6.8 basis points.
The 30-year bond yield +0.04% rose 6.3 basis points to 2.591%, leaving it mostly unchanged for the week.
CURRENCY
The yen has picked up a safe haven bid, fundamentally offered on the Federal Reserve. 107.27 61.8% Fibonacci taken out, eyes on 105.87.
EUR/USD confirmed bullish trend with a close above 200-day MA on Friday. The daily chart shows a bullish higher low, higher high pattern. Friday's close also confirmed an inverse head-and-shoulders breakout.
The Turkish lira strengthened about 0.75% to 5.767 after Turkey's main opposition claimed a decisive victory on Sunday in Istanbul's re-run election, dealing one of the biggest blows to President Tayyip Erdogan.
RBA Governor’s expectations of the likely increase in infrastructure to benefit Australian economy helped the AUD/USD pair as it rises to the 12-day high of 0.6950 during early Monday.
COMMODITY
Oil prices held firm near three-week highs hit last week after the United States and Iran came to the brink of war following Iran's shooting down of an unmanned U.S. surveillance drone.
Brent crude futures rose 0.54% to $64.56 per barrel, near Friday's three-week high of $65.76. U.S. crude futures were up 0.54% at $57.73 per barrel.
The precious metal stood at $1,406.2 per ounce, near Friday's six-year high of $1,411.2.
Comments