ECONOMY
On Wednesday Asian Indices markets jumped as investors dared to hope the Federal Reserve would follow the lead of the European Central Bank and open the door to future rate cuts at its policy meeting later in the day.
Wall Street’s main indexes rallied on Tuesday, with the S&P 500 inching close to record levels, as President Donald Trump’s comments on restarting trade talks with China added to optimism of a more accommodative Federal Reserve.
The European Central Bank will ease policy again if inflation fails to accelerate, ECB President Mario Draghi said on Tuesday, signalling one of the biggest policy reversals of his eight-year tenure and provoking the ire of U.S. President Donald Trump.
Draghi said the ECB, which has consistently undershot its inflation target of just under 2% since 2013, could still cut rates, adjust its interest rate guidance and had “considerable headroom” for more asset purchases.
He also said the ECB could offer “mitigating measures” to offset the unwanted side effects of negative rates, a comment indicating that a multi-tier deposit rate was also on the table.
India will examine concerns raised by foreign technology companies around stringent rules to store data locally, the government said on Tuesday, an issue that has upset firms such as Mastercard and also irked the U.S. government.
BONDS
Bond investors expect an aggressive set of U.S. interest rate cuts this year, and a voluble president pines for the “old days” when his predecessors bullied central bankers to get their way.
FOREX
The euro trading at 1.12 lower against the U.S. dollar, as U.S. President Donald Trump continued to put pressure on the Federal Reserve to ease rates by criticizing the European Central Bank.
EUR/USD slipped 0.3% to 1.1185 on Tuesday after ECB Draghi stimulus hope.
U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, trading at 97.14.
USDGBP 1.2559 was the May low Cable has embarked in a bit of a turnaround today. It's now trading at 1.2562 after falling as low as 1.2506. The figure provided some support and it rebounded.
COMMODITY
On Wednesday Oil prices climbed , extending sharp gains from the previous session on rekindled hopes for a U.S.-China trade deal and on continued tensions in the Middle East after tanker attacks there last week.
Brent crude futures were up 0.01 cents, or 0.02%, at $62.24 a barrel. They rose 2% on Tuesday.
U.S. West Texas Intermediate crude gained 19 cents, or 0.35%, to $54.34 a barrel. The U.S. benchmark surged 3.8% in the last session.
Spot Gold reflective of trades in bullion, traded at $1,349.95 per ounce , up $7.05, or 0.5%, on the day. The session high for bullion was $1,358.35.
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