ECONOMY
On Tuesday , Asian indices slip from nine-month peak after disappointing bank earnings dented Wall Street, though recent signs the global economy is likely to avoid a sharper downturn helped limit the losses. Expectations that Chinese and U.S. trade negotiators would strike a deal soon also lifted confidence.
The U.S.-China trade dispute, signs of slowing global corporate earnings and business investment have all put pressure on riskier assets in the past year, so investors have been quick to lap-up positive news.
Wall Street lost ground on Monday, dragged down as underwhelming bank earnings curbed investor enthusiasm. But while all three major U.S. stock indexes edged lower, the S&P 500 remained within a percent of its record high.
Many investors are waiting on Chinese gross domestic product (GDP) data due on Wednesday for clues on the health of Asia’s giant economy, a major pressure point for global growth over the past year. A Reuters poll forecast China’s first-quarter growth to have cooled to the weakest pace in at least 27 years, but a flurry of measures to boost domestic demand may have put a floor under slowing activity in March.
Safe havens such as bonds and gold were on the defensive following the recent improvement in investor risk appetite.
CURRENCY
On Tuesday, The dollar, which tends to under-perform when risk appetite increases, was a shade lower at 96.924 against a basket of six major currencies, extending overnight losses.
The yen remained close to 2019 lows against the U.S. and Australian dollars after investors reduced exposure to the safe-haven currency to seek higher yields elsewhere.
The euro was slip below at $1.1300 after inching up less than a tenth of a percent overnight.
The Australian dollar, a barometer of investor sentiment, was unchanged at $0.7174, hovering close to a near seven-week high brushed on Friday.
The British Pound trades little changed near 1.3100 versus the US Dollar (USD) during early Tuesday. The GBP/USD pair is on sidelines as Easter holidays at the UK parliaments confine Brexit developments after the nation received deadline extension till October 31.
The 10-year U.S. Treasury yield rose to 2.574 percent on Monday, its highest since March 20.
COMMODITY
Spot gold was a shade higher at $1,288.24 an ounce following three straight days of losses.
The recent rally in crude oil prices slowed on the prospect of Russia and OPEC boosting production to fight for market share with the United States. U.S. West Texas Intermediate crude futures were up 0.15% at $63.50 per barrel after losing nearly 0.8% the previous day. U.S. crude had scaled a five-month high of $64.79 earlier this month.
Malaysian palm oil futures fell to their lowest levels in two weeks, dropping for a third session in four as stockpiles remained high and exports came in weaker than forecast.
U.S. corn and soy futures edged higher on Monday as traders assessed the risk for wet weather to disrupt farmers' spring plantings.
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