ECONOMY
On Wednesday, Asian Indices firm on positive Chinese data, China's economy grew 6.4% in the first quarter from a year earlier, above expectations and steady from the previous quarter, helped by sharply higher factory production. The main mover of the morning was the New Zealand dollar which dived after a weak reading on consumer price inflation stoked expectations for a cut in interest rates.
Overnight , Wall Street, the Dow ended with a slight gain of 0.26%, while the S&P 500 firmed 0.05% and the Nasdaq 0.3%.
The CBOE Volatility Index has hit its lowest level in more than six months, while European stock volatility reached its lowest level since January 2018.
The 10-year Treasury note yield +0.39% climbed 4 basis points to 2.592%, its highest since March 19. The 2-year note yield +0.86% was up 2.3 basis point to 2.414%, while the 30-year bond yield +0.16% rose 2.9 basis points to 2.992%, also its highest since March 19. Bond prices move inversely to yields.
CURRENCY
The dollar has edged up against a basket of currencies to 97.074, it has traded between 95.00 and 97.70 for six months now.
Greenback manage to top resistance on the yen at 112.13 to reach its highest since December at 112.16.
The euro was hovering between $1.1285 - $1.1300, having slipped form $1.1314 overnight on a Reuters report that several European Central Bank policymakers think the bank’s economic projections are too optimistic.
New Zealand dollar which sank 0.8% to $0.6708 after annual consumer price inflation came in well below expectations at just 1.5% for the first quarter. Yields on two-year bonds dived 9 basis points to 1.48% as investors wagered the Reserve Bank of New Zealand (RBNZ) would have to cut rates in response.
COMMODITY
Improvement in risk sentiment saw spot gold slip to its lowest for the year so far and was last at $1,276.61 per ounce.
Oil prices were buoyed as fighting in Libya and falling Venezuelan and Iranian exports raised concerns over tightening global supply. U.S. crude was last up 31 cents at $64.36 a barrel, while Brent crude futures were up 14 cents at $71.86.
Malaysian palm oil futures hit a one-week high during trade on Tuesday, reversing losses made earlier in the day and supported by a weaker ringgit and expectations of weaker than forecast production.
U.S. grain and soybean futures slumped on Tuesday with strong crop ratings and increased forecasts for global harvests pushing Chicago Board of Trade wheat to a one-month low.
Comments