ECONOMY
On Wednesday , Asian Indices stepped back from 8 month highs as the IMF lowered its global growth outlook and as tensions over tariffs between the United States and Europe escalated.
Global trade anxiety was another sore point for risk asset markets.
U.S. President Donald Trump threatened to impose tariffs on $11 billion worth of European Union products, heightening tensions over a long-running transatlantic aircraft subsidy dispute.The move came as markets remain on edge as negotiators try to hammer out trade deals with China and neighbours Mexico and Canada.
On Tuesday, Wall Street, the S&P 500 gave up 0.61 percent and the Nasdaq Composite declined 0.56 percent. Although earnings forecasts have been pegged back recently, share markets have been propped up by hopes of a trade deal between Washington and Beijing and optimism that the Chinese economy may be bottoming out on policy support. U.S. data overnight added to the cautious mood, with job openings dropping to an 11-month low in February and raising doubts about the strength of U.S. labour market, which has so far been one of the few bright spots in the economy.
On Tuesday when the International Monetary Fund cut its forecast for world economic growth this year, saying the global economy is slowing more than expected and that a sharp downturn could require world leaders to coordinate stimulus measures.
European Union leaders are likely to grant British Prime Minister Theresa May a second delay to Brexit but they could demand she accepts a much longer extension as France pushed for conditions to limit Britain’s ability to undermine the bloc.
CURRENCY
Global debt yields held mostly steady, with the 10-year U.S. Treasuries yield at 2.501 percent, off its 15-month low of 2.340 percent touched late last month.
Major currencies were little moved with an immediate focus on the European leaders’ summit and the European Central Bank’s policy meeting.
The euro held firm at $1.1266, extending its slow recovery from $1.1183 touched on April 2. It is up 0.43% so far this week.
The British pound perked at $1.3059, little changed on the day.
The dollar slipped to 111.14 yen, having fallen 0.5% so far this week. PBOC Fixed USDCNY Reference Rate At 6.7110 Vs prev fix 6.7142 (prev close 6.7120).
EM ASIA FX-Philippine peso, Malaysian ringgit lead declines.
COMMODITY
Oil prices held firm after hitting five-month highs , On Tuesday, fighting in Libya raised supply disruption concerns.
U.S. crude futures stood at $64.06 per barrel, up 0.13% in early Asian trade after rallying to a five-month high of $64.79 on Tuesday. Brent crude futures changed hands at $70.62 per barrel, not far from Tuesday’s five-month peak of $71.34.
Malaysian palm oil futures charted a sixth day of gains in seven on Tuesday evening as the market cheered a bullish outlook on March production and inventory levels.
U.S. wheat futures fell to a one-week low on Tuesday, pressured by improving U.S. yield prospects and rising global stockpiles, analysts said, while nearby U.S. corn and soybean futures finished unchanged.
Comentários