In Economy
On Tuesday, MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed in early trade, staying near Wednesday’s 4-month peak. Asian Indices also hovered near a 4-month peak, supported by hopes that China-U.S. trade talks were making positive progress and expectations of policy stimulus from central banks.
U.S. President Donald Trump said last week he might extend his March 1 deadline, which would stop an immediate increase in tariffs on $200 billion worth of Chinese imports to 25% from 10%.
Investors are now seen returning to riskier asset markets after the U.S. Federal Reserve signaled earlier this year it could halt rate hikes in light of U.S. economic softness.
Brazil has asked the European Union for compensation after it imposed import tariffs on steel from major producing countries earlier this month, the Brazilian government said in a statement on Monday. Brazil is seeking 180 million euros ($203.6 million) in compensation, a government source with knowledge of the matter told Reuters.
Italy has started discussions with the European Union over the renewal of a state guarantee scheme designed to help banks shed bad loans, a government source said on Monday. Rising risk premiums on Italian assets have made the "GACS" scheme more costly, but renewal remains important for the country's banks which still hold 100 billion euros ($113 billion) in bad debts, a legacy of the financial crisis of 2007-2009 which had a major negative impact on Italy's economy.
In Currency markets
The AUD/USD Dips 0.16% trading at 0.7118 After RBA Minutes Showed “Significant Uncertainties” on the Economic Outlook, The RBA minutes also said policymakers believed there is no strong case for a near-term move in interest rates, saying it was better to be a source of stability.
The euro and other risk-sensitive currencies remained underpinned by hopes on U.S.-China trade talks though most currencies were stuck in familiar ranges.
The euro changed hands at $1.1300, off Friday’s three-month low of $1.1234.
Comments from European Central Bank’s Olli Rehn on Sunday have fanned speculation the European Central Bank would launch another round of Targeted Long-Term Refinancing Operations (TLTRO) to support bank lending.
The dollar stood at 110.49 yen, stepping back from Thursday’s seven-week peak of 111.13.
The GBPUSD traded at $1.2898, with an eye on Brexit talks between Britain and the European Union.
In Commodity market
The precious metals market was slightly more lively, with palladium surging to a record high of $1,464.15 per ounce as stricter emissions standards are seen increasing demand for the auto catalyst metal.
Gold rose to a near 10-month high of $1,327.95 per ounce.
Oil prices held firm at three-month highs owing to a growing belief among investors that OPEC’s supply cuts will prevent a build-up in unused fuel. Brent futures rose to as high as $66.83 on Monday, hitting their highest levels since mid-November. U.S. crude futures rose 0.5 percent in early Tuesday trade to $55.86.
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