In Economy
On Wednesday , MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2% in early trade. Asian Indices firm after U.S-China trade talks resumed while investors awaited minutes from the U.S. Federal Reserve for clues on policymakers’ thinking on interest rates and its balance sheet reduction policy.
In New York, the S&P 500 gained 0.15%, helped by upbeat results from Walmart while the Nasdaq rose 0.19%, logging its seventh straight session of gains.
Investors now expect Trump to meet Chinese President Xi Jinping next month to strike a deal.
The two countries started a new round of talks to resolve their trade war on Tuesday, and sessions at a higher level are planned later this week, with Chinese Vice Premier Liu He visiting Washington on Thursday and Friday.
Investors also look to the release later on Wednesday of minutes from the Federal Reserve’s January policy-setting meeting, where policymakers took a dovish turn, effectively signaling no further rate hikes.
New York Fed President John Williams endorsed such an outlook, telling Reuters on Tuesday he was comfortable with the level U.S. interest rates are at now and that he sees no need to raise them again unless economic growth or inflation shifts to an unexpectedly higher gear.
In Currency Market
Bloomberg reported on Tuesday that the United States was seeking to secure a pledge from China that it will not devalue its yuan currency as part of a trade deal.
The euro firmed to $1.1355, bouncing back from Friday’s three-month low of $1.1234, on the back of improving risk appetites.
The dollar stood 110.83 yen, off Thursday’s seven-week peak of 111.13.
The British pound soared to $1.3063 on Tuesday, gaining 1.09%, a move some traders attributed to rising hopes Prime Minister Theresa May will make progress in seeking changes to her Brexit deal with the European Union.
The Chinese yuan firmed slightly to 6.7400 per dollar, its highest level in about three weeks.
In Commodity Market
Oil prices held near 3-month highs on tightening supplies though their rally have stalled for now. U.S. crude futures stood at $56.37 per barrel, down 0.14%, in early Asian trade.
U.S. oil output from seven major shale formations is expected to rise 84,000 barrels per day (bpd) in March to a record of about 8.4 million bpd.
The yellow metal (Gold) has been favorite of traders , traded at $1,348.45 per ounce. USD weakness and traders’ rush for risk-safety continues to please the Bullion buyers.
Comments