ECONOMY
On shine Monday , MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed from Friday’s three-week low. Asian Indices pulled back after U.S. employment data raised doubts about the strength of the global economy while investor jitters ahead of crucial Brexit votes in the UK parliament this week weighed on the pound.
India will hold a general election in seven stages starting on April 11, the election commission said on Sunday, in what will be the world’s biggest democratic exercise with Prime Minister Narendra Modi likely to benefit from tensions with Pakistan.
On Friday, Wall Street’s main indexes posted their biggest weekly decline since the market tumbled at the end of 2018 last week, falling for the fifth consecutive day on the shocking payrolls data.
The U.S. economy created only 20,000 jobs in February, the weakest reading since September 2017. While jobs growth was weak, average hourly earnings rose 11 cents, or 0.4%, raising the annual increase to 3.4%, the biggest gain since April 2009.
Fed Chair Jerome Powell said on Friday that the central bank will be careful not to shock financial markets as it stabilizes its bond portfolio, saying the it does not see problems in the U.S. economy that warrant an immediate change in its policy. He also said the new normal for the Fed’s total liabilities may be in the ballpark of 16.5 percent of GDP.
Chinese data released over the weekend was slightly weaker though hopes for more policy support are likely to cushion any blows. New bank loans in China fell a bit more than expected in February from a record the previous month, while money supply growth also missed forecast.
Following the data, China’s central bank on Sunday pledged to further support the slowing economy by spurring loans and lowering borrowing costs.
FOREX
USA bond yields dropped, with the 10-year Treasuries yield hitting a two-month low of 2.607%.The two-year yield also hit a two-month low of 2.438%, edging near the current Fed funds rate around 2.40%.
Fed funds futures are pricing in more than 20% chance of a rate cut this year.
The British pound was wobbly at $1.2967, having fallen to a three-week low of $1.2945 earlier on Monday on nervousness ahead of a crucial week in the UK’s troubled political debate over EU membership, with parliament expected to reject Prime Minister Theresa May’s deal in a vote on Tuesday.
The euro stood at $1.1228, keeping some distance from $1.11765 hit after the European Central Bank’s surprisingly dovish stance. It was its lowest since late June 2017.
USDJPY was softer at 111.06, having peaked at a 2-1/2-month high of 112.135 last Tuesday.
ENERGY
Saudi oil minister Khalid al-Falih said on Sunday it would be too early to change OPEC+ output policy at the group's meeting in April and that China and the U.S. would lead healthy global demand for oil this year.
U.S. West Texas Intermediate crude futures rose 0.2% to $56.18 per barrel. Brent crude futures were at $65.91 per barrel, down 17 cents, or 0.3%.
A draft energy and climate law due to be presented to French cabinet ministers on Monday has been postponed so that it can be reworked with more ambitious environmental goals, President Emmanuel Macron's office said on Sunday.
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