ECONOMY
On Thursday , Asian Indices trading at PAR despite weak from China for clues about the health of the world’s second largest economy while the pound shot up to near nine-month highs as the risk of a no-deal Brexit receded following a late-night vote. MSCI’s broadest index of Asia-Pacific shares outside Japan was barely changed at 522.38 points.
China assets investment as expected 6.1% despite industrial production (YOY) slid up to 5.3% from 5.7%. But Retail sales (YOY) able to maintain 8.2% mark.
India’s Reliance Industries Ltd, operator of the world’s biggest refining complex, said on Wednesday it had halted supply of diluents to Venezuela’s national oil company PDVSA and will not resume such sales until sanctions are lifted.
Overnight , Wall Street was buoyant after U.S. data showed producer prices barely edged higher in February, the latest sign inflation remains tame and affirming expectations the Federal Reserve would maintain a “patient” approach to future tightening. It is interesting to watch , how much further a share rally would run as signs of slowing global growth, weak corporate earnings and trade tensions between the United States and China hang heavy on risk assets.
Most of the action overnight was in Sterling after the British parliament rejected leaving the European Union without a deal, paving the way for a vote that could delay Brexit until at least the end of June.
FOREX
The dollar edged back from a nine-day low early on Thursday, as a big rally by the pound made on Brexit relief tapered off and gave the greenback some reprieve.
The rejection of a no-deal Brexit sent the cable rallying to $1.3380, the highest since June 2018. It jumped 2.1% for its best one-day percentage gain since April 2017 and was last at $1.3258.
The euro extended gains for a fifth day in a row to the highest since March 5. It was last at $1.1328.
USD/JPY is relatively steady in Tokyo, slightly offered as the case for the upside fades away as slips below the rising channel. USD/JPY is currently trading at 111.43.
The People's Bank of China set the yuan reference rate 6.7009 vs the previous day's fix of 6.7114.
COMMODITY
Oil prices extended overnight gains with U.S. crude up 9 cents per barrel at $58.35 and Brent adding 7 cents to $67.62.
Gold held close to two-week highs on Thursday as the U.S. dollar eased after British lawmakers rejected a no-deal Brexit in any scenario and as tepid U.S. inflation data reduced the chance of future U.S. interest rate hikes.
Malaysian palm oil futures slid for a sixth consecutive session on Wednesday to their lowest in three months on pressure from expectations of lower demand in top importer India and rising domestic production.
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