Friday 16th April 2021: Bond markets surge confuse investors

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.14%, Shanghai Composite up 0.81%, Hang Seng up 0.85%, ASX up 0.07%
  • Commodities : Gold at $1769.35 (+0.14%), Silver at $26.04 (+0.30%), Brent Oil at $67.13 (+0.28%), WTI Oil at $63.59 (+0.20%)
  • Rates : US 10-year yield at 1.573, UK 10-year yield at 0.755, Germany 10-year yield at -0.281

News & Data:

  • (CNY) GDP q/y 18.30% vs 18.30% expected
  • (USD) Unemployment Claims 576K vs 703K expected
  • (USD) Philly Fed Manufacturing Index 50.2 vs 41 expected
  • (USD) Retail Sales m/m 9.80% vs 5.80% expected
  • (USD) Core Retail Sales m/m 8.40% vs 5.10% expected
  • Euro area international trade in goods surplus €17.7 bn

Markets Update:

Asian stocks rose broadly on Friday as strong U.S. and Chinese economic data cemented expectations of a solid global economic recovery. The upside was limited amid the continuing surge in coronavirus cases in the region and the possible restrictions on economic activity in several countries.

The Nikkei 225 in Japan finished the trading day 0.1% higher while the Topix index climbed about 0.1%. South Korea’s Kospi closed 0.1% higher. Australian stocks nudged higher as the S&P/ASX 200 rose fractionally. Mainland Chinese stocks closed higher as the Shanghai composite gained 0.8% while the Shenzhen component advanced 0.3%. Hong Kong’s Hang Seng index rose 0.8%.

Treasuries climbed despite the better-than-expected U.S. data. There were suggestions that foreign buying and geopolitical risks, such as the U.S. slapping sanctions on Russia on Thursday, could have contributed to Treasuries’ gains and thus positioned investors for further weakness.

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