Friday 3rd April: Oil gives up gains; Asian markets lower

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.01%, Shanghai Composite down 0.60%, Hang Seng down 0.51%, ASX down 1.68%
  • Commodities : Gold at $1633.30 (-0.27%), Silver at $14.66 (+0.05%), Brent Oil at $31.15 (+4.04%), WTI Oil at $25.14 (-0.71%)
  • Rates : US 10-year yield at 0.589, UK 10-year yield at 0.307, Germany 10-year yield at -0.457

News & Data:

  • (CNY) Caixin Services PMI 43 vs 39.6 expected
  • (USD) Unemployment Claims 6648K vs 3600K expected
  • (CAD) Trade Balance -1.0B vs -2.3B expected
  • Fed balance sheet increases to record $5.86 trillion
  • Australian budget deficit heading beyond $200 billion

Markets Update:

Asian stock markets are mixed on Friday, with some of the markets paring early gains, as lingering worries about the coronavirus pandemic more than offset the positive sentiment generated by the overnight gains on Wall Street amid the surge in crude oil prices. The total number of global coronavirus cases has crossed one million, while the death toll reached more than 52,000. Crude oil prices tumbled more than 4 percent in Asian trading.

In Japan, the Nikkei 225 traded flat while the Topix index was 0.4% lower. Mainland Chinese stocks were lower by the afternoon, with the Shanghai composite and the Shenzhen composite both shedding 0.6%. Hong Kong’s Hang Seng index dipped 0.5%. South Korea’s Kospi also traded flat. Meanwhile, shares in Australia slipped, with the ASX 200 down 1.7%.

On the economic data front, a private survey released Friday showed China’s services sector shrank further in March. The Caixin/Markit services Purchasing Managers’ Index (PMI) for March was at 43 following a record low of 26.5 in February. More evidence of the damage from widespread stay-at-home orders to contain the spread of coronavirus emerged in the United States, with an unprecedented number of workers – 6.6 million – filing jobless claims.

The dollar index has risen 1.97% so far this week, even as extreme tightness for greenback since last month eased. Gold prices rose overnight on the dire U.S. jobless claims figures, intensifying fears of the coming economic slowdown and driving investors toward the safe-haven metal.

Oil prices shed some of their massive gains on Friday, as doubts grew over an oil price deal between Saudi Arabia and Russia that U.S. President Donald Trump said he had brokered

Upcoming Events:

  • 08:30 AM GMT – (GBP) Final Services PMI
  • 12:30 PM GMT – (USD) Average Hourly Earnings m/m
  • 12:30 PM GMT – (USD) Non-Farm Employment Change
  • 12:30 PM GMT – (USD) Unemployment Rate
  • 02:00 PM GMT – (USD) ISM Non-Manufacturing PMI