Tuesday 16th April: Asian markets higher; trade talks continue to dictate markets

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Tuesday 16th April: Asian markets higher; trade talks continue to dictate markets 1

Global Markets:

  • Asian Stock Markets : Nikkei up 0.30%, Shanghai Composite up 1.50%, Hang Seng up 0.74%, ASX up 0.40%
  • Commodities : Gold at $1287.35 (-0.31%), Silver at $14.90 (-0.49%), Brent Oil at $71.06 (-0.17%), WTI Oil at $63.38 (-0.03%)
  • Rates : US 10-year yield at 2.549, UK 10-year yield at 1.222, Germany 10-year yield at 0.057

News & Data:

  • (USD) TIC Long-Term Purchases 51.9B vs -18.2B expected
  • (USD) Empire State Manufacturing Index 10.1 vs 8.1 expected
  • (CHF) PPI m/m 0.30% vs 0.20% expected
  • RBNZ’s Orr: NZD currently around “happy space”, easing bias remains in place for now
  • Trump Asks China to Shift Soybean Tariffs to Something Else

Markets Update:

Asian stock markets are mostly higher on Tuesday with modest gains after some of the markets recovered after a weak start. Investors are treading cautiously following the modest losses overnight on Wall Street on mixed corporate earnings results as well as on news that the U.S. and Japan have started trade talks in Washington aimed at creating a bilateral trade framework.

The Nikkei 225 in Japan rose 0.3 percent in afternoon trade, with shares of index heavyweights Fast Retailing and Softbank Group advancing about 1 percent each. The Topix index, however, slipped 0.1 percent. Shares in mainland China recovered from their earlier slump to rise by the afternoon, with the Shanghai composite gaining 1.5 percent and the Shenzhen component adding about a percent.

In Hong Kong, the Hang Seng index added 0.7 percent. Over in South Korea, the Kospi was higher by 0.2 percent, as shares of Asiana Airlines surged beyond 16 percent.

The dollar, which tends to underperform when risk appetite increases, was steady at 96.980 against a basket of six major currencies, extending overnight losses. The 10-year U.S. Treasury yield was at 2.550 percent, edging back from a four-week high of 2.574 percent reached on Monday.

In commodities, the recent rally in crude oil prices halted on the prospect of Russia and OPEC boosting production to fight for market share with the United States. Oil had rallied on tightening global supplies, as output has fallen in Iran and Venezuela amid signs the United States will further toughen sanctions on those two OPEC producers, and on the threat that renewed fighting could stop production in Libya.

Upcoming Events:

  • 09:30 AM GMT – (GBP) Average Earnings Index 3m/y
  • 09:30 AM GMT – (GBP) Unemployment Rate
  • 10:00 AM GMT – (EUR) German ZEW Economic Sentiment
  • 01:30 PM GMT – (CAD) Manufacturing Sales m/m
  • 11:45 PM GMT – (NZD) CPI q/q

 

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