Tuesday 18th April: European Open Briefing

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Tuesday 18th April: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei up 0.20 %, Shanghai Composite fell 0.05 %, Hang Seng declined 1.00 %, ASX 200 fell 1.10 %
  • Commodities: Gold at $1285 (-0.50 %), Silver at $18.38 (-0.70 %), WTI Oil at $52.60 (-0.15 %), Brent Oil at $55.30 (-0.15 %)
  • Rates: US 10-year yield at 2.25, UK 10-year yield at 1.05, German 10-year yield at 0.19

News & Data:

  • China House Prices YoY (Mar): 11.30% (prev 11.80%)
  • RBA Minutes: Judged Steady Rates Consistent with Growth and Inflation Targets
  • Asia stocks slip amid North Korea concerns, dollar up on Mnuchin comments – RTRS
  • Oil prices mixed after U.S. production seen rising – RTRS
  • Dollar/yen off five-month low but U.S.-Japan trade issues limit rise – RTRS

Markets Update:

Risk appetite remained low in Asia. Hong Kong and Australian markets reopened after a long weekend and declined more than 1 % on the day. The other major stock markets posted a small loss as well.

Increasing tensions between the US and North Korea are keeping traders cautious. Nevertheless, Gold fell slightly in the past few trading sessions, as the Dollar regained some strength. The metal is looking a bit overbought in the short-term, and a retracement towards $1270 seems likely.

The Australian Dollar came under pressure overnight. The RBA minutes did not deliver any new information, it was rather the risk-off sentiment that weighed on the currency. AUD/USD fell from 0.76 to 0.7560. Support is seen at 0.7550 and then again at 0.75.  

USD/JPY managed to recover slightly, but the rally was capped ahead of 109.20. Strong resistance is seen in the area between 109.20 and 109.30. Support now lies at 108.50 and ahead of 108.00.

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