Tuesday 20th April 2021: Asian markets lower on COVID worries.

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Global Markets:

  • Asian Stock Markets : Nikkei down 1.97%, Shanghai Composite down 0.13%, Hang Seng up 0.02%, ASX down 0.68%
  • Commodities : Gold at $1768.05 (-0.14%), Silver at $25.88 (+0.17%), Brent Oil at $67.88 (+1.24%), WTI Oil at $64.21 (+1.23%)
  • Rates : US 10-year yield at 1.619, UK 10-year yield at 0.768, Germany 10-year yield at -0.228

News & Data:

  • (GBP) Average Earnings Index 3m/y 4.50% vs 4.70% expected
  • (GBP) Claimant Count Change 10.1K vs 24.5K expected
  • (GBP) Unemployment Rate 4.90% vs 5.00% expected
  • (EUR) German PPI m/m 0.90% vs 0.60% expected
  • (JPY) Tertiary Industry Activity m/m 0.30% vs 0.60% expected
  • (CAD) Housing Starts 335K vs 254K expected
  • President Xi calls for economic integration, opposes new ‘Cold War’ and ideological confrontation

Markets Update:

Asian stocks ended broadly lower on Tuesday as surging coronavirus cases in the region and the possible restrictions on economic activity in several countries dented investor optimism about a global economic recovery. Investors continue to monitor the corporate earnings as the season gets underway alongside the global COVID-19 situation.

Japanese shares tumbled amid growing concerns over another virus state of emergency in the country just three months before the country hosts the Olympics.

Australian markets slipped from 14-month highs, with banks and tech companies retreating. Mainland Chinese stocks also closed lower. The Shanghai composite shed 0.1% while the Shenzhen component declined 0.1%. Hong Kong’s Hang Seng index hovered around the flatline.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.922 following an earlier low of 90.88. The yield on benchmark 10-year Treasury notes rose to 1.6119% compared with its U.S. close of 1.599%. The weak dollar helped push up commodity prices. U.S. crude and Brent both gained about 1%, while three-month London copper traded just shy of its highest level since August 2011.

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