Tuesday 6th April 2021: Asian markets mixed as Covid cases spook sentiment

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Global Markets:

  • Asian Stock Markets : Nikkei down 1.30%, Shanghai Composite down 0.04%, Hang Seng up 1.97%, ASX up 0.84%
  • Commodities : Gold at $1733.15 (+0.25%), Silver at $25.03 (+0.99%), Brent Oil at $63.44 (+2.08%), WTI Oil at $59.95 (+2.22%)
  • Rates : US 10-year yield at 1.708, UK 10-year yield at 0.829, Germany 10-year yield at -0.301

News & Data:

  • (AUD) Cash Rate 0.10% vs 0.10% expected
  • (USD) ISM Services PMI 63.7 vs 58.3 expected
  • Janet Yellen: This week’s IMF and World Bank meetings will be a ‘Bretton Woods’ moment for the global economy

Markets Update:

Asian stocks ended mixed on Tuesday as worries about rising coronavirus cases and extension of lockdown restrictions offset signs of the U.S. economy accelerating out of recession.

Chinese shares ended little changed with a negative bias after the country’s central bank asked the nation’s major lenders to curtail loan growth for the rest of this year to bring the housing boom under control. The Shanghai composite slipped marginally while the Shenzhen component shed 0.3%.

In Australia, the S&P/ASX 200 advanced 0.8%. The Reserve Bank of Australia on Tuesday announced its decision to maintain its policy settings. That included keeping its cash rate at 0.1%, largely in line with expectations of analysts in a Reuters poll. Markets in Hong Kong were closed for a holiday.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.692 following an earlier low of 92.531. The dollar’s wobble helped oil prices recoup some losses suffered on Monday on worries a new wave of COVID-19 infections in Europe and India could curtail energy demand.

Upcoming Events:

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  • 02:00 PM GMT – (USD) JOLTS Job Openings
  • Tentative – (USD) IBD/TIPP Economic Optimism
  • Tentative – (NZD) GDT Price Index
  • Day 2 – (All) IMF Meetings
  • 10:30 PM GMT – (AUD) AIG Construction Index