Wednesday 21st April 2021: Rising COVID cases in Japan hit the brakes on markets

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Global Markets:

  • Asian Stock Markets : Nikkei down 2.03%, Shanghai Composite up 0.01%, Hang Seng down 1.64%, ASX down 0.29%
  • Commodities : Gold at $1781.20 (+0.16%), Silver at $26.04 (+0.75%), Brent Oil at $66.04 (-0.80%), WTI Oil at $62.13 (-0.86%)
  • Rates : US 10-year yield at 1.575, UK 10-year yield at 0.753, Germany 10-year yield at -0.250

News & Data:

  • (GBP) CPI y/y 0.70% vs 0.80% expected
  • (AUD) Retail Sales m/m 1.40% vs 1.00% expected
  • (NZD) CPI q/q 0.80% vs 0.80% expected
  • EU Timmermans: EU Negotiators Reach An Agreement On Climate Law

Markets Update:

Asian stocks ended deep in the red on Wednesday as a resurgence of coronavirus infections in some countries cast doubt over an economic rebound from the pandemic.

India, the world’s second most populous country, reported its worst daily COVID-19 death toll on Tuesday, with large parts of the country now under lockdown. India’s financial markets were closed on Wednesday for a holiday.

In mainland China, the Shanghai composite ended the trading day flat while the Shenzhen component bucked the overall trend as it advanced 0.3%. Shares in Australia declined on the day as the S&P/ASX 200 fell 0.3%. In Japan, the Nikkei 225 dropped 2% — its second straight day of 2% declines. The Topix index slipped 2%. South Korea’s Kospi shed 1.5%.

The dollar index against a basket of six major currencies traded near a seven-week low, hurt by a dip in U.S. Treasury yields as some investors sought the safety of holding government debt.

Investors are closely watching an auction of 20-year Treasuries later on Wednesday, which will be an important gauge of global demand for fixed income.

Upcoming Events:

  • 10:30 AM GMT – (GBP) BOE Gov Bailey Speaks
  • 12:30 PM GMT – (CAD) CPI m/m
  • 02:00 PM GMT – (CAD) BOC Monetary Policy Report
  • 02:00 PM GMT – (CAD) BOC Rate Statement
  • 02:00 PM GMT – (CAD) Overnight Rate
  • 02:30 PM GMT – (USD) Crude Oil Inventories
  • 03:00 PM GMT – (CAD) BOC Press Conference