Wednesday 22nd March: European Open Briefing

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Wednesday 22nd March: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei down 1.90 %, Shanghai Composite fell 0.75 %, Hang Seng declined 1.30 %, ASX 200 lost 1.55 %
  • Commodities: Gold at $1245 (-0.10 %), Silver at $17.54 (-0.25 %), WTI Oil at $48.10 (-0.30 %), Brent Oil at $50.80 (-0.35 %)
  • Rates: US 10 year yield at 2.42, UK 10 year yield at 1.26, German 10 year yield at 0.46

News & Data:

  • Australia Westpac Leading Index (MoM) Feb: -0.07% (prior 0.03%)
  • Japan Trade Balance (Feb): 813bln (Est 822bln) (Prior -1,087bln)
  • Japan Exports (YoY): 11.3 % (Est 10.6 %) (Prior 1.3 %)
  • Japan Imports (YoY): 1.2 % (Est 0.6 %) (Prior 8.5 %)
  • Japan All Industry Activity (MoM) Jan: 0.1% (Est 0.00%) (Prior -0.2% rev)
  • PBoC Fixes USDCNY Reference Rate At 6.8889 (Prev 6.9071)

Markets Update:

Most of the Asian stock indices declined overnight. Sentiment turned negative in yesterday’s US trading session, as investors are starting to doubt that US President Donald Trump will be able to pass his planned tax reform. The S&P 500 finished the trading day with a loss greater than 1 percent. Overnight, the Nikkei lost almost 2 percent on the day, while the Australian ASX 200 fell around 1.50 percent.

The Dollar remains under pressure as well. EUR/USD broke above 1.08 yesterday, and while it failed to clear resistance at 1.0825, a breakout seems imminent. Meanwhile, GBP/USD broke above trendline resistance and is approaching 1.25.

Only the commodity currencies failed to benefit from the Dollar weakness. The Australian and New Zealand Dollar fell as the decrease in risk appetite weighed on the currencies. AUD/USD declined from 0.7750 to 0.7650, while NZD/USD dropped from 0.7090 to 0.7015.

Upcoming Events:

  • 09:00 GMT – Euro Zone Current Account
  • 13:00 GMT – US House Price Index
  • 14:00 GMT – US Existing Home Sales
  • 14:30 GMT – US Crude Oil Inventories
  • 20:00 GMT – RBNZ Rate Decision
  • 20:00 GMT – RBNZ Rate Statement

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