Posted at 03 April 2019 / Categories Market Roundups
Market Roundup
• UK lawmakers approve first stage of Brexit delay law
• British parliament rejects plan to hold more Brexit indicative votes on Monday
• UK faces "alarmingly high" risk of no-deal Brexit - BoE's Carney
• UK Labour's Corbyn: no agreement with May on referendum
• Euro zone March business activity stayed in the doldrums -PMI
• German institutes cut 2019 growth forecast to 0.8 pct
• White House's Kudlow says U.S.-China talks are progressing
• Escalating U.S.-China trade war would hit manufacturing, agricultural jobs -IMF
• U.S. Mar ADP National Employment, 129k, 170k forecast, 183k prev, 197k revised
• U.S. Mar ISM N-Mfg PMI, 56.1, 58.0 forecast, 59.7 previous
• U.S. Mar ISM N-Mfg Bus Activity, 57.4, 61.5 forecast, 64.7 previous
• U.S. 29 Mar w/e MBA Mortgage Applications, 18.6%, 8.9% previous
• U.S. 29 Mar w/e MBA 30-Yr Mortgage Rate, 4.36%, 4.45% previous
• U.S. 29 Mar w/e Mortgage Market Index, 503.6, 424.6 previous
Looking Ahead - Economic Data (GMT)
• No major economic data scheduled
Looking Ahead - Events, Other Releases (GMT)
• 3 Apr 21:00 Minneapolis Fed's Neel Kashkari participates in Town Hall hosted by North Dakota State University College of Business - Fargo, North Dakota
• 4 Apr 11:30 ECB publishes account of latest monetary policy meeting of Governing Council held on March 6-7 - Frankfurt
• 4 Apr 13:00 New York Fed releases text of welcome remarks of President John Williams delivered before Community Bankers Conference - New York
• 4 Apr 17:00 Philadelphia Fed's Patrick Harker speaks on economic outlook before the Monetary Policy Outlook - Philadelphia
• 4 Apr 17:00 Cleveland Fed's Loretta Mester speaks before Ohio Bankers Day event - Columbus
Currency Summaries
EUR/USD: The euro gained against the greenback on Wednesday, as hopes of a trade deal between the U.S. and China bolstered risk appetite. The euro was last up 0.35% against the U.S. dollar at $1.1241. The single currency on Tuesday fell to its lowest levels in more than three weeks and neared $1.1174, which if broken would send the currency to its weakest levels since June 2017. Better than expected service sector data in Europe further helped the single currency as German 10-year Bund yields also headed back above zero. The services Purchasing Managers’ Index (PMI) rose to 53.3 from 52.8, ahead of the flash estimate of 52.7.Immediate resistance can be seen at 1.1268 (50% retracement level), an upside break can trigger rise towards 1.1312 (61.8% retracement level).On the downside, immediate support is seen at 1.1226 (38.2% retracement level), a break below could take the pair towards 1.1173 (23.6% retracement level).
GBP/USD: Sterling held below $1.31 against dollar on Wednesday, as Prime Minister Theresa May sought a Brexit compromise with opposition leader Jeremy Corbyn in a last-ditch effort to end a national crisis.The United Kingdom was supposed to leave the EU last Friday, but it is still unclear how or even whether it will exit the bloc. May is holding talks with the Labour Party which sterling investors see as a gamble that could help a European Union divorce deal finally clear parliament or tear her ruling Conservative party apart.Sterling jumped to $1.3196, its highest level since March 28 on hopes that Britain could end up with close ties to the European Union after Brexit. Immediate resistance can be seen at 1.3174 (38.2% retracement level), an upside break can trigger rise towards 1.3302 (50% retracement level).On the downside, immediate support is seen at 1.3011 (23.6% retracement level), a break below could take the pair towards 1.2890 (Feb 19th Low).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Wednesday, as upbeat Chinese data calmed fears of a global economic slowdown and as hopes rose of a trade deal between China and the United States. The price of oil held near its highest this year, supported by OPEC-led supply cuts and U.S. sanctions. At (1950 GMT), the Canadian dollar was trading 0.1% higher at 1.3325 to the greenback. The loonie has strengthened 2.4 percent since the start of the year but has given up some ground since February as data showed weakening of the domestic economy. Immediate resistance can be seen at 1.3365 (50% retracement level), an upside break can trigger rise towards 1.3433 (61.8% retracement level).On the downside, immediate support is seen at 1.3295 (38.2% retracement level), a break below could take the pair towards 1.3208 (23.6% retracement level).
USD/JPY: The U.S. dollar strengthened against the yen on Wednesday, as the greenback gained on hopes of a resolution to the U.S-China trade dispute. Reports of progress in trade talks between the United States and China, as well as reassuring factory activity data from both countries, has supported greenback in recent days.The dollar was 0.14 higher versus the Japanese yen at 111.48. Strong resistance can be seen at 111.46 (38.2% retracement level), an upside break can trigger rise towards 112.57 (23.6% retracement level).On the downside, immediate support is seen at 110.59 (50% retracement level), a break below could take the pair towards 109.68 (61.8% retracement level).
Equities Recap
Stocks in Europe climbed for a fourth straight session on Wednesday, propped up by positive sentiment about a potential U.S.-China trade deal, hopes of a smoother Brexit and strong economic data in China and the Eurozone.
The UK's benchmark FTSE 100 closed up by 0.34 percent, FTSEurofirst 300 ended the day up by 0.78 percent, Germany's Dax ended up by 1.73 percent, and France’s CAC finished the up by 0.81 percent.
U.S. stocks edged higher on Wednesday, extending a strong start to the quarter as rising hopes of a trade deal with Beijing boosted investor sentiment.
Dow Jones closed up by 0.16 percent, S&P 500 ended up 0.21 percent, Nasdaq finished the day up by 0.59 percent.
Treasuries Recap
U.S. Treasury yields rose on Wednesday to their highest in a week and a half, as hopes for a trade deal between China and the United States and a breakthrough for Brexit triggered a sell-off in the bond market.
In late U.S. trading, yields on benchmark 10-year Treasury notes were 2.5133 percent, up 0.03 percentage point from Tuesday. During the session, yields hit a 1-1/2 week peak of 2.524 present.
Commodities Recap
Gold prices slipped on Wednesday as stock markets rallied globally on hopes the United States and China could clinch a trade deal, while a weaker dollar limited bullion's losses.
Spot gold was down 0.2 percent at $1,290.34 per ounce as of (2012 GMT). U.S. gold futures settled flat at $1,295.30 per ounce.
Oil prices edged down on Wednesday after U.S. government data showed a surprise build in crude inventories, but futures held near their highest in almost five months as OPEC-led output cuts and sanctions on Iran tightened the supply outlook.
Brent futures settled at $69.31 a barrel, losing 6 cents. Their session high was $69.96, the strongest since Nov. 12, when they traded above $70.
U.S. West Texas Intermediate crude settled at $62.46 a barrel, falling 12 cents after briefly hitting $62.99, the highest since Nov. 7.