Market Roundup
• Tariff, enforcement issues still hurdles to US-China trade deal -US Chamber
• Brexit compromise: Theresa May seeks delay to agree deal with Labor Party
• Sterling rises as PM May seeks Brexit extension
• Brexit: UK's Corbyn says will bring a vote of no confidence if govt can't get a majority in parliament
• U.S. regulators propose rule discouraging large banks from investing in competitors' debt
• U.S. Feb Durable Goods, -1.6%, -1.8% forecast, 0.3% previous, 0.1% revised
• U.S. Feb Durables Ex-Transport, 0.1%, 0.2% forecast, -0.2% previous, -0.1% revised
• U.S. Mar ISM New York Index, 869.1, 860.7 previous
• U.S. Mar ISM NY Biz Conditions, 66.9, 61.1 previous
• U.S. w/e 20 Mar Redbook YY, 4.4%, 5.3% previous
Looking Ahead - Economic Data (GMT)
• 3 Apr 00:30 Australia Feb Retail Sales MM, 0.2% forecast, 0.1% previous
• 3 Apr 00:30 Australia Feb Trade Balance G&S (A$), 3800 mln forecast, 4549 mln previous
• 3 Apr 00:30 Japan Mar Services PMI, 52.3 previous
• 3 Apr 01:45 China Mar Caixin Services PMI, 51.1 previous
Looking Ahead - Events, Other Releases (GMT)
2 Apr 21:30 FRB Dallas's Kaplan gives his latest views on economic outlook and appropriate monetary policy - Toronto
3 Apr 12:30 FRB Atlanta's Raphael Bostic, FRB Richmond's Thomas Barkin and FRB Kansas's Esther George participate at American Bankers' Association Summit - Washington
3 Apr 12:30 French Central Bank's Sylvie Goulard answers Senate's questions on Brexit - Paris
3 Apr 17:00 Bank of Spain's Hernandez de Cos participates at an event - Madrid
Currency Summaries
EUR/USD: The euro slipped lower against the U.S. dollar on Tuesday, as investors evaluated international growth prospects with the U.S. and European central banks unlikely to raise interest rates soon. Survey data on Monday showed factories in the euro zone had their worst month in almost six years in March, while economic data in the United States offered more hope. The euro was down 0.11 percent at $1.1199. An index that tracks the dollar versus a basket of six major currencies was up 0.01 at 97.35. Immediate resistance can be seen at 1.1232 (50% retracement level), an upside break can trigger rise towards 1.1282 (61.8% retracement level).On the downside, immediate support is seen at 1.1178 (38.2% retracement level), a break below could take the pair towards 1.1117 (23.6% retracement level).
GBP/USD: Sterling strengthened against the dollar on Tuesday, after Prime Minister Theresa May said Britain needs a further extension of Article 50 to ensure it leaves the European Union in a timely manner. Fears that the United Kingdom may crash out of the EU without a deal by April 12 had pressured the pound earlier on fears of a protracted Brexit logjam. The pound rallied as much as 0.3 percent against the dollar to above $1.31. It strengthened against the euro to 85.49 pence. Immediate resistance can be seen at 1.3136 (38.2% retracement level), an upside break can trigger rise towards 1.3270 (50% retracement level).On the downside, immediate support is seen at 1.2973 (23.6% retracement level), a break below could take the pair towards 1.2886 (Feb 19th low).
USD/CAD: The Canadian dollar weakened against the greenback on Tuesday, as Canadian dollar was weighed down by weak housing data from one of Canada's major cities . Vancouver home sales slumped 31.4% in March on an annual basis to hit the lowest for the month in more than three decades, the Real Estate Board of Greater Vancouver said. At (2024 GMT), the Canadian dollar was trading 0.3% lower at 1.3336 to the greenback, or 74.93 U.S. cents. The currency, which touched on Monday its strongest level in nearly two weeks at 1.3297, traded in a range of 1.3303 to 1.3375. Immediate resistance can be seen at 1.3297 (38.2% retracement level), an upside break can trigger rise towards 1.3208 (23.8% retracement level).On the downside, immediate support is seen at 1.3366 (50% retracement level), a break below could take the pair towards 1.3434 (61.8% retracement level).
USD/JPY: The U.S. dollar strengthened to hit 2-week high against the yen on Tuesday, as the greenback gained on ebbing concerns about weakness in the global economy. The greenback was steady at 111.395 yen after touching 111.46, its highest since March 20. World stocks hovered just under a six-month high, supported by strong manufacturing data from the United States and China.The dollar index against a basket of six major currencies added 0.1 percent to 97.336, within close reach of a three-week high of 97.392 scaled the previous day.Strong resistance can be seen at 111.44 (38.2% retracement level), an upside break can trigger rise towards 112.15 (March 5th high).On the downside, immediate support is seen at 110.00 (Psychological level), a break below could take the pair towards 110.54 (50% retracement level).
Equities Recap
European shares hit their highest in half a year on Tuesday, buoyed by autos and insurance stocks and gains among export-heavy London stocks as Brexit uncertainty weakened the pound.
UK's benchmark FTSE 100 closed up by 1.07 percent, the pan-European FTSEurofirst 300 ended the day up by 0.42 percent, Germany's Dax ended up by 0.66 percent, France’s CAC finished the day up by 0.34 percent.
The benchmark S&P 500 stock index paused on Tuesday, taking a breather from Monday's strong quarterly kickoff as a decline in shares of Walgreens Boots Alliance Inc weighed and economic data did little to ease growth concerns.
Dow Jones closed down by 0.31 percent, S&P 500 ended up by 0.03 percent, Nasdaq finished the day up by 0.26 percent.
Treasuries Recap
U.S. Treasury yields slipped on Tuesday, with benchmark yields receding from one-week highs as a result of buying from bargain-minded investors and safe-haven demand on renewed worries about Brexit.
The yields on benchmark 10-year Treasury notes were 2.4813%, down 1.6 basis points on the day. On Monday, it reached 2.5080%, the highest since March 22.
Commodities Recap
Gold firmed on Tuesday, recovering from a near four-week low, as U.S. stock markets retreated, but a strong dollar and robust economic data from the U.S. and China eased fears of a global slowdown, capping bullion's advance.
Spot gold was up 0.3 percent at $1,291.74 per ounce as (12039 GMT), having touched its lowest level since March 7 at $1,284.76 earlier. U.S. gold futures settled 0.1 percent higher at $1,295.40 an ounce.
Oil prices on Tuesday hit their highest level so far in 2019, with Brent crude approaching $70 a barrel, on the prospect that more sanctions against Iran and further Venezuelan disruptions could deepen an OPEC-led supply cut.
Brent futures reached a session peak at $69.51 a barrel, the highest since Nov. 13. The global benchmark rose 36 cents, or 0.52 percent, to settle at $69.37 a barrel.
