Market Roundup
- Australia central bank holds rates at 1.5 pct.
- RBA unchanged policy consistent with sustainable growth and achieving inflation target over time.
- RBA says has been a broad based pickup in global economy since last year.
- RBA says high level of debt continues to present medium-term risks in China.
- RBA says domestic growth expected to increase gradually over next couple of years to a little above 3 pct.
- RBA rising AUD to complicate economy's transition from mining.
- Trump to speak by phone with Putin on Tuesday 16:30 GMT -White House.
- Trump opens door to North Korea meeting as Pyongyang hints tests to continue.
- White House says Trump to sign spending bill Thursday or Friday.
- Mulvaney says Trump will request funding for border wall in next budget proposal in late May.
- Australia's ANZ Bank H1 cash profit rises 23 percent, says outlook ‘broadly neutral’.
- Japan April services PMI falls to 52.2 from 52.9 in March as new business growth slows.
- South Korea April inflation slows, but still near Central bank target.
- China April Caixin manufacturing PMI falls to 50.3, 7-month low and missing forecasts (vs poll 51.0, march 51.2.
- China Caixin PMI suggests total new orders, output growth also slowest in seven months.
Economic Data Ahead
- (0300 ET/0700 GMT) Norway Manufacturing PMI SA April 54.70 previous.
- (0315 ET/0715 GMMT) Spain Manufacturing PMI April 53.90 previous.
- (0330 ET/0730 GMT) Switzerland Manufacturing PMI Apr 58.60 previous.
- (0345 ET/0745 GMT) Italy Markit/ADACI manufacturing PMI April 55.70 previous.
- (0350 ET/0750 GMT) France Markit manufacturing PMI April 55.10 previous.
- (0355 ET/0755 GMT) Germany Markit/BME manufacturing PMI April 58.20 previous.
- (0400 ET/0800 GMT) Italy Unemployment Rate % Mar 11.50 previous.
- (0400 ET/0800 GMT) EZ Markit manufacturing Final PMI April 56.80 previous.
- (0430 ET/0830 GMT) UK Markit/CIPS manufacturing PMI Apr 54.20 previous.
- (0500 ET/0900 GMT) EZ Unemployment Rate % March 9.50 previous.
Key Events Ahead
- No key events scheduled for the day.
FX Recap
USD: The U.S. dollar index against a basket of major currencies was effectively flat at 99.073 after posting a small gain overnight.
EUR/USD: The euro held its ground against the dollar. The common currency was up 0.1 percent at $1.0909, adding to modest gains made overnight. It was in reach of a 5-1/2-month high of $1.0951 scaled last week on relief after Emmanuel Macron's victory against anti-euro nationalist Marine Le Pen in the first round of France's presidential elections. The runoff vote is on May 7. The euro traded at 122.00 yen after touching a 1-1/2-month high of 122.150.
USD/JPY: The Japanese yen falls against U.S. dollar o Tuesday. The dollar hit a one-month high against the yen, lifted by Treasury yields which surged after U.S. Treasury Secretary Steven Mnuchin commented on the possibility of ultra long-term bond issuance. Pair made intraday high at 111.99 and low at 111.78 levels. A sustained close above 111.82 is required to take the parity higher towards 112.19, 113.72, 115.37 and 117.42 marks. Alternatively, a daily close below 111.82 will drag the parity down towards 108.13 levels.
GBP/USD: The sterling trades almost flat against U.S. dollar and was hovers around 1.29 mark. Numbers from the Office for National Statistics showed Britain's economy slowed to a one-year low in the first three months of 2017, as higher inflation - in large part caused by sterling weakness following last year's Brexit vote - hurt retailers and other consumer-focused businesses. On the last trading day of April, the pound was up almost 3 percent versus the dollar on the month - its best performance since March 2016, before the vote for Brexit.
AUD/USD: The Australian dollar gains against major pears after RBA keeps the cash rate steady at 1.5 percent. Pair made intraday high at 0.7556 and low at 0.7519 marks.
NZD/USD: The New Zealand dollar drifted higher to $0.6936, from $0.6851 late on Friday.
Equities Recap
Japan’s Nikkei was trading around 0.60 percent higher at 19,424 points.
Hong Kong’s Hang seng was trading 0.20 percent lower at 24,661 points.
Australia’s S&P ASX200 was trading 0.34 percent lower at 5,936 points.
South Korea’s kospi was trading 0.71 percent higher at 2,221 points.
Shanghai composite index to open down 0.2 pct at 3,147.23 points and China's CSI300 index to open down 0.3 pct at 3,427.92 points.
Taiwan’s market was trading 0.72 percent higher at 9,943.93 points.
India’s NSE Nifty was trading around 0.16 percent lower at 9,289.28 points and BSE Sensex was trading at 0.27 percent higher at 29,994.33 points.
Commodities Recap
Oil prices edged down on Tuesday, as a recovery in Libyan output and rising U.S. supplies raised worries that OPEC-led production cuts may not significantly tighten a bloated market. London Brent crude for July delivery was down 6 cents, or 0.1 percent, at $51.46 by 0227 GMT, after settling down 53 cents on Monday. Brent crude has risen only around $1 from a one-month low of $50.45 hit on Thursday that came after the restart of two key Libyan oilfields. NYMEX crude for June delivery was down 9 cents, or 0.2 percent, at $48.75.
Gold was steady on Tuesday after falling nearly one percent to a three-week low in the previous session as equities and the dollar climbed, while worries over North Korea eased. Spot gold was steady at $1,256.60 per ounce, as of 0052 GMT. Bullion prices on Monday dropped 0.9 percent to $1,253.66 an ounce, its weakest since April 11. U.S. gold futures were up 0.2 percent at $1,257.60 an ounce.
Treasuries Recap
New Zealand government bonds gained, sending yields 3.5 basis points lower at the long end of the curve.
Australian government bond futures were subdued, with the three-year bond contract steady at 98.170. The 10-year contract eased half a tick to 97.3900, while the 20-year contract shed two ticks to 96.8050.
