Market Roundup
• Global factory activity weak in March as clouds gather
• British parliament weighs forcing May into a softer Brexit
• Brexit uncertainty has cost Britain 600 mln pounds a week - Goldman Sachs
• DUP's Sammy Wilson says Brexit options to be voted on in parliament on Monday do not deal with issue of the Northern Irish backstop
• ECB studies tiered rate but banks' woes go beyond that: de Guindos
• Swiss National Bank can make monetary policy even looser
• Atlanta Fed lifts U.S. Q1 GDP view above 2 pct
• U.S. Mar ISM Manufacturing PMI, 55.3, 54.5 forecast, 54.2 previous
• U.S. Mar Markit Manufacturing Final, 52.4, 52.5 previous
• U.S. Mar ISM Mfg Prices Paid, 54.3, 50.1 forecast, 49.4 previous
• U.S. Feb Retail Sales MM, -0.2%, 0.3% forecast, 0.2% previous, 0.7% revised
• U.S. Jan Business Inventories, 0.8%, 0.5% forecast t, 0.6% previous, 0.8% revised
• U.S. Feb Construction Spending, 1.0%, -0.2% forecast, 1.3% previous, 2.5% revised
• CA Mar Markit Mfg PMI SA, 50.5, 52.6 previous
Looking Ahead - Economic Data (GMT)
• 1 Apr 21:00 New Zealand Q1 NZIER Confidence, -17 previous
• 2 Apr 00:30 Australia Feb Building Approvals, -1.0% forecast, 2.5% previous
• 2 Apr 03:30 Australia Cash Rate, 1.50% forecast, 1.50% previous
Looking Ahead - Events, Other Releases (GMT)
• 2 Apr 07:00 ECB's Peter Praet speaks at 6th international conference on 'Sovereign Bond Markets: Quantitative Easing and Financial (In)Stability' - Frankfurt
• 2 Apr 07:00 Norwegian Prime Minister Erna Solberg and Finance Minister Siv Jensen speak at financial industry conference - Oslo
Currency Summaries
EUR/USD: The euro declined against the U.S. dollar on Monday, as dollar received a boost, after upbeat manufacturing data underscored a strong US economy. The Institute for Supply Management said, its index of national factory activity rose to a reading of 55.3 in March from 54.2 in February, which had marked the lowest level since November 2016.That overcame a separate release that showed that retail sales dropped 0.2 percent in February. The euro was last down 0.07 percent at $1.1209. Immediate resistance can be seen at 1.1247 (50% retracement level), an upside break can trigger rise towards 1.1294 (61.8% retracement level).On the downside, immediate support is seen at 1.1198 (38.2% retracement level), a break below could take the pair towards 1.1139 (23.6% retracement level).
GBP/USD:The British pound rose against dollar on Monday as investors prepared for parliament to vote on a series of Brexit options, with some hoping that the current uncertainty will end in a softer Brexit than Prime Minister Theresa May's defeated withdrawal agreement. May's deal was voted down for a third time by lawmakers on Friday, plunging Britain into even more political uncertainty and sending sterling below $1.30. But the British currency has since rallied. Sterling rose 0.62 percent to as high as $1.3145. Immediate resistance can be seen at 1.3151 (38.2% retracement level), an upside break can trigger rise towards 1.3200 (Psychological level).On the downside, immediate support is seen at 1.2975 (23.6% retracement level), a break below could take the pair towards 1.2917 (100 DMA).
USD/CAD: The Canadian dollar strengthened to 11-day high against its U.S. counterpart on Monday, as oil prices rose, while China factory activity boosted investor sentiment. Price of oil, one of Canada's major exports, were boosted by data showing a pick-up in China's manufacturing activity and further hints of progress in U.S.-China trade talks. U.S. crude prices were up nearly 1 percent at $60.71 a barrel. At (2023 GMT), the Canadian dollar was trading 0.23 percent higher at 1.3313 to the greenback. Immediate resistance can be seen at 1.3340 (38.2% retracement level), an upside break can trigger rise towards 1.3370 (Daily high).On the downside, immediate support is seen at 1.3297 (50% retracement level), a break below could take the pair towards 1.3253 (61.8% retracement level).
USD/JPY: The dollar jumped higher against the Japanese yen on Monday, as investors cheered upbeat factory activity data in China and the United States and signs of progress on the U.S.-China trade front. But weak wage inflation data kept dollar's gains in check. U.S. data indicated manufacturing activity improved in March while construction spending for February increased. That was enough to overshadow an unexpected drop in February retail sales. The dollar was 0.48 higher versus the Japanese yen at 111.38. Strong resistance can be seen at 111.44 (38.2% retracement level), an upside break can trigger rise towards 112.27 (23.6% retracement level).On the downside, immediate support is seen at 110.77 (50% retracement level), a break below could take the pair towards 110.05 (61.8% retracement level).
Equities Recap
European shares started the second quarter strongly on Monday, posting their biggest daily gain in a month and a half, as unexpectedly strong factory data from China and signs of progress in its trade talks with Washington boosted risk appetite.
UK's benchmark FTSE 100 closed up by 0.54 percent, the pan-European FTSEurofirst 300 ended the day up by 1.15 percent, Germany's Dax ended up by 1.37 percent, France’s CAC finished the day up by 1.06 percent.
U.S. stocks rallied on Monday, starting off the second quarter on a strong note, as upbeat manufacturing numbers from China and the United States eased worries about slowing global growth.
Dow Jones closed up by 1.25 percent, S&P 500 ended up by 1.15 percent, Nasdaq finished the down up by 1.26 percent.
Treasuries Recap
The U.S. Treasury market posted its biggest one-day sell-off in three months on Monday, as encouraging data on manufacturing activity in the world's two biggest economies spurred some investors to scale back their holdings of safe-haven bonds.
In heavy-volume trading, the yield on U.S. benchmark 10-year Treasury notes rose nearly 9 basis points for its biggest single-day jump since Jan. 4. It broke above 2.50 percent to its highest levels in over a week in late U.S. trading.
Commodities Recap
Gold inched lower on Monday as stronger-than-expected U.S. manufacturing data offset support from sluggish retail sales numbers, while palladium surged 3 percent.
Spot gold dipped 0.2 percent to $1,287.37 per ounce at (2038 GMT). U.S. gold futures settled 0.3 percent lower at $1,294.20 per ounce.
Oil climbed about 2 percent to new 2019 highs on Monday, with Brent crude touching $69 a barrel, after positive signs for the global economy and tighter supplies drove both benchmarks' largest first-quarter gains in nearly a decade.
Brent crude ended the session up $1.43, or 2.1 percent, at $69.01 a barrel after rising to $69.19, its highest since November. The global benchmark rose 27 percent in the January-March period.
U.S. West Texas Intermediate (WTI) futures settled up $1.45, or 2.4 percent, at $61.59 per barrel, after reaching their highest in nearly five months at $61.72. WTI gained 32 percent in the first quarter.
