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Market Update: Global Markets in Cautious Mood as Traders Cut Risk Amid Uncertain Outlook.
Today's important market events:
[EUR] German Ifo Business Climate (Apr) - 10:00 CEST
The APAC stock market showed a mixed performance due to the absence of significant macroeconomic drivers over the weekend, while market participants brace themselves for upcoming key events this week. European equity futures indicate a contained opening, with the Euro Stoxx 50 futures declining by 0.1% after a 0.5% rise in the cash market on Friday.
The DXY remains uneventful at a 101 handle, while EUR/USD eyes an increase to 1.10. Among the majors, AU appears to be the marginal laggard. In other news, the Russian Security Council Deputy Chairman, Medvedev, warned of Moscow's plan to terminate the grain deal if the 67 moved to ban exports to Russia.
The ASX 200 had a lacklustre performance as gains in tech and defensive sectors were outweighed by underperformance in mining-related industries, with companies such as Fortescue Metals and South32 experiencing significant losses after weaker quarterly output updates.
The Nikkei 225 managed to eke out slight gains after sources reported that the Bank of Japan (BoJ) is likely to maintain its ultra-loose monetary policy and dovish guidance. It was also reported that the BoJ is considering a comprehensive review of the longer-term impact of its monetary easing and plans to examine a quarter century of deflation.
Despite the PBoC's liquidity efforts and the announcement of policies to support trade by China's Vice Commerce Minister, the Hang Seng and Shanghai Comp remained subdued, with uncertainty in external demand cited as the biggest restraint for China's trade. Meanwhile, US equity futures declined with price action contained amid cautious sentiment in Asian stocks. European equity futures indicated a contained open, with Euro Stoxx 50 future down 0.1% after the cash market closed higher by 0.5% on Friday.
The FX market showed a quiet mood with DXY exhibiting an uneventful performance due to the absence of major catalysts and the Fed in a blackout period. However, Fed's Cook stated before entering the silent mode that monetary policy is moving into a more uncertain phase, and the banking sector headwinds could affect the rate rise outlook.
EUR/USD traded rangebound, while GBP/USD took a breather after Friday's swings, with BoE's Ramsden stating that the risk of high inflation becoming embedded needs to be stopped, and high inflation is a bigger risk than over-tightening. USD/JPY edged higher after support held near the 134.00 level, with BoJ Governor Ueda's comments supporting the consensus for the central bank to maintain ultra-easy policy settings. Antipodeans were subdued due to lacklustre risk appetite and a quiet data calendar.
In commodities, crude futures were on the back foot due to the lack of catalysts, and spot gold remained flat. Copper futures traded sideways, with prices stuck beneath the USD 4/lb level. Central banks reportedly loaded up on gold amid geopolitical tensions, with reserve managers' purchases rising 152% last year.
This week's highlights include the German Ifo report, speeches from the ECB's Panetta and de Guindos, supply from the EZ, and earnings from Coca-Cola.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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