March 26, 2019

Daily Market Review – Tuesday, March 26, 2019

Daily Market Review – Tuesday, March 26, 2019

Asia

European and US index futures levelled out their plunge overnight, helping the Nikkei to gain back 2.15% of its 3% loss from Monday. Indian, Taiwanese and Korean markers ended the session in the green, but Chinese indexes continued losing between 0.17% (Hang Seng) and 1.95% (Shenzhen Composite). Meanwhile, in New Zealand, the MoM trade balance is showing a $12m surplus in February – up from the previous month’s $948 deficit.

Europe

The pound continues sideways this morning after another parliamentary defeat for Theresa May leaves Parliament in charge of deciding upon what step to take next that EU leaders may pay any attention to. Across the divide, German business sentiments, as expressed by the IFO institute for economic studies, improved impressively – expectations up a full point and a ½. This morning’s consumer confidence, however, was not as good – falling 3/10ths rather than rising 1/10, as expected. The Euro remained impervious.

US

Bolstered by news of President Trump’s acquittal by Special Counsel Robert Mueller, Chicago Fed Head Charles Evans yesterday said interest rates would probably be held steady until H2, 2020. His Boston counterpart, Eric Rosengren said last night that falling bond yields were not an indication of US weakness but an echo of global trends. Yesterday’s manufacturing Business Index from the Dallas Fed shows a 5 point decline in March, a point better than expected. Still ahead – construction data this afternoon followed by consumer confidence at 2PM GMT.

Commodities

Gold yesterday hit a 2-month high of 1324 as risk sentiment abounded thanks to Friday’s yield inversion in 3-month and 10-year T-Bonds, only to lose the day’s gains during the Asian session. After failing to break through the 4000 mark, bitcoin is on its way down again to test support at 3900. Reports yesterday that the coin will soon be included in a new wallet especially developed for use alongside the popular WhatsApp.

Events

09:30 AM GMT – UK BBA Mortgage Approvals (Feb)
12:30 PM GMT – USA Housing Starts & Building Permits (Feb)
12:55 PM GMT – USA Redbook Index (Mar 22)
13:00 PM GMT – USA S&P/Case-Shiller Home Price Indices (Jan)
14:00 PM GMT – USA Consumer Confidence & Richmond Fed Manufacturing Index (Mar)
20:30 PM GMT – OIL API Weekly Crude Oil Stock (Mar 22)
01:00 AM GMT (+1) – NZ RBNZ Interest Rate Decision

For more, visit our Economic Calendar