Asian stocks edged lower after US equities slumped in yesterday’s session. The yen rose against the dollar for a third day in a row which hints at a decrease in investor’s appetite for risk.
Trading Forex
Car manufacturers showed a decline in US sales for March, sending Japanese stocks lower. The Aussie dollar is on a downward trend for the fourth day in a row. Reserve Bank of Australia’s governor Lowe speaks at 10:15 GMT today. If Lowe is hawkish, expect the Aussie dollar to rise.
The South African rand is suffering under the weight of President Zuma’s decision to fire finance minister Gordhan. As a result, South Africa lost its investment-grade credit rating form the S&P Global Ratings. The rand is down for the seventh consecutive day against the dollar.
The bearish hiccups seen in March have spilled over to this quarter’s session. Equity markets are edging downwards as investors mull over the uneasy road ahead to achieving higher US interest rates while avoiding US recession.
Additionally, the catalyst of last quarter’s rally – Donald Trump and his pro-business agendas – have been brought into question. Investors are unsure of the unity between the Trump administration and congress. This division could prevent Trump’s campaign promises from passing through their first hurdle – congress.
- CAC 40 down 0.28% at €5080.00
- DAX 30 down 0.33% at €12266.00
- FTSE MIB down 0.35% at €19760
- DJ 30 down 0.24% at $20529
- S&P 500 down 0.25% at $2348.50
- Russell 2000 down 0.24% at $1364.40
- China up 0.311% at ¥10480.00
Investors will be paying close attention to the US non-farm payrolls released on Friday. Moreover, the minutes from the Federal Reserve’s latest meeting will be released on Wednesday.
Commodity’s Corner
Crude oil is hovering above the $50 mark at $50.14. The commodity is struggling to re-claim the losses made last month. Crude oil inventories will be released tomorrow. If the data shows a dramatic decline in inventories the price of oil should lift.
Gold inched up today at $1258.68.
Note: China, Hong Kong, Taiwan and India and closed for a holiday today
News Today
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