The financial markets are generally steady in the early part of the week. DJIA continues to struggle in tight range below recent high at 17811.48 and closed slightly lower by -20.55 pts, or -0.12%, at 17556.41. Similar picture is seen in S&P 500 as it closed down -5.61 pts, or -0.27%, at 2041.99. Nikkei is trading up 186 pts, or 1.2% at the time of writing but struggles to take out 16000 handle so far. Gold pares back some gain but stays firm above 1255. Crude oil continues to stay above 40 handle. In the currency markets, commodity currencies continue to recover in general and hold above near term support against dollar. Yen is mildly softer against others as risk aversion recedes.
In US, Dallas Fed president Robert Kaplan said regarding rate hike, "it is worth in this environment being patient and basically being willing to be cautious and let events unfold." And "we are not going to know by April", hinting that he didn't support April hike. Regarding the economy, he noted that "there is no question first-quarter GDP numbers are weak." But that is "probably inconsistent" with the solid job numbers. Regarding June hike, Kaplan said he is "certainly very open".
On the data front, NAB business confidence rose to 6 in March. UK BRC retail sales monitor dropped -0.7% yoy in March. UK inflation data will be the main focus in European session. CPI is expected to be unchanged at 0.3% yoy while core CPI might rise to 1.3% yoy. Germany will release CPI final. US will release import price index.