All markets reopened after the Easter holidays to a mixed bag. Weak manufacturing data came from the U.S. as the ISM Index for last month fell to 51.3 from 54.2 in Feb. Although this was below expectations that the index would stay unchanged it’s not a concern as it is still over the 50 threshold which is an indication of a growing economy. Meanwhile support for the JPY ahead of new BoJ Governor Kuroda’s first assembly to cover Japanese Monetary policy.
Pessimistic data all round coming out of the Eurozone is building a bleak picture of regions outlook for Q1. Data releases demonstrated an unemployment rate of 12 percent for Feb, this is a record high for unemployment in the region build of 17 nations.
German PMI fell below the 50 mark to 49 last month down from 50.3 in Feb. The European Central Bank is not expected to make any changes following the policy meeting on Thursday although President Draghis’ comments are heavily anticipated by market participants.
Assets Daily Analysis
- Stocks
The Japanese Nikkei 225 index dropped by 1.06 percent in Asian trading offset by the strengthening JPY. The Australian ASX 200 Index rose 0.38 percent ahead of the RBA meeting there where there sentiment favors a satisfactory outcome to rate cuts that have been taking place since 2011. The Hang Seng gained slightly by 0.06 percent and the Shanghai Composite was up by 0.58 percent.
- Forex
Not much movement in the money markets with only two pairs showing some movement. The AUD/USD gained 0.38 percent this morning, provoked by the Reserve Bank of Australia meeting later in the week. The USD/JOY was the other pair making waves today when it shed 0.48 percent ahead of the BoJ policy meeting tomorrow. This will be the first time Haruhiko Kuroda, the new Governor will be presiding over the meeting. Kuroda is known for his very aggressive stance towards easing measures in Japan. The dollar dropped slightly against its other counterparts with the greenback losing 0.04 percent against the EUR and 0.14 percent against the Canadian dollar.
- Commodities
Gold was benefiting from the weaker dollar by trading slightly higher in overnight session with a gain of 0.05 percent furthering the slight upwards trend as seen on Mondays U.S. trading session. Silver too was taking advantage of the weakened USD by trading 0.12 percent higher. Copper was unmoved. The biggest mover of the commodities though was Crude oil which lost 0.38 percent of its price. This was pushed by mixed data releases coming out of the U.S. Natural Gas prices finally rallied as weather forecasts from U.S. and Europe start to show better weather.
What’s Happening Today?
Traders stretching their muscles today after an extended Easter holiday. Figures to come out of Italy, Spain and euro zone unemployment and Purchasing Managers Index from Europe. Then focus moves across to the U.S. with releases of Oil and Gas supplies which are expected to fall.