|
OVERNIGHT MARKET
UPDATE:
|
·
US durable goods orders declined 1.4% m/m in December, with
January’s increase revised 0.8 ppts lower to +2.0% m/m. The weakness was
broadly based with orders ex-transportation also declining 0.4% m/m. Core
capital goods orders fell a sharp 1.4% m/m. The recent weakness in orders is
broadly consistent with the earlier softening in manufacturing activity.
·
The German IFO index rose to 107.9 in March from 106.8, on the
back of an improvement in both the current and expectation components. These
data are consistent with the PMIs that were published on Tuesday which showed a
modest improvement in activity is underway in Germany. The pick-up in activity
will continue to be underpinned by a low euro and accommodative monetary
policy.
·
The consolidative tone in currency market has persisted, despite
the weaker US durable goods data, with the EUR stronger and AUD and NZD weaker.
The EUR strengthened slightly against the USD, extending its recent gains.
Uncertainty over the timing of the first rate hike in the US has led to
profit-taking on short EUR/USD positions and investors have also been willing
to take profits as the Easter holiday period and quarter-end approach.
·
US Treasury yields rose, partly retracing moves lower over the
past few sessions, despite the weaker-than-expected durable goods
data.
·
US equities also fell more than 1%, with technology stocks
underperforming, on what appeared to be profit-taking by
investors.
·
Crude oil prices were higher tracking a weaker USD despite EIA
data showing another higher-than-expected build in crude inventories last week.
Oil prices did retreat after the EIA data were released, before regaining
upward momentum due to the weakening
dollar.
Precious metals were higher. Gold traded in a tight range, recovering
marginally and with little volatility following an unexpected fall in US
durable goods data which pushed the USD lower.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.