OVERNIGHT MARKET
UPDATE:
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·
In an interview, San Francisco Fed President Williams argued
that given the improvement in labour market conditions and the broader economy,
the probability of adverse shocks pushing the US economy into reverse “seems to
be decreasing”. He reiterated that the pace of the tightening cycle would be
gradual and data dependent.
·
The US Federal Government recorded a monthly deficit in March of
US$52.9 billion – above consensus (US$43 billion). Receipts were up 8.5% (a
good sign for the economy) but outlays rose 13.6%. The March figure brings
12-month rolling deficit to US$ 510 billion, a slight deterioration on a year
ago, but still down when expressed as a share of
GDP.
·
France's current account deficit in February increased from the
previous month, as the visible trade shortfall widened due to the reduction in
the growth of international trade. The seasonally adjusted current account
deficit rose to EUR1.8 billion in February from EUR0.2 billion in January.
·
In the currency market, JPY strengthened after an advisor to the
Prime Minister suggested the yen is undervalued. NZD and AUD consolidated on
losses from the Asian session due to weak Chinese trade data, and GBP gained on
an election poll.
·
US Treasuries climbed 3 basis points, before declining five to trade
two basis points lower in yield (1.93%).
·
US stocks were little changed in advance of the reporting
season. The DJIA and S&P 500 were both down marginally at 0.45% and
0.46%.
·
Crude oil markets were slightly firmer. The latest CFTC data
showed an increase in speculative net longs in crude oil markets. The net
managed money position increased by 52,000 contracts (futures and options) to
225,000 contracts as of last Tuesday.
Gold prices ended lower after the dollar trended higher against some
major currencies and some soft trade data from China. Gold prices closed 0.63%
lower at US$1,199.94 per ounce from the previous closing.
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