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(Wallace Refiners) – Gold (0.55%) has continued to show some strength after bouncing off the previous wave low at $1676.91/oz. Silver has not traded so well overnight and is down around -0.48% trading at $24.27/oz. In the rest of the commodities complex, copper has lost nearly half a percent while WTI moved 0.65% in the black.
Risk sentiment in the Asia Pac area was positive. The Nikkei 225 (0.72%), ASX (0.56%) and Shanghai Composite (0.55%) all closed in positive territory leading into the EU session. Eurostoxx futures +0.2% in early European trading
In the FX markets, the DXY has moved 0.08% higher and the main mover from the majors is AUD/USD which lost 0.70% of its value.
In news overnight, China has issued a strong warning to Japan over ‘negative moves’ in East China Sea dispute.
Chilean mineworkers at the CODELCO (copper) mine have agreed on a deal that would avert them from any strike action.
On the coronavirus front, Ontario in Canada has been placed on lockdown for 28 days. while in Australia, Queensland’s lockdown has been lifted at noon today (Australian time). On the vaccine front U.S. media reports the Johnson & Johnson vaccine delayed by a ‘mix up’ but it was not clear about any potential timeframe.
There was lots of manufacturing data out overnight, Chinese Caixin/Markit Manufacturing PMI for March came in at 50.6 (expected 51.4). Japanese Jibun Bank/Markit Manufacturing PMI for the same month hit 52.7 (prior 51.4). Lastly, Australian AiG Manufacturing PMI for March beat expectations the reach 59.9 (prior 58.8). All in all positive all round in expansionary territory.
U.S. Treas Secy Janet Yellen to revive a dormant regulatory group re hedge funds risks. This could be an interesting time after the recent issues with the Archegos Capital Management issues.
U.S. President Joe Biden announced $2 trillion worth of spending to be spread out over an 8 year period. He also hiked corporation tax to 28% and no one should complain about a 28% corporate tax rate. Biden also confirmed infrastructure contracts only going to US firms.
Sticking with the US government, there were press reports saying that there are significant trade barriers are harming American companies and farmers and the nation singled out China.
Looking ahead to the rest of the session highlights include PMI’s from the major nations, German retail sales, the OPEC meeting, U.S. initial jobless claims and comments from Fed’s Harker and Kaplan.
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