There were no major economic reports or fresh catalysts during the Asian session, but that didn’t stop the bulls and bears from partying in the pip streets.
- Japan’s unemployment rate remains at 2.5% as expected in April
- Fed’s Bullard calls for caution on further rate hikes
With no fresh top-tier economic reports or catalysts to chew on, Asian session market players focused on the previous sessions’ headlines and how they might affect their interests.
Nikkei, for example, continued to price in potential automobile-related tariffs in the U.S. It also didn’t help risk sentiment that Eurosceptic parties just might strengthen their hold in Italy if their latest political brouhaha translates to a fresh election.
And then there’s Spain possibly losing its Prime Minister later this week. In any case, only Australia’s markets survived the bearish wave and that’s mostly due to a surge in banking stocks.
- Nikkei is down by 0.74% to 22,314.2
- A SX 200 is up by 0.32% to 6,024.8
- Hang Seng is down by 0.62% to 30,601.3
- Shanghai index is down by 0.59% to 3,116.587
Commodity prices fared a bit better with gold finding support from easing dollar demand and a bit of risk aversion. Crude oil prices, on the other hand, saw a bit of risk-taking after falling on the back of speculations that Saudi Arabia and Russia might raise their production limits.
- Gold is up by 0.02% to $1,297.90
- Brent crude oil is up by 0.44% to $75.63
- U.S. WTI is up by 0.47% to $66.77
Major Market Mover(s):
The decline in U.S. 10-year Treasury yields, combined with overall risk aversion, pushed the low-yielding yen higher for another day today.
CAD/JPY is down by 16 pips (-0.19%) to 84.03
EUR/JPY is down by 32 pips (-0.25%) to 126.87
NZD/JPY is down by 65 pips (-0.84%) to 75.93
GBP/JPY is down by 27 pips (-0.19%) to 145.33
AUD and NZD
High-yielding currencies like the Aussie and Kiwi took the brunt of the investors’ cautiousness ahead of the bigger catalysts this NFP week.
AUD/JPY is down by 36 pips (-0.43%) to 81.18
AUD/CAD is down by 21 pips (-0.22%) to .9779
GBP/AUD is up by 49 pips (+0.28%) to 1.7683
NZD/USD is down by 61 pips (-0.87%) to .6919
NZD/CAD is down by 89 pips (-0.99%) to .8880
NZD/CHF is down by 67 pips (-0.84%) to 75.93
Watch Out For:
- 6:00 am GMT: Switzerland’s trade balance (2.23B CHF expected, 1.77B CHF previous)
- 8:00 am GMT: Euro Zone’s private loans (y/y) (3.2% expected, 3.0% previous)