 Global markets are generally in risk-on mode today as recession fears eased mildly after improvement in Chinese manufacturing data. While sentiments remain generally positive in early US session, there is a slight bit of cautiousness after disappointment retail sales from he US. Headline sales dropped -0.2% mom in February, below expectation of 0.3% mom. Ex-auto sales dropped -0.4% mom versus expectation of 0.4% mom. While China manufacture PMIs turned above 50, they're hardly very encouraging readings. At the same time, there is no clear improvements in other major economies yet, including Eurozone, Japan ann even Swiss and Australia. UK PMI manufacturing posted strong upside price, but that's primarily due to pre-Brexit stock building. It could indeed be a major headwind moving forward. Also, the never-ending Brexit impasse still posts big risks ahead. the House Commons will hold a second session of indicative votes on Brexit today. Debate might center around options of customs union, single market or a combination. Also, there would be debates on confirmatory referendum. Prime Minister Theresa May could decide what she'd do next after having the results from the indicative votes. In the currency markets, Sterling is surprisingly the strongest one for today so far, followed by Australian and New Zealand Dollar. Yen is the weakest naturally, followed by Canadian and than Dollar. In Europe, currently, FTSE is up 0.63%. DAX is up 1.02%. CAC is up 0.71%. German 10-year yield is up 0.0256 at -0.043, still negative. Earlier in Asia, Nikkei rose 1.43%. Hong Kong HSI rose 1.76%. China Shanghai SSE rose 2.58%. Singapore Strait Times rose 1.17%. Japan 10-year JGB yield rose 0.0113 to -0.079. |
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