Market Moving Fundamental Events Analysis


The economic calendar picks up on Tuesday after a slow start to the week with US figures set to drive headlines in North American trade. What else will drive the markets today? Stay on top of the market with this 10 April Market Moving Fundamental Events Analysis.

10 April, HotForex – The Conciliatory words on trade from China’s President Xi Jinping, who pledged greater openness in sectors from banking to auto manufacturers while warning against a return to a “Cold War mentality” helped to calm nerves and underpinned stocks, while weighing on safe-haven assets, especially in the U.S.

Asian Market Outlook

10-year JGB yields are up 0.1 bp at 0.025%, 10-year Treasury yields are up 2.6 bp and back above the 2.8% mark. Stock markets meanwhile have moved broadly higher, Nikkei and Topix are up 0.54% and 0.33% respectively, the Hang Seng outperformed again and gained 1.12% so far and the CSI 300 is up 0.48%.

U.S. stock futures are rallying and up more than 1% across, Dow Jones, S&P and NASDAQ, with the latter outperforming. Oil prices also benefited from the risk on the environment and the front end USOil future is trading at USD 63.83 per barrel. An all-round risk-on environment, then, at least for now.

FX Update

USDJPY edged out a two-session high following a fresh bout of general yen weakness. Chinese President Xi’s keynote speech earlier mollified investor anxieties by de-ratcheting the trade war rhetoric by pledging that Chinese economy will open up and will lower import tariffs on vehicles, and although details were limited, this managed to lift stock markets in Asia, along with U.S. and European stock index futures.

The Nikkei 225 gained by 0.8%, while S&P 500 futures were showing a 1.1% advance. The yen weakened against this backdrop as safe haven positions unwound. USD-JPY clocked a two-session high at 107.24 before settling slightly off here. The pair has support at 106.77-80.

Main Macro 10 April Market Moving Fundamental Events Analysis 

 

  • USA PPI  – It is expected to show a further improvement in sentiment and a rise in the headline reading to 2.6% 3 from 2.5% last time. MoM figures are expected to see the headline slip to 0.1% from 0.2% and the key Core figure remains unchanged at 0.2%.
  • CAD Housing Starts – Are expected to fall to 220.0k unit pace in March from 229.7k in February. Building permit values, also due Tuesday, are expected to dip 1.0% (m/m, sa) in February after the 5.6% bounce in January. The permits and starts reports lead a full week of housing data. The new housing price index (Thursday) is seen falling 0.1% (m/m, sa) in February after the flat reading in January. Teranet/National HPI for March is due Thursday. Existing home sales (Friday) close out the week, with an 18.0% y/y decline anticipated in March following the 16.9% y/y drop in February.

Support and Resistance level

Disclaimer

This article about 10 April Market Moving Fundamental Events Analysis was written by Stuart Cowell, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.

All information provided gathered from reputable sources. Any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. We assume no liability for any loss arising from any investment made based on the information provided in this communication.

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