A steady stream of European and US economic data will make its way through the financial markets on Wednesday, culminating in Washington’s revised Q4 GDP report. Stay on top of the markets with this 28 March Market Moving Fundamental Events.
28 March, HotForex – German 10-year yields are down in opening trade, in tandem with global trends, as long bonds are underpinned by a fresh bout of risk aversion and a sell-off in stocks.
European Market Outlook
Fresh selling of tech stocks sparked a sharp decline on Wall Street yesterday, that was followed by a broad correction in Asia, and European stock futures are heading south in tandem with U.S. futures. The GER30 future lost more than -0.9% in opening trade.
The 10-year Bund yield has dipped back below the 0.5% mark; the 10-year Treasury yield consolidated below 2.8% during the Asian session after declining sharply during U.S. hours, the 10-year JGB yield is down -0.1 bp at 0.027%. Month and quarter end cash flows, redemptions and sizeable index extensions in Europe will continue to underpin peripherals in particular and could help to keep Eurozone spreads narrow despite the flare-up in risk aversion.
Meanwhile, German GfK consumer confidence unexpectedly improved. Still, to come, the U.K. has the CBI distributive trade survey as well as BoE Agent reports of business conditions and Italian orders and sales numbers for the industrial sector.
USDJPY and yen crosses have settled lower versus yesterday’s highs, with the Japanese currency finding renewed safe-haven demand as Wall Street, specifically, the tech-sector led a recent global stock market wobble. News that the Trump trade team may be planning to use emergency laws via CFIUS to clamp down on China investment into the U.S. also set a negative tone.
Investors will remain focused on developments in the tech sector and on Trump’s protectionist policies, which in turn will have a bearing on the yen. The visit to Beijing by North Korea’s Kim has been greeted as a positive in terms of further allaying geopolitical tensions on the Korean peninsula, though evidently hasn’t been sufficient tonic to quell the risk-off vibe in markets.
BoJ’s Kuroda repeated, for the umpteenth time, that the central bank will persist with “powerful” monetary stimulus, while Japanese PM Abe said that a delay in the planned sales tax hike would be considered in the scenario of a financial shock. The Nikkei 225 equity index finished 2% for the worse. USDJPY, which has been trending lower since early January, and technically remains in this downtrend, has resistance at 105.94-95.
Main Macro 28 March Market Moving Fundamental Events
- US Final GDP & Good Trade Balance – MBA mortgage applications are due today as well, followed by the advanced trade in goods deficit, seen narrowing to -$72.5 bln from -$75.3 bln. The third report on Q4 GDP may rise to 2.7% vs. 2.5%.
- Crude Oil Inventories –
Support and Resistance level
This article about 28 March Market Moving Fundamental Events was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute independent investment research. Nothing in this communication contains investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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