Morning Report APAC: Stocks rise across the region
- Asian equities rose following on from strong postings from US stocks
- Trump’s steel tariffs are also in focus, with US Steel surging
- Stocks advancing this morning in Japan, Australia and South Korea
- The S&P rallied 1.6% on Friday on the lowest volume of the year
By Saxo APAC Sales Trading
Economic data of the day (Singapore Time)
- 1800: EC – ECB’s Coeure speaks in Frankfurt
- 2100: US – Fed’s Bullard speaks on economy and monetary policy
- 2200: EC – ECB president Draghi speaks in Brussels
- 0200: UK – BOE’s Cunliffe speaks at event at Warwick University
- 0415: US – Fed’s Quarles gives assessment of US economy
XI Jinping staying longer: It was more or less expected, China's Communist Party proposed repealing the presidential term limits enshrined in the country's constitution. His second mandate was supposed to finish in 2023, now, it will be as long as necessary to put in place all the reforms such as deleveraging and financial instability.
US tariffs: Trump favours a 24% tariff on steel imports and he is also considering as much as 10% tariff on aluminium imports. These tariffs could spark retaliation from countries like Canada, Australia and China.
For info, exports from China to the US reached 1.18 million tonnes last year. China produces a total of 800 million tonnes of steel each year, equal to about half of global output.
Equities rise: The S&P rallied 1.6% on Friday on the lowest volume of the year, erasing the loss of the week. The 10 year yield dropped to 2.87% tightening the spread 2s-10s by 4.3 basis points.
Very light moves in the forex space on Friday with most currencies fairly unchanged except USDCAD lower 0.6% helped by Oil and Commodities.
Emerging Markets: USD was offered against most EM. USDBRL dropped despite Fitch’s move to cut Brazil’s rating and Ibovespa is rising to a record.
USDMXN is back at the strong support of 18.50. Expectations of a rate hike in April are increasing to 56% .
Foreign exchange movements
– Edited by Adam Courtenay
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