Headlines:
Markets:
- AUD leads, JPY lags on the day
- European equities higher; S&P 500 futures up 1.1%
- US 10-year yields up 4.6 bps to 4.298%
- Gold up 0.1% to $3,027.34
- WTI crude up 0.7% to $68.75
- Bitcoin up 1.7% to $87,576
There wasn’t much in terms of headlines on the session but we are seeing some decent market moves to kick start the new week.
Of note, risk sentiment is on the up as the countdown to Trump’s tariffs on 2 April continues. The news over the weekend was that we might see a more positive turn as noted here and that is helping with the overall risk mood.
US futures are storming higher with dip buyers looking to get their groove back with tech shares leading the way. European indices opened on a strong footing as well but are seeing gains pared back a little during the session. Still, it’s a positive showing on the risk front to start the day.
The French and German PMI data didn’t really offer too much amid a contrast between the manufacturing and services sector. Overall, business activity remains little changed compared to last month and that is keeping things in check ahead of the ECB decision in April.
In FX, the dollar is slightly softer at the balance amid the pick up in risk sentiment. EUR/USD is up 0.3% to 1.0845 but contained by large option expiries on the day. Meanwhile, GBP/USD is seen up 0.3% to 1.2955 and USD/CAD down 0.2% to 1.4315 currently. The aussie is looking for a decent bounce in erasing Friday’s drop to move close to 0.6300 at the moment.
Besides that, the yen is the laggard as bond yields are also keeping higher on the day. USD/JPY is marked up by 0.3% to 149.70 currently.
In other markets, gold is keeping steady around $3,027 while oil is keeping a modest bounce off its September 2024 lows from earlier this month as WTI crude trades up to $68.75 now.
