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- Trading day in one post 14.03.2017
Trading day in one post 14.03.2017
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Loading...Asian equities wavered on Tuesday, following Wall Street's mixed close as the Federal Reserve kicks off its two-day meeting and European political uncertainty weighs on sentiment.
Market expectation for a U.S. rate hike is at 95.2 percent, according to CME Group's FedWatch Tool at 11am HK/SIN.
Ahead, traders will be cautious as they eye Federal Open Market Committee's upcoming decision and look for clues on how quickly the U.S. central bank is planning to tighten monetary policy.
"Solid U.S. employment growth of 235,000 in February, a fall in unemployment and a slight rise in wages growth keep the Fed on track to raise interest rates again this coming Wednesday,however, with U.S. monetary policy a long way from being tight, future rate hikes likely to be gradual and US economic data likely to be solid we don't see it derailing the bull market in shares."
Over in Japan, the Nikkei 225 dipped 0.07 percent. The Australian benchmark ASX 200 slipped 0.04 percent. South Korea's Kospi was up 0.62 percent. On the mainland, Shanghai composite added 0.11 percent while the Shenzhen composite gained 0.15 percent.
In the broader currency market, the greenback traded at 101.41 against a basket of currencies, above levels around 101.2 seen yesterday. At 11:23 am HK/SIN, the yen was weaker against the dollar at 114.83, while the Australian dollar was at $0.7560.
Oil prices began to reverse losses on Tuesday Asian time. Brent crude futures added 0.12 percent to $51.29 a barrel, while U.S. crude was up just 0.04 percent to $48.42.
Economic calendar for European and American trade sessions
9:00 Germany - CPI
10:00 Spain - CPI
12:00 Germany - ZEW Economic conditions
12:00 EU - Industrial production
14:30 USA - PPI
14:55 USA - Red book
USD - Tomorrow is the day of FED. We are expecting rate increase. During the Janet Yellen statement we will looking for clues about when and how many rate hikes to expect. Expectations are for a strong dollar.
GBP - The path of Theresa May is clear for activation of Article 50. The Parliament denied the motion of the House of Lords for getting greater saying in when the article to be activated. We expect weakening of the pound.
JPY - Yen remains weak in comparison with it's main competitors. We may see increase of the currency during the election in France and Germany. But we must seek long position of the yej only against the euro, because the common currency should be the weakest in the market.
GOLD - Gold remains above the main support of 1200. However we must acknowledge that if FED increase rates that most likely will be negative for the valuable metal. In short-term period we are negative toward the gold, but in middle-term we are positive.
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