Market Update – 2nd April 2019 – U.S & European Stocks Follow Strong Lead From Asia

Please note that the commentary below is factual information provided to a group of readers as a web blog, and where an opinion is expressed by the author, it is GENERAL ADVICE only.

Stocks Buoyant:

Stocks in Europe and the U.S moved higher in overnight trade following the positive lead set by Asian stocks yesterday. The Chinese CSI 300 added 2.62% and the Japanese Nikkei added 1.43% yesterday, while U.S stocks added between 1.1% and 1.3% overnight. The good moves in stock and commodities prices were kicked off yesterday with better than expected Chinese Caixin Manufacturing PMI, which came in at 50.8, it’s highest level since August last year.

ISM Data Better:

Overnight we also saw the release of U.S economic data, with ISM Manufacturing PMI beating the previous months reading and appearing also to level off after a period of decline during late 2018. The Aussie Dollar is little changed, however commodity prices have been well supported, which will continue to boost Australian tax receipts from our mining sector.

Cash Rate Decision at 2.30pm:

More local data due out today with Building Approvals at 11.30am, followed by the all important cash rate decision at 2.30pm. Following that, we will also see Josh Frydenberg’s Annual Budget tonight.

Our local index should open around half a percent higher.

AUD EXCHANGE RATES:

AUD/USD – 0.7071

AUD/GBP – 0.5410

AUD/EUR – 0.6309

AUD/NZD – 1.0441

AUD/JPY – 78.819

OTHER MARKETS:

All Ords (XAO) – 6,300

Gold – A$1,810/oz

Silver –  A$21.25/oz

WTI – US$61.81/barrel

DATA RELEASES TODAY:

AUD – Building Approvals m/m at 11.30am

AUD – RBA Rate Statement and Cash Rate at 2.30pm

AUD – Annual Budget Release at 7.30pm

USD – Core Durable Goods Orders m/m at 11.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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