The financial markets are generally in risk seeking mode today on optimism that there will be a trade deal between US and China soon. WSJ reported that a signing summit could be held on March 27. Also, Bloomberg reported that China is planning to cut VAT that covers manufacturing sector by 3%, as a measure to support the slowing economy.
New Zealand and Australian Dollar trading mildly higher. But gain in so far rather limited as traders guard against any dovish twist in RBA statement tomorrow. Nomura follows Westpac and forecasts RBA to cut interest rate by 50bps this year. Meanwhile, Euro is the weakest one as selling comes in during early European session. But there is no follow through selling yet. Slightly better than expected Sentix investor confidence provides no support to the common currency. Swiss Franc is the second weakest one for now, followed by Canadian.
In Europe, currently:
- FTSE is up 0.71%.
- DAX is up 0.22%.
- CAC is up 0.64%.
- German 10-year yield is down -0.0163 at 0.17.
Earlier in Asia:
- Nikkei rose 1.02%.
- Hong Kong HSI rose 0.51%.
- China Shanghai SSE rose 1.12%.
- Singapore Strait Times rose 0.95%.
- Japan 10-year JGB yield rose 0.0103 to 0.002, turned positive.
