Equities markets push up overnight as some geopolitical risks cool

Published date: 15/03/2019

Yesterday the House of Commons passed the vote to extend article 50 and they also voted down the option for a second referendum.GBP/USD popped up slightly but has subsequently price has pulled back to 1.3250 this morning. Next up, UK PM May will look to amend her deal and try and get it passed once again.

In the world of equities, Asia managed to shrug off the US negativity and only the ASX closed lower (-0.07%). This Nikkei (0.76%) and Shanghai Comp. (1.04%) both rose off the back of US-China optimism once again.

In commodities markets, spot WTI continues to push higher as US stockpiles continue to dwindle. Despite the increase to $58.74/bbl, some analysts are still wary as there have been some reports of increasing shale production. 

As the bullishness in Asia kicked in copper rose 0.87% overnight. The industrial metal has retraced from highs and is now looking to see if the market gives it enough momentum to test $2.97/lb.

After dipping yesterday, gold has managed to pull back above the $1300/oz handle. There has been some mild USD weakness overnight but nothing significant enough to support a massive move in the yellow metal as of yet.

In FX markets once again the BoJ stood pat on rates and their fixed income JGB targets at 0.0%. Although they stated the economy is going to continue to expand at a moderate pace they pointed out exports may fall due to the global slowdown.

Today we are on the lookout for the IEA monthly report, EU CPI, US industrial & manufacturing production, JOLTs data and the weekly Baker Hughes data.



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