News & Research

26 April 2017

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Currency Markets the yen edged lower on Wednesday, remaining under pressure as risk sentiment improved and safe haven demand eased, on relief over the first round of the French presidential election. The dollar edged up 0.2 percent to 111.30 yen. The euro edged up 0.1 percent to $1.0938. On Tuesday, it hit a 5-1/2 month high of $1.0950 as traders digested centrist candidate Emmanuel Macron's victory in the first round of France's presidential election on Sunday. Against the yen, the euro edged up 0.2 percent to 121.76 yen. The Canadian dollar stood at C$1.3572 per U.S. dollar, not very far from Tuesday's low of C$1.3626 against the greenback, the loonie's lowest level since February 2016.

Commodities Markets oil prices resumed their downward trend on Wednesday as data showed a rise in U.S. crude inventories and record supplies in the rest of the world cast doubt on OPEC's ability to cut supplies and tighten the market. U.S. West Texas Intermediate crude oil futures were trading down 0.3 percent, at $49.43 per barrel, after gaining 0.7 percent in the previous session. Brent crude futures were at $51.99 per barrel, down 0.2 percent, from their last close.  Spot gold was mostly unchanged at $1,263.55 and spot silver edged up 0.4 percent to $17.61 an ounce. Platinum fell 0.1 percent to $949.10 an ounce, while palladium fell 0.2 percent to $798.95.

US Equity Markets  the Nasdaq Composite hit a record high on Tuesday, while the Dow and S&P 500 brushed against recent peaks as strong earnings underscored the health of corporate America. The Dow Jones Industrial Average rose 1.12 percent, to 20,996.12, the S&P 500 gained 0.61 percent, to 2,388.61 and the Nasdaq Composite added 41.67 points, or 0.7 percent, to 6,025.49. The Nasdaq hit a record level of 6,036.02, breaching 6,000 for the first time, powered by gains in index heavyweights Apple and Microsoft. Caterpillar closed up 7.9 percent after earlier hitting a multi-year high of $104.89 and McDonald's jumped 5.6 percent, both after beating profit estimates.

Bond Markets  Japanese government bond prices were weighed down as an ebb in risk aversion sent Tokyo stocks to four-week highs and weakened investor demand for safe-haven debt. The benchmark 10-year JGB yield was half a basis point higher at 0.020 percent and the 20-year yield rose 1.5 basis points to 0.570 percent. On Tuesday, benchmark 10-year notes were last down 18/32 in price to yield 2.339 percent, up from 2.27 percent late on Monday.

Asian Equity Markets Japan's Nikkei index rose to near one-month highs on Wednesday, buoyed by a weaker yen and record high for the Nasdaq Composite. The Nikkei was up 0.8 percent at midday at 19,231.92 points, after touching its highest intraday levels since March 29. The broader Topix added 0.9 percent to 1,532.73, while the JPX-Nikkei Index 400 was also 0.9 percent higher at 13,722.76. Markets in greater China were mostly higher with the Hang Seng Index up 0.53 percent and the Shanghai Composite inched up 0.02 percent. Australian index, S&P/ASX 200, rose 0.72 percent.