FX Daily Planet: London Open
FX Daily Planet: London Open
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Asian equity
markets started on a weak note, following a decline in
stocks in the US afternoon session on Wednesday. However,
Asian equities eventually started showing resilience and
have recovered a positive territory. With the firm tone in
the equity markets, currency markets showed a typical price
pattern seen in the time of improved investors’ risk
appetites; JPY became the weakest currency followed by USD
while high-betas outperformed. Larger-than-consensus April
trade surplus in New Zealand provided an additional support
for NZD while the market remained indifferent to a
weaker-than-consensus 1Q capex in Australia. USD/Asia
broadly traded lower with KRW, which had been the main
underperformer in the first half of this week, outperformed
the most in EM Asia, rising 2% against USD. Another notable
move was seen in 12-month USD/CNY NDFs, which dropped 0.6%
on PBoC’s second straight hike in the auction yield for
3-month bills.
In the London session, the developments in stock markets and government bonds in the European peripherals should lead a general market trend. In addition to them, INSEE consumer sentiment from France and ISAE business confidence from Italy will be worth watching though economic releases have been taking a back seat, as some weak survey figures in European countries released yesterday suggested the possibility that current market turmoil has started negatively affecting
ENDS