· Dollar drops with U.S. yields despite strengthening U.S. recovery
The dollar sank to an almost two-week low versus a basket of its peers on Tuesday, moving in tandem with retreating Treasury yields from recent peaks despite signs of a robust U.S. economic recovery.
The dollar index wallowed at its lowest level since March 25, slipping further in early Asian trading following a 0.4% decline on Monday. The softer turn comes after it hit an almost five-month peak on Wednesday of last week.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.692 following an earlier low of 92.531.
The yen continued to recover from a more than one-year low near 111 per dollar, briefly strengthening back below 109 on Tuesday. The euro extended its rise from a nearly five-month trough close to $1.17 to trade as high as $1.1821.
The Australian dollar, considered a proxy for risk appetite, edged higher to $0.7657 after rallying 0.8% to start the week. The Reserve Bank of Australia will announce a policy decision later on Tuesday, with no change expected.
Benchmark 10-year Treasury yields continued their retreat Tuesday, dipping below 1.7% early in the Asian session, from a peak of 1.776% last week - a level not seen since January of last year.
In cryptocurrencies, bitcoin firmed following a two-day gain to trade about $59,192 on Tuesday, closing the gap to the record high at $61,781.83 reached in the middle of last month.
· Cleveland Fed president: Not concerned inflation will run away from us
Cleveland Fed President Loretta Mester joins “Closing Bell” to discuss the Fed’s strategy to help the U.S. economy recover from the pandemic.
· BP expects to hit $35 billion net debt target in first quarter
BP expects to reach its $35 billion net debt target in the first quarter of 2021, the energy group said on Tuesday, following earlier-than-expected proceeds from disposals and a “very strong” quarter.
· U.S. auto industry calls for government help as it warns of impact of chip shortage
· G20 to discuss uneven recovery from COVID crisis, officials say
The world’s financial leaders will discuss on Wednesday how to coordinate policies to prevent their virus-battered economies emerging from recession at highly different speeds, officials said ahead of the virtual meeting.
· Bankers talk of being sold out as London waits for its own Brexit deal with Brussels
Despite a breakthrough last month, London-based bankers are nervously waiting for Britain and Brussels to agree on a post-Brexit relationship for their financial services industries.
The U.K. and the EU agreed to continue talks and co-operation on financial services on March 26. In a short statement, the U.K. and the EU announced they had concluded technical negotiations regarding a “memorandum of understanding” for the industry, creating a framework for “voluntary regulatory cooperation.”
· German CDU chairman calls for tougher lockdown for 2-3 weeks
· Business among German carmakers picks up speed in March: Ifo
The survey’s indicator for the current business situation rose to 7.9 points in March from -0.4 in February, as carmakers filled up their order books and ramped up production.
· China’s services sector recovery picks up in March as hiring grows, private survey finds
A recovery in China’s services sector picked up speed in March as firms hired more workers and business optimism surged, although inflationary pressures remained, a private sector survey showed on Tuesday.
The Caixin/Markit services Purchasing Managers’ Index (PMI) rose to 54.3, the highest since December, from 51.5 in February, well above the 50-mark that separates growth from contraction on a monthly basis.
Firms reported the sharpest increases in activity and overall sales in three months. New export business continued to contract but at a slower pace.
· China says a carrier group is conducting ‘routine’ drills near Taiwan and these exercises will become regular
· Singapore to accept Covid-19 digital travel pass from next month
Singapore will next month accept visitors who use a mobile travel pass containing digital certificates for Covid-19 tests and vaccines, its aviation regulator said on Monday, becoming one of the first countries to adopt the initiative.
Singapore will accept the International Air Transport Association (IATA) mobile travel pass for pre-departure checks, where travelers can get clearance to fly to and enter Singapore by showing a smartphone application containing their data from accredited laboratories.
· Vaccinating adults appears to protect children around them; bar opening event linked to 46 COVID-19 cases
· UK COVID certificate scheme would not be discriminatory, minister says
· New Zealand to open travel bubble with Australia on April 19
New Zealand announced Tuesday it will open a long-anticipated travel bubble with Australia on April 19 now that both countries have been successful in stamping out the spread of the coronavirus.
· Australia short of 3 million AstraZeneca COVID-19 vaccine doses in blow to vaccination drive
Australia on Tuesday said it had not yet received more than 3 million doses of previously promised AstraZeneca COVID-19 vaccine doses amid export curbs by the European Union, leaving a major hole in its early nationwide inoculation drive.
· Indian states seek widening of vaccinations as second surge overtakes first wave
· India reports 96,982 new coronavirus cases
· Myanmar protesters paint Yangon red, defying bloody army crackdown
Opponents of Myanmar’s military junta sprayed red paint on roads in the country’s biggest city on Tuesday to mark the deaths of hundreds of “martyrs” killed by troops, as the crisis dragged on with no clear diplomatic solution in sight.
· Oil rebounds on robust economic data, bargain hunting
Oil prices rose on Tuesday as investors looked for bargains following the previous day’s plunge of more than 4% on rising output from OPEC+ while strong economic data from the United States and China brightened recovery prospects.
Brent crude futures rose 38 cents, or 0.61%, to $62.53 a barrel at 0507 GMT, after falling 4.2% on Monday.
U.S. West Texas Intermediate (WTI) crude futures rose 34 cents, or 0.58%, to $58.99 barrel, after sliding 4.6% on Monday.
Market sentiment was buoyed by a survey from the Institute for Supply Management (ISM) on Monday showing activity in the U.S. services industry reached its highest level on record in March. The data came after a jobs report on Friday beat forecasts with 916,000 added to the U.S. economy last month.
Reference: CNBC, Reuters
Thai
Eng