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    Asian Stocks Mixed, US Treasury Yields Gain – April 26

    European Stocks Unchanged, while Copper Sets Record

    On Monday, US Treasury yields advanced, supported by investors’ belief that the Federal Reserve will keep inflation low. They were also boosted by the speedy recovery of the US economy. US indices were mixed. 

    Government and the US dollar, considered havens, experienced pressure on Monday. Copper, always viewed as an indicator of economic growth, climbed to the highest level in a decade. The metal advanced 1.99% to trade at $442.75. The US 10-year rate climbed from its  50-day moving average but stayed below the 1.60% level. 

    Investors will analyze corporate earnings and US economic data this week. They expect US gross domestic product to increase at a 6.9% annualized pace from January through March. They also anticipate that reports will show stronger orders for durable goods, an increase in consumer confidence, and robust personal spending. Output at manufacturing and service providers is foreseen to hit the peak in April. 

    Asian markets were mixed on Monday. The Shanghai Composite added 1.14%. The Nikkei 225 brought the Hang Seng lower. They slid 2.07% and 0.27% respectively.  European stocks were flat. Gains by banks and travel companies were counterbalanced by the decline of the tech stocks and automakers. The dollar during the European session revisited a two-month low and set itself up to lose the most since November. Oil dropped on concerns that demand from India will decline due to the raging coronavirus in the region. Gold shuttled between losses and gains during the trading hours in Europe. 

    These are the main moves in the markets trader should watch today:

    Stocks

    Futures on the S&P 500 inched 0.1% lower during the European session in the morning on Monday. The Stoxx Europe Index stayed unchanged. Asian markets were mixed. The Shanghai Composite gained 1.14%. The Nikkei 225 shed 2.07%. The Hang Seng gave up 0.27%.  The MSCI Asia Pacific Index rose 0.5%. The MSCI Emerging Market Index grew 0.5%. 

    Currencies

    The euro stayed at $1.21, without changing. The British pound gained 0.3% to trade at $1.3915. The onshore yuan advanced 0.2% to .486 per dollar. The Japanese yen edged 0.1% higher to 107.72 per dollar. AUD/USD changed hands at 0.7788, rising 0.63%. The USD/CAD pair declined 0.27% to 1.2442. USD/CHF was little changed at 0.9141. 

    Commodities

    West Texas Intermediate crude retreated 1.7% to $61.11 a barrel. Brent crude lost 1.7% to $64.97 a barrel. Gold inched 0.2% higher to trade at $1,779.91 an ounce. Silver added 0.12% to $26.15 an ounce. Platinum grew 0.4% to $1,237.33. Copper jumped 1.99% to trade at $442.75.

    Bonds

    The yield on 10-year Treasuries soared two basis points to 1.58%. The yield on two-year Treasuries remained unchanged at 0.16%. Germany’s 10-year yield advanced less than one basis point to -0.25%. Britain’s 10-year yield added one basis point to 0.757%. Japan’s 10-year yield was one basis point higher to 0.082%.

    Looking Forward:

    The key events traders should watch this week are as follows:

    • The Bank of Japan rate decision and Governor Haruhiko Kuroda briefing are scheduled on Tuesday.
    • Fed Chair Jerome Powell holds a press conference on Wednesday following the FOMC meeting.
    • Joe Biden makes his first address as president to a joint session of Congress on Wednesday.
    • U.S. GDP is forecast to show robust 6% growth in the first quarter, bolstered by government stimulus. It is out on Thursday.

    Have a successful trading day!

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