BUND TECHS: (M6) Gains Considered Corrective
* RES 4: 127.20 High Mar 11 * RES 3: 126.85 High Mar 18 * RES 2: 126.26/126.64 High Apr 17 / High Ap...
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LOOK AHEAD: Monday Data Calendar: Fed Goolsbee & Hammack Podcast, ISM Services
- US Data/Speaker Calendar (prior, estimate). All times ET
- 04/06 Chicago Fed Goolsbee & Cleveland Fed Hammack podcast: The Indicator (expected to publish early morning)
- 04/06 1000 ISM Services Index (56.1, 54.9)
- 04/06 1000 ISM Services Prices Paid (63.0, 67.0)
- 04/06 1000 ISM Services New Orders (58.6, 56.8)
- 04/06 1000 ISM Services Employment (51.8, 51.0)
- 04/06 1130 US Tsy $89B 13W & $77B 26W bill auctions
- Source: Bloomberg Finance L.P. / MNI
ASIA STOCKS: NKY and KOSPI Up Cautiously Whilst SE Asia Losses Mount
With China out, Asia looked to South Korea and Japan as the main markets opened Monday. The AXIOS report ended a weak start with the NIKKEI touching 53,200 early before rebounding back above 54,000, before settling around 53,500 and gains of +0.85%. AI stocks continued to perform from the positive spillover from Microsoft's AI partnership in Japan. Banks continue to deliver modest returns as the higher yield environment bodes well for their balance sheets.
In Korea, Samsung led the charge with gains of over +3.6% Monday driving the KOSPI higher by +1.3%. Early trading was bolstered by reports that the South Korean government is considering a new supplementary budget for the second half of the year to cushion the economy against high oil prices and supply chain disruptions. Banks are performing also given the higher yield environment perceived to have a positive impact. Gains were tempered in the afternoon with investors wary of the April 6 deadline
Malaysia, Thailand and Indonesia have all had a weak start to the trading week with losses of around -0.40% to -0.80% on the ongoing Middle East concern. The woes for the JCI started with concerns over the fiscal spend due to the government's growth objectives, was further pressured by concerns raised by the index provider MSCI (and hence rating agencies) and now the price of oil. This sees the JCI floundering with year to date losses of -19% whilst projecting a full year growth rate of around 5%
GOLD: Gold Holds Near Key Tech as Trump's Tuesday Deadline Looms
- Despite strengthening in the afternoon session, gold's weak open sees it holding onto modest losses in the Asia trading day.
- Currently near US$4661, gold is down around -0.32%
- This keeps bullions wedged between the 20-day EMA of $4,789 and just above the downside resistance from the 100-day EMA at $4,628.
- Should a break below the 100-day occur, there appears reasonable support at $4,500.
- Gold's next move will hinge on the Trump Tuesday deadline and how the USD and UST Yields react with both markets watching closely for signs of a potential ceasefire.
