Good Morning All.
Headlines – International
US Treasuries slipped and sending the 10 year yield over 2.5%, US equities lost some momentum in the Tuesday session. China trade balance today and Japan GDP
Offshore yuan rises 0.05% to 6.8979 per dollar after China foreign-exchange reserves climb for the first time in seven months https://www.bloomberg.com/news/articles/2016-02-07/china-s-foreign-exchange-reserves-decline-to-3-23-trillion
AUD rose after RBA meeting yesterday and said that the conditions in the global economy have improved and local consumption growth was stronger, reducing speculation it will cut interest rates this year.
The U.S. chalked up its largest trade deficit since March 2012 and widened to $48.5b in Jan (Est. $48.5b) as a jump in merchandise imports in January exceeded a smaller gain in shipments overseas https://www.bloomberg.com/news/articles/2017-03-07/trade-deficit-in-u-s-widens-to-largest-in-almost-five-years
Iron Ore Faces Supply Risk as record Aussie Rain Hits Exports as the significant decline in the pace of shipments in January and February, based on weekly data from key ports, is likely to have contributed to recent strength in iron ore prices
Gold futures posted a sixth day of losses, the longest slump since Nov last year. Gold futures for April delivery slipped 0.8% to settle at US $1,216.10 at 1:45AM on the comex in NY. Holdings in SPDR Gold also fell 3.8 metric tons on Monday -data compiled by Bloomberg show.
Trading in Brent options reaches highest in more than 3 months on Monday, with June $60 calls and May $60 calls both seeing volumes surge. WTI prompt spread touches widest contango in 3 weeks, with crude stockpile build forecast at Cushing. Brent open interest extends recent slump
Market in Details
FX trading flows were quite muted as market participants sought fresh trading catalysts that may come either from the ECB meeting or, more likely, Friday U.S. employment report.
AUD/USD advanced 0.5% to 0.7617. Fund-related demand increased despite generally neutral statement from RBA, though it did single out an overheated housing market
EUR/USD spent morning recovering back to square from a weak opening with EUR2.17b of option strikes at 1.0600 expiring Tuesday shadowing the price action
USD/JPY climbed in Tokyo morning, boosted by selling of yen over Tokyo fix with dips after that being filled as Treasury yields eased
Yields on 10-year Treasuries rose one basis point to 2.51 percent. Treasuries have fallen seven straight days
The German 10-year yield declined two basis points to 0.319 percent
S&P 500 index down 0.2% at 10:18 a.m. in New York, it slipped lower in two of the past three sessions, after surging to a record last Wednesday following hawkish comments from Fed officials. Volume in S&P 500 down 7% from 30-day average
Dow Jones down 0.1% to 20.929 Tuesday
Australia ASX200 Index rose 0.3% closed at 5761.40
WTI falls after API said to report U.S. crude stockpiles rose 11.6m bbl last week
Copper fell a fourth day as stockpiles in London Metal Exchange-tracked warehouses jump 33 percent in 2 days, most since 2004.
Gold for delivery in three months fell 0.7 percent $1,217.30 an ounce after dropping 0.8 percent in the previous session.