Traders Edge : Wednesday 07 April

Global Markets Update                                                                                                   

  • U.S. equity markets closed lower overnight, with both the S&P 500 and NASDAQ down -0.1% and Dow Jones closing -0.3% lower. Iran said talks in Vienna aimed at restoring its 2015 nuclear deal with world powers had been “constructive,” but stuck to its demand that the U.S. first remove all sanctions for real progress to be possible.
  • Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.159% and the 10-Yr yield at 1.654%.
  • European markets. European equity markets closed higher overnight, with both the Stoxx Europe 600 and German DAX up +0.7% and UK FTSE 100 gaining +1.3%, after IMF upgraded its global economic growth forecast for the second time in three months to +6% this year, up from the +5.5% pace estimated in January (U.S. is seen at +6.4%, up from +5.1%, euro area to expand +4.4% vs +4.2% previously, Japan to grow +3.3% compared with +3.1%, China is seen expanding +8.4% vs +8.1% and India will grow +12.5% vs +11.5%) and +4.4% (vs +4.2% previously) in 2022, with advanced economies not returning to their pre-pandemic output levels until 2022, and emerging-market and developing economies taking until 2023 to reach those levels, however, flagged the risk that if virus mutations outpace the roll-out of vaccines, Covid-19 could become an endemic disease with an unknown severity.
  • Asian markets. Asian equity markets closed mixed overnight, with the Shanghai Composite flat, as China’s central bank shifted its attention from pandemic to bubble risks, asking major lenders to curtail loan growth for the rest of this year after a surge in the first two months stoked bubble risks. Nikkei 225 was down -1.3%, KOSPI up +0.2% and Hang Seng remained closed for a holiday.

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