GLOBAL MARKET SNAPSHOT
Global equities stabilized on Tuesday with two notable expectations - China (Shanghai -1.5%) and Turkey (BIST -2.0%). Chinese A shares declined ahead of the resumption of cabinet level trade negotiations, while Turkish stocks were lower on a sharp jump in lira. In the U.S., growth concerns waned supporting small caps, energy +1.4%, and financials +1.1%.
Treasury yields rose along the curve with improvement in risk sentiment.
The U.S. dollar index gained +0.3%. The risk barometer AUD/JPY gained +0.9%. Turkish lira surged as the government has made the cost of borrowing offshore extremely restrictive to deter short sellers.
The Bloomberg Commodity Index rose +0.1%. The index was buoyed by a rise in crude oil as WTI and Brent prices climbed +2.1% and +1.2%, respectively. The rise came despite an API report showing a surprise build in inventories last week.
Coming on the back of yesterday’s strong business sentiment report, Germany’s GfK Consumer Climate Study for March showed a weakening of consumer sentiment. The headline index slipped 0.3 points to 10.4, while expectations were for a modest increase to 10.8. Favorable was the improvement in economic expectations, but income expectations and propensity to buy declined.
Homebuilding in the U.S. slowed more than expected as housing starts and permits declined by -8.7% and -1.6% month-over-month in February.
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