GLOBAL NEWS-
The Reserve Bank of India will cut rates for a second consecutive time when its three-day policy meeting ends on Thursday, shortly before the first phase of the national election begins.Those expectations for another rate cut have strengthened over the past month after Shaktikanta Das was appointed as the new RBI Governor in December. Lending rates were lowered and the policy stance shifted at his first meeting in February.While the central bank justified that move by highlighting a lower inflation outlook and a slowdown in growth, not everyone was convinced those were the only reasons behind the policy easing.
Australia’s central bank held interest rates steady on Tuesday and again highlighted the strength of employment, showing no immediate inclination to echo the outright dovish tone of some of its global peers.The measured message comes just hours before the country’s conservative government is expected to release an annual budget larded with tax breaks and infrastructure spending, stimulus that might lessen the need for rate cuts this year.The Reserve Bank of Australia (RBA) ended its April policy meeting with rates firmly lodged at 1.5 percent, where they have been since mid-2016. Neither did its statement smack of any urgency to act.
Top oil exporter Saudi Arabia is expected to keep prices of various grades of crude it sells to Asia little changed in May from the previous month, trade sources said on Tuesday.State-owned Saudi Aramco may cut the official selling price (OSP) for its flagship Arab Light crude by 5 cents a barrel for May, according to the median of responses of five refining sources. The sources gave a range of an increase of 5 cents to a cut of 25 cents.The respondents also expect similar price moves for the country’s other grades Arab Extra Light, Arab Medium and Arab Heavy.The expectations for a slight decrease follows a marginal widening of the backwardation in the price structure for benchmark Dubai prices. Backwardation is when prompt prices are higher than later dated prices and it suggests that demand for a commodity is strong.
Britain was no nearer to resolving the chaos surrounding its departure from the European Union after parliament failed on Monday to find a majority of its own for any alternative to Prime Minister Theresa May’s divorce deal.After a tumultuous week in which May’s divorce strategy was rejected by lawmakers for a third time, despite her offer to quit if it passed, the future direction of Brexit remains mired in confusion.In a bid to break the impasse, lawmakers on Monday voted on four last-minute alternative Brexit options for what is the United Kingdom’s most far-reaching policy change since World War Two. All were defeated.The option that came closest to getting a majority was a proposal to keep Britain in a customs union with the EU, which was defeated by three votes.A proposal to hold a confirmatory referendum on any deal got the most votes, but was defeated by 292-280.
Japanese companies’ expectations for inflation over the next year stagnated, a Bank of Japan survey showed on Tuesday, underlining the daunting challenge facing policymakers as they seek to boost growth and prices amid slowing global demand.Companies expect consumer prices to have risen 0.9 percent a year from now, unchanged from their projection three months ago, according to a quarterly survey by the BOJ.Firms expect consumer prices to have risen by an annual 1.1 percent three years from now, unchanged from the previous survey. Companies also saw inflation at 1.1 percent five years ahead, slightly below a 1.2 percent increase expected three months ago.
Japan and the United States are likely to hold their first round of trade talks in Washington on April 15-16, a Japanese government source with direct knowledge of the matter told on Tuesday.Japanese Economy Minister Toshimitsu Motegi told reporters earlier on Tuesday he would travel to the United States as early as this month to start negotiations with his counterpart U.S. Trade Representative Robert Lighthizer.U.S. President Donald Trump has made clear he is unhappy with Japan’s $69 billion trade surplus with the United States - nearly two-thirds of it from auto exports - and wants a two-way agreement to address it.Trade frictions between Tokyo and Washington have been present since Trump took office in 2017 with a pledge to renegotiate trade deals he considers unfair to U.S. companies and workers.
The dollar hit a two-week high against the yen on Tuesday, as ebbing concerns about the global economy pushed U.S. bond yields up from 15-month troughs.The greenback was steady at 111.37 yen after touching 111.46, its highest since March 20.U.S. Treasuries were sold and their yields had surged overnight, with the benchmark 10-year rate rising more than 8 basis points, as encouraging manufacturing data out of the United States and China spurred some investors to scale back their holdings of safe-haven bonds.
Asia shares extended their rally on Tuesday as positive Chinese and U.S factory activity surveys aided investor confidence, and the ebbing concerns over the global economy spurred selling of safe-haven U.S. bonds as yields rose from 15 month troughs.MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent, hitting a seven-month high after rallying more than one percent in the previous session.Australian shares gained half a percent and Japan’s Nikkei advanced 0.3 percent, extending its gains for a third session.The Shanghai Composite Index climbed 0.1 percent while Hong Kong’s Hang Seng Index was flat.
Gold prices slipped to a more than three-week low on Tuesday as waning global economic slowdown concerns lifted the dollar and equity markets.Spot gold was flat at $1,286.85 per ounce by 0332 GMT, after touching its lowest since March 8 at $1,285.80 earlier in the session.U.S. gold futures were down about 0.2 percent at $1,291.30 an ounce.
Oil prices rose to fresh 2019 highs on Tuesday, supported by firm Chinese economic data that eased demand concerns, the possibility of more sanctions on Iran and further Venezuelan supply disruptions.Brent crude rose 32 cents, or 0.5 percent, to $69.33 a barrel by 0212 GMT, having earlier touched $69.50, the highest since mid-November.U.S. West Texas Intermediate (WTI) futures rose 30 cents, or 0.5 percent, to $61.89 a barrel, after earlier rising above $62 for the first time since early November.Positive data from the world’s biggest economies, the United States and China bolstered prices, with China’s manufacturing sector unexpectedly returning to growth for the first time in four months during March.