Asian stock markets briefly climbed to a fresh-two year high on Tuesday explain RAKBANK, on the back of an overnight rise in Wall Street, while oil extended gains after major producers Saudi Arabia and Russia said supply cuts needed to continue into 2018

They explained that the increase was also in part due to Chinese President Xi Jinping and 29 other heads of state on Monday reaffirmed their commitment to build an open economy and ensure free and inclusive trade, under the ambitious Belt and Road initiative led by Beijing.  The affect of President Donald Trump disclosed highly classified information to Russia’s foreign minister about a planned Islamic State operation, two U.S. officials said on Monday, plunging the White House into another controversy just months into Trump’s short tenure in office was also felt.

 

Currencies

The dollar traded near a one-week low versus a basket of major currencies on Tuesday, having come under pressure after a surprisingly soft U.S. manufacturing report. The dollar index last traded at 98.855. On Monday, it touched a low of 98.787, its weakest level since May 8. The euro edged up 0.1% to $1.0984 after gaining 0.4% on Monday. The dollar eased 0.1% against the yen near 113.71 after rising 0.4% on Monday. The greenback has risen more than 1.9% against the yen so far this month, as risk sentiment improved after France’s presidential elections and focus shifted back towards the outlook for monetary policy.

The Australian dollar rose 0.2% to $0.7428, staying on a firm footing after getting a boost on Monday, when oil prices jumped about 2%.

 

 

Sterling

Sterling

Sterling rose towards $1.30 again on Monday, with figures showing that speculators have cut bearish bets on the currency by the most in more than a year and the third most on record. Sterling was up around a quarter of a percent by mid-afternoon on Monday to trade at $1.2917 and 85.03 pence per euro.

Currencies

USD

AED

Previous Day Change%

MTD%

YTD%

EUR

1.0986

4.0352

0.12

2.94

4.50

GBP

1.2904

4.7396

0.09

3.34

4.60

CHF

0.9954

3.6900

-0.09

-0.11

-2.20

AUD

0.7406

2.7202

-0.08

-3.74

2.65

CAD

1.3623

2.6962

-0.05

4.23

1.44

INR

64.11

0.0573

0.11

-4.40

-5.64

JPY

113.49

0.0324

-0.25

0.26

-2.89

CNY

6.8900

0.5331

0.02

0.56

-0.76

SGD

1.3982

2.6269

0.05

-1.27

-3.43

ZAR

13.17

0.2788

0.03

1.12

-4.04

Treasuries/Rates

U.S. Treasury yields briefly fell earlier on Monday after a New York state manufacturing survey turned negative for the first time since October, adding to a recent string of weakening data. Benchmark 10-year U.S. bond yields have largely held in a range between around 2.20% and 2.40% since March 22 as investors wait on further clarity on whether the Trump administration is likely to pass tax and fiscal overhauls this year.

 

Commodities/Energy

Gold prices inched higher early on Tuesday, with the dollar easing after weak U.S. manufacturing data dented expectations of an aggressive string of interest rate hikes by the U.S. Federal Reserve. Spot gold was up 0.1% at $1,231.06 per ounce. On Monday, it touched it’s highest since May 4 at 1,237.26. U.S. gold futures were up 0.1% at $1,230.90 an ounce.

The platinum market is set to record its first surplus in six years in 2017 as a drop in demand from the vehicle industry, jewelers and investors outstrips a smaller fall in supply. Palladium prices were projected to increase 25% to an average of $770 an ounce, reflecting a jump in the deficit to 1.381 million ounces from 1.175 million in 2016, largely on the back of rising auto catalyst demand. Oil prices rose on Tuesday, extending gains after a joint announcement by top producers Saudi Arabia and Russia to push for an extension of supply cuts until the end of March 2018. Brent crude futures were at $52.05 per barrel up 23 cents, or 0.44%, from their last close. U.S. West Texas Intermediate crude futures were at $49.10, up 25 cents, or 0.51% from their last settlement.

Global Equities

The S&P 500 and the Nasdaq notched record closing highs on Monday, powered by demand for technology stocks after a global cyber-attack and by rising oil prices. The Dow Jones Industrial Average rose 85.33 points, or 0.41%, to 20,981.94, the S&P 500 gained 11.42 points, or 0.48%, to 2,402.32 and the Nasdaq Composite added 28.44 points, or 0.46%, to 6,149.67. The pan-European FTSEurofirst 300 index rose 0.10% and MSCI’s gauge of stocks across the globe gained 0.49%. Emerging market stocks rose 0.78%. In Hong Kong, the broader market rose to its highest level since June 2015 on the back of extended buying into Chinese lenders and market heavyweight Tencent before declining 0.6%. MSCI’s broadest index of Asia-Pacific shares outside Japan edged down 0.1% after hitting its highest level since June 2015 in opening trades. Australian stocks were among rare gainers in the region due to strength in commodity-linked shares.

Regional Updates

Equities

The Stock Market

The Saudi index climbed 0.6%. Top petrochemical producer Saudi Basic Industries, whose margins could benefit from higher oil prices, gained 0.5%. Dubai’s index slipped 1.1% on a late wave of selling as DXB Entertainments sank 5.6% to its lowest level since April 2015. Abu Dhabi’s index dropped 0.6% but Qatar rose 0.6% on the back of several blue chips such as Doha Bank, up 1.3 %, and Barwa Real Estate which gained 1.4%.

For more information on why US Equities have been great for GCC investors, read our article here.


This information is issued by RAK BANK, while all reasonable care has been taken in preparing this document; no responsibility or liability is accepted for errors of fact or for any opinion expressed herein. Opinions, projections and estimates are subject to change without notice. This document is for information purposes only and for private circulation. It does not constitute any offer, recommendation or solicitation to any person to enter into transaction or adopt any hedging, trading or investment strategy, nor does it constitute any prediction of likely future movements in rates or prices or any representation that any such future movements will not exceed those shown in any illustration. Any investments discussed may not be suitable for all investors in any of the instruments or currencies mentioned in this document. You are advised make your own independent judgment with respect to any matter contained herein. In the UAE, RAK BANK conducts designated investment business only with Market Counterparties % Intermediate Customers and this document is directed only at such persons. Other persons should not rely on this document. Please call
Mahant /Rahul/ Imran / Rabia / Fawzy/Sunil +971-4-2913001 for all Treasury product offering.
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