Gold is down, the yen is weaker and sovereign bonds are losing ground. Yes, that’s right — there was an equities rally overnight.
The euro touched its highest point of the year on Monday, and stocks in Paris hit a nine-year high. Meanwhile the S&P 500 rose 1.1 per cent as relief swept through markets following the outcome of the first round of France’s presidential election.
Corporate America may have yet more reason to celebrate as US President Donald Trump has proposed slashing the corporate tax rate from 35 to 15 per cent, a move his administration claims will offset growth in the deficit with higher growth. Fiscally conservative Republicans in Congress, however, may take some convincing.
In Asia Pacific equities, futures tip Tokyo’s Topix is set to open 0.1 per cent higher and the Hang Seng is expected to rise the same amount in Hong Kong when trading begins.
Corporate earnings reports out today include China CITIC Bank, Nidec, Chugai Pharmaceutical, Wipro, Huaneng Power International, Shimano, Sinopharm Group, Orient Securities and Aluminum Corporation of China.
The economic calendar for Thursday ain’t no thing (all times Hong Kong):
- 07.50: Japan services producer inflation
- 09.00: Swift global Rmb payments
- 16.30: Hong Kong imports, exports and trade balance