US equity markets continued to push higher at the end of last week: S&P 500 (+0.8%), Nasdaq (+1.1%). This week the focus is on Federal Reserve Chair Jerome Powell’s congressional testimony and China’s National People’s Congress. Premier Li Qiang won’t hold a briefing after the NPC close.
This morning in Asia, equities were broadly higher: Nikkei 225 (+0.5% to above the 40k mark); Hang Seng (+0.1%); Shanghai Composite (+0.4%). The FTSE 100 is currently trading 0.2% lower at 7,670.
US congressional negotiators have unveiled a bill to avert a government shutdown. The deal includes a provision that bars China from buying oil from the US’s emergency stockpiles.
The 10-year Treasury currently yields 4.21%. Gold is $2,085 an ounce and is holding on to the big gain it made at the end of last week on the back of a decline in the dollar and Treasury yields amid weakening US economic data. The S&P/ASX All Ordinaries Gold Index rose by 4.5%.
Jeremy Hunt announced new funding to support the UK’s manufacturing sector ahead of his budget Wednesday. The chancellor described the budget as prudent and responsible, as he aims to temper hopes for tax cuts. Sterling trades at $1.2669 and €1.1683.
Oil steadied near this year’s high after OPEC+ agreed to extend current supply curbs through June as expected. Russia promised to focus more on cuts to output than exports, while Iraq and Kuwait will prolong their voluntary reductions. Brent trades at $83.60 a barrel.
