- Vandals have damaged around 20 Tesla (TSLA) vehicles at a dealership
- Japan finance minister Kato says bond market should determine yield movements
- More on reports an Iranian ship has been sunk – still unconfirmed
- Gold hits an all-time record high above US$3005
- PBOC sets USD/ CNY central rate at 7.1733 (vs. estimate at 7.2264)
- Reports that the Israel-Hamas ceasefire has collapsed
- More TSLA news – competitor BYD reveals new charging system that takes just 5 minutes
- Tesla has raised the price for a Y model variant in China, to 313,500 yuan
- Euro EM funds bullish on Chinese consumer stocks, GS report shows
- HSBC on China policy signals that bolster the case for overweight in Chinese equities
- RBA’s Hunter says focused on US policy settings, how they’ll impact Australian inflation
- Trump says authorizing energy production using coal
- Deutsche Bank on the 10% US equity mkt correction: only leads to recession 44% of the time
- Trump says looking forward to call with Putin – “much remains” until final agreement
- US politics – Trump orders an end to US Secret Service protection of Hunter Biden
- Japan – Buffett’s Berkshire buys more
- Franklin Templeton has trimmed its Australian bond holdings
- 52 of 52 economists surveyed expect the Bank of Japan to remain on hold this week.
- How you can tell Trump reads ForexLive (Bowman news announced last week!)
- Gold tops $3,000 with more gains to come as central bank demand fuels bullish outlook
- US retail sales “point to rising consumer strain”, but Fed Reserve to stay on the sideline
- Trade ideas thread – Tuesday, 18 March, insightful charts, technical analysis, ideas
- Trump has completely upended the Canadian electoral landscape
- Forexlive Americas FX news wrap: Yen slides as the rally in risk assets continues
The
major story of the session was the collapse
of the Israel-Hamas ceasefire,
with the office of Israeli Prime Minister Benjamin
Netanyahu
confirming that “extensive strikes” had been launched on
Gaza following Hamas’ continued refusal to release hostages and
rejection of mediator proposals.
Adding to the geopolitical risk,
reports surfaced that U.S.
forces had sunk an Iranian intelligence-gathering vessel,
though as of posting, these remain unconfirmed. I suspect that given the time that has passed, these reports are incorrect.
Oil saw a modest lift during the
session, while gold
surged to yet another record high, briefly trading above US$3,007,
as escalating tensions fueled demand for safe-haven assets.
In FX, major currencies
responded in a muted
fashion. A broad bid
for the USD weighed
on EUR, AUD, NZD, CAD, and GBP. USD/JPY
and USD/CHF remained firm,
indicating no significant flight to traditional safe-haven
currencies. USD/JPY climbed (just) back
above 149.50,
reflecting ongoing yen weakness.
Japan’s Finance
Minister Katsunobu Kato
addressed the jump in JGB
yields, reiterating
that bond markets will be left to determine pricing but warning that
intervention remains an option if needed. His comments echoed BOJ
Governor Kazuo Ueda’s
previous messaging.
As a side note, the Bank
of Japan meets Tuesday and Wednesday (Japan time),
with markets overwhelmingly expecting no
policy change,
given mounting risks from the ongoing global
tariff trade war.
On the central bank
front, Reserve Bank
of Australia Assistant
Governor Sarah Hunter,
speaking in Sydney, underscored that the RBA
will be cautious—slower than market pricing suggests—when it
comes to rate cuts.
She also emphasized that the focus
remains on U.S. policy settings and their impact on Australian
inflation.
