Market Talk – Wednesday, March 10

ASIA:

The yield on the Indian government’s 10-year bond slumped nearly 11 basis points on Monday when it hit an over 11-year low as a decline in global crude oil prices eased concerns over inflation and fiscal deficit. Rising expectations of a rate cut by the Reserve Bank of India (RBI) following a rout in global equity markets because of escalating cases of COVID-19, or novel coronavirus, also kept bond yields under pressure. The 10-year bond yield hit 6.076% — a level last seen on March 3, 2009. On Friday, the yield was at 6.183% at close.

According to IMF, the economic impact of COVID-19 could easily plunge the global economy into one. If this happens, this may lead to a China-centric global recession in how it started, how it would progress, and how it may end.

Chinese agriculture-based industries have seen a rise in the demands for drones amid coronavirus outbreak. A major agriculture drone maker based in the southern city of Guangzhou reported that they delivered 4000 units of their newly released agricultural drones in the first two months of 2020. Large farms, local government,s and agricultural product distributors are buying high-tech equipment as the spread of the coronavirus puts an impetus on reducing human contact.

The major Asian stock markets had a green day today:

  • NIKKEI 225 increased 168.36 points or 0.85% to 19,867.12
  • Shanghai increased 53.47 points or 1.82% to 2,996.76
  • Hang Seng increased 352.05 points or 1.41% to 25,392.51
  • ASX 200 increased 179.00 points or 3.11% to 5,939.60
  • Kospi increased 8.16 points or 0.42% to 1,962.93
  • SENSEX closed

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.0068 or -1.03% to 0.6527
  • NZDUSD decreased 0.0038 or -0.60% to 0.6304
  • USDJPY increased 0.9660 or 0.94% to 103.9270
  • USDCNY increased 0.0132 or 0.19% to 6.9624

Precious Metals:

  • Gold decreased 15.45 USD/t oz. or -0.93% to 1,651.15
  • Silver increased 0.0315 USD/t. oz or 0.19% to 16.9340

Some economic news from last night:

China:

CPI (MoM) (Feb) decreased from 1.4% to 0.8%

CPI (YoY) (Feb) decreased from 5.4% to 5.2%

PPI (YoY) (Feb) decreased from 0.1% to -0.4%

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