Spreadex Market Update
USDJPY nears 152, Japan set to intervene
Equities
On Tuesday, the FTSE 100 saw a modest uptick, closing 0.2% higher. This rise was supported by a positive performance in the retail sector, notably with Ocado Group experiencing a 3.3% gain. This increase came after Ocado Retail, a venture between Ocado Group and Marks & Spencer, reported a 10.6% revenue growth for the quarter. Marks & Spencer also enjoyed nearly a 4% rise in their shares, leading the retail sector to a 1.9% increase overall.
Auto Trader Group shares dropped about 5% following a price target cut by JP Morgan analysts, citing challenging conditions in the automotive retail market.
Across the pond, Wall Street saw a subdued trading day ahead of the Good Friday holiday, with major US indices closing lower. The S&P 500 fell by 0.28%, the Dow Jones Industrial Average decreased by 0.08%, and the Nasdaq Composite dropped by 0.42%. This movement came after a period of quiet trading, influenced by a Federal Reserve meeting the previous week and the anticipation of a holiday-shortened week.
Forex & Commodities
In currency markets, the yen was a point of focus, trading close to its weakest against the dollar since 1990, even after the Bank of Japan raised interest rates for the first time in 17 years. This was amid Japan's finance ministry signalling readiness to intervene to prevent further weakening of the currency.
On Tuesday, the dollar saw an uptick, partially due to anticipation of clues on Federal Reserve policy. Traders remain focused on whether the Fed will implement three interest rate cuts this year amid strong economic growth and persistent inflation. Data revealed orders for long-lasting US manufactured goods rose more than expected in February, indicating potential economic resilience.
Oil prices dropped for a second consecutive day following a report showing a significant surge in US crude stockpiles. Brent crude futures fell by 0.9% to $85.51 a barrel, and US West Texas Intermediate crude futures declined by 0.8% to $80.98.
This week's key economic indicator, the US core Personal Consumption Expenditures (PCE) Price Index for February will be closely watched. It's expected to show a rise of 0.3%, maintaining an annual pace of 2.8%. However, trading volumes might be lower than usual due to the Good Friday holiday when US stock and Treasury markets are closed.
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