A strong rally for Hang Seng index despite bearish exports data

Monday, April 13, 2015

China’s exports declined sharply 15% y/y in March missing analysts’ expectations of a 9% rise, while imports also fell sharply by 12.7% y/y versus analysts’ estimates of a 10% drop. The Hang Seng index rallied over 600 points (+2.30%) overnight, heading above 27,900 to continue its strong upside rally.  

Hang Seng Index rallies towards 28,000

HSI Index (Hong Kong Hang Seng I 2015-04-13 08-40-55

Japan’s machinery orders dropped slightly 0.4% m/m in February against analysts’ expectations of a 2.2% decline. PPI was reported at 0.3% m/m in March versus estimates of a 0.1% decline. The Nikkei index has been trading fairly flat overnight after consolidating around 19,900, struggling for direction.

European equity markets posted renewed losses in early trade this morning as investors remain cautious following the ongoing uncertainty regarding the Greek debt issues. The euro plunged on Friday and tested a low at 1.0568 to end the week at 1.0604. This morning, the European currency remains under pressure hovering around 1.0610 against the US dollar.

Euro remains under pressure hovering around 1.0600

EURUSD Curncy (EUR-USD X-RATE)   2015-04-13 08-25-30

The USD index continues its strong rally, holding above 99.0 against a basket of currencies. The recent US dollar strength limits any strong upside potential in most commodity prices. Gold has remained under pressure hovering around $1200/ounce and silver has been consolidating around $16.50.

The week ahead covers many sectors including manufacturing and housing data such as industrial production and housing starts and permits. The Us Federal Reserve Bank has been looking for firmer inflation. So, market participants will be keeping an eye on the US PPI and CPI data coming this week.

  

Events for today:

 

0145

CN

Mar

Trade Balance

0145

CN

Mar

Imports/ Exports

1900

US

Mar

Monthly Budget Statement 

 

All times UK Local Time

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