EQUITIES
Shares in Asia-Pacific were higher in Tuesday trade as Hong Kong stocks led gains regionally. European stocks also head for higher open as global markets strive to build positive momentum and recover from last week’s volatility.
The Hang Seng index surged 2.70% by Tuesday afternoon in the city as Chinese tech stocks jumped, on hopes of Beijing's crackdown on the sector being relaxed. Mainland Chinese stocks also edged higher, with the Shanghai Composite was up 0.48%.
The Nikkei 225 in Japan climbed 0.42%, South Korea’s KOSPI gained 0.90% while the S&P/ASX 200 in Australia advanced 0.27%.
Overnight on Wall Street, the S&P 500 declined 0.%, while larger losses were incurred on the Nasdaq Composite which dropped 1.2%, to 11,664. The Dow Jones index was barely positive, up just 0.08%.
OIL
Oil prices were mixed on Tuesday after the EU’s efforts to enact a ban on Russian oil imports, a move that would tighten global supply, ran into resistance from member country Hungary.
Though supporting the prices were signs that the COVID-19 pandemic was receding in the hardest-hit areas of China, suggesting a significant demand recovery was in the works.
Brent crude futures added 0.5%, to $114.57 a barrel, while US WTI crude futures fell 0.12%, to $113.79 a barrel.
CURRENCIES
The dollar was down slightly, to 103.995 after hitting a 20-year peak last week.
The 10-year Treasury note's yield meanwhile staying firmly under 3% spurred hopes the Federal Reserve will prudently hike interest rate hikes. It was at 2.917% compared with its U.S. close of 2.879% on Monday.
The two-year yield, which rises with traders' expectations of higher Fed fund rates, touched 2.578% compared with a U.S. close of 2.568%.
GOLD
Gold prices were higher as a pullback in the dollar supported demand for greenback-priced bullion and countered pressure from a recovery in U.S. Treasury yields.
Spot gold was last up 0.25% at $1,828.50 per ounce, and US gold futures gained 0.72% to $1,827.10.
Spot silver dropped 0.2% to $21.56 per ounce, platinum was flat at $945.76 and palladium fell 1.2% to $2,002.17.
ECONOMIC OUTLOOK
Equity markets advanced on Tuesday, despite data reinforcing investor fears the global economic recovery may be more fragile than expected, even as inflationary pressures remain high. Market sentiment has also been bolstered as Shanghai achieved the long-awaited milestone of three straight days with no new COVID-19 cases outside quarantine zones, which could lead to the beginning of the lifting of restrictions.
International wheat prices jumped as an export ban by India, the latest country to use trade curbs to counter food inflation, threatened to further squeeze world wheat supply strained by the war in Ukraine.
The eastern Europe conflict remains a key focus for market sentiment. With Finland and Sweden both announcing their bids to join the Western military alliance NATO, all eyes are on Russia and how it might react. Moscow has already expressed outrage at the idea of its old foe NATO expanding, and Russian President Vladimir Putin said Monday that the expansion of NATO “is a problem.” While Russia has vowed retaliatory steps, it’s uncertain how it will act.
The war in Ukraine also continues. Ukraine's military said on Tuesday it was working to evacuate all remaining troops from their last stronghold in the besieged port of Mariupol, ceding control of the city to Russia after months of bombardment.
Economic growth fears in the world's two largest economies have re-emerged following weak retail sales and factory production figures in China and disappointing U.S. manufacturing data.
Investors are focused on U.S. retail sales data due on Tuesday, following worrying inflation and consumer sentiment data last week. And in Europe, data releases include U.K. unemployment figures for March and the second estimate of the euro area growth rate for the first quarter.
