US FED -Markets were little changed after minutes of the FOMC of 19-20 March were released on 10 April. Minutes revealed debates around balance sheet management and keep interest rates flat which was unsurprising to the markets. The dollar index (DXY) measured against a basket of 6 major currencies was little changed at 96.943.
US STOCKS – Wall Street indexes were flat with the Dow Jones Industrial Average – DIJA 6.5 points (0.03%) weighed by Boeing shares that tumbled 1.1%, S&P 500 rose 10 points (0.35%) supported by technology stocks (8/11 sectors closed yesterday in positive territory) and Nasdaq composite index was 54 points stronger (0.67%). Trading volumes for Wall street slid to 6.2-billion shares (from 7.2-billion shares) over the last 20 days. The US Treasury reveled a fiscal deficit for the worlds largest economy at $147-billion (March) compared to $180-billion a year ago. Spend slid 10% to $376-billion as receipts rose 9% to $229-billion.
ASIAN STOCKS – Asian stocks came of 8-month highs on concerns of global growth. MSCI Index of Asian Pacific shares and Japanese Nikkei (supported by a stronger Yen) were down 0.3%. Chinese blue chip CSI-300 rallied 1% as the Hang Seng Index followed suit 0.7% bullish.
FLEXTENSION – The EU, at yester’s crisis summit, agreed to extend Britain’s exit from the Euro to 31 October giving the fifth largest economy time to craft a tangible deal. This means Britain will still remain in the EU this Friday. This news rallied the Sterling from record lows seen in the week.
CRUDE: Oil markets are in bull mode with rebalancing effects provided by the OPEC led supply cuts and geopolitical tensions in Venezuela and Iran soon extending to Algeria and Libya. Ice Brent is 1.5% stronger at $71.73bbl while US WTI futures were 1% higher at $64.61bbl. Offsetting effects are currentky from rising inventories in the US which peaked 7 million bbls last week.
BASE METALS – Rising supply in red metal coupled with global slow down concerns could crimp metal demand weighing the base metal markets. London copper eased 0.1% to $6,456 metric ton as Asian trades (SFE) slid 0.6% to RMB 49,320 ($7,345 metric ton). Stock piles in London and Shanghai warehouses rose to 8 month highs at 178,375 and 257,320 metric tons (from 100,000 at start of year) respectively.
KWACHA T-BILLS – The Bank of Zambia will offer K950-million in treasury notes on 11 April in the eighth auction of the year. Risk reward remains fairly attractive with 1 year bills paying 24.0001%. Currency, despite weak above 12 for a unit of dollar has been fairly stable and will provide healthy premium for those in search of yield. Dollar demand remains fairly visible as Central Bank buys dollars to shore up reserves which have declined to levels below 3 months import cover. The Kwacha will remain on the backfoot but in stable but weak trading zone supported in part by conversions in this tax season.
***Compiled by BT Markets desk***
