Asian Stocks Up As Trade Fears Ease, EUR/USD Eyes Feb Highs
- Asian stocks rose across the region
- A more cordial China/US trade tone helped
- The Japanese Yen was hit by a revival in risk appeite
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Asian stocks rose broadly Tuesday on hopes that a trade war between the US and China can be avoided.
US equities had rebounded, just as Monday’s Asian futures’ action suggested they would and that also gave Asian markets a lift. The Wall Street Journal reported that Beijing and Washington have already been negotiating behind the scenes on trade, while White House advisor Peter Navarro said on Monday that he was ‘hopeful’ the two countries could work together.
Turning to foreign exchange the Japanese Yen took a hit as risk appetite appeared to revive after a few days on the trade-spat ropes. The Euro meanwhile remains quite well bid, rising to highs not seen since mid-February on its daily chart.
The pair’s uptrend channel from early January has been well respected and looks valid still.
Gold prices slipped as haven assets lost their shine, while crude oil prices also gained. Futures trading in Shanghai saw their second day of trading with volumes reportedly as high as they had been at Monday’s kickoff.
Tuesday’s remaining data highlight will be US consumer confidence for March, but the Confidence Board’s ‘present situation’ snapshot and the Case Shiller home-price index will also command attention.
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--- Written by David Cottle, DailyFX Research
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.