Stocks retreated across the Asia with the biggest losses in Japan and South Korea. Earlier, American tech shares suffered their worst drop since the broad market correction in early February as investors were rattled by news from Nvidia Corp. and mounting concerns surrounding Facebook Inc. The British pound rose following a report on plans to avoid a post-Brexit hard border with Ireland. The yen declined amid signs of an improving geopolitical situation with North Korea. Concerns about trade frictions between China and the United States also remain a drag even after reports of behind-the-scenes talks between Washington and Beijing spurred optimism that U.S. President Donald Trump’s protectionist shift is more about gaining leverage in trade talks than isolating the world’s biggest economy with tariff barriers.
In the currency market, the dollar changed hands at 105.39 yen, not far from Monday’s 16-1/2-month low of 104.56, as the Japanese currency was supported by the risk-averse mood. The euro lost steam after soft euro zone economic data and comments from European Central Bank policymakers flagging low underlying inflation. Economic sentiment in the 19-countries sharing the euro slipped for the third month in a row in March while bank lending slowed.
Oil prices stepped back on a larger-than-expected rise in U.S. oil inventories data from industry group American Petroleum Institute (API) published late on Tuesday. The forex market economic calendar today has a focus on US economic data, with a focus on key fundamental events and emphasis on US GDP Growth Rate. Increased volatility is expected mostly today for the US Dollar, and the Euro.