Asian stocks began the new quarter on Monday with modest gains following a strong performance by global equities last week, while the dollar held steady ahead of key economic indicators. Many major financial centres were closed for the Good Friday Easter holiday. Markets in Australia, Hong Kong, Britain and Germany remained shut on Monday while the U.S. market will resume trading.
While last month’s fears of an all-out global trade war have abated somewhat, tensions between the United States and China over tit-for-tat tariffs kept investors on edge.
China on Monday imposed tariffs on U.S. products including frozen pork, wine and certain fruits and nuts in response to U.S. duties on imports of aluminium and steel.
In currencies, the dollar was steady at 106.350 yen, while the euro was almost unchanged at 1. 2317.The greenback had gained about 0.6 percent against a basket of six major currencies last week helped by a combination of factors including perceived progress on North Korea issues.
In Commodities Crude oil prices extended gains, lifted by a drop in U.S. drilling activity as well as by expectations that the United States could re-introduce sanctions against Iran. U.S. drillers cut seven oil rigs in the week to March 29, bringing the total count down to 797. It was the first time in three weeks that the rig-count fall’s. Crude futures rose 0.3 percent to 65.14 a barrel and Brent advanced 0.5 percent to 69.67 a barrel.
Easter Monday today, and due to the Easter Holiday and Bank Holiday the forex market economic calendar is very light. Price action and volatility is expected to be low, although there are some important economic events related to the US economy, which can move the US Dollar.