Global financial markets maintain positive momentum

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Stock markets
Chinese and us stock indices retain positive dynamics, adding 0.3-1% in 24 hours, reflecting the appetite for risky assets. Chinese index of blue chip A50 fully played the decline of trade wars. S&P500 has reached the highest levels since October 10, 2018, when the market crashed hard,…. Among macroeconomic news it is necessary to highlight the growth of PMI in the service sector of China’s higher expectations after strong manufacturing data earlier in the week.
Debt markets the Yields on U.S. 10-year government bonds is growing again, exceeding 2.5%. The yield on 3-month securities is at the level of 2.43%. Maintaining a positive spread between 3-month and 10-year securities allows the markets to keep upward trend.
EURUSD has found support after falling below 1.1200 and this level looks significant for the pair since November. The focus markets are weak indicators of business activity in the Euro-region, which may put pressure on the single currency. On the other hand, improvement in China often supports demand for the Euro and may facilitate the consolidation of the pair near this level before the release of important macroeconomic statistics from the USA. The focus of today’s employment data in the US, ADP and non-manufacturing ISM. In both cases, the expected data, confirming the health of the largest economy. Figures better than expectations can reinforce demand for the dollar and contribute to breaking the support at 1.1200. Subsequent support levels in the pair are very far below to 1.07 or 1.05.
The British pound bounced from the 1.30 mark against the dollar after comments Mei that she will ask the EU about the further postponement of Brexit. Technically, she still has time until April 12 to come out without a deal, however, the desire of politicians to overcome the impasse helping the British currency. The reaction of the markets is simple in this case: the longer Britain in the EU, the better it is for the pound. In addition, slowly becoming more and more obvious alternative to a second referendum and new elections, which is also perceived by market participants as a chance to withdraw from a painful impasse.
On Tuesday, bitcoins have jumped in price by 20%, at some point, breaking the threshold of $5000. The initial impetus weakened, while retail investors and the media began to propose hypotheses of such a dramatic movement. In our opinion, in this situation, it is important that while does not occur a sharp correction, and on Wednesday morning continued purchase. Moreover, the market of altcoins were inspired by this outburst and began to catch up with the main cryptocurrency.
Oil continues to climb on the increased risk appetite from market participants and due to concerns over the impact of constraints in production from the OPEC+. Brent oil is trading currently at $69.70, near MA(200). Consolidation above this level would be a positive signal and is able to inspire the markets on further purchases. Today publishes weekly data on reserves and production of oil, which can support or reverse the trend of recent days.
Alexander Kuptsikevich,