Summary:

  • Stock markets advance following upbeat remarks from Xi

  • NOK sinks after inflation miss

  • Bitcoin remains close to key technical support level

Xi Jinping upbeat speech at Boao forum has set the direction for the stock markets on Tuesday. As risk appetite increases JPY underperforms against all its major peers with NOK being the only G10 currency lagging more due to the inflation miss. On the other hand AUD and NZD are top movers. Gold trades flat in pair with silver while oil advances ahead of the API report scheduled for release in the evening.

In defiance of markets’ expectations Norwegian price growth slowed down markedly in a monthly basis last month as the strong Easter effect weighed on. The NOK lost traction to some extent in the aftermath nevertheless the disappointment is unlikely to derail a rate hike pencilled in later this year.

Despite the news regarding Soros’ involvement in cryptocurrency trading Bitcoin recovery we saw yesterday morning fizzled out. Consequently, the cryptocurrency came back below a 7$k mark, and right now Bitcoin is trading just a shy of $6700. Other digital currencies are going nowhere as well, but it needs to point that most of them keep trading close to their critical technical support levels.

Bayer is the top mover among DAX components on Tuesday morning. Company’s shares gained boost following the news from the US. The US Department of Justice approved Bayer’s $66 billion takeover bid of Monsanto. However, the remarks come from the Wall Street Journal and need to be confirmed by the DOJ officials. Bayer shares are experiencing the biggest daily jump in two years.

The long-awaited keynote speech from Chinese President Xi Jinping was finally delivered, and it brought some peaceful remarks with regard to the ongoing trade battle. The bottom line is Xi decided to strike market-friendly rhetoric affirming that China is going to open its sectors including auto manufacturing.

In Tuesday’s calendar we have some interesting reading planned for release yet in terms of significance they are nowhere near the ones that will be published tomorrow. Nevertheless, the US PPI inflation reading may give investors some hints ahead of tomorrow’s CPI release.