Market Commentary: Wednesday 27th March

The Japanese Yen has weakened beyond previous intervention levels and USDJPY currently trading at 151.69, which triggered an advance in Japanese stocks. The Nikkei is on track for one of it's best quarters ever (even as the rest of Asia remained fairly subdued), the currency's weakening has only added to speculation that the BOJ will be ready for FX intervention if this continues.

Elsewhere in Asia, tech companies have fallen, following the overnight fall in Nvidia. Chinese stocks will be tested today as the Industrial and Commercial Bank of China will announce earnings. Alibaba is poised for its lowest close since January as they called off a large IPO of its logistics arm and BYD Co. fell after missing estimates on 2023 profit.

Aussie CPI came in overnight and was as expected at 3.4% - the lowest level since Nov 2021 with food prices rising the least in 25 months.

In commodities, Oil continued a decline after reports that US inventories have been consolidated and, Cocoa futures have broken the $10k record.

We are light on the data front today - we have US mortgage applications and, in Europe we hear from the ECB’s Cipollone and Kazaks, ahead of Eurozone consumer, services, industrial, and economic confidence, mostly seen edging higher for low levels.

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