NY Open – Finding your feet
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The NY Open has been published from Asia and is abbreviated. China manufacturing PMI recorded highest reading in a year at 50.8, beating consensus expectations over the weekend. Services PMI also gathered momentum, while construction PMI improvement was largely seasonal, say our economists. This beat has boosted Chinese stocks, sending CSI 300 up 1.6% and SHCOMP up 1.2%. Crude oil prices (WTI and Brent) came close to resistance levels before seeing a small dip closer to the NY open. We remind markets are looking towards the JMMC meeting later in the week. Elsewhere, the G10 FX complex understandably holds tight ranges against a flat dollar. US Treasuries bull steepened (2y yields -3bps) into the Asia close, a brief rebound of flattening seen last Friday. We remind cash treasuries are closed on account of a UK holiday. ICYMI, US Core PCE came in at 0.26% MoM, which reinforces Chair Powell’s assessment. Ahead, we expect it to remain quiet with several regions observing holidays. The US will look to ISM manufacturing data. BRL and PEN look to CPI prints. COP watches the Colombia Monetary Policy Minutes, while CLP eyes Economic Activity numbers. |
COP – COP strengthened today as our local trader noted higher client activity as today is month and quarter end for Colombia. In terms of flows today, he has seen mixed activity but noted better COP inflows in NDF and outflows from corporates. The levels he is watching are 3,820 followed by 3,800, while 3,900 is the resistance for any upside move. On the macro front, Colombia’s unemployment report printed this morning, the urban rate coming in at 11.6% versus 11.5% consensus and 12.4% prior. On the political side, headlines are quiet, but President Petro issued a statement late Tuesday which expressed his concern about the recent events that occurred on the registration of presidential candidates in Venezuela, showing his disapproval for the opposition. Colombia will be closed 3/28 and 3/29 for Holy Thursday and Good Friday.
