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Morning Brief 12.04.2017

12 April 2017

Japanese Yen in today’s trading jumped to its highest level in five months as geopolitical tensions drive market and investors into assets which seen as safe.

Market sentiment was dampened by the risk concerning Syria and North Korea, and investors are looking for safe assets like gold, Japanese Yen and U.S government bonds. Investors are digesting different geopolitical events this week, Yesterday U.S secretary of State Tilerson reached Moscow, As Trump administration concerned about the Russia’s role in suspected chemical weapon attack in Syria. After alleged chemical strike U.S struck Syrian air base in response of that attack.

Tensions are also escalating between the U.S and North Korea over North Korea’s Kim Jong UN’s nuclear weapons program. Also in his tweet Donald Trump said “North Korea is looking for trouble”.

Market is also facing low liquidity ahead of Passover and Easter holidays later in the week. Wall street Journal index fell 0.4% to 90.50. Investors are also waiting for the new signs of U.S economy and the path for higher U.S interest rates. Most investors are anticipating that there will be no change in Federal Reserve meeting until its June meeting.

According to Westpac Institute, Australian consumer sentiment has declined this month and consumer sentiment index fell 0.7% from March which market considering surprising. Since the last survey by Westpac Institute there has been acute media attention on housing, regarding the concerns of increasing housing properties and affordability. In recent weeks banks in Australia banks for different mortgage borrowers have increased interest rates.