Stocks in the US recovered on Tuesday, with big tech companies leading gains. Google, Amazon and Netflix advanced 2.47%, 1.49% and 3.05% respectively.
The dollar fell against most major currencies except the Aussie and the yen, and stabilised after US Defence Secretary Mark Esper suggested the US military is unlikely to strike Iranian cultural sites (a threat made earlier by US President Donald Trump).
Gold reached its highest level since 2013, surging to 1588.13 on Monday. But the yen fell against the greenback and US Treasuries also tumbled, with benchmark 10-year yields rising 2 bps to 1.81%.
Oil futures stabilised on Monday, after the US strike on Friday sent prices surging. Brent reached as high as US$70.74 per barrel amid concerns that oil production in the Middle East would be affected by the attack. But oil futures may fall further, as Iran is unlikely to push oil prices higher, as it would impact its own exports as well.
Stocks in Asia look poised to track US gains on Tuesday morning, with the Nikkei, KOSPI, Hang Seng and Straits Times Index starting the day’s trading session 0.50%, 0.54%, 0.45% and 0.54% higher.
Today’s macro releases include the inflation rate in the Eurozone for December at 1pm (GMT +4), the Institute for Supply Management’s (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI) report for December at 7pm (GMT +4) and the final revision to November’s Durable Goods Orders in the US at 7pm (GMT +4).