American markets began the week on a positive note due to a weaker US dollar. This retreat in the US dollar is likely a response to the the lower-than-expected US durable goods orders (-4.5% month-on-month versus -4% forecast). With lower pricing pressures, a ‘bad news for the economy is good news for the markets’ narrative could be forming. Asian markets followed the US market’s lead, with the Nikkei 225, KOSPI and ASX indices gaining 0.42%, 0.85%, and 0.48% respectively.

The official manufacturing purchasing managers’ index (PMI) figures have buoyed this narrative, with a 52.6 index in February, exceeding initial forecasts. This resulted in a weaker US dollar, which has allowed the S&P 500, Nasdaq 100, and DJIA to hang just above their respective key 200 day