I. Yesterday's News
International News
1. The U.S. trade deficit fell from a near two year high in February as slowing domestic demand weighed on imports and stronger global growth boosted exports of American goods. The Commerce Department said on Tuesday the trade deficit declined 9.6 percent to $43.6 billion, also as exports increased to their highest level in more than two years. The politically sensitive trade gap with China narrowed sharply by 26.6 percent from January to $23 billion ahead of a summit between President Donald Trump and China's Xi Jinping this week, although seasonal factors were likely behind the dramatic drop, economists said.

2. Richmond Federal Reserve President Jeffrey Lacker abruptly left the U.S. central bank on Tuesday after admitting that a conversation he had with a Wall Street analyst in 2012 may have disclosed confidential information about Fed policy options. The 2012 leak had triggered a criminal investigation after research firm Medley Global Advisors told its clients the details of a key Fed meeting a day before the Fed released its own record of the discussion. Lacker who had previously announced he would retire in October, on Tuesday said he decided to make his departure effective immediately because of his role in the leak.

3. Australian regulators stand ready to take tougher action against runaway home prices although addressing supply-side issues would go a long way in cooling the market, the head of the central bank said on Tuesday. Reserve Bank of Australia (RBA) Governor Philip Lowe said recent measures to curb lending to property investors should help the whole system "pull back to a more sustainable position".

4. Bank of England policymakers are concerned rapid growth in unsecured lending to British consumers could endanger banks if credit standards are slipping, the central bank said on Tuesday. British consumer borrowing grew at its fastest rate in a decade towards the end of last year, and although the pace has since slowed somewhat, last week the central bank said it planned to take a closer look at the risks involved.

5. North Korea test-fired a ballistic missile into the sea off its east coast on Wednesday, South Korea's military said, ahead of a summit between U.S. and Chinese leaders who are set to discuss Pyongyang's arms program. The launch comes just a day before the start of a summit between U.S. President Donald Trump and China's President Xi Jinping, where talks about adding pressure on the North to drop its arms development will take center stage.

II. Market Overview
FX
1. Global Market
The safe-haven yen advanced to a one-week high against the dollar and a 4-1/2-month peak versus the euro on Tuesday, as investors grew cautious about a possibly contentious meeting between U.S. President Donald Trump and Chinese President Xi Jinping. In late trading, the dollar was down 0.2 percent to 110.64 yen. The euro dropped against the yen, off 0.3 percent at 118.06 yen. Earlier, the euro fell as far as 117.43 yen, the lowest since Nov. 22. The euro earlier fell to a three-week trough versus the dollar and was last at $1.0667, flat on the day.

Precious Metals
Gold prices rose on Tuesday, hitting a one-month high as the dollar weakened, but gold retraced gains as U.S. President Donald Trump laid out aggressive plans for infrastructure spending and deregulation. Spot gold was up at $1,255.47 an ounce. U.S. gold futures ended the session 0.4 percent higher at $1,258.4.

Commodities
1.Crude Oil
Oil prices on Tuesday rose to a near one-month high, supported by an unplanned production outage in the North Sea and expectations of a drawdown in U.S. crude and product inventories. Brent futures rose $1.05, or 2 percent to settle at $54.17 a barrel. U.S. West Texas Intermediate crude, meanwhile, gained 79 cents, or 1.6 percent, to settle at $51.03 per barrel.

2.Base Metals
Zinc prices bounced after touching a three-week low on Tuesday as investors bet lacklustre demand would recover in top metals consumer China. Benchmark London Metal Exchange zinc closed up 1 percent at $2,736. LME copper ended 0.4 percent higher at $5,778, after slipping to its lowest since March 27 at $5,730.

U.S. Treasuries
Benchmark U.S. Treasury yields touched their lowest in more than five weeks on Tuesday before reversing course to trade little changed on doubts about the ability of U.S. President Donald Trump to enact fiscal stimulus. U.S. 10-year notes were last down 1/32 in price to yield 2.355 percent, from a yield of 2.350 percent late Monday. U.S. 30-year bonds were last down 7/32 in price to yield 2.995 percent, from a yield of 2.984 percent late Monday. Two-year notes last yielded 1.254 percent, compared with 1.242 percent late Monday.

Stock Market
U.S. Equities
U.S. stocks were little changed on Tuesday, as investors stayed on the sidelines ahead of the first-quarter earnings season and fretted about President Donald Trump's ability to deliver on tax reform and other promises. The Dow Jones Industrial Average rose 39.03 points, or 0.19 percent, to 20,689.24, the S&P 500 gained 1.32 points, or 0.06 percent, to 2,360.16 and the Nasdaq Composite added 3.93 points, or 0.07 percent, to 5,898.61.