Global Markets:
- Asian Stock Markets : Nikkei down 1.80%, Shanghai Composite down 1.36%, Hang Seng down 1.76%, ASX down 0.73%
- Commodities : Gold at $1341.10 (-0.07%), Silver at $16.50 (-0.25%), WTI Oil at $68.89 (-0.82%), Brent Oil at $64.66 (-0.90%)
- Rates : US 10-year yield at 2.784, UK 10-year yield at 1.413, Germany 10-year yield at 0.500
News & Data:
- (NZD) ANZ Business Confidence -20 vs -19 previous
- (USD) CB Consumer Confidence 127.7 vs 131.2 expected
- (EUR) M3 Money Supply y/y 4.20% vs 4.60% expected
- (EUR) Spanish Flash CPI y/y 1.20% vs 1.50% expected
- Trump closes his first trade deal, a modest step with South Korea
- Beijing confirms visit of North Korean leader Kim Jong Un to China
Markets Update:
Asian equities traded in the red today, after a stellar day yesterday. Tech driven selling has soured the sentiment, leading to a broader sell-off.
The industry has been volatile in the past few trading sessions, plagued by reports of enquiries, investigations, and that the White House may crack down on Chinese investments in sensitive US technologies. On the Wall Street FAANG dragged down the markets.
Nikkei has been underperforming, with Panasonic dragging it down. On the Hang Seng, an analogous situation can be observed with Tencent pulling down the index.
Analysts expect the Chinese government to take a path of negotiation rather than retaliation in response to the trade tariffs, and thus ease global trade war concerns.
While the Dollar made gains against the yen, it continues to underperform on other major crosses including the sterling, euro and aussie dollar. Subdued risk sentiment has helped gold again, and push bond yields lower.
Oil prices stepped back as a report of increasing U.S. crude inventories from industry group American Petroleum Institute (API) surprised many traders.
Upcoming Events:
- 08:00 AM GMT – (CHF) Credit Suisse Economic Expectations
- 12:30 PM GMT – (USD) Final GDP q/q
- 02:00 PM GMT – (USD) Pending Home Sales m/m
- 02:30 PM GMT – (USD) Crude Oil Inventories
- 04:00 PM GMT – (USD) FOMC Member Bostic Speaks
