Global Markets:
- Asian Stock Markets : Nikkei up 0.12%, Shanghai Composite down 0.75%, Hang Seng down 0.34%, ASX down 0.29%
- Commodities : Gold at $1265.20 (-0.29%), Silver at $16.32 (-0.08%), Brent Oil at $74.64 (+0.12%), WTI Oil at $68.28 (+0.29%)
- Rates : US 10-year yield at 2.891, UK 10-year yield at 1.294, Germany 10-year yield at 0.330
News & Data:
- (USD) New Home Sales 689K vs 665K expected
- (EUR) German Ifo Business Climate 101.8 vs 101.9 expected
- Asset Prices Divorced From Economic Reality More Than Ever
- Harley-Davidson stock rocked as EU tariffs hit where it hurts
- Chinese Stocks Slump Into Bear Market As 'Weaponized' Yuan Continues To Tumble
Markets Update:
Asian stock markets are in negative territory on Tuesday amid rising fears of a global trade war between the U.S. and other leading economies. The Trump administration's plans regarding investment restrictions have heightened risk aversion. Investors steered away from riskier assets, with markets in China bearing the brunt of investor anxiety. Crude oil prices rose in Asian trade after declining overnight.
Greater China markets recovered slightly after stumbling in the morning, although the benchmark Shanghai composite remained in negative territory. The Shanghai composite will end the session in bear market territory, referring to a decline of 20 percent or more from 52-week highs, if it finishes the day lower by at least 0.5 percent.
The Japanese market has pared sharp losses and is modestly lower on a slightly weaker yen amid ongoing concerns about a global trade war. The Australian market is extending losses from the previous session amid lower commodity prices.
The dollar index against a basket of six major currencies dipped 0.1 percent to 94.202 and was headed for its fifth straight day of losses. The greenback was pressured as long-term U.S. Treasury yields declined to one-week lows as prices rose on heightened risk aversion in financial markets.
Brent crude oil futures were up on uncertainty over Libya’s capacity to deliver on exports commitments. Brent futures had fallen 1 percent overnight as receding investor risk appetite weighed on commodities. Oil prices were capped after OPEC and its allies on Friday agreed to increase global supplies, albeit modestly.
Upcoming Events:
- 10:00 AM GMT – (GBP) MPC Member Haskel Speaks
- 10:30 AM GMT – (GBP) MPC Member McCafferty Speaks
- 03:00 PM GMT – (USD) CB Consumer Confidence
- 06:00 PM GMT – (USD) FOMC Member Bostic Speaks
- 11:45 PM GMT – (NZD) Trade Balance
- &more…
