Global Markets:
- Asian Stock Markets : Nikkei down 1.43%, Shanghai Composite down 0.75%, Hang Seng down 1.09%, ASX down 0.42%
- Commodities : Gold at $1288.45 (+0.22%), Silver at $14.96 (+0.25%), Brent Oil at $70.22 (+0.49%), WTI Oil at $61.87 (+0.77%)
- Rates : US 10-year yield at 2.464, UK 10-year yield at 1.159, Germany 10-year yield at -0.030
News & Data:
- (NZD) Official Cash Rate 1.50% vs 1.75% expected
- (JPY) Monetary Base y/y 3.10% vs 3.60% expected
- (GBP) BRC Retail Sales Monitor y/y 3.70% vs 2.40% expected
- (USD) Consumer Credit m/m 10.3B vs 17.0B expected
- (NZD) GDT Price Index 0.40% vs 0.50% previous
- (USD) IBD/TIPP Economic Optimism 58.6 vs 54.5 expected
- (USD) JOLTS Job Openings 7.49M vs 7.35M expected
- (CAD) Ivey PMI 55.9 vs 51.5 expected
Markets Update:
Asian stock markets are in negative territory on Wednesday following the weak cues overnight from Wall Street amid worries about escalating U.S.-China trade tensions. U.S. Trade Representative Robert Lighthizer confirmed that the U.S. plans to raise tariffs on $200 billion worth of Chinese goods to 25 percent on Friday.
Mainland Chinese shares were lower, with the Shanghai Composite lower by 1%, and the Shenzhen Component lower by 0.2%. Chinese trade data for April showed both exports and trade surplus missed expectations while imports surprisingly rose. Japan’s Nikkei 225 dropped 1.4%, with shares of index heavyweights SoftBank Group and Fanuc both seeing declines. The Topix index also fell 1.7%. In South Korea, the Kospi was down 0.14%, with Samsung Electronics shares declining more than 0.3%. The Hang Seng index in Hong Kong declined around 1.1%. Australia’s ASX 200 also shed 0.4%, as most sectors traded lower.
In currency markets, the dollar declined for the fourth day and touched a six-week low of 109.905 yen. The Japanese yen, a perceived safe-haven, often gains against its peers in times of market turmoil and political strife.
Crude oil prices had dropped as renewed U.S.-China trade worries stoked concerns of slower global growth crimping demand for commodities. But a relatively tight market conditions due to U.S. sanctions on Iran and Venezuela has provided underlying support for oil prices.
Upcoming Events:
- Tentative – (CNY) Trade Balance
- 09:15 AM GMT – (GBP) MPC Member Ramsden Speaks
- 12:30 PM GMT – (EUR) ECB Monetary Policy Meeting Accounts
- 01:30 PM GMT – (USD) FOMC Member Brainard Speaks
- &more…
