Friday 29th May: Asian markets mostly lower as investors await Trump’s China statement.

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.18%, Shanghai Composite up 0.22%, Hang Seng down 0.75%, ASX down 1.63%
  • Commodities : Gold at $1716.80 (+0.20%), Silver at $17.92 (-0.27%), Brent Oil at $35.16 (-2.41%), WTI Oil at $32.71 (-2.97%)
  • Rates : US 10-year yield at 0.671, UK 10-year yield at 0.192, Germany 10-year yield at -0.433

News & Data:

  • (USD) Pending Home Sales m/m -21.80% vs -15.00% expected
  • (USD) Unemployment Claims 2123K vs 2100K expected
  • (USD) Durable Goods Orders m/m -17.20% vs -19.00% expected
  • (USD) Core Durable Goods Orders m/m -7.40% vs -14.80% expected
  • (USD) Prelim GDP q/q -5.00% vs -4.80% expected
  • German Foreign Minister: Long Way Off On Agreeing About EU Recovery Fund

Markets Update:

Asian stock markets are lower on Friday as worries about rising U.S.-China tensions more than offset optimism about a recovery in growth as more economies reopen.

China approved a controversial national security law for Hong Kong on Thursday, triggering concerns that the new law will end the city’s autonomy. In response, U.S. President Donald Trump said he plans to hold a news conference about China later today.

The Nikkei 225 declined 0.2% on the day, as opposed to the 0.9% shed by the Topix. Australia’s ASX 200 declined 1.6% as shares of major banks such as Commonwealth Bank of Australia and Westpac dropped. Mainland Chinese stocks edged higher on the day, with the Shenzhen component up 0.9% while the Shanghai composite gained 0.2%. Hong Kong’s Hang Seng index dipped 0.8%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.238 after an earlier high of 98.547. The euro was headed for its best month since December as the European Union’s 750-billion-euro coronavirus recovery fund fuelled optimism about the bloc and its political future.

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