Global Markets:
- Asian Stock Markets : Nikkei up 1.29%, Shanghai Composite up 0.83%, Hang Seng up 1.00%, ASX up 0.90%
- Commodities : Gold at $1256.10 (-0.21%), Silver at $16.06 (-0.26%), Brent Oil at $77.35 (-0.05%), WTI Oil at $73.11 (+0.23%)
- Rates : US 10-year yield at 2.846, UK 10-year yield at 1.254, Germany 10-year yield at 0.302
News & Data:
- (USD) Crude Oil Inventories 1.2M vs -4.4M expected
- (USD) ISM Non-Manufacturing PMI 59.1 vs 58.3 expected
- (USD) Unemployment Claims 231K vs 225K expected
- (USD) ADP Non-Farm Employment Change 177K vs 190K expected
- U.S. has ignited largest trade war in economic history: China's MOC
- China Customs Delays Clearing US Goods As Duties Loom – RTRS Sources
- Wage Pressures in Japan, Devaluation in China: Renminbi has Worst Month Ever
Markets Update:
Asian stocks wobbled initially but recovered on Friday, as Washington slapped tariffs on Chinese imports, a move many investors fear could be the start of a full-scale trade war between the world’s two largest economies. The U.S. tariffs on more than 800 goods from China worth $34 billion took effect at 0401 GMT.
President Donald Trump has warned the United States may ultimately target over $500 billion worth of Chinese goods, an amount that roughly matches its total imports from China last year. At the same time, reports emerged that the U.S. and European Union may agree to withdraw auto tariffs on each other.
The Japanese market is advancing following the overnight gains on Wall Street and on a weaker yen. In Australia, the ASX also traded higher – owing in part to convincing gains in the materials and telecommunications sectors.
China markets sprung back slightly, after earlier slipping into negative territory, after the tariffs kicked in. Singapore's Straits Times Index tumbled as real estate stocks dragged the benchmark lower after the government implemented property cooling measures.
Newly released minutes from the U.S. Federal Reserve’s last policy meeting on June 12-13 showed policymakers discussed whether recession lurked around the corner and expressed concerns global trade tensions could hit an economy that by most measures looked strong.
In the currency market, the yuan eased slightly in a choppy trade, though it kept some distance from its 11-momth lows touched earlier this week. the dollar index, which tracks the greenback against a basket of six major rivals, was flat at 94.474. After ticking slightly higher, oil prices fell after U.S. government data showed an unexpected jump in crude oil stockpiles. However, the market remains nervous on concerns over tariffs amid an increasingly tight oil market.
Upcoming Events:
- 08:30 AM GMT – (GBP) Halifax HPI m/m
- 01:30 PM GMT – (CAD) Employment Change
- 01:30 PM GMT – (CAD) Trade Balance
- 01:30 PM GMT – (CAD) Unemployment Rate
- 01:30 PM GMT – (USD) Average Hourly Earnings m/m
- 01:30 PM GMT – (USD) Non-Farm Employment Change
- 01:30 PM GMT – (USD) Unemployment Rate
- 03:00 PM GMT – (CAD) Ivey PMI
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