Thursday 4th June: Asian markets mixed as investors weigh recovery vs geopolitical tensions

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.36%, Shanghai Composite down 0.14%, Hang Seng down 0.30%, ASX up 0.84%
  • Commodities : Gold at $1701.25 (-0.21%), Silver at $17.81 (-0.81%), Brent Oil at $39.10 (-1.73%), WTI Oil at $36.48 (-2.17%)
  • Rates : US 10-year yield at 0.751, UK 10-year yield at 0.264, Germany 10-year yield at -0.355

News & Data:

  • (AUD) Trade Balance 8.80B vs 7.50B expected
  • (USD) ISM Non-Manufacturing PMI 45.4 vs 44.2 expected
  • (CAD) Overnight Rate 0.25% vs 0.25% expected
  • (USD) ADP Non-Farm Employment Change -2760K vs -9000K expected
  • (GBP) Final Services PMI 29 vs 27.9 expected

Markets Update:

Asian stock markets are mixed  on Thursday following the overnight rally on Wall Street as new U.S. economic data added to investor optimism about a quick recovery from the coronavirus pandemic. Hopes of more stimulus measures also lifted stocks.

The European Central Bank’s policy decision is due later today. Economists expect the ECB to boost the pandemic emergency purchase program by 500 billion euros, bringing it to 1.25 trillion euros.

Tensions between US and China rose overnight after the U.S. suspended flights into the U.S. by Chinese airlines effective from June 16, the latest tit-for-tat over China approved the enactment of national security laws in Hong Kong and Macau last month.

The Australian market is extending its winning streak to a fourth day following the overnight rally on Wall Street rising 0.8%. Mainland Chinese stocks were mixed on the day, with the Shenzhen component up 0.3% and Shanghai Composite lower 0.1%. In Japan, the Nikkei 225 rose 0.4%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.546 following its slide from levels above 98 seen earlier in the week.

Upcoming Events:

  • 11:45 AM GMT – (EUR) Main Refinancing Rate
  • 11:45 AM GMT – (EUR) Monetary Policy Statement
  • 12:30 PM GMT – (CAD) Trade Balance
  • 12:30 PM GMT – (EUR) ECB Press Conference
  • 12:30 PM GMT – (USD) Unemployment Claims