Global Markets:
- Asian Stock Markets : Nikkei down 0.86%, Shanghai Composite down 0.93%, Hang Seng down 1.16%, ASX up 0.45%
- Commodities : Gold at $1255.90 (+0.19%), Silver at $16.09 (+0.26%), Brent Oil at $77.82 (-0.54%), WTI Oil at $73.72 (-0.57%)
- Rates : US 10-year yield at 2.845, UK 10-year yield at 1.282, Germany 10-year yield at 0.318
News & Data:
- (GBP) Services PMI 55.1 vs 54 expected
- (EUR) Final Services PMI 55.2 vs 55 expected
- (EUR) German Final Services PMI 54.5 vs 53.9 expected
- (EUR) French Final Services PMI 55.9 vs 56.4 expected
- (EUR) Italian Services PMI 54.3 vs 53.3 expected
- (EUR) Spanish Services PMI 55.4 vs 56.3 expected
- Bank of Japan Takes Away Punch Bowl, Balance Sheet Declines
- Feng: 59% of $34B goods under US tariffs are by foreign companies, adds that China won't bow to threat or blackmail
Markets Update:
Asian stocks were broadly lower on Thursday as investors adopted a cautious stance ahead of the July 6 deadline, when U.S. tariffs on Chinese goods are due to take effect. Regional losses remained limited after China said that it "absolutely will not fire the first shot" in its trade dispute with the United States.
The United States plans to implement tariffs on $50 billion worth of imports from China as both nations remained locked in a bitter trade dispute that has convulsed global financial markets in recent weeks. On July 6, tariffs on $34 billion worth of imports will take effect, and Beijing has promised to retaliate in kind.
Japan's Nikkei 225 dropped by a percent amid broad-based weakness, with declines in oil producers and retailers leading losses the losses. Seoul stocks gave up early gains to turn lower as trade tensions simmered. On the mainland, losses on the Shanghai composite steepened through the morning. Hong Kong's Hang Seng Index lost more than a percent, with the energy and materials sectors among the worst-performing.
The Chinese yuan was slightly lower, its recovery from an 11-month low stalling. A rebound in the yuan was triggered in the past two sessions after the central bank sought to calm nervous markets midweek and stem the currency’s recent tumble.
The dollar held flat against the yen and gold held steady ahead of minutes from the U.S. Federal Reserve's June policy meeting, due later in day while oil prices fell about half a percent after U.S. President Donald Trump sent a tweet urging OPEC to reduce prices for crude.
Upcoming Events:
- 11:00 AM GMT – (GBP) BOE Gov Carney Speaks
- 12:15 PM GMT – (EUR) German Buba President Weidmann Speaks
- 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 01:30 PM GMT – (USD) Unemployment Claims
- 03:00 PM GMT – (USD) ISM Non-Manufacturing PMI
- 04:00 PM GMT – (USD) Crude Oil Inventories
- 07:00 PM GMT – (USD) FOMC Meeting Minutes
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