Tuesday 03rd December: Asian markets lose as Tariff Man returns

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.64%, Shanghai Composite up 0.22%, Hang Seng down 0.37%, ASX down 2.19%
  • Commodities : Gold at $1466.45 (-0.19%), Silver at $16.96 (-0.02%), Brent Oil at $61.12 (+0.33%), WTI Oil at $56.22 (+0.46%)
  • Rates : US 10-year yield at 1.845, UK 10-year yield at 0.742, Germany 10-year yield at -0.282

News & Data:

  • (AUD) Cash Rate 0.75% vs 0.75% expected
  • (AUD) Current Account 7.9B vs 6.1B expected
  • (USD) ISM Manufacturing PMI 48.1 vs 49.2 expected
  • (GBP) Final Manufacturing PMI 48.9 vs 48.3 expected
  • (EUR) Spanish Manufacturing PMI 47.5 vs 46.5 expected
  • Oversubscribed US Fed Repo Operation Shows Year-End Cash Hunger
  • RBA Holds the Cash Rate Steady; Emphasises Scope to Ease Further

Markets Update:

Asian stock markets are lower on Tuesday on renewed worries about global trade tensions after U.S. President Donald Trump announced plans to reinstate tariffs on metal imports from Brazil and Argentina. Weak U.S. manufacturing data also dampened sentiment.

The Australian stock market is notably lower following the negative cues from Wall Street. Investors turned cautious ahead of the Reserve Bank of Australia’s monetary policy decision due later today. The Reserve Bank of Australia said Tuesday it was keeping its main cash rate at a record low of 0.75%, a move that was in line with expectations from most analysts in a Reuters poll.

The Nikkei 225 in Japan was 0.6% lower while the Topix index shed 0.5%. South Korea’s Kospi slipped 0.4% as shares of chipmaker SK Hynix dropped more than 1.5%. Mainland shares Chinese shares recovered early losses, with the Shanghai composite higher about 0.2% and Shenzhen component gaining around 0.4%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 97.91 after declining from highs above 98.3 yesterday. Bearish sentiment on Tuesday initially pushed U.S. Treasury prices higher, but yields later rose slightly across the curve, reflecting the more positive mood in Europe.

Oil prices continued to rise on expectations that the Organisation of the Petroleum Exporting Countries (OPEC) and its allies may agree to deepen output cuts at a meeting this week.

Upcoming Events:

  • 07:30 AM GMT – (CHF) CPI m/m
  • 07:45 AM GMT – (EUR) French Gov Budget Balance
  • 08:00 AM GMT – (EUR) Spanish Unemployment Change
  • 09:30 AM GMT – (GBP) Construction PMI
  • 10:00 AM GMT – (EUR) PPI m/m
  • Tentative – (GBP) 10-y Bond Auction
  • All Day – (USD) Wards Total Vehicle Sales
  • Tentative – (NZD) GDT Price Index
  • 09:30 PM GMT – (AUD) AIG Services Index
  • &more…