Global Markets:
- Asian Stock Markets : Nikkei down 0.64%, Shanghai Composite down 0.20%, Hang Seng down 2.06%, ASX up 0.62%
- Commodities : Gold at $1240.20 (-0.12%), Silver at $15.86 (+0.13%), Brent Oil at $77.77 (+0.61%), WTI Oil at $74.67 (+0.99%)
- Rates : US 10-year yield at 2.866, UK 10-year yield at 1.255, Germany 10-year yield at 0.306
News & Data:
- (AUD) Cash Rate 1.50% vs 1.50% expected
- (AUD) Building Approvals m/m -3.20% vs 0.10% expected
- (NZD) NZIER Business Confidence -20 vs -11 previous
- (USD) ISM Manufacturing PMI 60.2 vs 58.2 expected
- (GBP) Manufacturing PMI 54.4 vs 54.1 expected
- Major state-owned China banks seen swapping yuan for dollars in forwards and immediately selling into spot market, supporting the yuan
- Dollar dips as euro's steadies as German coalition partners resolve row
- NZ dollar drops to 2-year low on trade tensions
Markets Update:
Asian stocks traded mostly lower on Tuesday, with greater China markets extending their declines as investor worries over Beijing's trade relations with the U.S. soured sentiment in the region. Tariffs on $34 billion worth of Chinese imports to the U.S. and a matching $34 billion worth of U.S. exports to China are due to take effect on July 6.
China markets pulled back, extending the last session's sharp declines. The Shanghai composite sank around a percent after touching two-year lows in the last session; the Shenzhen Composite also pulled back by as much. Hong Kong's Hang Seng Index plunged more than 3 percent at its lowest, as markets there reopened for trade after a holiday, with the energy and services sectors leading losses.
The Japanese market drifted into negative territory after opening higher following the modest gains overnight on Wall Street and on a weaker yen. The Australian market is advancing following the positive cues from Wall Street. Oil stocks are among the leading gainers, offsetting weakness in the mining sector.
Oil prices climbed on Tuesday after Libya declared force majeure on some of its supplies, with both Brent and WTI rising by almost a percent. In the currency market, the U.S. dollar is trading in the upper 110 yen-range on Tuesday. Investor jitters over trade concerns, meanwhile, supported the greenback.
Upcoming Events:
- 05:30 AM GMT – (AUD) RBA Rate Statement
- 05:30 AM GMT – (AUD) Cash Rate
- 09:30 AM GMT – (GBP) Construction PMI
- Tentative – (NZD) GDT Price Index
- &more…
