Wednesday 4th December: Asian markets mixed as investors fear longer broader trade war

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Global Markets:

  • Asian Stock Markets : Nikkei down 1.05%, Shanghai Composite down 0.24%, Hang Seng down 1.21%, ASX down 1.58%
  • Commodities : Gold at $1486.75 (+0.16%), Silver at $17.29 (+0.26%), Brent Oil at $61.32 (+0.82%), WTI Oil at $56.52 (+0.75%)
  • Rates : US 10-year yield at 1.721, UK 10-year yield at 0.672, Germany 10-year yield at -0.354

News & Data:

  • (CNY) Caixin Services PMI 53.5 vs 51.2 expected
  • (AUD) GDP q/q 0.40% vs 0.50% expected
  • (AUD) Cash Rate 0.75% vs 0.75% expected
  • (AUD) Current Account 7.9B vs 6.1B expected
  • AU GDP Miss Undermines RBA’s ‘Gentle Turning Point’
  • PBoC Fixes USDCNY Reference Rate At 7.0382

Markets Update:

Asian stock markets are extending losses on Wednesday from the previous session as optimism about an imminent U.S.-China trade deal faded after U.S. Donald Trump said that a trade agreement with China might have to wait until after the 2020 presidential elections. Adding to trade concerns, Trump threatened to impose duties of up to 100 percent on $2.4 billion in French imports, including champagne and handbags.

Mainland Chinese stocks were mixed by the afternoon, with the Shanghai composite down about 0.2% while the Shenzhen component was up 0.3%. South Korea’s Kospi traded 0.7% lower, as shares of chipmaker SK Hynix fell 1.5% — following overnight declines of Nvidia, Micron and Advanced Micro Devices on Wall Street. In Japan, the Nikkei 225 fell 1% in afternoon trade as shares of index heavyweight Fast Retailing plummeted more than 4%.

In currency markets positive economic news from China’s services sector saved the yuan from a further thrashing, after it tumbled overnight. The Japanese yen and Swiss franc stood tall, while the Australian dollar tumbled after softer-than-expected growth figures backed prospects of further rate cuts.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.736 after falling from levels above 97.9 seen earlier. Oil steadied after slipping overnight

Upcoming Events:

  • 09:30 AM GMT – (GBP) Final Services PMI
  • 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
  • 03:00 PM GMT – (CAD) BOC Rate Statement
  • 03:00 PM GMT – (CAD) Overnight Rate
  • 03:00 PM GMT – (USD) ISM Non-Manufacturing PMI
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