Open Jul 23

In Asian Equity Markets indices edged up on Tuesday morning. Mainland Chinese stocks were higher in early trade, with the Shenzhen composite 0.13% higher. Hong Kong’s Hang Seng index was largely flat. The Nikkei 225 in Japan added 0.85% in morning trade, with shares of semiconductor equipment manufacturer Tokyo Electron jumping more than 2%. In South Korea, the Kospi advanced 0.41%, as shares of Hyundai Motor fell about 3% after the company posted earnings that missed expectations, despite seeing its biggest quarterly profit jump in seven years.


In Currency Markets sterling was on the back foot on Tuesday as investors worried Boris Johnson, the frontrunner to become the UK’s next prime minister, would trigger a “hard Brexit” from the European Union, widely seen as a major risk for the British economy. The pound traded at $1.2477, within striking distance of a 27-month low of $1.2382 reached last week.The euro traded near session lows due to growing expectations European Central Bank President Mario Draghi will signal a rate cut in September at a policy meeting later this week to keep inflation expectations on track.


In Commodities Markets oil prices inched lower on Tuesday as the International Energy Agency (IEA) said it would act quickly if needed to keep the market supplied amid tensions in the Middle East and traders eyed a weaker demand outlook. Brent crude futures fell 2 cents to $63.24 a barrel. The international benchmark rose more than 1% in the previous session, following Iran’s seizure of a British tanker last week that stoked fears of supply disruptions from the energy-rich Gulf. The International Energy Agency (IEA) said it was closely monitoring developments in the Strait of Hormuz.


In US Equity Markets the S&P 500 climbed toward a record high on Monday, supported by expectations of lower interest rates, while investors awaited quarterly earnings from marquee companies Facebook, Alphabet and Amazon later this week. Facebook Inc rallied 2.0% ahead of its report due out after the bell on Wednesday, while Amazon.com Inc and Google-parent Alphabet Inc were each up more than 0.7% ahead of their reports on Thursday. the S&P 500 gained 0.28% to 2,985.02. The Nasdaq Composite added 0.71% to 8,204.14.


In Bond Markets U.S. Treasury yields fell on Monday and the yield curve flattened as dovish global central bank policy supported demand for government debt, with no major new events to set market direction. The European Central Bank (ECB) is expected to signal easier monetary policy when it meets on Thursday. Benchmark 10-year notes gained 3/32 in price to yield 2.04%, down from 2.05% late on Friday. The yield curve between two-year and 10-year notes flattened to 23 basis points, from 24 basis points on Friday.