Open July 2
In Asian Equity Markets indices edged up in Tuesday morning trade. Mainland Chinese stocks were mostly higher in early trade, with the Shenzhen component gaining 0.11%. The Shanghai composite was largely flat. Hong Kong’s Hang Seng index, which returned to trade after a holiday on Monday, jumped 1.41%. The Nikkei 225 in Japan added 0.08% in morning trade, while the Topix rose 0.15%. In South Korea, however, the Kospi fell 0.15%. Over in Australia the S&P/ASX 200 gained 0.29% as most sectors advanced.
In Currency Markets the U.S. dollar rose to two-week highs on Monday after the United States and China agreed to resume trade talks, with investors selling safe-haven currencies such as the Japanese yen and Swiss franc as tensions eased between the world’s two largest economies. The dollar also extended gains after data showed the U.S. manufacturing activity index, as measured by the Institute for Supply Management, came in slightly higher than expected in June, at 51.7. The dollar index, rose 0.8% against a basket of currencies, to 96.848
In Commodities Markets oil prices drifted lower on Tuesday, as weak global data raised concerns about future demand for the commodity despite a positive boost from OPEC’s decision to extend supply cuts until next March. Brent crude futures for September delivery were trading down 15 cents, or 0.2%, at $64.91 a barrel falling dipping to $64.66 earlier. Brent climbed more than $2 a barrel on Monday before paring gains later in the day.U.S. crude futures for August were down 25 cents, or 0.4%, at $58.84 a barrel, after touching their highest in over five weeks on Monday.
In US Equity Markets stocks climbed on Monday, but finished off earlier highs, led by gains in technology stocks on optimism for progress in U.S.-China trade talks and signs of a likely reprieve for Chinese telecom company Huawei. The S&P 500 gained 0.77%, to 2,964.33 and the Nasdaq Composite added 1.06%, to 8,091.16. Gains on the Dow were held in check by a 2.1% drop in Boeing Co. after a report that federal prosecutors had subpoenaed records relating to the production of the 787 Dreamliner in South Carolina.
In Bond Markets U.S. Treasury yields rose on Monday as China and the United States’ agreement to restart trade talks caused investors to pare their safe-haven holdings of bonds, although the selling was limited by worries about global economic growth. Benchmark 10-year U.S. Treasury note yields were up 3.10 basis points at 2.031%. They fell 14 basis points in June and touched 1.974%, which was their lowest since November 2016.
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