Open June 21

​In Asian Equity Markets indices mixed in Friday morning trade. Meanwhile, tensions in the Middle East continued to heat up. Mainland Chinese stocks rose in early trade, with the Shanghai composite up 0.44% and Shenzhen component adding 0.9%. In Hong Kong, the Hang Seng index declined 0.12%. Over in South Korea, the Kospi traded 0.13% lower as shares of LG Chem declined more than 1%. Australia’s S&P/ASX 200 also slipped 0.28%, with shares of biotechnology firm CSL falling more than 2.5%. In Japan, the Nikkei 225 was fractionally lower.



In Currency Markets the U.S. dollar struggled to get on the front foot on Friday, and was poised for a weekly loss against major currencies after the U.S. Federal Reserve joined global peers with plans to cut interest rates to support flagging economic growth. The dollar traded at 107.30 yen, slightly above a five-month low of 107.20 yen reached Thursday after Fed Chairman Jerome Powell signaled a rate cut at the next policy meeting in July. For the week the dollar was down 1.2% versus the yen, on course for the biggest decline since late March.



In Commodities Markets oil prices rose on Friday, with Brent crude heading for its first weekly gain in five weeks on tensions in the Middle East after Iran shot down a U.S. military drone and on hopes for a drop in U.S. interest rates that may stimulate global growth. Brent crude was up 39 cents, or 0.6%, at $64.84 a barrel. The global benchmark rose 4.3% on Thursday and is heading for a weekly gain of more than 4% after four weeks of decline. U.S. WTI crude was up 32 cents, or 0.6%, at $57.39 a barrel. The U.S. benchmark rose 5.4% on Thursday and is on track for a nearly 10% increase this week.



In US Equity Markets the S&P 500 hit a record high on Thursday, lifted by Wall Street’s expectations that the Federal Reserve will cut interest rates as soon as next month to keep the U.S.-China trade war from stalling economic growth. The energy index jumped 2.21%, the most among the 11 major S&P sectors. The S&P 500 gained 0.95% to 2,954.18. The Nasdaq Composite added 0.8% to finish at 8,051.34. Apple rose 0.8% and briefly hit $200 a share for the first time since early May. The iPhone maker is viewed as a major potential casualty in Trump’s trade war, should it worsen.



In Bond Markets U.S. benchmark 10-year Treasury yields on Thursday fell below 2% for the first time in more than 2-1/2 years, while other maturities fell to multiyear lows as well, a day after the Federal Reserve flagged interest rate cuts as early as next month. U.S. 30-year yields likewise fell to their lowest since October 2016, while those on two-year notes slid to their weakest level since mid-November 2017. U.S. 10-year note yields fell to 2.0% from 2.02% late on Wednesday. Earlier in the global session, 10-year yields fell to 1.97%, the lowest since November 2016.