In Asian Equity Markets indices were mixed in early trade on Friday as investors remained worried over trade tensions between the United States and China. Mainland Chinese shares rose in early trade, with the Shanghai composite gaining 0.62%. Hong Kong’s Hang Seng index was up 0.40%. In Japan, the benchmark Nikkei 225 pared some losses from earlier, falling 0.57% while the Topix index was down 0.21%. South Korea’s Kospi was down 0.59%. Australia’s ASX 200 was lower by 0.67% as the heavily weighted financial sub-index declined 0.84%.
In Currency Markets the dollar held steady on Friday, having come off two-year highs on lower U.S. yields in the previous session amid fears that a trade war with China will hurt the U.S. economy more than previously thought. The greenback was not helped by rising expectations for an interest rate cut by the U.S. Federal Reserve later this year to help boost the world’s biggest economy. Against the yen, the dollar edged up to 109.695 yen, having giving up two-thirds of a percent overnight. The Australian dollar held steady at $0.6904, putting it on track to finish the week with a 0.5% gain.
In Commodities Markets oil markets stabilized on Friday amid OPEC supply cuts and tensions in the Middle East, after posting their steepest falls since the start of the year earlier in the week on the back of a global economic slowdown and swelling fuel inventories. Brent crude futures, the international benchmark for oil prices, were at $68.05 per barrel, up 29 cents, or 0.4 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were up 36 cents, or 0.6 percent, at $58.27 per barrel.
In US Equity Markets stocks fell on Thursday as investors sold shares of technology companies as well as businesses in cyclical sectors on fears that the escalating trade war between United States and China would stymie global economic growth. The S&P 500 lost 1.67%, to 2,808.5 and the Nasdaq Composite fell 2.04%, to 7,592.94. L Brands Inc shares jumped 11.8% after the owner of Victoria’s Secret and Bath & Body Works reported better-than-expected quarterly earnings.
In Bond Markets U.S. Treasury yields fell across the board on Thursday as risk appetite faded amid continued concerns about global growth and a worsening trade conflict between the United States and China. U.S. 30-year bond yields fell to roughly 17-month lows, while those on benchmark 10-year notes fell to their lowest level since October 2017. U.S. 10-year note yields fell to 2.293% from 2.393% late on Wednesday, after earlier sliding to 2.292%, its lowest since October 2017. Yields on U.S. 30-year bonds fell to 2.735%, from 2.819% on Wednesday.