In Asian Equity Markets stocks traded near a 3-1/2-month low on Wednesday morning on lingering concerns over the economic impact of a U.S.-China trade war. The Nikkei 225 in Japan fell 0.11% in early trade, as shares of index heavyweight Fast Retailing fell 0.44%. The Topix index, on the other hand, gained 0.1%. In South Korea, the Kospi declined 0.23% as shares of automaker Hyundai Motor dropped 1.95%. Over in Australia, the ASX 200 rose 0.14% as the sectors mostly traded higher.
In Currency Markets the U.S. dollar was firmer in early Asian trade on Wednesday while the Australian dollar brushed a more than four-month low as traders eyed Chinese and European data for clues on whether the worst is over for the global economy. The dollar index against a basket of six key rivals was steady at 97.542, having risen 0.2% during the previous session. The Australian dollar gave up a quarter of a percent to $0.6928, falling to its lowest since early January ahead of the release of the Chinese data.
In Commodities Markets oil prices rose over 1% on Tuesday after top exporter Saudi Arabia said explosive-laden drones launched by a Yemeni-armed movement aligned to Iran had attacked facilities belonging to state oil company Aramco. That move higher comes as the market waits for a report from the API, an industry group, which is expected to show U.S. crude stockpiles fell by 800,000 barrels last week, their second decline in a row. Brent futures gained $1.01, or 1.4 percent, to settle at $71.24 a barrel, while U.S. West Texas Intermediate crude gained 74 cents, or 1.2 percent, to $61.78.
In US Equity Markets stocks on Tuesday reclaimed some of the ground lost in the prior day’s steep sell-off, with tariff-sensitive technology stocks leading the S&P 500 and the Nasdaq higher as investors were heartened by a tonal shift in U.S.-China trade rhetoric. Ralph Lauren Corp fell 3.7% after the apparel company posted quarterly results that included disappointing North American sales. The S&P 500 gained 0.80%, to 2,834.41, and the Nasdaq Composite added1.14%, to 7,734.49. Disney stock climbed 1.4%, while Comcast gained 1.5%. Netflix edged up 0.1%.
In Bond Markets Treasury yields rose on Tuesday in sympathy with U.S. stock indexes as hopes for a U.S.-China trade deal boosted demand for risk assets after Monday’s heavy sell-off. Yields were up between 1 and 2 basis points across maturities, but had not fully retraced losses from Monday when yields hit six-week lows. The yield on the benchmark 10-year Treasury note was last up 2 basis points, with other maturities trading within three-tenths of a basis point of the 10-year yield.
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