In Asian Equity Markets Japanese financial markets remain closed until Tuesday for a national holiday, but Nikkei 225 futures fell 1.8 percent to 22,085. Stocks in Australia declined in morning trade on Monday following a re-escalation in U.S.-China trade tensions as President Donald Trump declared an impending increase in tariffs rates on $200 billion of Chinese goods. Australia’s ASX 200 fell 0.56% in early trade, as almost all the sectors declined. South Korea market is also closed on Monday.
In Currency Markets the safe-haven yen climbed and the yuan fell on Monday after U.S. President Donald Trump threatened to increase tariffs on China, sending riskier assets into a spin and slamming stock futures. The dollar eased to 110.65 yen on the WSJ report. Earlier it touched a five-week trough at 110.53 on Reuters dealing, after ending Friday around 111.12. The dollar climbed 1 percent on the Chinese yuan to 6.8038. The Australian dollar took a spill given the country’s exposure to Chinese trade and lost around 0.6 percent at one stage to $0.6960.
In Commodities Markets oil prices fell by more than 2 percent on Monday after U.S. President Donald Trump on Sunday said he would sharply hike tariffs on Chinese goods this week, risking derailing months of trade talks between the world’s two biggest economies. U.S. West Texas Intermediate (WTI) crude futures were at $60.44 per barrel on Monday, down $1.50 per barrel, or 2.4 percent, from their last settlement. Brent crude oil futures were at $69.34 per barrel, down $1.51 per barrel, or 2.1 percent, from their last close.
In US Equity Markets stocks rose in a broad-based rally on Friday as stronger-than-expected job growth in April coupled with muted wage gains left investors upbeat about the outlook for the economy and interest rates. The Nasdaq registered a record high close, while the S&P 500 ended just shy of a record high finish. The S&P 500 gained 0.96%, to 2,945.64, and the Nasdaq Composite added 1.58%, to 8,164.00. Activision Blizzard Inc fell 4.8% after the videogame maker forecast current-quarter profit below expectations as it puts more money into its franchises to battle competition.
In Bond Markets U.S. Treasury yields fell from 1-1/2-week highs on Friday as government data showed strong jobs growth in April that matched what many traders had expected, while wage gains were muted. Nonfarm payrolls increased by 263,000 jobs last month, amid gains in hiring nearly across all sectors, the U.S. Labor Department reported. Economists polled by Reuters had forecast nonfarm payrolls rising by 185,000 jobs last month. Benchmark 10-year notes gained 5/32 in price on the day to yield 2.534 percent, down from 2.552 percent on Thursday.
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