In Asian Equity Markets indices were mostly lower in Wednesday as investors monitor developments on U.S.-China trade.. Mainland Chinese stocks declined, with the Shanghai composite down 0.19%. Hong Kong’s Hang Seng index fell fractionally. Elsewhere, the Nikkei 225 in Japan was fractionally higher, with shares of index heavyweight and robot maker Fanuc advancing 0.93%. The Topix index, however, shed 0.24%. Meanwhile, South Korea’s Kospi was largely flat while the S&P/ASX 200 in Australia declined 0.46%. Overall, the MSCI Asia ex-Japan index traded 0.22% lower.
In Currency Markets the U.S. dollar held the upper hand against its rivals on Wednesday, particularly versus traditional safe-haven currencies, on rising hopes for a U.S.-China trade deal and a string of solid U.S. economic data. Against the yen, the dollar traded at 109.08 yen down slightly on the day but still not far from its October high of 109.285. The euro stood at $1.1073, having dropped 0.49% on Tuesday and was not far from a near three-week low of $1.10635 hit in U.S. trade on Tuesday. The yuan continued to rally on rising optimism for a trade truce between Washington and Beijing.
In Commodities Markets oil prices fell on Wednesday, pulled down by a larger-than-expected build-up in U.S. crude stocks, after gaining for three straight sessions on expectations of an easing of in U.S.-China trade tensions. Brent crude futures were at $62.60 a barrel by 0330 GMT, down 36 cents, or 0.6%. Brent settled up 1.3% on Tuesday. U.S. West Texas Intermediate (WTI) crude futures fell 29 cents, or 0.5%, to $56.94 per barrel, having closed up 1.2% in the previous session. U.S. crude inventories rose by 4.3 million barrels in the week ended Nov. 1 to 440.5 million barrels, according to data from the API. That was nearly triple analysts’ forecast for an increase of 1.5 million barrels.
In US Equity Markets the S&P 500 was little changed on Tuesday, pausing after growing expectations of a trade deal between the United States and China helped boost the three main U.S. stock indexes to record highs in the previous session. Helping the Nasdaq advance was Adobe Inc, which gained 3.84% as the Photoshop software maker raised its fourth-quarter digital media annualized recurring revenue target and gave a strong forecast for fiscal 2020. Kroger Co jumped about 11.44% after the supermarket chain forecast 2020 profit and comparable sales ahead of Wall Street estimates.
In Bond Markets benchmark U.S. Treasury yields rose to six week highs on Tuesday on optimism that the United States and China will reach a deal to de-escalate their trade war, and after data showed strength in the U.S. services sector. Yield rose overnight on reports that the U.S. was considering dropping tariffs on Chinese goods. Benchmark 10-year notes were down 20/32 in price to yield 1.858%, after earlier rising as high as 1.873%, the highest since September 16. The yield curve between two-year and 10-year notes also steepened to 23 basis points, the steepest since July 25.