Friday 8th June: Asian markets lower as Risk Sentiment sours

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IC Markets Market Review
IC Markets Market Review

Global Markets:

  • Asian Stock Markets : Nikkei down 0.45%, Shanghai Composite down 1.41%, Hang Seng down 1.47%, ASX down 0.05%
  • Commodities : Gold at $1299.10 (-0.30%), Silver at $16.69 (-0.74%), Brent Oil at $77.00 (-0.41%), WTI Oil at $65.75 (-0.30%)
  • Rates : US 10-year yield at 2.933, UK 10-year yield at 1.408, Germany 10-year yield at 0.468

News & Data:

  • (GBP) Halifax HPI m/m 1.50% vs 1.10% expected
  • (USD) Unemployment Claims 222K vs 223K expected
  • (CNY) Trade Balance 157B vs 238B expected
  • Bernanke Says U.S. Economy Faces `Wile E. Coyote’ Moment in 2020
  • US Embassy in China sends new alert over mystery health issues
  • Trump to skip climate portion of G7 after Twitter spat with Macron and Trudeau

Markets Update:

Asian markets were lower today, as investors turned more cautious. A variety of factors played into this, the primary being that ECB’s massive monetary stimulus would end soon, sometime this year.

Apart from this, the G7 meetings, set to begin in Canada has also spooked investors, given that trade will be a focal point of the discussions, with tensions high after the Twitter escalations between Trump, Trudeau and Macron.

In the Wall Street, technology stocks were the major losers in yesterday’s trade. Brazillian assets also made significant losses in yesterday’s trade after Brazil’s central bank’s swap sale wasn’t enough to boost the real.

Traders had flocked to Treasuries, igniting gains that at one point pushed the 10-year yield down nine basis points in a matter of minutes.

A stronger yen, and weak macroeconomic data have aggravated the negative sentiment for Japanese equities – considering this background, their losses are moderate. ASX is flat, paring the initial opening losses. Chinese and Hong Kong shares hit their lows as China’s trade surplus came in narrower than expected.

Oil prices were boosted by worries over a steep drop in exports from crisis-plagued Venezuela, which faces the threat of U.S. sanctions.

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