Tuesday 12th February: Asian markets trade higher as sentiment gains

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IC Markets Market Review
IC Markets Market Review

Global Markets:

  • Asian Stock Markets : Nikkei up 2.65%, Shanghai Composite up 0.68%, Hang Seng up 0.03%, ASX up 0.30%
  • Commodities : Gold at $1315.25 (+0.26%), Silver at $15.77 (+0.53%), Brent Oil at $61.84 (+0.54%), WTI Oil at $52.63 (+0.42%)
  • Rates : US 10-year yield at 2.673, UK 10-year yield at 1.181, Germany 10-year yield at 0.130

News & Data:

  • (NZD) Inflation Expectations q/q 2.00% vs 2.00% previous
  • (GBP) Prelim Business Investment q/q -1.40% vs -1.30% expected
  • (GBP) Prelim GDP q/q 0.20% vs 0.30% expected
  • (GBP) Manufacturing Production m/m -0.70% vs 0.20% expected
  • (GBP) GDP m/m -0.40% vs 0.00% expected
  • China’s consumption growth likely to slow further in 2019: commerce ministry
  • Trump Says ‘We Probably Have Some Good News’ Over Border Deal

Markets Update:

Asian stocks gained in morning trade on Tuesday after the Trump administration said the U.S. president still wants to meet China’s Xi Jinping. The comments raised hopes of a trade deal before a March 1 deadline for higher tariffs. Market sentiment also got a boost on news U.S. lawmakers had reached a tentative deal on border security funding that could help avert another partial government shutdown due to start on Saturday. Congressional aides, however, said it did not contain the $5.7 billion President Donald Trump wants for a border wall.

The Australian market recovered after a weak start and is now modestly higher, reflecting gains in banking and oil stocks. Investors digested mixed corporate earnings results. Japan’s Nikkei 225 jumped 2.59 percent in afternoon trade, while the Topix gained 2.2 percent. Shares of Fast Retailing rose around 3.3 percent while chip company Renesas Electronics surged 16.26 percent. Mainland Chinese markets were higher by the afternoon. The Shenzhen component rose 0.7 percent while the Shenzhen composite advanced 1.2 percent.

Growing evidence of a loss of momentum in the global economy has also lifted the U.S. currency, most recently led by the European Commission’s downgrade of growth in Europe, making the dollar a better investment option by default.

Oil prices ticked up after falls on Monday as traders weighed support from OPEC-led supply restraint and a slowdown in the global economy.

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