Global Markets:
- Asian Stock Markets : Nikkei up 1.04%, Shanghai Composite up 0.9%, Hang Seng up 0.52% ASX down 0.1%
- Commodities : Gold at $3365.35 (1.39%), Silver at $33.58 (2.49%), Brent Oil at $61.38 (1.5%), WTI Oil at $57.9 (1.49%)
- Rates : US 10-year yield at 4.370, UK 10-year yield at 4.5460, Germany 10-year yield at 2.5165
News & Data:
- (USD) ISM Services PMI 51.6 to 50.2 expected
Markets Update:
Asia-Pacific markets mostly rose on Tuesday as investors evaluated trade developments between the U.S. and regional economies. Asian currencies gained strength as the U.S. dollar weakened. India proposed zero tariffs on steel, auto parts, and pharmaceuticals on a reciprocal basis within a set limit, while Malaysia noted the U.S. agreed to further talks that might include tariff cuts.
U.S. Treasury Secretary Scott Bessent said deals were “very close,” echoing President Trump’s earlier comments suggesting possible agreements this week. Chinese stocks resumed trading post-Labor Day amid signs of easing tensions between Washington and Beijing. The CSI 300 gained 0.95%, and Hong Kong’s Hang Seng rose 0.67%.
However, China’s Caixin services PMI slipped to a seven-month low of 50.7 in April, down from 51.9. In India, the Nifty 50 dipped 0.15%, while the BSE Sensex edged up 0.14%. Australia’s S&P/ASX 200 remained flat. Markets in Japan and South Korea were closed for holidays.
Meanwhile, U.S. stock futures stayed flat ahead of the Federal Reserve’s policy meeting, the first since President Trump’s announcement of “reciprocal” tariffs. A rate decision is expected Wednesday, with futures suggesting only a 2.7% chance of a rate cut. Erik Weisman of MFS Investment Management anticipates Fed Chair Jerome Powell will maintain a cautious stance.
On Monday, U.S. stocks ended lower, breaking the S&P 500’s nine-day winning streak. The S&P 500 fell 0.64% to 5,650.38, the Nasdaq dropped 0.74%, and the Dow declined 0.24%, reflecting ongoing investor concerns over global trade.
Upcoming Events:
- 02:00 PM GMT – CAD Ivey PMI
- 12:30 PM GMT – CAD Trade Balance
- 12:30 PM GMT – USD Trade Balance
