Asian stock markets are in negative territory on Monday amid an escalation in trade tensions between the U.S. and China after the world's two largest economies announced tit-for-tat trade tariffs last week. In addition, weak commodity prices weighed on resources stocks. C Fears of a global trade war added to pressure on oil prices, which extended Friday’s big fall, while the dollar retreated from near 3-week highs against the safe haven yen.
Markets in China, Hong Kong and Taiwan were closed Monday for the Dragon Boat festival holiday while much of Southeast Asia returned after a Friday holiday. Japan stocks fared the worst early, with the Nikkei down 0.8% following its ongoing strength in recent weeks and after a much-bigger-than-expected May trade deficit. However, export data looked stronger than expected, only to be overshadowed by concerns over growing protectionism.
Oil prices were under pressure on fears of increased supply as two big producers – Saudi Arabia and Russia – have indicated they were prepared to increase output. U.S. crude futures took an additional hit also as China’s retaliatory tariffs included crude oil.
In the currency market, the dollar was supported for now as the euro has lost steam after the European Central Bank had suggested on Thursday it would hold off raising interest rates through the summer of next year. The Japanese currency stayed resilient following a deadly earthquake that struck Western Japan, including Osaka, the country’s second largest urban area. The Australian dollar, a liquid hedge for risk, slipped to a six-week trough while its New Zealand cousin fell to the lowest since end-May.
Monday, June 18th 2018
Tuesday, June 19th 2018
Wednesday, June 20th 2018
Thursday, June 21st 2018
Friday, June 22nd 2018
IC Markets is revolutionizing on-line forex trading; on-line traders are now able to gain access to pricing and liquidity previously only available to investment banks and high net worth individuals.