Global Markets:
- Asian Stock Markets : Nikkei down 1.96%, Shanghai Composite up 0.12%, Hang Seng down 0.06% ASX up 0.13%
- Commodities : Gold at $5116.55 (1.99%) Silver at $108.805 (7.38%), Brent Oil at $65.08 (0.02%), WTI Oil at $61.07 (0.00%)
- Rates : US 10-year yield at 4.217, UK 10-year yield at 4.5220, Germany 10-year yield at 2.9030
News & Data:
- (CAD) Core Retail Sales m/m 1.7% to 1.0% expected
Markets Update:
Asian stock markets are trading mixed on Monday, tracking the uneven cues from Wall Street on Friday, as investors remain cautious amid escalating geopolitical tensions. Market participants are refraining from taking major positions after U.S. President Donald Trump confirmed that a “big force” is heading toward Iran, raising concerns of renewed conflict in the Middle East. Asian markets had closed mostly higher in the previous session.
Reports indicate a build-up of U.S. military forces in the region, with Trump referring to a “big flotilla” moving toward Iran. Meanwhile, a recent report showed a stronger-than-expected improvement in U.S. consumer sentiment. Although the U.S. Federal Reserve is widely expected to keep interest rates unchanged at its policy meeting this week, investors will closely watch the accompanying statement for signals on the timing of future rate cuts.
Japan’s stock market is sharply lower, reversing Friday’s modest gains. The Nikkei 225 has fallen to near the 52,800 level, dragged down by index heavyweights, exporters and financial stocks. Losses are led by SoftBank Group, Fast Retailing, major automakers and banking shares, while a few stocks such as Mercari and Furukawa Electric are posting strong gains.
Elsewhere in Asia, markets in China, Hong Kong, Taiwan, Malaysia and Indonesia are trading higher, while New Zealand, Singapore and South Korea are edging lower. Australia’s market is closed for the Australia Day holiday. In currency markets, the U.S. dollar is trading in the lower 154 yen range, while the Australian dollar is at $0.692.
On Wall Street, stocks ended mixed on Friday, with the Dow lower, the S&P 500 little changed and the Nasdaq extending gains. European markets also closed narrowly mixed, while crude oil prices jumped nearly 3 percent on supply disruption fears tied to Middle East tensions.
Upcoming Events:
- 01.30 PM GMT – USD Core Durable Goods Orders m/m
