Thursday 18th July: Asian Markets Lower as Trade Sentiment Glooms

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Global Markets:

  • Asian Stock Markets : Nikkei down 1.97%, Shanghai Composite down 0.76%, Hang Seng down 0.65%, ASX down 0.36%
  • Commodities : Gold at $1423.25 (0.00%), Silver at $16.06 (+0.54%), Brent Oil at $63.73 (+0.11%), WTI Oil at $56.73 (-0.09%)
  • Rates : US 10-year yield at 2.049, UK 10-year yield at 0.753, Germany 10-year yield at -0.301

News & Data:

  • (AUD) Unemployment Rate 5.20% vs 5.20% expected
  • (AUD) Employment Change 0.5K vs 9.1K expected
  • (USD) Building Permits 1.22M vs 1.30M expected
  • (CAD) Trimmed CPI y/y 2.10% vs 2.20% expected
  • (CAD) Median CPI y/y 2.20% vs 2.10% expected
  • (CAD) Manufacturing Sales m/m 1.60% vs 1.60% expected
  • (CAD) Common CPI y/y 1.80% vs 1.80% expected
  • (CAD) CPI m/m -0.20% vs -0.30% expected
  • (GBP) PPI Input m/m -1.40% vs -1.00% expected
  • (GBP) CPI y/y 2.00% vs 2.00% expected

Markets Update:

Asian stock markets are lower on Thursday following the weak cues overnight from Wall Street and the fall in crude oil prices, amid worries about U.S.-China trade talks and the Japan-South Korea trade dispute. Investors are also cautious as they digested regional economic data and corporate earnings results.

Hong Kong’s Hang Seng index declined 0.6%, with shares of Chinese tech giant Tencent dropping 1.27%. Elsewhere, the Nikkei 225 fell 2% as shares of index heavyweights Softbank Group and Fanuc declined.

The Topix also dropped 2%. South Korea’s Kospi declined 0.4% as shares of Celltrion dropped around 2%. The Australian market is declining following the weak cues from Wall Street and as investors digested Australia’s unemployment data for June and local corporate earnings results.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.099 seeing an earlier high of 97.210. Oil prices rose in the afternoon of Asian trading hours, with international benchmark Brent crude futures adding 0.27% to $63.83 per barrel, while U.S. crude futures gained slightly to $56.81 per barrel.

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