Thursday 6th December: Asian Markets continue to fall

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Thursday 6th December: Asian Markets continue to fall 1

Global Markets:

  • Asian Stock Markets : Nikkei down 1.91%, Shanghai Composite down 1.55%, Hang Seng down 3.09%, ASX down 0.19%
  • Commodities : Gold at $1241.50 (-0.09%), Silver at $14.48 (-0.69%), Brent Oil at $60.89 (-1.09%), WTI Oil at $52.23 (-1.25%)
  • Rates : US 10-year yield at 2.897, UK 10-year yield at 1.308, Germany 10-year yield at 0.270

News & Data:

  • (AUD) Trade Balance 2.32B vs 3.10B expected
  • (AUD) Retail Sales m/m 0.30% vs 0.30% expected
  • (CAD) Overnight Rate 1.75% vs 1.75% expected
  • (GBP) Services PMI 50.4 vs 52.5 expected
  • Kuroda: Rate Hikes Would Slow Hitting 2% Target
  • Quarles: Banks as Vital Infrastructure for Rural Communities of the West

Markets Update:

Stocks across Asia slipped during Thursday afternoon trade, continuing a decline in markets worldwide ahead of a closely watched meeting by the Organization of the Petroleum Exporting Countries (OPEC). Meanwhile, Canadian authorities arrested a top executive of Chinese tech giant Huawei for extradition to the United States, fanning fears of a fresh flareup in tensions between the two superpowers.

The news came as Washington and Beijing begin three months of negotiations aimed at de-escalating their bruising trade war, which is adding to global investors’ worries over rising U.S. interest rates and other risks to global economic growth.

Hong Kong’s Hang Seng index fell more than 3%, with shares of Chinese tech heavy weight Tencent falling as much as 5%. The mainland Chinese markets, in focus due to Beijing’s trade dispute with Washington, also saw losses. The Shanghai composite slipped 1.55 percent while the Shenzhen composite shed 2 percent.

Japan’s Nikkei 225 fell 1.9 percent in the afternoon while the Topix index declined by 1.8 percent. South Korea’s Kospi also shed 1.55 percent. In Australia, the ASX 200 slipped 0.2 percent in afternoon trade, with its sectors mixed.

The benchmark Treasury 10-year yield fell 1.7 basis points to 2.906 percent, near Tuesday’s three-month low of 2.885 percent. U.S. markets were closed on Wednesday to mark the death of former President George H.W. Bush. The yield curve remained inverted between two and five year zones, with five-year notes yielding 2.782 percent, below 2.795 percent on two-year notes. In the currency market, the dollar fell 0.3 percent against the yen to 112.82 yen on a risk-averse mood while the Australian dollar shed 0.5 percent to $0.7234.

Upcoming Events:

  • 10:05 AM GMT – (AUD) RBA Assist Gov Debelle Speaks
  • All Day GMT – (All) OPEC Meetings
  • 11:00 AM GMT – (GBP) MPC Member Ramsden Speaks
  • 02:15 PM GMT – (USD) ADP Non-Farm Employment Change
  • 02:30 PM GMT – (CAD) Trade Balance
  • 02:35 PM GMT – (CAD) BOC Gov Poloz Speaks
  • 04:00 PM GMT – (USD) ISM Non-Manufacturing PMI
  • 05:00 PM GMT – (USD) Crude Oil Inventories
  • 06:15 PM GMT – (USD) FOMC Member Bostic Speaks
  • &more…

 

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