Tuesday 11th June: Asian markets gain US Mexico deal.

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Tuesday 11th June: Asian markets gain US Mexico deal. 1

Global Markets:

  • Asian Stock Markets : Nikkei up 0.35%, Shanghai Composite up 1.95%, Hang Seng up 0.75%, ASX up 1.49%
  • Commodities : Gold at $1332.75 (+0.26%), Silver at $14.70 (+0.40%), Brent Oil at $62.51 (+0.35%), WTI Oil at $53.65 (+0.73%)
  • Rates : US 10-year yield at 2.150, UK 10-year yield at 0.835, Germany 10-year yield at -0.213

News & Data:

  • (AUD) NAB Business Confidence 7 vs 0 previous
  • (GBP) Manufacturing Production m/m -3.90% vs -1.10% expected
  • (GBP) GDP m/m -0.40% vs -0.10% expected
  • (CNY) Trade Balance 279B vs 136B expected
  • China’s internet censor shuts financial news aggregator wallstreetcn.com amid worsening US relations over trade and tech
  • Trump Says “Fed Didn’t Listen to Me”, Now Seeks “Level Playing Field” With China

Markets Update:

Asian stock markets are mostly higher on Tuesday following the positive cues overnight from Wall Street after the U.S. and Mexico struck a deal to avoid tariffs being implemented. However, Trump also warned Mexico that tariffs will be reinstated if the country’s legislative body does not approve an unrevealed, but “very important” part of the U.S.-Mexico deal. Investors shrugged off news that U.S. President Donald Trump has threatened to impose new tariffs on China if his counterpart Xi Jinping does not attend the upcoming G-20 meeting in Japan later this month.

Shares in mainland China jumped by the afternoon, with the Shanghai composite rising 1.9% and the Shenzhen composite also gaining 2.9%. Over in Hong Kong, the Hang Seng index added 0.7%. Elsewhere, Japan’s Nikkei 225 traded up by 0.4% in the afternoon and the Topix index added 0.4%. ver in Australia, shares traded higher after returning from a holiday. The ASX 200 advanced 1.5% as most sectors saw gains.

In the currency markets, the dollar extended gains it made against its peers in the wake of Friday’s agreement between the United States and Mexico. The benchmark U.S. Treasury 10-year yield stretched an overnight spike and touched an 11-day peak of 2.157%. The yield had risen about 6 basis points on Monday as the U.S.-Mexico deal boosted risk appetite and curbed investor demand for safe-haven government debt.

Crude oil fell on Monday, with U.S. futures losing 1.3%, as major producers Saudi Arabia and Russia had yet to agree on extending an output-cutting deal and with U.S.-China trade tensions continuing to threaten demand for the commodity.

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