Tuesday 25th June: Asian shares dwindle ahead of G-20

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Tuesday 25th June: Asian shares dwindle ahead of G-20 1

Global Markets:

  • Asian Stock Markets : Nikkei down 0.57%, Shanghai Composite down 1.10%, Hang Seng down 1.17%, ASX down 0.11%
  • Commodities: Gold at $1431.10 (+0.91%), Silver at $15.39 (+0.07%), Brent Oil at $63.98 (-0.31%), WTI Oil at $57.69 (-0.36%)
  • Rates : US 10-year yield at 2.002, UK 10-year yield at 0.812, Germany 10-year yield at -0.309

News & Data:

  • (EUR) German Ifo Business Climate 97.4 vs 97.4 expected
  • (NZD) Trade Balance 264M vs 200M expected
  • US Dollar sinks below the 96 handle on lower yields
  • China think tank calls for tougher stance in trade talks with US

Markets Update:

Major Asian stock markets declined on Tuesday as traders looked ahead to a meeting between the American and Chinese presidents amid hopes for renewed trade talks. Traders looked ahead to a planned meeting between Presidents Donald Trump and Xi Jinping at this week’s Group of 20 meeting of major economies in Japan. Forecasters expect the leaders to reassure financial markets by agreeing to revive trade talks without committing to details.

The largest losses are seen in Hong Kong and mainland China with Hang Seng and Shanghai Composite declining by over 1%. Despite a positive close on Monday, the Nikkei 225 in Japan slipped 0.57% in afternoon trade, as investors risk sentiments were dampened ahead of G-20. ASX slid 7.4 points and closed slightly lower on Tuesday, as investors remained cautious ahead of key trade talks later this week, shifting capital into more defensive assets.

Amidst expectations of more dovish talk from the Federal Reserve Treasury yields and the dollar were pushed down, while propelling gold prices to six-year peaks. Yields on 10-year Treasuries have dived 120 basis points since November and are at 2.01% while gold is up 12% since early May at $1,1425.02 an ounce.

Oil prices lost on Tuesday, with the UD Crude falling 51 cents after rising sharply last week in reaction to tensions between the United States and Iran.

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