Global Markets:
- Asian Stock Markets : Nikkei down 0.51%, Shanghai Composite down 1.02%, Hang Seng down 0.59%, ASX down 0.71%
- Commodities: Gold at $1419.15 (+0.51%), Silver at $15.32 (+0.16%), Brent Oil at $65.36 (-0.47%), WTI Oil at $59.13 (-0.50%)
- Rates : US 10-year yield at 2.017, UK 10-year yield at 0.827, Germany 10-year yield at -0.321
News & Data:
- (NZD) ANZ Business Confidence -38.1 vs -32 previous
- (EUR) German Prelim CPI m/m 0.30% vs 0.20% expected
- (USD) Final GDP q/q 3.10% vs 3.10% expected
- Multiple Fed Cuts, Trade Deal Path Plot, Uncertain Yuan
- US dollar holds steady, markets edgy ahead of Trump-Xi talks
Markets Update:
Asian shares stumbled on Friday amid rising doubts that a highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping this weekend could lead to an easing of trade tensions. Trump has agreed to no preconditions for the meeting, but is maintaining his threat to impose new tariffs on Chinese goods, resulting in uncertainty over whether the talks will produce progress in ending the year-long trade war. Another issue attracting the attention of investors is the expected Fed rate cut and the equity market is now fully pricing in a 50 basis point cut.
Despite worries over trade, investors have mostly pushed stocks higher this month as the Federal Reserve raised expectations that it is prepared to cut interest rates if needed to shield the economy. But benchmarks in Shanghai, Tokyo, Hong Kong and Sydney all fell on Friday. Austalia’s ASX 200 is poised to edge lower after the rise on Thursday.
Chinese stocks opened lower on Friday and have been trading lower since, with the benchmark Shanghai Composite Index down by over 1%. Hang Seng and Nikkei are trading lower by around 0.5% on a cautious note today, amid weak cues from global equities as the G20 Summit began in Japan.
In commodity markets, trade worries continued to weigh on oil, with U.S. crude (CLc1) losing 0.5% to $59.1 a barrel and global benchmark Brent crude (LCOc1) down 0.5%. The weak dollar and uncertainty over global trade saw gold rebound after dipping below $1,400 per ounce on Thursday. Spot gold was last traded at $1,420 per ounce, up 0.5%.
Upcoming Events:
- Day 1 – (All) G20 Meetings
- 09:30 AM GMT – (GBP) Current Account
- 09:30 AM GMT – (GBP) Final GDP q/q
- 10:00 AM GMT – (EUR) CPI Flash Estimate y/y
- 10:00 AM GMT – (EUR) Core CPI Flash Estimate y/y
- 01:30 PM GMT – (CAD) GDP m/m
- 01:30 PM GMT – (CAD) RMPI m/m
- 01:30 PM GMT – (USD) Core PCE Price Index m/m
- 01:30 PM GMT – (USD) Personal Spending m/m
- 02:45 PM GMT – (USD) Chicago PMI
- 03:00 PM GMT – (USD) Revised UoM Consumer Sentiment
- 03:30 PM GMT – (CAD) BOC Business Outlook Survey
- &more…
