Global Markets:
- Asian Stock Markets : Nikkei up 0.11%, Shanghai Composite down 0.24%, Hang Seng up 1.25%, ASX up 0.077%
- Commodities: Gold at $1394.45 (+0.37%), Silver at $15.21 (+0.13%), Brent Oil at $65.28 (+0.34%), WTI Oil at $59.17 (+0.14%)
- Rates : US 10-year yield at 2.015, UK 10-year yield at 0.818, Germany 10-year yield at -0.364
News & Data:
- (AUD) Cash Rate 1.00% vs 1.00% expected
- (NZD) NZIER Business Confidence -34 vs -29 previous
- (USD) ISM Manufacturing PMI 51.7 vs 51.3 expected
- (GBP) Manufacturing PMI 48 vs 49.5 expected
- (CNY) Caixin Manufacturing PMI 49.4 vs 50.1 expected
- S. proposes adding more tariffs to $4 billion of EU goods
- Australia Cuts Key Rate for Second Straight Month to Spur Growth
Markets Update:
Asia-Pacific Shares are trading mixed on Tuesday, as investors weighed the tariff truce between the U.S. and China. Traders seem to be reacting to the price action on Wall Street from Monday. U.S. equity markets gapped higher, but buying faded throughout the session.
Global shares had rallied strongly on Monday after US-China agreed to restart trade negotiations aimed at resolving their trade war. But President Trump said that any trade deal with China would need to be “somewhat tilted” in favor of the United States. The U.S. government also threatened tariffs on $4 billion of additional European Union goods in a long-running dispute over aircraft subsidies.
Hang Seng has catch-up rally, trading up by 1.25% while other indexes are quiet after Monday’s gains. Australian shares managed to push up 0.07% on expectations that the Reserve Bank of Australia will cut its benchmark cash rate by 25 basis points to a record low of 1.0% at a meeting later in the day. Japan’s Nikkei 225 Index is trading up by 0.11% while Chinese shares wobbled on Tuesday, losing about 0.2%.
Treasury yields fell and gold rose as weak global manufacturing activity reinforced worries about slowing growth while uncertainties over the prospect of a Sino-U.S. trade deal also hurt sentiment. The cautious market mood pushed the yield on benchmark 10-year Treasury notes lower to 2.015%, compared with its U.S. close of 2.033% on Monday.
In commodity markets, worries over the outlook for the global economy weighed on oil. Spot gold, on the other hand, gained 0.37% to trade at $1,394.45 per ounce today after biggest one-day fall in over two years.
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