Global Markets:
- Asian Stock Markets : Nikkei down 1.55%, Shanghai Composite down 2.95%, Hang Seng down 2.51%, ASX up 0.14%
- Commodities : Gold at $1285.00 (+0.38%), Silver at $16.48 (+0.21%), Brent Oil at $74.84 (-0.66%), WTI Oil at $65.23 (-0.70%)
- Rates : US 10-year yield at 2.880, UK 10-year yield at 1.314, Germany 10-year yield at 0.400
News & Data:
- (AUD) HPI q/q -0.70% vs -0.90% expected
- (AUD) CB Leading Index m/m 0.10% vs 0.30% previous
- (USD) NAHB Housing Market Index 68 vs 70 expected
- (EUR) Italian Trade Balance 2.94B vs 3.21B expected
- PBOC injects medium-term liquidity in surprise move as trade war escalates
- Japan Steel Federation Head: Japan Unlikely To Take Retaliatory Action Against US Import Tariffs On Steel And Aluminium
- Kim Jong-un visits China after Trump summit
Markets Update:
A sell-off in Chinese stocks drove Asian equities to a four-month low today, as U.S. President Donald Trump threatened new tariffs on Chinese goods in an escalating tit-for-tat trade war between the world’s two biggest economies. . Trump said he has directed the U.S. Trade Representative to identify $200 billion of Chinese goods for additional tariffs at a rate of 10 percent. In turn, China said it would take countermeasures if the U.S. went ahead with the additional tariffs it had threatened.
Greater China markets dropped on the back of that news. Hong Kong's Hang Seng Index fell more than 2% while on the mainland, the Shanghai composite fell about 3%. The smaller Shenzhen composite sank more than 4%.
The Japanese market is extending losses from the previous session following the mixed cues from Wall Street and on a stronger safe-haven yen. The Australian market is rising, with investors shrugging off the mixed global cues, and the markets supported by a rebound in commodity prices.
In currency markets, China's yuan skidded to a five-month low. The Australian dollar, often seen as a proxy to China-related trades, brushed a one-year low of $0.7393.
On the commodities front, oil prices slipped after advancing on Monday. The markets remain volatile ahead of Friday’s OPEC meeting at a time when Russia and Saudi Arabia are pushing for higher output. However, some analysts are of the opinion that the increase in production would be smaller than expected.
Upcoming Events:
- 09:00 AM GMT – (EUR) ECB President Draghi Speaks
- 01:30 PM GMT – (USD) Building Permits
- 01:30 PM GMT – (USD) Housing Starts
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- 11:45 PM GMT – (NZD) Current Account
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