Global Markets:
- Asian Stock Markets : Nikkei down 2.55%, Shanghai Composite down 1.46%, Hang Seng down 2.36%, ASX down 1.05%
- Commodities : Gold at $1227.80 (+0.26%), Silver at $14.58 (-0.08%), Brent Oil at $79.49 (-0.43%), WTI Oil at $69.14 (-0.32%)
- Rates : US 10-year yield at 3.175, UK 10-year yield at 1.521, Germany 10-year yield at 0.453
News & Data:
- (AUD) CB Leading Index m/m 0.20% vs 0.10% previous
- (CAD) Wholesale Sales m/m -0.10% vs 0.10% expected
- (EUR) German Buba Monthly Report vs previous
- (JPY) All Industries Activity m/m 0.50% vs 0.40% expected
- Italy May Force the EU to Issue an Unprecedented Budget Rebuke
- Pound's Brexit Swing Threatens to Rip Up BOE's Inflation Outlook
Markets Update:
Asian stock markets are in negative territory on Tuesday following the lackluster cues overnight from Wall Street amid rising geopolitical tensions around the world and on worries about Italy's budgetary woes as well as Brexit. The recent tension surrounding the murder of Jamal Khashoggi, and Saudi Arabia’s isolation in the international space, along with upcoming sanctions on Iran have also caused some unrest in the markets.
The Greater China markets were in negative territory after seeing strong gains over the last two sessions. Hong Kong's Hang Seng index fell 2.36 percent while the Shanghai composite shed 1.46 percent and the Shenzhen composite declined by 1.76 percent. The Japanese market is notably lower, tracking the mixed cues from Wall Street and a stronger safe-haven yen amid rising geopolitical tensions.
Investors are also cautious as they focus on several upcoming corporate earnings results due this week. In Japan, the Nikkei 225 was down 2.44 percent while the Topix index fell 2.36 percent. Australia's ASX 200 was down 1.05 percent with the heavily-weighted financial sector falling 1.2 percent and the energy subindex lower by 3.05 percent
Oil prices fell on Tuesday after Saudi Arabia pledged to play a "responsible role" in energy markets, although sentiment remained nervous in the run-up to U.S. sanctions against Iran's crude exports that start next month. Saudi Arabia has pledged to keep markets supplied despite its increasing isolation over Khashoggi's killing, easing fears Riyadh may use oil production as its diplomatic weapons.
Upcoming Events:
- 11:30 AM GMT – (GBP) MPC Member Haldane Speaks
- 04:20 PM GMT – (GBP) BOE Gov Carney Speaks
- 06:30 PM GMT – (USD) FOMC Member Bostic Speaks
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