Global Markets:
• Asian Stock Markets : Nikkei down 0.04%, Shanghai Composite up 0.14%, Hang Seng down 0.16%, ASX down 0.53%
• Commodities : Gold at $1304.15 (+0.08%), Silver at $15.78 (+0.11%), Brent Oil at $60.41 (+1.00%), WTI Oil at $52.49 (+0.96%)
• Rates : US 10-year yield at 2.746, UK 10-year yield at 1.277, Germany 10-year yield at 0.206
News & Data:
• (NZD) Trade Balance 264M vs 225M expected
• (CNY) CB Leading Index m/m 1.30% vs 0.80% previous
• (EUR) Private Loans y/y 3.30% vs 3.40% expected
• (EUR) M3 Money Supply y/y 4.10% vs 3.80% expected
• More Chinese provinces cut growth targets this year as gloom spreads
• May Faces Losing Control Over Brexit Despite Gamble on Backstop
Markets Update:
Asian shares stumbled on Tuesday and the dollar hovered near two-week lows as prospects for a long-awaited Sino-U.S. trade deal was dealt another blow after the United States leveled sweeping criminal charges against China’s telecom giant Huawei.
The Justice Department announced the charges on Monday, accusing Huawei of stealing trade secrets from T-Mobile. Acting Attorney General Matthew Whitaker confirmed during a press conference that the Justice Department is seeking the extradition of Meng from Canada. In response to the incident, China said the indictment against the telecom giant is “unfair and immoral,” Reuters reported citing a spokesman at the Industry and Information Technology Ministry. The news dealt a blow to the prospects of a long-awaited Sino-U.S. trade deal, as the two sides prepared to hold another round of trade discussions this week in Washington. Chinese Vice Premier Liu He is set to meet the U.S. delegation led by Trade Representative Robert Lighthizer on Wednesday and Thursday.
Japan’s Nikkei 225 trading flat. ANA Holdings Inc made headlines after Reuters reported the company said it was considering an order of Boeing jets. Japan is reportedly facing pressure from U.S. President Donald Trump’s administration to cut its trade surplus with the U.S. The mainland Chinese markets, watched in relation to Beijing’s ongoing trade war with Washington, slipped by the morning session’s end. The Shanghai composite up by 0.1 percent and the Shenzhen component slipped 0.4 percent. Meanwhile, Hong Kong’s Hang Seng index shed 0.2 percent. The ASX 200 in Australia slipped more than 0.5 percent, with most sectors seeing losses.
Slowdown fears slugged the U.S. dollar which faltered to its lowest in two weeks on Monday. The dollar’s index, which measures the greenback against a basket of major currencies, was last at 95.758. Against the safe haven Japanese yen, the dollar was down at 109.17, on track for a third straight session of losses. Elsewhere, Sterling dithered against the dollar ahead of voting in Britain’s parliament on Tuesday that aims to break the Brexit deadlock.
Upcoming Events:
• 09:00 AM GMT – (EUR) Spanish Unemployment Rate
• 04:00 PM GMT – (USD) CB Consumer Confidence
