Global Markets:
- Asian Stock Markets : Nikkei down 0.29%, Shanghai Composite down 0.06%, Hang Seng up 0.02%, ASX down 0.45%
- Commodities : Gold at $1205.10 (-0.13%), Silver at $14.51 (-0.36%), Brent Oil at $78.07 (-0.10%), WTI Oil at $70.04 (+0.34%)
- Rates : US 10-year yield at 2.860, UK 10-year yield at 1.405, Germany 10-year yield at 0.335
News & Data:
- (AUD) Current Account -13.5B vs -11.1B expected
- (GBP) Manufacturing PMI 52.8 vs 53.9 expected
- Australian dollar jumps against British pound on Brexit talks
- BoJ Offers To Buy JPY 890 Bln Worth Of JGBs
- Iranian rial hits record low at 128,000 to the US dollar
Markets Update:
Asian stock markets are mixed on Tuesday amid continuing worries about rising trade tensions and the sell-off in emerging market currencies, particularly in Argentina and Turkey. The U.S. markets were closed on Monday for the Labor Day holiday. U.S. President Donald Trump said that Canada "will be out" of the North American Free Trade Agreement or NAFTA unless a revised version is "fair" to America – Canada’s dairy protections continue to be a pain point between the two countries.
Trump is also said to be ready to impose tariffs on an additional $200 billion worth of Chinese imports as soon as Thursday. Emergency austerity measures in Argentina underscored the turbulence gripping emerging markets.
Japan's Nikkei 225 was up in the morning after trading down earlier, rising with majority of the major sectors in the positive. However, it reversed trends again to trade 0.3 percent lower. South Korea's Kospi also reversed course to trade up by 0.16 percent. In the Greater China region, Hong Kong's Hang Seng index was flat. Over on the mainland, the Shanghai composite posted losses of 0.6 percent while the Shenzhen composite fell by 0.14 percent.
The Australian market is extending losses from the previous session, with investors cautious ahead of the Reserve Bank of Australia's monetary policy decision due later in the day. Banks and oil stocks are among the major decliners.The yield on benchmark 10-year Treasury notes rose to 2.8622 percent versus its U.S. close of 2.853 percent on Friday. The two-year yield, which rises with traders’ expectations of higher Fed fund rates, touched 2.633 percent compared with a U.S. close of 2.629 percent last week.
The dollar index, which tracks the greenback against a basket of six major rivals, was 0.1 percent higher at 95.253. The Japanese yen trade lost its earlier gains to trade largely flat against the dollar at 111.09 yen while the Australian dollar weakened to around $0.72
Upcoming Events:
- 05:30 AM GMT – (AUD) Cash Rate
- 05:30 AM GMT – (AUD) RBA Rate Statement
- 09:30 AM GMT – (GBP) Construction PMI
- 10:30 AM GMT – (AUD) RBA Gov Lowe Speaks
- 01:15 PM GMT – (GBP) Inflation Report Hearings
- 03:00 PM GMT – (USD) ISM Manufacturing PMI
- Tentative – (NZD) GDT Price Index
