Global Markets:
- Asian Stock Markets : Nikkei down 0.63%, ASX up 0.34%
- Commodities : Gold at $1210.00 (+0.25%), Silver at $14.81 (+0.76%), Brent Oil at $84.85 (+0.06%), WTI Oil at $75.22 (-0.01%)
- Rates : US 10-year yield at 3.071, UK 10-year yield at 1.526, Germany 10-year yield at 0.422
News & Data:
- (AUD) Building Approvals m/m -9.40% vs 1.00% expected
- (NZD) GDT Price Index -1.90% vs -1.30% previous
- (GBP) Construction PMI 52.1 vs 52.8 expected
- Trade pact clause seen deterring China trade deal with Canada, Mexico
- Shop Prices Rise As Retailers Brace For ‘No-Deal’ Brexit
Markets Update:
Asian stock markets are mostly lower on Wednesday following the mixed cues overnight from Wall Street amid worries about rising U.S.-China tensions. Concerns about Italy's budget plan and news that Indonesia's rupiah fell to a new 20-year low also dampened sentiment. Italy will reduce its budget deficit to 2 percent of gross domestic product (GDP) by 2020 from the earlier announced 2.4 percent, local newspaper Corriere Della Sera reported, a pledge that boosted the euro.
The Nikkei 225 slipped by 0.64 percent in the morning, while the Topix index declined by 0.56 percent. Shares of major Japanese automakers fell, with Toyota falling by 2.36 percent while Honda saw losses of 3.18 percent. The Australian market is modestly higher following the mixed cues from Wall Street amid lingering worries about rising U.S.-China tensions. Higher metals prices lifted mining stocks, while upbeat local economic data also boosted sentiment.
Generally, sentiment was still jittery though even as a new U.S.-Mexico-Canada trade agreement appeared to ease global trade tensions. A controversial clause in the trilateral pact put the focus back on the Sino-U.S. tariff dispute. Chinese markets have taken a hammering this year as investors fretted the trade dispute could put a significant dent on growth.
The dollar's index, which measures the greenback against a basket of major currencies, was last at 95.314, pulling back from six-week highs of 95.744 set on Tuesday. Gold traded near its highest level in more than a week as investors sought refuge in the safe haven after equity markets weakened. Oil prices held close to four-year highs on supply worries due to Washington's sanctions on Iran.
Upcoming Events:
- 09:30 AM GMT – (GBP) Services PMI
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