ASIA STOCKS PESSIMISTIC ON TUESDAY
Asian shares looses stream on Tuesday on renewed fear out Sino-U.S. trade war further protests in Hong Kong horde investors to safe docks like bonds, gold, and the Japanese yen. The MSCI’s broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) lost 1% while Hong Kong’s (HSI) index tumbled more than 1% .
AUSTRALASIA ECONOMY NEEDS STIMULUS RATE CUTS & CURRENCY DROP ARE TOOLS- RBA
The policy makers in Australia supports the back-to-back interest-rate cuts which said to provide support to the ailing financial system and the economy further falling currency should provide a similar stimulus. It has contributed in the reducing cost of funding in corporate bond markets , equity prices and lowered cost of funding for banks.
OIL PRICES KEEP CALM NEAR $55
Oil prices remained subdued in Asian market as depressed forecasts for the global economy and oil demand growth weighed over the sentiments.
EUROPEAN STOCK MARKET CLOSED LOWER ON TRADE WAR JITTERS
European stocks lost grounds on Monday and closed with mild losses. The investors remained risk averse on escalations in the U.S.-China trade war. The pan-European Stoxx 600 closed lower by 0.3%. Investors will also have an eye on political developments in Italy along with some important economic data in Euro zone today.
BORIS JOHNSON IN POWER OVER BREXIT OVER PUBLIC SUPPORT
In the latest developments a poll by ComRes suggest that Boris Johnson remained in strong position on holding his agenda of Brexit as has the support of more than half of the public to deliver Brexit by any means which also includes suspending of Parliament. About 54% cent of British adults think Parliament should be shut down for MPs to stop a no-deal Brexit.
US EQUITY CLOSED AT ITS WORST ON CONCERN OVER HONG KONG DEVELOPMENTS
U.S. stocks closed in red due to global economic concerns and ongoing violent protests in Hong Kong fueled investors anxiety. The Nasdaq -95.73 points or -1.20% at 7,863.41, the S&P fell about -1.22% or -35.96 points to 2,882.70 and the Dow Jones Industrial Average was closed down 391 points, or -1.50%, at 25,896.44.
PLUNGE IN 30-YEAR US TREASURY YIELD SPOOKED MARKET’S SENTIMENTS
The rate on 30-year Treasury long term-bonds reached to an all-time low since July 2016 and closed in its record low of 2.0882% on Monday due to global economic concerns, prolonged US-China trade war and ongoing violent protest in Hong Kong has shaken the bond market and pushed the US equity market. As a result, it increases the demand for precious and other base metals. However, the city’s airport reopened on Tuesday after Monday’s protests. At the time of writing, the 30-year Treasury bond yield TMUBMUSD30Y, is trading above +0.47% ended at 2.14%.
Download report by clicking below: