[ad_1]
© Reuters. PHOTO FILE: A man appears on an electronic board showing a chart analyzing recent developments in the Nikkei stock market index outside a broker in Tokyo
By Andrew Galbraith
SHANGHAI (Reuters) – Asian equities compounded their losses on Tuesday against the backdrop of a further deterioration in the tariff war between Sino and the United States, although US President Donald Trump's statements that it is safe for the future Expected success of trade negotiations helped stabilize feelings.
China announced Monday it would impose higher tariffs on $ 60 billion of US goods after Washington's decision to raise its own taxes on $ 200 billion of Chinese imports.
The widest index of the MSCI index, composed of shares of the Asia-Pacific outside Japan, fell 0.9% in the middle of the morning , after reaching its lowest level since January 30th.
Trump said on Monday that trade talks with China would "give a lot of success" to the Asian media. This raised US equity futures by 0.5% as sentiment remained fragile.
Kerry Craig, global market strategist at JP Morgan Asset Management, said global sales could continue.
"Politicians may be willing to focus less on the impact of the market until the situation worsens, making the quick resolution of the current break in the negotiations simply unclear. the basis of market movements, "he said.
"In addition, as there is no clear timetable for meetings between Chinese and US traders, markets will likely be more volatile."
Asian markets were held back by the decline in Chinese equities, with the MSCI China index falling 1.3%. However, the Chinese CSI300 first-order index rose 0.3% in volatile trade.
Australian stocks lost 1.1%, while the Japanese stock index lost 0.7%.
The Office of the US Trade Representative announced Monday it plans to hold a public hearing next month on the possibility of imposing duties of up to 25% on additional imports of $ 300 billion from China .
Tariff escalation has shaken global markets, even as Trump had announced that he would meet with Chinese President Xi Jinping next month.
On Monday, the decline of 2.38% to 25,324.99, the loss of 2.41% to 2,811.87 and the decline of 3.41% to 7,647.02.
As investors flocked to safe haven assets, US Treasury yields remained close to their six-week lows on Tuesday morning, though they rose as a result of Trump's comments. The latest benchmark yielded 2.4174%, against a US close of 2.405% Monday.
The two-year yield, which increases with traders' expectations for higher federal funds rates, rose to 2.1986% after closing in the United States by 2.193%. But CME Group data (NASDAQ 🙂 continued to show that more than 70% of the chances that the Fed will drop rates by the end of 2019.
After a prior reversal, 10-year US yields were higher than three-month Treasury bills. A sustained reversal of this part of the yield curve preceded every US recession of the last 50 years.
On Monday, some traders feared that China, the largest US creditor, would be able to get rid of its Treasury bonds to counteract the toughening of the Trump government's trade policy. But most analysts have downplayed this possibility.
"If China started to sell (Treasury bills), both sides of US policy against China would be galvanized and the Fed would be sent to the market to buy bonds," McKenna Macro strategist Greg McKenna said. a note addressed to his customers.
"This would broaden its balance sheet but allow it to neutralize China's efforts to disrupt US financial markets, so I doubt they will try to sell Treasury securities."
After an earlier decline against the yen, the dollar strengthened by 0.25% against the Japanese currency to settle at 109.57.
The single currency was up 0.1% on the day to 1.1231 dollar, while the, which follows the greenback versus a basket of six major rivals, was slightly above 97.352.
Commodity markets were a cause for concern, but confidence improved by 0.1% to $ 61.11 per barrel. was stable at $ 70.25 a barrel.
Gold gave up gains after rising earlier in a context of more general nervousness in the market. was down 0.1% at $ 1,298.63 an ounce. [GOL/] earned 1.7% to $ 7,945.49.
Chart: Asian Stock Exchanges – https://tmsnrt.rs/2zpUAr4
[ad_2]
Source link