[ad_1]
By Tomo Uetake
TOKYO (Reuters) – Asian stocks began uncertain on Monday, as investors were cautious ahead of a meeting under close scrutiny by the Federal Reserve, as political tensions in the Middle East and Hong Kong limited stock prices. risk appetite.
MSCIAsia-Pacific's broader equity index outside Japan <.MIAPJ0000PUS> slightly lower and little changed, while the Japanese average Nikkei <.N225> stood flat.
Wall Street stocks ended lower on Friday as investors became cautious ahead of the Fed meeting this week, a Broadcom warning about slowing demand was weighing on chip makers and added to trade concerns between states United States and China.[.N]
"The coming week should provide investors with clarity on three fronts that are sources of uncertainty. the FOMC the meeting, with updated forecasts, is at the center of our concerns, "said Marc Chandler, chief market strategist at Bannockburn Global Forex.
A private gauge on the eurozone's manufacturing sector as well as trade friction between the United States and China will also be closely monitored, said Chandler.
Financial markets have been losing ground since the sudden escalation of Sino-US trade tensions in early May as investors increasingly fear that a prolonged stalemate could tip the global economy into recession.
In addition to tensions between the world's two largest economies, US Secretary of State Mike Pompeo told Fox News Sunday that US President Donald Trump would raise human rights issues in Hong Kong with the president. Chinese Xi Jinping at a possible meeting of the two G20 summit leaders in Japan later this month.
On Sunday, hundreds of thousands of protesters dressed in black in Hong Kong asked Beijing-backed city leader Carrie Lam to resign for having drafted a law allowing extradition to China. has earned rare excuses.
Geopolitical tensions in the Middle East have added a new layer of uncertainty to investors after the United States accused Iran of attacking two oil tankers in the Gulf of Oman the week before. last.
The hope that the world's central banks maintain open room has eased some of the fears, and all eyes are on the Fed's two-day meeting, which begins on Tuesday.
Strong US data on retail sales released on Friday reduced the Fed's rate cut forecast at this week's meeting to 21.7 percent, up from 28.3 percent on Thursday, according to estimates. CME The FedWatch tool of the group. But the odds of easing at the July meeting remain high at 85%.
The Bank of Japan is also meeting this week and is expected to strengthen its commitment to maintain a mbadive stimulus package for some time.
The retail trade report also sent higher short-term US Treasury yields flattening the yield curve.[L2N23L10H]
10-year reference notes
A Reuters poll showed that a growing number of economists are expecting Fed policymakers to lower their interest rates this year, though the majority still see them as stable.
On the currency markets, the dollar index compared to a basket of six major currencies <.DXY> hit 97,583 on Friday, its highest level in nearly two weeks, after US retail sales eased fears of a marked slowdown in the world's largest economy.
The index was last set at 97.511, while the euro <EUR=> reported $ 1,1220, near the bottom of his weekly trading range.
Oil prices rose on Monday after two oil tankers attacked last week, which caused fears of supply disruptions, but prices remained on track for a weekly loss, fearing that trade disputes would dampen oil prices. global demand for oil. [O/R]
Brent future
Spot gold <XAU=> slowed by 0.1% to $ 1,340.25 the ounce after hitting a 14 – month high on Friday.
Bitcoin <BTC= BTSP> jumped overnight to $ 9,391.85, its highest level in 13 months. It was last quoted at $ 9150.15.
(Report by Tomo Uetake, edited by Shri Navaratnam)
Source link
