In Asian Equity Markets Japanese shares edged higher, with the benchmark Nikkei 225 adding 0.31 percent as the telecommunications sector gained 1.8 percent to lead gains. South Korea’s Kospi, meanwhile, tacked on 0.32 percent. Technology traded higher, with Samsung Electronics higher by 1.86 percent, while financials and retailers came under pressure. Hong Kong’s Hang Seng Index rose 0.78 percent. Energy and services led the advance as casino stocks climbed, with Galaxy Entertainment up 1.69 percent and Sands China rising 2.7 percent.
In Currency Markets the pound stayed fragile on Tuesday after falling to an 11-month low against the dollar overnight on worries over a ‘hard’ Brexit from the European Union, while simmering U.S.-China trade tensions provided support to the greenback. Sterling fell as far as $1.2920 overnight, its lowest since early September, before making up some losses. It stood at $1.2942. The dollar stayed firm on Tuesday, with the index against a broad basket of currencies steady at 95.345. The offshore yuan last traded at 6.8625 yuan per dollar.
In Commodities Markets oil prices rose on Tuesday ahead of the introduction of U.S. sanctions against major crude exporter Iran. Spot Brent crude oil futures were at $73.88 per barrel on Tuesday, up 13 cents, or 0.2 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were up 1 cent at $69.02 barrel. U.S. sanctions against Iran, which shipped out almost 3 million barrels per day (bpd) of crude in July, are set to begin on Tuesday. Many countries, including U.S. allies in Europe as well as China and India oppose the introduction of new sanctions.
In US Equity Markets the S&P 500 rose on Monday as results from Berkshire Hathaway boosted optimism about a strong earnings season, and Facebook lifted the tech-heavy Nasdaq index after a report it was planning new services. The S&P 500 gained 0.36 percent, to 2,850.55 and the Nasdaq Composite added 0.53 percent, to 7,853.70. The finance sector’s biggest contributor was Berkshire Hathaway Inc, which was up 2.6 percent after the Warren Buffett-led conglomerate reported a 67 percent surge in quarterly operating profit.
In Bond Markets U.S. Treasury yields fell on Monday, with the 10-year yield hitting a two-week low on safe-haven demand stemming from the trade conflict between United States and China, the world’s two largest economies. Bids for less risky Treasuries came ahead of this week’s August refunding where the government will sell $78 billion in coupon-bearing securities. The U.S. Treasury Department will sell $34 billion in three-year notes on Tuesday; $26 billion in 10-year debt on Wednesday and $18 billion in 30-year bonds on Thursday.