In Asian Equity Markets indices were mostly positive on Tuesday as mainland Chinese stocks saw a rebound following comments from the country’s securities regulator. The Shanghai composite rose 0.72 percent while the Shenzhen composite advanced 0.25 percent after a negative start to the day’s trading session. The moves in mainland Chinese stocks came after the country’s securities regulator said it would improve market liquidity and guide more long-term capital into the market. Meanwhile, Hong Kong’s Hang Seng index fell modestly 0.17 percent by the market’s lunch break.
In Currency Markets the dollar firmed against its rivals on Tuesday, supported by a safe haven bid as rising trade tensions and fears of a slowdown in global economic growth weighed on investors’ appetite for risk assets. The Japanese yen traded flat in Asian trade on Tuesday, having weakened versus the dollar on Monday. The single currency traded relatively unchanged versus the dollar at $1.1374 on Tuesday, having hit a 10-week low of $1.1332 on Monday on news that German Chancellor Angela Merkel would not seek re-election as head of her Christian Democrats (CDU) party.
In Commodities Markets brent oil prices fell on Tuesday, weighed down by ongoing weakness in global stock markets and by signs of rising global supply despite looming sanctions on Iran’s crude exports. Front-month Brent crude oil futures were at $77 a barrel, down 34 cents, or 0.4 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $67.08 a barrel, little changed from their last settlement. Oil was also being weighed down by signs of rising supply from top producers.
In US Equity Markets stocks fell in a volatile session on Monday, with the benchmark S&P 500 index ending close to confirming its second correction of 2018, hurt by fresh worries about U.S.-China trade policy tensions and a sharp decline in the big technology and internet shares. The S&P 500 lost 0.66 percent, to 2,641.25 and the Nasdaq Composite fell 1.63 percent, to 7,050.29. The industrials sector, which is seen as sensitive to trade issues, fell 1.7 percent, with Boeing Co falling 6.6 percent.
In Bond Markets yields on U.S. Treasury bonds fell modestly on Monday afternoon after stocks took a nosedive on a report that President Donald Trump was preparing more tariffs on imports from China. The 10-year note yield fell modestly on the news, last at 3.083 percent, up less than half a basis point from the open. The 30-year bond yield made similar moves, slightly up for the day at 3.324 percent.