ECONOMY
On Tuesday, Asian session investor focus has shifted to the Reserve Bank of Australia (RBA), which is tipped to lower interest rates by 25 basis points to a record low of 1.00% at a meeting later Today.
RBA Governor Philip Lowe will also speak to business leaders in Darwin after the meeting, which could provide clues on how much further interest rates could fall. A Reuters survey showed economists see a chance of another cut to 0.75% by year end.
Just days after reaching a truce in the U.S.-China trade war, the U.S. government on Monday ratcheted up pressure on Europe in a long-running dispute over aircraft subsidies, threatening tariffs on $4 billion of additional EU goods.
The U.S. Trade Representative's office released a list of additional products - including olives, Italian cheese and Scotch whiskey - that could be hit with tariffs, on top of products worth $21 billion that were announced in April.
Reliance Group is looking to lease out its headquarters in one of Mumbai’s prime suburbs, the telecoms to infrastructure conglomerate said, a move that will help the company to raise funds to pay off debt.
CURRENCY
That left the euro mired at its lowest level in more than a week as disappointing economic data triggered a tumble in bond yields and boosted expectations for a central bank rate cut in the common currency bloc. The euro limped into Asian trading on Tuesday, changing hands at $1.1286. The common currency fell 0.7% on Monday, its biggest-one day decline since March.
The dollar index against a basket of six major currencies remained near its highest in a week as sentiment picked up following an agreement between the United States and China to resume talks to resolve their trade war.
The Australian dollar nursed wounds, a day after it posted its biggest one-day fall in more than two months ahead of an expected central bank easing while improved risk appetite supported the greenback.
ENERGY
On Early Tuesday , Oil prices slipped as worries that a weakening global economy would dent demand for the commodity outweighed OPEC’s decision to extend supply cuts until next March.
After 2-1/2 years of production cuts, the effects of rolling over production cuts is losing steam.
The Organization of the Petroleum Exporting Countries (OPEC) agreed on Monday to extend oil supply cuts until March 2020 as the group’s members overcame their differences in order to try to prop up the price of crude.
OPEC is slated to meet with Russia and other producers, an alliance known as OPEC+, later on Tuesday to discuss supply cuts amid surging U.S. output.
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