ECONOMY
On Wednesday , Asian Indices tracked Wall Street’s slide as the latest developments in the U.S.-China trade conflict fanned fresh fears about global growth, driving support for safe-haven government bonds. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3%, stooping to its lowest level since late March.
Wall Street stocks slid on Tuesday, with the S&P 500 losing 1.65% and the Dow shedding 1.8% on the U.S.-China trade concerns.
Beijing said on Tuesday that Chinese Vice Premier Liu He will visit the United States on Thursday and Friday for trade talks. Additional tariffs are set to take effect on Friday if a trade agreement is not reached by then.
It is difficult to imagine the two parties resolving their differences in just two days of talks. The markets may have to begin pricing in the trade conflict as a long-term factor once again.
Venezuela will allow local banks to open foreign currency trading platforms as part of a loosening of the OPEC nation's exchange controls, according to a central bank resolution published on Tuesday. Government bond prices surged and their yields slid sharply as investor panic took a toll on growth asset markets.Benchmark 10-year yields on U.S. Treasuries and German bunds sank to one-month lows.
CURRENCY
The Dollar Index against a basket of six key rivals was last a shade lower at 97.560, having ended the previous session with a gain of 0.1%.
Yen in particular has drawn steady support from a flight-to-safety bid in recent days, though moves in foreign exchange markets have been relatively orderly compared with those in equity markets.
The euro was little changed at $1.1191 after ending the previous day nearly flat.
The Australian dollar was unchanged at $0.7010. The Aussie gained 0.35% the previous day after the Reserve Bank of Australia defied expectations for an interest rate cut, keeping rates unchanged at 1.5%.
Reserve Bank of New Zealand cuts key interest rate to 1.50%, NZD slumps to 0.6550.
COMMODITY
U.S. West Texas Intermediate crude futures nudged up 0.28% to $61.57 per barrel, trimming some of its losses after sinking 1.36% on Tuesday. Crude oil prices had dropped as renewed U.S.-China trade worries stoked concerns of slower global growth crimping demand for commodities. Expectations that U.S. crude stockpiles could hit fresh 19-month highs also weighed on oil.
Gold longs ought to be thankful to China as both good or bad news about the People's Republic helps the yellow metal get a bid.
Biodiesel production accounts for an increasing share of soybean oil use in the United States, currently representing about 30% of domestic soybean oil disposition. Soybean oil is the most commonly used vegetable oil for biodiesel production, and inputs reached 7.1 billion pounds during the latest soybean oil marketing year.
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