ECONOMY
On Thursday , Asian Indices six-week lows as increased tensions ahead of key Sino-U.S. trade negotiations fanned fresh concerns about the outlook for the global economy. Stocks extended earlier losses in Asian trade after President Donald Trump said that China “broke the deal” in trade talks with Washington and would face stiff tariffs if no agreement is reached.
Trump has threatened to raise tariffs to 25% from 10% on $200 billion worth of Chinese imports at 12:01 a.m. ET (0401GMT) on Friday. Beijing has threatened to retaliate if tariffs rise, without elaborating on the details.
Investor focus has zeroed in on trade issues this week with Chinese Vice Premier Liu He expected to try to salvage a deal during negotiations with the United States in
Washington on Thursday and Friday. That would avoid a sharp increase in tariffs on Chinese goods scheduled to take effect on Friday.
Wall Street shares ended a choppy session flat to lower overnight, with the Dow Jones Industrial Average rising marginally, the S&P 500 and the Nasdaq Composite dropping 0.2 percent and 0.3 percent, respectively.
The yield spread between three-month bills and the 10-year notes shrank to 3 basis points, compared with about 15 basis points a few weeks ago. The closely-watched spread turned negative in late March, spooking investors, who read the development as portending a future recession.
CURRENCY
The dollar hovered near a six-week low versus the yen early on Thursday, weighed down against its safe-haven Japanese peer as risk aversion gripped broader markets amid concerns that the U.S.-China trade conflict could escalate.
Sterling weakened on signs that Brexit talks between Britain’s government and the main opposition party may soon collapse. The pound fell below the psychologically key $1.30 level, touching a six-day low overnight, and last traded at $1.301.
The euro was little changed at $1.1189 and the Japanese yen little changed versus the greenback at 109.90 yen.
The New Zealand dollar was up 0.1 percent at $0.6584. The KIWI had slumped to a six-month trough of $0.6525 on Wednesday, when the Reserve Bank of New Zealand (RBNZ) cut interest rates to a record low of 1.5%.
The benchmark 10-year Treasury yield stood at 2.46%, having hit its lowest level in five weeks of 2.426% on Wednesday.
COMMODITY
Oil prices dropped on Thursday amid concerns over the escalating trade battle between the United States and China, despite a surprise fall in U.S. crude stockpiles. Brent crude oil futures were at $69.92 a barrel, down 44 cents, or 0.63%, from their previous settlement. U.S. West Texas Intermediate (WTI) crude futures were at $61.67 per barrel, down 45 cents, or 0.72%, from their last close.
Copper fell to a near three-month low on Wednesday on concerns over a potential resumption of tit-for-tat trade tariffs between the United States and China. Benchmark copper on the London Metal Exchange fell 0.5% to $6,148 a tonne, after touching its lowest since Feb. 15 at $6,119.
Gold steadied on Thursday, with its appeal as a safe-haven for investors burnished by growing tensions ahead of key Sino-U.S. trade negotiations this week.
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