ECONOMY
On Thursday, Asian Indices were stuck in the mixed mood amid worries the USA-CHINA trade conflict was fast morphing into a technology cold war between the world’s two largest economies.
India begins counting hundreds of millions of votes in its general election on Thursday, with a coalition led by Prime Minister Narendra Modi’s party already preparing to form the next government.
Counting of votes begins at 0800 local time (0230 GMT) and trends are expected to be known by noon because of the use of computerized voting machines. Final results in the polls, in which around 900 million Indians were eligible to vote, are due by the evening.
Japan May flash PMI snaps back into contraction as Sino-US trade war escalates
Ratings agency S&P warned in a special report “For China, the key risk is that the combined effects of investment restrictions, export controls, and tariffs will rewire supply chains and weaken manufacturing investment, particularly in the technology sectors driving growth,”
Minutes of the U.S. Federal Reserve’s last meeting out on Wednesday underlined its readiness to be patient on policy “for some time” given the uncertain global outlook.
The chance of a rate cut seemed to diminish as many Fed policy makers saw recent weakness in inflation as “transitory”, though the latest escalation in the trade war means markets are still wagering on an eventual easing.
CURRENCY(BREXIT UNCERTAINTY)
British Prime Minister Theresa May came under intense pressure after her latest Brexit gambit backfired and fuelled calls for her to quit. Prominent Brexit supporter Andrea Leadsom resigned from the government on Wednesday and British media reported May could announce her departure date as early as Friday.
Sterling was the main mover, sliding to a four-month low at $1.2625 before steadying at $1.2660 in Asia.
The dollar fared better on the euro at $1.1153 and was steady on a basket of currencies at 98.09.
The safe haven yen in demand again as the dollar dipped to 110.16 yen and away from the week’s top of 110.67.
Yields on two-year Treasuries of 2.237% are also well below the current effective funds rate at 2.39%.
COMMODITY
Gold And Silver Prices May See "Fireworks" Soon Should Supply Lag Demand, spot gold edged up a touch to $1,273.50 per ounce.
Oil prices were consolidating after falling around 2% overnight as an unexpected build in U.S. crude inventories compounded investor worries about demand. U.S. crude was last down 23 cents at $61.19 a barrel, while Brent crude futures lost 10 cents to $70.73.
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