On Monday , Asian Indices cautious start as markets count down to a likely cut in U.S. interest rates this week with much riding on whether or not the Federal Reserve signals yet more are in the pipeline.
U.S. and Chinese trade negotiators also meet in Shanghai this week for their first in-person talks since a G20 truce last month, but expectations are low for a breakthrough.
Data out over the weekend showed profits earned by China’s industrial firms contracted in June, fuelling concerns that the bruising trade war will drag on economic growth.
Interest rate futures are fully priced for a quarter-point rate cut from the Fed on Wednesday, with only a small chance of a half-point move.
The dollar hit a two-month peak on a basket of currencies at 98.010,The dollar got a helping hand from White House economic adviser Larry Kudlow who on Friday said the Trump administration had “ruled out” intervening to push it lower.
The euro stood at $1.1130 , just above last week’s two-year trough around $1.1102, while the dollar held firm on the yen at 108.64.
Sterling was pinned near 27-month lows around $1.2375 amid reports the government of Prime Minister Boris Johnson was preparing the ground for a “no-deal” Brexit.
Spot gold was a fraction firmer at $1,419.86 per ounce, supported by low bond yields globally.
Oil prices drifted down in early trade pressured by the usual concerns about over supply and slowing world demand.
Brent crude futures eased 36 cents to $63.10, while U.S. crude lost 20 cents to $56.00 a barrel.
Comments