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Markets Update: APAC Stocks Mostly Negative as Risk Appetite Constrained by US-China Talks
Today's important market events:
United States Holiday - Juneteenth
No major events recorded/expected.
Tomorrow (Tuesday, 20 Jun):
German PPI for May, US Building Permits for May, while BoE Gov Bailey Speaks.
Global Markets Roundup: 19 June 2023
Asian stocks were mostly negative on Monday, following last Friday's losses on Wall Street. Risk appetite was also contained as markets digested the outcome of the US-China talks. The meeting between US Secretary of State Antony Blinken and Chinese Foreign Minister Wang Yi was said to be candid, substantive, and constructive.
However, it did not yield any breakthroughs. European equity futures were indicative of a lower open, with the Euro Stoxx 50 down 0.7%. The US dollar index (DXY) was contained, while the euro and pound were trading near 1.09 and 1.28, respectively. The yen was leading the majors, while the Australian dollar and New Zealand dollar were lagging.
The ASX 200 bucked the trend, rising 0.3%, as strength in the defensive, financial, and tech sectors offset losses in mining-related stocks.
The Nikkei 225 was subdued, falling 0.2%, while the Hang Seng and Shanghai Composite were both down 0.5%.
The decline in Chinese markets came as Goldman Sachs, Nomura, and UBS all cut their Chinese GDP forecasts for 2022.
The downgrades came amid concerns about the impact of the country's zero-COVID policy on the economy.
US equity futures were also mixed, with the S&P 500 futures down 0.1% and the Nasdaq 100 futures up 0.1%.
The mood in the markets is likely to remain cautious ahead of the release of key economic data from China, including GDP and industrial production.
In FX, the dollar was rangebound amid the US holiday weekend and ahead of Fed Chair Powell's testimony in Congress from mid-week.
The euro was little changed on a 1.09 handle, while the pound was also flat against the dollar.
The yen was slightly stronger, while the Australian dollar and New Zealand dollar were both weaker.
In commodities, crude oil prices were pressured amid the risk aversion and a pullback in WTI from resistance at USD 72/bbl.
Spot gold traded flat alongside an uneventful dollar and with US participants away on Monday.
Copper futures trickled lower with demand dampened by the cautious mood and China growth concerns.
Looking ahead, highlights include the European Central Bank's (ECB) SOMA purchases and speeches from ECB policymakers. US markets are closed for a holiday.
The meeting between Blinken and Wang was the first high-level US-China meeting since President Joe Biden took office.
The two sides discussed a range of issues, including trade, climate change, and the war in Ukraine.
The talks were seen as a positive step, but there is still a long way to go before the US and China can resolve their differences.
The market reaction to the talks was mixed. Some investors were encouraged by the fact that the two sides were able to have a constructive dialogue, while others were disappointed that there were no major breakthroughs.
Overall, the mood in the markets is cautious as investors await more clarity on the outcome of the US-China talks.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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