Oil prices extended to 80 dollars a barrel as Hurricane Florence advanced and U.S. sanctions started weighing on Iran’s exports.
Analyst said oil should be 100 dollars presently.
The months-long escalation in tensions between the world’s two biggest economies has shown no sign of letting up.
U.S. President Donald Trump said on
Tuesday the United States was taking a tough stance with China. That
cemented expectations that fresh levies on Chinese exports will soon be
announced.
Tuesday the United States was taking a tough stance with China. That
cemented expectations that fresh levies on Chinese exports will soon be
announced.
Trump’s comments came after
China told the World Trade Organization (WTO) it wanted to impose seven
billion dollars a year in sanctions on the United States in retaliation
for non-compliance
with a ruling in an earlier trade dispute.
China told the World Trade Organization (WTO) it wanted to impose seven
billion dollars a year in sanctions on the United States in retaliation
for non-compliance
with a ruling in an earlier trade dispute.
Equity markets also faced pressure from
U.S. two-year bond yields which touched a decade peak on Tuesday, partly
spurred by data that provided yet more evidence of the U.S. economy’s
strength.
U.S. two-year bond yields which touched a decade peak on Tuesday, partly
spurred by data that provided yet more evidence of the U.S. economy’s
strength.
That data pushed Wall Street to a strong
close, led by tech and energy shares, but futures signalled U.S. shares
opening flat. European stocks however firmed almost half a per cent,
moving off recent five-month lows.
close, led by tech and energy shares, but futures signalled U.S. shares
opening flat. European stocks however firmed almost half a per cent,
moving off recent five-month lows.
MSCI’s all-country equity index inched up
marginally, looking to extend two sessions of modest gains that had
snapped six straight days of losses. But emerging equities retreated to
new 15-month lows.
marginally, looking to extend two sessions of modest gains that had
snapped six straight days of losses. But emerging equities retreated to
new 15-month lows.
Asian equities excluding Japan hit their lowest since July 2017 after sharp falls in Hong Kong and Shanghai .
Emerging currencies stayed under
pressure. The yuan slipped to 2-1/2 week lows against the dollar,
leading Asian peers lower and keeping the Australian dollar – heavily
linked to Chinese trade – close to its lowest since February
2016.
pressure. The yuan slipped to 2-1/2 week lows against the dollar,
leading Asian peers lower and keeping the Australian dollar – heavily
linked to Chinese trade – close to its lowest since February
2016.
Emerging markets have been the biggest
victims of the trade spats and rising U.S interest rates. An index of
emerging currencies is down almost 7 percent this year.
victims of the trade spats and rising U.S interest rates. An index of
emerging currencies is down almost 7 percent this year.
Emerging markets’ woes have been
exacerbated in many cases by heavy borrowing over the past decade, with
Societe Generale analysts noting that “the misallocation of capital
following a decade of cheap money is starting to be exposed”.
exacerbated in many cases by heavy borrowing over the past decade, with
Societe Generale analysts noting that “the misallocation of capital
following a decade of cheap money is starting to be exposed”.
While the worst hit Turkish lira and
Argentine peso have steadied off record lows, the Indian rupee is
continuing to plumb new troughs, taking year-to-date losses versus the
dollar to more than 12 per cent.
Argentine peso have steadied off record lows, the Indian rupee is
continuing to plumb new troughs, taking year-to-date losses versus the
dollar to more than 12 per cent.
The dollar inched 0.2 per cent lower
against a basket of currencies, as hopes grew of concessions by Canada
that would resolve disputes over reworking the North American Free Trade
Agreement.
against a basket of currencies, as hopes grew of concessions by Canada
that would resolve disputes over reworking the North American Free Trade
Agreement.
Long-dated U.S. bond yields stayed just
off the one-month highs hit on Tuesday after data showing sustained
strength in the jobs market and the Treasury started a record debt sale
amounting to almost 150 billion dollars.
off the one-month highs hit on Tuesday after data showing sustained
strength in the jobs market and the Treasury started a record debt sale
amounting to almost 150 billion dollars.
The rise in U.S. yields has hit Italy. It
has been one of the bright spots in world markets in recent days, as
fears have receded of a government spending binge. But Italian 10-year
yields rose two bps off six-week lows.
has been one of the bright spots in world markets in recent days, as
fears have receded of a government spending binge. But Italian 10-year
yields rose two bps off six-week lows.
The British pound also slipped off
five-week high hit this week against the dollar, as nascent optimism
over a Brexit trade deal with the European Union subsided.
five-week high hit this week against the dollar, as nascent optimism
over a Brexit trade deal with the European Union subsided.
