Search ForexCrunch
  • MSCI’s index of Asia-Pacific shares, ex-Japan, drops 0.15%.
  • Japan’s NIKKEI up 0.40% so far during their first trading day of the week.
  • US diplomats again alleged China over virus outbreak, shot trade warnings.
  • Chinese exports register notable gains, BOE, US Jobless Claims on the radar.

Return of the Japanese traders after three-day holidays fail to generate any major action during the pre-Europe session on Thursday. The early-Asian risk-off sentiment, mainly led by the US-China tussle, seems to gradually wind down ahead of the key BOE and US Jobless Claims. Also challenging the rush to risk-safety could be China’s trade figures for April.

US President Donald Trump fired additional shots towards the much important US-China trade deal and the White House statement expressed “frustration and disappointment” from trade relations with China.

Additionally, US Secretary of State Mike Pompeo took the risk to reiterate China’s role in global coronavirus (COVID-19) outbreak while also cited readiness to check Hong Kong’s autonomy. It’s worth mentioning that China doesn’t like US meddling into their  “internal” matters and its Hong Kong affair office said, on Wednesday, that the central government will ensure “one country, two systems” principle maintained.

Following the initial risk-off, the markets trade sentiment catch a breath after China’s April month trade figures flashed upbeat data.

The early-Asian risk-off dragged US 10-year Treasury yields from three-week top to again below 0.70% whereas US stock futures also register losses by the press time.

Over the counter, stocks in Australia fail to benefit from the upbeat Aussie/China trade data amid trade war fears whereas those from New Zealand and Japan seem to cheer the signals of further easing. Furthermore, Indian shares join hands with Hong Kong and Indonesia while flashing mild losses amid mixed sentiment.

Moving on, the BOE-led “Super Thursday” also offers US Jobless Claims to make traders even busier. While the “Old Lady” is less likely to offer any policy change, the Quarterly Inflation Report (QIR) will be the key to watch. Additionally, US Jobless Claims may recede further from multi-million tops and can witness 3000K addition versus 3839K prior.

It should also be observed that tomorrow is the key NFP data and Japan’s entry will keep markets active during the rest of the week.