- Trade optimism fades after fresh news from the US.
- UK PM witnessed another disappointment through the Parliament.
- MSCI’s index of Asia Pacific shares follows Wall Street’s footsteps.
Not only increasing uncertainty at the UK’s Parliament but recently downbeat trade news from the US also weigh on Asian equity traders’ confidence during early Wednesday.
While a political limbo in the United Kingdom (UK), followed a “NO” to the program motion, keep Brexit pessimism highlighted, statements signaling the question mark on the US-China trade talk’s next level from the White House Economic Adviser Larry Kudlow exerted initial downside pressure on the equities at Wall Street.
The move was then carried forward by the US Dollar (USD) strength, backed by risk aversion and positive manufacturing data, together with the below-market consensus forecast of current-quarter revenue by Texas Instruments.
During the early Asian session, the news that the US Department of Commerce proposed anti-dumping investigation on China’s aluminum exporters and the International Monetary Fund’s (IMF) degradation of 2019 Asian growth outlook negatively affected the trading sentiment.
With this, the US 10-year treasury yields extend declines to 1.75% while Gold and the Japanese Yen (JPY) recover recent losses.
Also, the MSCI’s index of Asia Pacific shares outside Japan trades more than 0.50% in red while Japan’s NIKKEI clings to 0.10% loss by the press time. Further, Australia’s ASX 200 seesaws near 0.20% in the negative area but New Zealand’s NZX 50 is losing more than 2.00% amid mixed trade balance data and also despite the Reserve Bank of New Zealand (RBNZ) policymaker’s comments favoring further rate cuts. Additionally, Hong Kong’s HANG SENG and India’s BSE SENSEX stay around 1.0% in red while writing.
Moving on, investors will keep a tab over the trade/Brexit headlines amid a lack of major data/events on the economic calendar.
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