- Mixed signals concerning the US-China trade developments, Saudi-Iran geopolitical tension weigh on Asian equities.
- Japanese markets are off for Autumnal Equinox Holiday.
- PMI numbers decorate the economic calendar while trade/political headlines keep traders busy.
With the recently mixed trade headlines concerning the Chinese delegates’ visit to the US, coupled with the risk of war between Saudi Arabia and Iran, Asian equities stay mostly in the negative region. However, Japanese traders’ absence and a lack of major data/event on the economic calendar reduces the market reaction off-late. As a result, the MSCI’s index of Asia-Pacific shares ex-Japan flashes nearly half a percent of loss by the press time of pre-EU markets’ open on Monday.
Chinese policymakers marked an early leave from the US, without visiting the US farms, and triggered raw accusations that both the countries’ diplomats again part ways on trade. Though, week-start headlines from the US and China tried filling up the losses while terming the talks as “constructive”.
On the other hand, Houthi rebels warned Saudi Arabia of another attack which got widespread criticism from global leaders and a warning of war from the Oil-rich nation. News concerning the US-UK trade deal in July 2020 and the US Department of Justice’s accusations on China for the increase in thefts of trade secrets was also taking rounds.
While S&P500 recently cheered upbeat comments from China’s farm official, HANG SENG remains under pressure with 0.80% of loss by the time of writing. Further, Australian’s ASX 200 and New Zealand’s NZX50 turned positive as market speculations rise for another rate from the respective central banks whereas India’s BSE SENSEX welcomes the government’s efforts to boost the economic growth.
Moving on, the US 10-year Treasury yields have started recovering recent losses with the latest print being around 1.72%.
Looking forward, monthly purchasing managers’ index (PMI) numbers from the Eurozone, Germany and the US will be the key to watch while policymakers’ comments from the European Central Bank’s (ECB) conference and trade/political news will also entertain traders.
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