In Asian Equity Markets the Nikkei 225 fell 1.09 percent as the dollar extended its losses against the Japanese currency. Major exporters traded lower, with the electric appliances sector falling 0.86 percent and automakers declining. Financials, however, recorded sharp gains, with Mitsubishi UFJ Financial Group up 4.17 percent. Meanwhile, Chinese equities also tracked lower in early trade, with the Shanghai composite edging lower by 0.63 percent while the smaller Shenzhen composite lost 0.91 percent.
In Currency Markets the US dollar fell against the yen and other major peers on Monday after U.S. President Donald Trump expressed discomfort with the greenback’s strength and global finance leaders ended a weekend meeting with little consensus on how to resolve multiple disputes over U.S. tariff actions. Against the yen, the dollar fell for the third day to a low of 110.85 yen, its weakest level since changing hands at 110.77 yen on July 11. It was last off about 0.4 percent at 111.06 yen. Against the euro, the dollar slipped 0.2 percent to $1.1742.
In Commodities Markets oil prices fell on Monday because of increasing concerns about fuel demand after finance ministers and central bank governors from the G-20 warned that global economic growth risks have increased amid rising trade and geopolitical tensions. Brent crude fell 18 cents, or 0.3 percent, to $72.89 a barrel. U.S. West Texas Intermediate (WTI) futures declined 13 cents, or 0.2 percent, to $68.13 a barrel. Drillers cut 5 oil rigs in the week to July 20, bringing the total count down to 858, Baker Hughes energy services firm said in its closely followed report on Friday.
In US Equity Markets stocks ended slightly lower on Friday as escalating trade anxieties driven by U.S. President Donald Trump’s latest tariff threats against China offset a string of robust earnings led by Microsoft. Shares of Microsoft Corp hit a record high and ended the session up 1.8 percent on the heels of a strong second-quarter earnings beat. Microsoft’s advance provided the biggest support to the S&P 500 and the Nasdaq. the S&P 500 lost 0.09 percent, to 2,801.83 and the Nasdaq Composite fell 0.07 percent, to 7,820.20.
In Bond Markets the U.S. yield curve reached its steepest level in more than three weeks on Friday afternoon as President Donald Trump criticized the speed of the Federal Reserve’s pace of interest rate hikes. The 30-year Treasury bond yield was up 6.6 basis points from Thursday’s close to a session high of 3.03 percent. The yield on the benchmark 10-year note was as high as 2.90 percent, up 5 basis points from its last close. At the short end of the curve, the 2-year note yield increased by 1.2 basis points from Thursday’s close at 2.60 percent.