In Asian Equity Markets indices were mixed on Tuesday, while investors looked toward to a meeting between U.S. President Donald Trump and Chinese President Xi Jinping set to happen later in the week. Mainland Chinese stocks declined in early trade, with the Shanghai composite falling 0.43% and Shenzhen component falling 0.51%. In Hong Kong, the Hang Seng index fell 0.32%. The Nikkei 225 in Japan fell fractionally in morning trade, while the Topix rose 0.26%. Over in South Korea, the Kospi was 0.3% higher.
In Currency Markets the U.S. dollar on Tuesday remained shackled by the prospects of monetary easing by the Federal Reserve while the safe-haven Swiss franc and gold were supported by simmering tensions between Washington and Tehran. The euro hit a three-month high of $1.14065 in early Asia trade. It has gained 2.0% from a two-week low of $1.1181 touched a week ago as the dollar has lost steam. The dollar was on the defensive against the yen at 107.35 yen, a tad above Friday’s five-month low of 107.045.
In Commodities Markets oil prices were steady on Tuesday, supported by worries over conflict between Iran and the United States but pressured by concerns about a potential decline in demand for crude. Brent crude futures were up 3 cents at $64.89 a barrel. They fell 0.5% on Monday. U.S. crude futures were down 3 cents at $57.87 a barrel. The U.S. benchmark rose 0.8% in the previous session. Brent rose 5% last week and U.S. crude jumped 10% after Iran shot down a U.S. drone on Thursday in the Gulf, adding to tensions stoked by attacks on oil tankers in the area in May and June.
In US Equity Markets indexes were flat on Monday, as losses in healthcare stocks offset gains in the technology sector, while investors awaited a high-stakes meeting between U.S. and Chinese leaders at the G20 summit later this week. Countering gains, the healthcare sector dropped 0.41%, weighed down by a 5% decline in shares of Celgene Corp and a 7% fall in those of Bristol-Myers Squibb Co. United Technologies Corp gained 1.4% after Cowen & Co upgraded the building and aerospace supplier to “outperform” from “market perform”.
In Bond Markets U.S. Treasury yields fell on Monday, holding just above almost three-year lows, ahead of trade talks between the U.S. and China later this week.Benchmark 10-year notes were last up 11/32 in price to yield 2.028 percent, down from 2.066 percent on Friday. The Treasury Department will sell $113 billion in coupon-bearing supply this week, including $40 billion in two-year notes on Tuesday, $41 billion in five-year notes on Wednesday and $32 billion in seven-year notes on Thursday.