In Asian Equity Markets Japan’s Nikkei 225 was 0.83 percent higher in morning trade while the Topix index rose 0.18 percent, with shares of Fast Retailing advancing more than 2.9 percent. South Korea’s Kospi was fractionally lower. In Australia, the ASX 200 fell 0.12 percent, with the energy sector up 0.16 percent while the heavily-weighted financial sub-index was down 0.14 percent. The Shanghai composite was trading near flat and the Shenzhen composite fell 0.206 percent. Meanwhile, Hong Kong’s Hang Seng index gained 0.39 percent.
In Currency Markets the Canadian dollar weakened to its lowest in nearly five months against a broadly firmer greenback on Tuesday, as concern about world trade tensions led to fluctuation in financial markets ahead of the G20 Summit this week. The multi-month low for the loonie came after General Motors Co announced on Monday it would close its plant in Oshawa, Ontario, east of Toronto. The U.S. dollar reached two-week highs after Federal Reserve Vice Chair Richard Clarida backed further interest rate hikes, taking a less dovish stance than some investors had anticipated.
In Commodities Markets oil prices rose on Wednesday ahead of an OPEC meeting next week at which the producer club is expected to decide some form of supply cut to counter an emerging glut. U.S. West Texas Intermediate (WTI) crude futures were at $51.88 per barrel, up 32 cents, or 0.6 percent from their last settlement. International Brent crude oil futures were up 44 cents, or 0.7 percent, at $60.65 per barrel. Despite Wednesday’s rise, oil prices have still lost almost a third of their value since early October, weighed down by an emerging supply overhang.
In US Equity Markets stocks made small gains on Tuesday after White House economic adviser Larry Kudlow said a meeting between President Donald Trump and his Chinese counterpart on Saturday was an opportunity to “turn the page” on a trade war. The S&P 500 gained 0.13 percent, to 2,676.99 and the Nasdaq Composite added 0.07 percent, to 7,086.55. Budget airline Spirit Airlines Inc took off, its stock rising 15.8 percent after hiking fourth-quarter unit revenue guidance.
In Bond Markets Treasury yields fell on Tuesday afternoon after $40 billion of new five-year notes were sold to strong demand and on resurgent worries about U.S.-China trade tensions. The Treasury Department sold new five-year notes on Tuesday afternoon in the biggest auction of this maturity since May 2010. Bond issuance has risen steadily this year to pay for President Donald Trump’s tax cuts and spending increases. Strong results today and at the two-year auction Monday could help waylay fears that the increased supply will diminish demand.