Asian stocks were mainly in the red overnight as trade war concerns continue to hit the region. Despite reports of a 21% increase in Chinese industrial profits year on year, the Shenzen composite lost a percent point 39, the Hang Seng 0.6 and the Nikkei, 0.3%. The Yuan is down 3% for the past 2 weeks, and the yen is up 0.18% this morning – especially thanks to Monday night’s increased inflation data.
And New Zealand last night posted and excellent trade surplus that doubled to $294mn in May – not that it helped business confidence. THAT was down to -39 in June.
EuropeEuropean markets yesterday were less than brilliant, the Dax now down a thousand points for the last 10 days. German Auto stocks are down on US trade tariffs, with Daimler down 2.3% and BMW another 1.5.
The pound was up a tad after mortgage approvals increased by a thousand requests in May. And the FTSE ended up point 3-7 of a percent as buyers exploit recent share drops. By the close of the Asian session, though, the UK currency was down point 12 of a percent
USThe US last night went to bed with threats of Trump taxing motor-bike legend Harley Davidson if it moves production abroad. Equities yesterday showed a slight recovery, with the S&P up by a fifth of a percent and the NASDAQ 0.4.
Home prices increased by 6.6%, disappointing investors, who had expected an increase.
CommoditiesGold is down another point 3 percent as investors continue to bet on the US dollar in the present trade war climate. The metal is now down to a 6-month low as the US federal reserve continues to increase interest rates.
The American Institute for petroleum reported a 9.2mn barrel withdrawal, pushing West Texas Crude up from $64 a barrel to over 70. Back wind has been provided by the US administration’s demand that allies cease importing oil from Iran. It’s the first time WTI has crossed the 70 mark since May.