In Asian Equity Markets Japanese stocks rose on Tuesday, with the Nikkei touching a five-month high, as investors hoped that the new prime minister could spur a recovery with improved measures to tackle the coronavirus crisis and its economic impact. The Nikkei index ended up 0.86 percent at 29,916.14 and the broader Topix jumped 1.09 percent to 2,063.38. Mainland Chinese shares extended gains, with the Shanghai Composite rising 0.8 percent, helped by Chinese trade data showing both exports and imports grew much faster than expected in August. MSCI’s ex-Japan Asian-Pacific index was flat.
In Currency Markets the dollar found support on Tuesday as investors awaited a ECB meeting and U.S. data to gauge the policy outlook, while the Aussie blipped briefly higher after the Reserve Bank of Australia stuck with its tapering plans. The greenback held the euro below $1.19 at $1.1872, was steady on the yen at 109.79 per dollar. The dollar index sat at 92.200. The RBA stuck with plans to taper its bond buying but said it would extend the timeline as the economy struggles with coronavirus lockdowns, triggering a brief rise in the currency to $0.7469 before it eased back to support at $0.7420.
In U.S., Equity Markets were closed in observance of Labor Day.
In Commodities Markets oil prices stabilised after sharp falls following Saudi Arabia’s slashing of prices of all crude grades to Asian customers, while leaving prices to northwestern Europe and the United States steady. Brent edged up 0.1 percent to $72.70 a barrel, while U.S. crude was flat at $69.32. Spot gold was little changed at $1,823.59 per ounce. Silver was steady at $24.70 per ounce after hitting a near one-month high on Monday. Platinum fell 0.6 percent to $1,019.86, while palladium fell 0.4 percent to $2,412.96.
In European Equity Markets stocks climbed on Monday to end near record levels, led by technology stocks which rose to their highest this year as a surprise rise in German factory orders pointed to improving global demand and boosted sentiment. The pan-European STOXX 600 index rose 0.7 percent to 475.19, just below its all-time high of 476.16 hit on Aug. 13. German stocks rose 1.0 percent after a rise in July German factory orders boosted sentiment by suggesting there was strong demand for goods from Europe’s biggest economy.
In Bond Markets euro zone sovereign bond yields were stuck around seven-week highs on Monday amid rising expectations of inflation as markets remained on edge over a possible slowdown in the pace of ECB bond-buying in the months ahead. Germany’s benchmark 10-year Bund yield matched Friday’s seven-week high at one point before easing 1 basis point to -0.368 percent. Its 30-year Bund yield was at around 0.14 percent, also near highs hit on Friday. France’s 10-year bond yield briefly rose to 0.001 percent, moving back into positive yield territory for the first time since mid-July. It was last at -0.025 percent.