In Asian Equity Markets indices were lower Friday morning after a surprise tariff announcement from the United States escalated trade tensions between Washington and Beijing. The Shanghai composite fell 1.68%, the Shenzhen component declined 1.87%. Over in Hong Kong, the Hang Seng index declined 2.25% as shares of Chinese tech giant Tencent fell 2.54%. The Nikkei 225 in Japan declined 2.36% as shares of index heavyweight and robot maker Fanuc fell 3.72%. In South Korea, the Kospi declined 0.91%.
In Currency Markets the Japanese yen hit a more-than-one month high against the dollar and multi-year peaks against antipodean currencies on Friday after U.S. President Donald Trump broke a truce in the Sino-U.S. trade war, bolstering demand for safe-havens. Against the dollar, the yen was little changed at 107.490, just below 107.105, which was the highest since June 26. On Thursday, the dollar fell 1.3% against the yen, its biggest daily decline since May 2017. The yen was also poised to rise versus the South Korean won.
In Commodities Markets oil prices rose more than $1 on Friday, rebounding from their biggest falls in years after U.S. President Donald Trump imposed more tariffs on Chinese imports, intensifying the trade war between the world’s two biggest economies and crude consumers. Brent crude futures fell more than 7% on Thursday, their steepest decline in more than three years. U.S. West Texas Intermediate (WTI) crude futures fell nearly 8%, posting its worst day in more than four years.
In US Equity Markets indices fell again on Thursday, abruptly reversing early gains after U.S. President Donald Trump put concerns about the U.S.-China trade war back in the spotlight, tweeting that he would impose an additional 10% tariff on $300 billion in Chinese imports. The S&P 500 lost 0.90%, to 2,953.56 and the Nasdaq Composite fell 0.79%, to 8,111.12. Shares of Yum Brands Inc jumped 3.9% after beating analyst profit and sales expectations on better-than-expected growth at all its restaurant chains, which include Taco Bell and Pizza Hut.
In Bond Markets the U.S. Treasury market rallied on Thursday with 10-year yields tumbling to their lowest levels since November 2016, as U.S. President Donald Trump’s threat to slap more duties on Chinese goods touched off a stampede for safe-haven government bonds. The yields on benchmark 10-year Treasury notes were 12.60 basis points lower at 1.89% which was their steepest single-day decline since May 29, 2018. Ten-year yields touched 1.876% at one point after Trump’s tweet on tariffs, marking their lowest level since Nov. 9, 2016 – the day after Trump’s surprise presidential win.