In Asian Equity Markets stocks bounced back slightly in early trade Monday morning, following a volatile week for global markets last week as growing trade war fears dented investor sentiment. The Shanghai composite traded up 0.26%, while the Shenzhen composite edged up 0.21%. Hong Kong’s Hang Seng index followed suit, rising 0.15%. However, shares of Hong Kong flag carrier Cathay Pacific fell more than 4%, after China demanded it suspended staff who participated in protests from manning flights entering its airspace.
In Currency Markets the U.S. dollar remained on the defensive against the safe-haven yen on Monday as the Sino-U.S. trade dispute looked set to drag on with no settlement in sight, while holidays in Japan and Singapore made for very thin trading. Confusion still lingered after U.S. President Donald Trump on Friday said he was not ready to make a deal with China and even called a September round of trade talks into question. The dollar went the other way against the yen, easing to 105.40 after hitting a seven-month low around 105.25 on Friday.
In Commodities Markets oil prices rose more than $1 a barrel on Friday, supported by a drop in European inventories and OPEC output cuts despite the International Energy Agency reporting demand growth at its lowest since the financial crisis of 2008. Brent crude futures gained $1.15, or 2%, to settle at $58.53 a barrel. U.S. WTI crude futures rose $1.96, or 3.7%, to settle at $54.50 a barrel. The IEA said global oil demand to May from January grew at its slowest since 2008, hurt by mounting signs of an economic slowdown and a ramping up of the U.S.-China trade war.
In US Equity Markets stocks fell on Friday following renewed jitters over the U.S.-China trade war, capping a week of trading that saw big swings and high volume. The S&P 500 lost 0.66%, to 2,918.65 and the Nasdaq Composite fell 1%, to 7,959.14. Shares of Amgen jumped 5.9% after news that a U.S. judge said patents relating to the Amgen’s blockbuster rheumatoid arthritis drug Enbrel were valid, denying a challenge by Novartis AG. Uber Technologies Inc fell 6.8% after the ride-hailing company reported a record $5.2 billion quarterly loss and revenue that fell short of Wall Street targets.
In Bond Markets U.S. Treasury yields rose on Friday amid confusion over the United States policy on trade with China, while political turmoil in Italy compounded investor concerns, capping a volatile week in the bond market. Treasury yields fell for a second week, though they stayed above the multi-year lows set on Wednesday when the yield on the 30-year bond came within striking distance of a record low. Ten-year yields fell for a second week, marking their steepest two-week decline in nearly eight years.