In Asian Equity Markets indices mostly rose in Monday morning trade after U.S. President Donald Trump and Chinese President Xi Jinping agreed to hold off on slapping additional tariffs in an effort to resume trade talks. The Shanghai composite added 1.74%. Hong Kong’s Hang Seng index, on the other hand, slipped 0.28% amid protests in the city on the anniversary of its return to Chinese rule. In Japan, the Nikkei 225 jumped 1.64% in morning trade, with shares on index heavyweight and robot maker Fanuc raising more than 2%. Australia’s S&P/ASX 200 rose 0.58%.
In Currency Markets the U.S. dollar fell on Friday after U.S. economic data confirmed the likelihood of a July interest rate cut, although foreign exchange markets seemed on hold as investors awaited the meeting between the United States and China at the G20 summit in Japan. As result, the dollar reaction to the data was limited and it last traded 0.1% lower at $1.1381, though it has fallen by around 1.7% in the past couple of weeks. The euro was on track for its biggest monthly gain in 17 months on the back of broad-based dollar weakness.
In Commodities Markets oil prices rose more than $1 a barrel on Monday after Saudi Arabia, Russia, Iraq backed an extension of supply cuts for another six to nine months ahead of an OPEC meeting this week. Front-month Brent crude futures for September touched an intraday high of $66.14 a barrel and were up $1.12, or 1.7%, at $65.86 a barrel. The OPEC and its allies look set to extend oil supply cuts until at least until the end of 2019 as top producers on Sunday endorsed a policy aimed at propping up the price of crude.
In US Equity Markets stocks advanced on Friday, with the S&P 500 and the Dow on track for their best June in generations, ahead of the much-anticipated trade talks between U.S. President Donald Trump and his Chinese counterpart Xi Jinping at the G20 summit now underway in Japan. The S&P 500 gained 0.35%, to 2,935.3 and the Nasdaq Composite added 0.22%, to 7,985.45. Constellation Brands Inc reported better-than-expected quarterly results and raised its full-year guidance due to healthy beer demand, sending its shares up 5.5%.
In Bond Markets U.S. Treasuries were little changed on the day on Friday as investors waited on talks between the United States and China on Saturday for signs that leaders will de-escalate a trade war that has been blamed for harming global economic growth. Yields have hovered around 2% level after falling to an almost three-year low of 1.974% last week, after the U.S. central bank signaled interest rate cuts as soon as July to battle growing global and domestic economic risks.