In Asian Equity Markets indices traded higher on Thursday morning as shares on Wall Street saw a record close overnight. Shares in mainland China gained in early trade, with the Shanghai composite and Shenzhen component fractionally higher. The Shenzhen composite also rose 0.144%. In Hong Kong, the Hang Seng index advanced 0.24%. The Nikkei 225 rose 0.35% in morning trade, while the Topix gained 0.53%. In South Korea, the Kospi advanced 0.31%, while Australia’s S&P/ASX 200 added 0.67%.
In Currency Markets the U.S. dollar fell to a one-week low against the Japanese yen on Wednesday, weighed down by declining U.S. Treasury bond yields, fading optimism over the China-U.S. trade deal, and the possibility of fresh tariff hostilities with Europe. Against a basket of six currencies, the dollar eased from Tuesday’s two-week highs to trade little changed on Wednesday at 96.765. The euro, meanwhile, was little changed at $1.1283 following a volatile session on Tuesday.
In Commodities Markets oil prices inched lower on Thursday after solid gains the day before, pressured by data showing a smaller-than-expected decline in U.S. crude stockpiles. Front-month Brent crude futures, the international benchmark for oil prices, were down 0.4% at $63.60 per barrel. Brent closed up 2.3% on Wednesday U.S. WTI crude futures were down 0.3% at $57.18 per barrel. WTI closed up 1.9% on Wednesday. U.S. crude inventories fell by 1.1 million barrels last week, the EIA said on Wednesday. That compared with analyst expectations for a decrease of 3 million barrels.
In US Equity Markets stocks rose on Wednesday, with each of the major indexes closing at a record high, as expectations grew that the Federal Reserve would take a more dovish turn as a raft of data provided more evidence of a slowing economy. The S&P 500 gained 0.77%, to 2,995.8 and the Nasdaq Composite added 0.75%, to 8,170.23. Among stocks, Symantec Corp jumped 13.57%, the most on the S&P, after sources told Reuters that chipmaker Broadcom Inc is in advanced talks to buy the cybersecurity firm. Broadcom fell 3.5%.
In Bond Markets the bond market flashed yet another warning signal for investors on Wednesday that a downturn for the economy may be coming. Despite the S&P 500 hitting new all-time highs, the yield on 30-year U.S. Treasury bonds briefly dipped below the overnight fed funds rate, a signal that has preceded the past five U.S. recessions. The 30-year Treasury yield fell 0.032% on Wednesday to 2.476%, its lowest level since October of 2016.