In Asian Equity Markets stocks declined in Wednesday morning trade amid fresh concerns over the outlook for the global economy. Mainland Chinese stocks declined in early trade, with the Shanghai composite falling 0.84 percent. Meanwhile, the Hang Seng index in Hong Kong declined 0.7 percent as shares of Tencent and HSBC declined. In Japan, the Nikkei 225 declined 0.63 percent in morning trade as shares of index heavyweight Fanuc fell more than 0.7 percent. South Korea’s Kospi slipped 0.27 percent.
In Currency Markets the safe-haven yen held most of its recent gains on Wednesday as investor caution prevailed due to fresh global trade tensions and as the International Monetary Fund downgraded its global economic outlook. The dollar was basically unchanged at 111.17 yen, paring a slight loss earlier. The U.S. unit has fallen almost two-thirds of a percent from a more than three-week high of 111.825 yen brushed on Friday last week. The Aussie was essentially unchanged at $0.7128 after coming off a more than two-week high during the previous session.
In Commodities Markets oil prices crept higher on Wednesday, supported by supply cuts by producer club OPEC and U.S. sanctions against oil exporters Iran and Venezuela, but restricted by expectations that an economic slowdown could soon dent fuel consumption. International benchmark Brent futures were at $70.66 per barrel, up 5 cents from their last close. U.S. West Texas Intermediate (WTI) crude oil futures were at $64.10 per barrel, up 12 cents, or 0.2 percent, above their last settlement.
In US Equity Markets trade-sensitive industrials dragged Wall Street lower on Tuesday as tensions over tariffs between the United States and its European trading partners went from simmer to boil and the IMF lowered its global growth outlook. All three major U.S. stock indexes finished the session in the red, with the S&P 500 ending its eight-day rally. The S&P 500 lost 0.61%, to 2,878.2 and the Nasdaq Composite fell 0.56%, to 7,909.28. Among winners, Facebook Inc rose 1.5% after Morgan Stanley upped its price target, citing growing revenues from its Instagram segment.
In Bond Markets U.S. Treasury yields slid on Tuesday amid renewed concerns about a trade dispute between the United States and the European Union, as well as worries about the global economic outlook after the International Monetary Fund reduced growth forecasts for 2019. The IMF warned that growth could slow further due to trade tensions and Britain’s potentially disorderly exit from the EU. U.S. 10-year note yields fell to 2.49%, slightly down from 2.51% late on Monday.