In Asian Equity Markets indices traded higher Wednesday as investors look for concrete developments on U.S.-China trade as the threat of increased tariffs looms. Mainland Chinese stocks recovered from an earlier slip to rise by the afternoon, with the Shanghai composite up 0.16% and the Shenzhen component fractionally higher. The Shenzhen composite also rose 0.12%. Hong Kong’s Hang Seng index was fractionally higher. Hong Kong-listed shares of Chinese tech juggernaut Alibaba continued their upward trek as they gained 3.09% following a blockbuster debut on Tuesday. Elsewhere, the Nikkei 225 in Japan rose 0.46%. South Korea’s Kospi also advanced 0.44%.
In Currency Markets major currencies hardly budged on Wednesday as traders looked ahead to the final outcome of U.S.-China trade talks and a shortened holiday week in the United States. Against the yen the dollar was traded at 109.05 yen, off two-week high of 109.205 touched on Tuesday amid mild optimism that Washington and Beijing could soon sign a deal to put a hold on their 16-month trade spat. The euro stood at $1.1023, little changed so far this week. Trade is slowing down ahead of the Thanksgiving holiday on Thursday in the U.S., before which some major players will have wind down most of their trade for the year.
In Commodities Markets oil prices rose on Tuesday after news that U.S. and Chinese officials discussed trade, while predictions for a weekly draw on U.S. crude stockpiles lent some support as well. Brent crude futures gained 62 cents to settle at $64.27 a barrel, while West Texas Intermediate crude rose 40 cents to end at $58.41 a barrel. U.S. crude inventories rose by 3.6 million barrels last week to 449.6 million, data from industry group the American Petroleum Institute showed late Tuesday. Analysts forecasts were for a decrease of 418,000 million barrels. Official U.S. data is due to be released on Wednesday.
In US Equity Markets stocks crawled higher on Tuesday, and all three major Wall Street indexes notched record levels, as upbeat comments by President Donald Trump on trade talks eclipsed some softer-than-anticipated economic data. The S&P 500 gained 0.22%, to 3,140.52 and the Nasdaq Composite added 0.18%, to 8,647.93. Walt Disney Co gained 1.30% after a report that its streaming service was averaging nearly 1 million new subscribers a day. In contrast, Dollar Tree Inc fell 15.24% after it projected holiday-quarter profit below estimates, signaling the fallout from the trade dispute.
In Bond Markets U.S. Treasury yields fell alongside British government debt on Tuesday, while expectations that the Federal Reserve will keep rates on hold kept the yield curve near its flattest level in almost a month. U.S. bonds and British gilts rallied after British polls showed the ruling Conservatives as runaway favorites to win the Dec. 12 election with a pledge to implement Brexit and halt 3-1/2 years of political uncertainty. Benchmark 10-year note yields were last 1.741%, down from 1.764% late Monday. The yield curve between two-year and 10-year notes was 15 basis points, after reaching 13 basis points on Monday, which was the flattest level since Oct. 30.