BETWEEN TRADE TALK PROSPECTS CHINA INDUSTRIAL PROFIT ASIAN INDICES MIXED
- fxmethods
- Nov 27, 2019
- 2 min read
On Wednesday , In Asian opening session indices mixed as more upbeat signals from China-U.S. trade talks fanned hopes of an imminent end to tariff hostilities, which helped offset concerns about a slowing U.S. economy.The positive mood pushed Wall Street indexes to fresh record closing highs on Tuesday and stoked confidence in early Asian trade.
The latest data published by China’s National Bureau of Statistics (NBS) showed that profits earn by China’s industrial firms in October plunged by 9.9% YoY vs. a 5.3% sharp drop seen in September. It marked the biggest fall in profits since 2011.
The rally in U.S. Treasuries moderated across most of the curve, with benchmark 10-year notes yielding 1.75%, up from their U.S. close of 1.74% on Tuesday. The two-year yield, watched as a guide to market expectations of Fed policy, rose to 1.5939% compared with a U.S. close of 1.586%.
In currency markets, the dollar strengthened 0.09% against the yen to 109.13 and the euro was slightly weaker, buying $1.1018. The Dollar Index, which tracks the greenback against a basket of six major rivals, was up 0.04% at 98.21. PBOC sets Yuan reference rate at 7.0349.
Oil prices retreated after rising Tuesday on reassuring trade headlines. U.S. West Texas Intermediate crude was down 0.31% at $58.23 per barrel.
Gold was lower, changing hands at $1,467 per ounce on the spot market .
Donald Trump said on Tuesday that the United States and China are close to agreement on the first phase of a trade deal after top negotiators from the two countries spoke by telephone and agreed to keep working on remaining issues. But while Trump said Washington was in the "final throes" of work on a trade deal with Beijing, he also underscored U.S. support for protesters in Hong Kong, seen as a sore point for Beijing.
Economic data from the U.S., which showed a fourth straight monthly contraction in consumer confidence and an unexpected drop in new home sales.
U.S. bond yields on Tuesday also pointed to more mechanical explanations beyond trade for rising equity prices.
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