top of page
Search

TRADE DEAL HURT ASIAN MARKET, BONDS ON DEMAND, CRUDE OIL SURGE

  • Writer: fxmethods
    fxmethods
  • Nov 21, 2019
  • 2 min read

  • On Thursday, Asian Indices slid on side way as a fresh row between Washington and Beijing over U.S. bills on Hong Kong could complicate their trade negotiation and delay a "phase one" deal that investors had initially hoped to be inked by now.

  • The minutes from the Federal Reserve's previous policy meeting offered little guidance on what would cause policymakers to change their minds on the outlook after an increasingly divided Fed decided to hit pause in its easing cycle.

  • On Wednesday, The U.S. House of Representatives passed two bills intended to support protesters in Hong Kong and send a warning to China about human rights. The legislation, which has angered Beijing, has been sent to the White House for President Donald Trump to sign or veto amid delicate trade talks with Beijing.

  • Even if he vetoes, that would be difficult to sustain given that the measures passed both the Republican-controlled Senate and Democratic-controlled House with almost no objections.

  • Trump said on Oct. 11 that deal could take as long as five weeks, and investors had initially expected a deal by mid-November. Asked Wednesday about the status of the China deal, Trump told reporters in Texas: "I don't think they're stepping up to the level that I want."

  • Trade jitters sent the 10-year U.S. Treasuries yield down to 1.716% , near its lowest levels in three weeks and down more than 20 basis points from a Nov. 7 peak of 1.973%, a three-month high.

  • Currency market the yuan hit a three-week low of 7.0495 per dollar in offshore trade on Wednesday and last stood at 7.045 yuan per dollar, down about 0.09% in early Asian trade.

  • The dollar slipped against the yen to 108.46 , compared to this week's high of 109.07 touched on Monday.

  • The euro was little changed at $1.1075.

  • Oil prices held firm having surged more than 2% on Wednesday after a better-than-expected U.S. crude inventories report and as Russia said it would continue its cooperation with OPEC to keep the market balanced.

 
 
 

Comments

bottom of page