Asian Stocks Weaken On Wall St Lead Despite US-China Trade Deal
- Asian stocks wilted thanks to Wall Streets’ weak lead
- Local data was completely absent, leaving markets to chew over older themes
- The US Dollar slipped a little against the Yen, but remains up for the week
What will drive Asian Markets into 2017’s second half? Check out the DailyFX Quarterly Forecasts
Asian markets were broadly weaker Friday following a weak US lead and worries about retailers as US giant Macey’s posted woeful results.
News of a trade deal between China and the US failed to lift the mood much. The Nikkei slipped by 0.4%, with Australia’s ASX down 0.7%. The Kospi shed 0.5%. Chinese stocks were more mixed, with Shanghai and Hong Kong indexes higher and Shenzhen down by a whisker.
Unusualy there wasn't any first-tier Asian data for markets to ge their teeth into. German growth came in exactly as expected for the year's first quarter however.
The US Dollar eased back from eight-week highs against the Japanese Yen, but remains well up for the week, and is doing even better for the last four. However, markets are now looking forward to US data to see the extent to which they support the idea that one more interest rate rise will come, assuming that investors’ near certainty that rates will rise in June bears fruit.
Crude oil prices were steady with international benchmark Brent still above $50/barrel, reportedly as traders now expect production cuts to extend beyond the middle of this year.
Gold prices inched up as the US Dollar tracked lower. Investors are reportedly eyeing the US and possible fallout of President Donald Trump’s dismissal of Federal Bureau of Investigation Director James Comey this week.
The rest of Friday’s global session offers US consumer price data and advance retail sales, along with the University of Michigan’s consumer confidence snapshot and the Baker Hughes oil rig count. Eurozone industrial production is also on tap.
There is sure to be some focus on Bari, Italy, where finance ministers and central bankers from the Group of Seven major industrial democracies are meeting.
--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter: @DavidCottleFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.