News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Asian Stocks Mixed As Trade Drags. Firmer Oil Boosts Energy Names

Asian Stocks Mixed As Trade Drags. Firmer Oil Boosts Energy Names

David Cottle, Analyst

ASIAN STOCKS TALKING POINTS:

  • Asian stocks were mixed thanks to trade worries and oil price gains
  • New Zealand exports were revealed to have put in a strong performance
  • Chinese May industrial profits just failed to match the previous month’s vigor

Get trading hints and join our analysts for live, interactive coverage of all major economic data at the DailyFX Webinars

Asian stocks were mixed once again on Wednesday with trade worries still crimping risk appetite. Energy stocks still managed to advance, however, as oil prices gained.

Crude supply faced disruptions in both Canada and Libya while the US administration said that all countries dealing with it should stop imports of Iranian oil by November to comply with sanctions.

The Nikkei 225 was down 0.3% in the middle of the Tokyo afternoon, with mainboards in Shanghai, Hong Kong and Seoul lower by broadly similar amounts. Australia’s ASX 200 bucked the trend, lying in the green but only by a whisker.

There was very little movement in currency markets. The US Dollar inched up from two-week lows, but slipped back a little against the Japanese Yen in rather listless trading. The Australian Dollar took a little knock following May data which showed Chinese corporate profits holding up, but slowing from the previous month.

Meanwhile its New Zealand cousin got a boost from strong domestic export data, but was held back by yet another very weak business confidence reading. The Reserve Bank of New Zealand will announce its June monetary policy decision on Thursday. No change is expected to the record-low, 1.75% Official Cash Rate but it looks as though any accompanying statement will now be on the dovish side, which may weigh further on the currency.

Going Down: New Zealand Dollar Vs US Dollar, Daily Chart.

NZD/USD remains in the downtrend dominant since mid-May on its daily chart, a milder continuation of the sharper falls seen since April. Suspicions that the RBNZ won’t offer bulls much comfort have seen it test recent support, although it remains above those levels as Wednesday’s Asian trade winds down.

Gold prices slipped a little through the session.

Still to come on the data schedule are US durable goods orders, its trade balance and also mortgage application levels. Central Bank watchers can look to London where Bank of England Governor Mark Carney will be talking about the latest Financial Stability Report.

RESOURCES FOR TRADERS

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES