Most Asian Stocks Sink Again, Trade Headlines Still Drive Action
Asian Stocks Talking Points:
- Asian stocks put in a mixed showing
- Trade tensions were once again very much to the fore
- The US Dollar made modest gains thanks to its now usual haven bid
The DailyFX Third-Quarter Fundamental and Technical Forecasts are out now,
Global trade worries continued to weigh on Asia Pacific stock markets as a new week got under way. The current, apparent impasse in trade talks between Canada and the US is not held to be a very optimistic indicator for the much tricker deals which will need to be done to head off a US/China trade war.
With the US still consulting about a further $200 billion of tariffs against Chinese imports, there was also plenty of nervous focus on Emerging Market currencies. Many of these have struggled hard against the US Dollar in recent weeks as investors increasingly fret about their ability to service Dollar-denominated debts in an era of rising US interest rates. Indonesia’s Rupiah remains under a bit of pressure on this score.
The Dollar was broadly higher Monday, benefitting a little from perceived haven status as risk appetite slipped. The morning’s economic data came from Australia and China. It wasn’t all bad, but the more timely numbers such as Australia’s job-advertisement tally were weaker than expected and AUD/USD headed South.
The UK Pound was looking sorry for itself too as some of last week’s relative Brexit optimism faded out. In fact Sterling is showing clear signs of topping out well short of its previous significant daily chart peak, which was the $1.3215 set on July 26.
There are plenty of items left on Monday’s economic data schedule but in truth few of them will be of much consequence to investors. Manufacturing PMIs out of the UK and Mexico may rate a look, however
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--- Written by David Cottle, DailyFX Research
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