Asian Stocks Fall As Brexit Turmoil Adds To Global Growth Worries
Asian Stocks Talking Points:
- Asia Pacific mainboards were all weaker Wednesday
- Worries related to Brexit exacerbated falls
- The US Dollar was steadier, however, as was Sterling.
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Asian stock markets were broadly lower on Wednesday as the rejection by the UK Parliament of the latest Brexit deal brought all the uncertainties around that vexed issue back to the foreground in the region.
The UK is still on course to leave the European Union at the end of this month, so headlines from London and Brussels on this issue are of course closely eyed. Concerns about global growth were already rising given the list of weaker economic numbers emanating from developed economies everywhere, augmented this session by the fastest fall in Australian consumer confidence since late 2017. Now the very real prospect of a no-deal Brexit looms, although that may yet be avoided.
The UK Pound traded more narrowly in the Asian session having slipped in Europe and North America. The US Dollar was steadier too, despite disappointing consumer price data. GBP/USD remains unsurprisingly volatile and vulnerable.
However, it seems to have fairly strong support at last week’s low in the $1.2970 region which in turn forms the top of a support range dating back to early February.
Gold prices benefitted from a haven bid as investors worried about what Brexit might do to those already dubious developed-market growth prospects. Crude oil prices also rose as Saudi Arabia trimmed exports and forecasts for US output were also reduced.
The day’s likely remaining data highlight will probably be the durable goods order release from the United States, with official crude oil inventory levels also due from the Department of Energy. The US mortgage application count is also coming up, as are industrial production data from the Eurozone.
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--- Written by David Cottle, DailyFX Research
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.