Asian Stocks Mostly Lower, US China Trade Talks In Nervous Focus
Asian Stocks Talking Points:
- Mainboards were broadly lower across the region
- Trade worries were to the fore again, with Brexit also glowering
- The Dollar edged down too, with Federal Reserve dovishness still very much in play
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Asian stocks had a scrappy session Friday, with Wall Street gains offering an initial lead which was in turn eroded as doubts seemed to grow about next week’s trade talks between the US and China. Brexit of course continues to weigh on sentiment too.
The US Dollar inched lower against a basket of its major traded rivals with the British Pound higher on news that the European Union had agreed to let Prime Minister Theresa May have more time to bring her Brexit deal before Parliament again.
EUR/GBP remains in the downtrend which has marked trade this year.
The Euro has shown some fight this week, but it remains in some danger of making a lower low on its daily chart, so trade for the remainder of Friday may be instructive.
The local economic data slate was sparse, with probably the most important release coming in the form of Japanese inflation figures. These displayed their customary weakness, however, with core prices rising just 0.7% on the year in February.
Still to come Friday are various Purchasing Managers Index figures from around Europe and the US. Official Canadian inflation data are coming up too, as are details of US existing home sales.
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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.