Forex Marketz Daily Forex News – Fully Markets Update
Asian and Pacific Rim equity markets were broadly higher as mainland financial markets on the mainland in China led the way.
Asian and regional traders are still showing enthusiasm thanks to the preliminary trade agreement between China and the United States. Today’s December Reserve Bank of Australia monthly monetary policy minutes also left the door open for another pending rate cut.
Also in the headlines, British Prime Minister Boris Johnson is likely to take a tougher stance on Brexit thanks to his commanding election win last week.
In Japan, the headline Nikkei 225 was up 0.47 percent and in Tokyo, the broader Topix index was up 0.45 percent.
In South Korea, the Kospi composite index was up one percent as shares of Samsung Electronics added over three percent. Shares of SK Hynix jumped four percent.
Elsewhere in the Asian and Pacific Rim, the Australian ASX 200 was trading around the flat line.
In China, the Shanghai composite rose about one percent as did the smaller Shenzhen composite. The Shenzhen component gained over one percent.
In Hong Kong, the benchmark Hang Seng index added 1.12 percent as shares of Tencent gained over three percent.
Asian Traders Monitor the RBA Minutes and New Brexit Headlines which cause some Concerns
This morning, the Reserve Bank of Australia, in their monetary policy minutes. The minutes signaled that the RBA monetary policy makers are worried about personal wage growth. This is likely to have a negative impact on inflation and consumption.
In turn, this will lead to weaker economic growth. Along with weakening labor market conditions, the RBA could cut rates again early next year.
Overnight, news reports surfaced that British Prime Minister Boris Johnson, was going to use his commanding election victory to revise the Withdrawal Agreement Bill.
This revision would have, in place, final arrangements for the United Kingdom to leave the European Union in place by December 31 2020. This is according to Britain’s ITV broadcaster.
This development dashes hopes the United Kingdom would be flexible in its approach to leaving the Eurozone at the end of 2020 with a firm trade deal in place. This now looks like this will happen by January 31, 2021.
