Forex Marketz Daily Forex News – Fully Markets Update
The Asian and Pacific Rim headline equity indices were higher, by Wednesday afternoon, during the Asian trade session. Regional traders are monitoring a number of headlines including positive developments between China and the United States.
The Asian benchmark, in Japan, the Nikkei 224 was up 0.48 percent. The broader Topix index, in Tokyo, was up 0.32 percent.
In South Korea, the Kospi composite index was down a fraction. South Korea has asked Japan to remove, or stop the plan, of placing South Korea on the white list for minimum trade restrictions.
On the mainland, in China, the headline indices turned higher after lunch. The Shanghai composite added was up over one percent and the smaller Shenzhen composite gained 1.39 percent. The Shenzhen component was up 1.29 percent.
In Hong Kong, the benchmark Hang Seng index was up 0.93 percent.
Asian Traders look at a number of Global Risks from Rate Cuts to the Middle East
The markets are pricing in a 100 percent probability that the Federal Open Market Committee (FOMC), the monetary policy arm of the Federal Reserve, will cut its Fed Funds rate by 25 basis points on July 31.
The European Central Bank is expected to cut its rate by 10 basis points tomorrow and signal more easing to occur at their September meeting. The Turkish central bank is also expected to slash rates when they meet this week.
According to the United States, A U.S. Navy warship took defensive action against a second Iranian drone. This is according to the Pentagon on Tuesday. This event occurred last week, in the Strait of Hormuz. However, the ship did not see the drone go into the water.
In trade news, U.S. Trade Representative Robert Lighthizer and senior U.S. officials will travel to China on Monday. The U.S. trade team will meet with Chinese officials to discuss trade issues.
