Forex Marketz Daily Forex News – Fully Markets Update
The headline financial equity markets in the Asian and Pacific Rim were slightly lower or mixed by the afternoon hours on Monday.
Traders are optimistic about the preliminary trade deal between the United States and China but volume is thin going into the Christmas holiday.
In Japan, the Asian benchmark, the Nikkei 225 was trading near the flat line by lunchtime. In Tokyo, the broader Topix index fell about a quarter of a percent.
In Hong Kong, shares on the Hang Seng index were flat.
Elsewhere in the Asian and Pacific Rim, the Australian ASX 200 was down 0.34 percent as shares of major mining companies were all trading in the red.
In China, the Shanghai composite fell 0.47 percent and the smaller Shenzhen composite was down 0.87 percent. The Shenzhen component fell over half a percent.
Asian Traders Digest Tariff Reductions News between China and the United States
Firstly, on Friday, data showed that the U.S. gross domestic product (GDP) was slightly higher in the third quarter.
U.S. Consumer spending, for the month of November, was up. This patch of positive data could reinforce the Federal Reserve’s argument to remain neutral with monetary policy.
Trader sentiment was boosted thanks to positive trade headlines. Over the weekend, U.S. President Donald Trump said that he has a good phone call with China’s leader Xi Jinping. Trump said that it was “a very good talk” about the preliminary trade deal between the two nations.
This is a sign that talks are progressing nicely and the agreement in on track to be finalized.
Traders and the financial markets still want more details that are within the agreement. Both sides are relaxing tariffs. The United States has already cancelled he tariffs that would have gone into effect on December 15.
The U.S. has also said that they will reduce tariffs in phases. China will purchase more agricultural goods and are reducing tariffs on goods starting January 1.
China’s top lawmaking body has just criticized the defense bill that the United States passed on December 9. The said this bill is “interference” in internal Chinese matters.
