Forex Marketz Daily Forex News – Fully Markets Update
Asian and Pacific Rim markets were higher to start the week but traders are digesting recent comments out of the United States , which capped gains. President Donald Trump says that he is not ready to sign a trade deal with China. Treasury yields also moved higher after plummeting lower last week.
The Asian benchmark, in Japan, the Nikkei 225, was up 0.65 percent. Shares of FamilyMart were up 11.25 percent. The Topix index, in Tokyo, added over half a percent.
In South Korea, the Kospi composite index was up 0.72 percent. Elsewhere in the Asian and Pacific Rim, the Australian ASX 200 was up about three quarters of a percent.
On Saturday, the People’s Bank of China announced that they will improve the mechanism used to for loan. These loans are set to the prime rate. The PBOC said that they will “use market-based reform methods to help lower real lending rates.” They are trying to insulate their economy as activity slows thanks to the ongoing trade war with the United States.
The Shanghai composite added 1.47 percent after lunch. The smaller Shenzhen composite was up 2.44 percent and the Shenzhen component soared 2.39 percent.
Asian Traders digest Recent Trade Comments and the FOMC Minutes are now in Focus
Traders are waiting on the Federal Open Market Committee (FMOC) to publish their monetary policy meeting minutes. The FOMC minuets are scheduled for Wednesday and could show that that the Federal Reserve is not as dovish as everyone thinks.
Traders are also monitoring commentary out of this week’s Federal Reserve’s Jackson Hole symposium. Traders are still pricing in about a 70 percent chance of a 25 basis point rate cut at the FOMC’s meeting in September.
Overnight, President Donald Trump held a press conference. He said that he was not ready to make a trade deal with China. Also, he considers Huawei a threat to national security. He also said that a new trade deal with China is being made more difficult thanks to the ongoing protests in Hong Kong.
