Forex Marketz Daily Forex News – Fully Markets Update
The financial markets during the Asian trade hours, on Monday, were quiet during the early hours. Asian traders are digesting overnight commentary from U.S. Federal Reserve Chairman Jerome Powell.
He said that a vaccine for the Covid-19 (coronavirus) pandemic will be needed for their economy to fully recover.
In Japan, the Nikkei 225 was up 0.16 percent and the broader Topix index, in Tokyo, added a fraction of a percent.
In South Korea, the Kospi composite index was mostly flat and shares on the Hang Seng index, in Hong Kong, were down 0.28 percent.
Elsewhere in the Asian region, the Australian S&P ASX 200 was up 0.96 percent.
In China, on the mainland, the Shanghai composite fell 0.2 percent and the smaller Shenzhen composite added 0.48 percent by the end of the morning.
Asian Traders Digest Fed Commentary and U.S. Retail Sales
Yesterday, Federal Reserve chairman Jerome Powell said that the economic recovery could stretch deep into 2021. Powell also said, during his television interview, that a vaccine is desperately needed.
Powell went on to say that the economy will need three to six more months of government monetary and fiscal assistance, as well.
For the month of April, retail sales in the United States declined for the second month in a row. This was another record declined as the Covid-19 has battered the U.S. economy.
The U.S. is on track for its largest economic contraction, in the second quarter, since the Great Depression.
Traders Monitor U.S. and China Political Tensions
A U.S. economic adviser in the White House said that the “Phase One” trade deal reached between the United States and China back in January is still being expanded and not falling apart.
However, U.S President Donald Trump said that he was “not thrilled” with the agreement and not interested in more negotiations.
On Sunday, China’s commerce ministry said that they were opposed to the latest rules initiated by the United States against Huawei. China said they would do what is necessary to protect the interests of Chinese businesses as well as their rights and interests.
