Forex Marketz Daily Forex News – Fully Markets Update
The equity bourses in the Asian and Pacific Rim were mixed on Monday. Volume was thin as the financial markets in Japan were closed for a holiday but Asian traders are quality waiting for China and the United States to sign the preliminary trade accord this week.
In South Korea, the Kospi composite index added 0.56 percent by the afternoon. Shares of cosmetic companies rose supporting the overall index.
Elsewhere in the Asian and Pacific Rim, the Australian ASX 200 fell over half a percent as shares of major miners and oil plays lost ground.
In Hong Kong, the Hang Seng index was up 0.28 percent. Shares of technology companies led the way as Lenovo popped two percent.
On the mainland, in China, the headline indices were quiet. The Shanghai composite was down a quarter of a percent by lunchtime. The smaller Shenzhen composite was up 0.11 percent and the Shenzhen component was flat.
Asian Traders wait on Wednesday Trade Deal Signing Ceremony
On Wednesday, China’s Vice Premier Liu He will be in Washington DC to sign the preliminary trade agreement with the United States. This is the first part of a multi-part trade deal between the two countries.
This phase one deal will require China to purchase more U.S. agricultural products, shore up protections for IP rights and open their financial sector to outside investors. China is also agreeing not to be a currency manipulator going forward.
The United States will not proceed with $115 billion of new tariffs. These would have gone into effect on Wednesday. The U.S. will also cut existing tariffs by 15 percent on $120 billion in Chinese goods.
President Trump is also saying that the United States and China will immediately start negotiating phase two of the trade accord. The U.S. President has said, however, that he does not see phase two being done until after the November 20 election.
