Thursday, 14 June 2018

TRADE TENSIONS

In Asia, surprisingly soft Chinese retail sales and investment data had also hit sentiment. China’s central bank then left its interest rates on hold, rather than follow the Fed as it sometimes does..
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS lost 1 percent.

Shares in South Korea .KS11 and Taiwan .TWII fell over 1.8 and 1.4 percent [.T], Japan's Nikkei .N225 dropped 1 percent while mainland China's Shanghai composite index .SSEC hit a 20-month closing low.

Another event markets were gearing up for was the start of soccer’s World Cup in Russia. Russia’s timezones mean there will be more matches during European or U.S. and Latin American trading hours than any previous tournament.

A study done during the last one with similarly timed games, the 2010 finals in South Africa, showed trading volumes on share markets dropped by a third on average when matches were on and 55 percent when a market’s own team played .

U.S. retail sales figures were also due too. S&P 500 .SPX and Dow Jones .DJI and Nasdaq .NDX futures were lifted by the ECB's signals and all pointed to slightly higher restart having been lower earlier.

It saw the dollar kick up a full cent against the euro to $1.1721 and a more modest few pips to 110.13 yen JPY= after earlier falling from a post-Fed three-week high of 110.85.

The dollar index, which tracks it again six top currencies, was swung round to stand 0.3 percent high having been down 0.4 percent .DXY.

Among commodities, China-sensitive industrial metals sagged but gold and other precious metals made ground.

oil prices were little changed, underpinned by a bigger-than-expected decline in U.S. crude inventories and surprise drawdowns in gasoline and distillates, which indicated strong demand in the world’s top oil consumer.

Brent and U.S. crude futures LCOc1CLc1 traded at $76.63 and $66.89 a barrel respectively, to extend their recovery from eight-week lows touched last week.

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