In Asia stocks were weaker as a fall in crude oil prices dampened investors’ appetite for riskier assets, while the recently bullish dollar stalled against the euro and yen following a mixed bag of U.S. economic data. The Nikkei was down 0.6% to 17,130.05 points. Hong Kong’s Hang Seng rose 0.1%. The Caixin/Markit Manufacturing Purchasing Managers’ index (PMI) showed activity at China’s factories shrank for a 15th straight month in May.
In Currency Markets the EUR/USD eased 0.1 percent to $1.1119. The USD/JPY held steady at 110.68 yen. The GBP/USD was steady at $1.4483.
Oil prices fell early on Wednesday as production from the major Middle East exporters was expected to remain high or even increase just as concerns over the state of China’s economy weighed on its fuel demand outlook. International benchmark Brent crude oil futures were trading at $49.59 per barrel, down 0.6 percent, from their last settlement. U.S. WTI crude futures were down 0.47 percent, at $48.87 a barrel. S
In the US stocks, the S&P 500 wrapped up its third straight month of gains on a flat note on Tuesday as weaker energy stocks countered a rise in safe-haven utilities. The S&P 500 lost 0.1%, to 2,096.95. Great Plains Energy Inc (NYSE:GXP) will buy bigger rival Westar Energy Inc (NYSE:WR) for $8.6 billion, the largest deal in the U.S. electricity distribution market so far this year. Westar jumped 6.4%, while Great Plains fell 5.9%. Disney (NYSE:DIS) fell 1.1%. The studio’s latest release, “Alice Through the Looking Glass,” received poor reviews.
In Bond Markets U.S. Treasury debt yields fell from multiweek highs on Tuesday, after U.S. stocks fell following a mixed batch of economic data that dampened expectations for an interest rate increase by the Federal Reserve in June. In late trading, benchmark 10-year Treasury notes were down 2/32 in price for a yield of 1.842 percent, down from 1.854 percent last Friday. U.S. 30-year bond prices were flat to higher on the day, yielding 2.641 percent, compared with 2.649 percent late on Friday. Two-year notes were little changed as well in price, with a yield of 0.878 percent, compared with 0.915 percent late on Friday.
Economic Calendar
09:30 GMT+1 UK Manufacturing PMI
15:00 GMT+1 US ISM Manufacturing PMI
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