Asia Market News
In Asia stocks gave up a five-day winning streak on Tuesday as investors took stock of a rally driven by hopes that central banks will provide more stimulus to offset a likely downturn triggered by Brexit. The Nikkei fell 1.0% to 15,620.11 in midmorning trade after gaining 5.5% in the course of its six day rally. Chinese stocks rose, with the CSI 300 up 0.3%, while the Shanghai Composite added 0.6%, buoyed in part by a private business survey which showed growth in the services sector jumped to an 11-month high.
Currency Market News
The Australian dollar fell on Tuesday as the central bank held steady and analysts speculated that easing could lie ahead, while the perceived safe-haven yen got a lift from worrying signs in China’s service sector. The Aussie initially pulled away from session lows when the Reserve Bank of Australia kept policy steady, but then it fell 0.3% to $0.7507. The USD/JPY was down 0.5% at 102.03 yen, while the EUR/JPY fell 0.8% to 113.51 yen. GBP/USD was 0.3% lower at $1.3247, while the EUR/USD was down 0.2% to $1.1126.
Commodity Market News
Crude oil prices fell in early trading on Tuesday, with Brent falling back below $50 per barrel as economic concerns took centre stage with many analysts saying oil demand will stall later this year. International benchmark Brent crude oil futures were trading at $49.95 per barrel, down 15 cents from their last settlement. U.S. West Texas Intermediate crude futures were down 39 cents at $48.60 a barrel. Spot gold was down 0.6% at $1,346.60 an ounce.
US Market News
US Market was closed due to public holiday.
Bond Market News
Italian government bonds rose on Monday as worries about the country’s banks and some 20 billion euros of issuance in the region this week combined to brake a post-Brexit tumble in regional borrowing costs. The yield on Italy’s 10-year government bond rose 2 basis points to 1.17 percent, pulling away from more than one-year lows hit on Friday at around 1.04 percent. Spanish 10-year yields were flat at 1.15 percent, while Portuguese 10-year yields fell 5.6 percent to just below 3 percent.
Economic Calendar
- 09:30 GMT+1 UK Services PMI
- 11:00 GMT+1 UK BOE Gov Carney Speaks
- 19:30 GMT+1 US FOMC Member Dudley Speaks