Asia Market News
In Asia stocks turned lower on Wednesday as fears over instability in the European Union returned, sending the pound to three-decade lows and hammering risky assets of all stripes. The Nikkei index fell 3.1% to a more than a week low of 15,190.39 in midmorning trade.
Currency Market News
GBP/USD fell as far as $1.2798, breaking through the previous low of $1.3000 set overnight. It was last down 1.2% at $1.2867. The USD/JPY fell as low as 100.58 yen, pulling back from Friday’s post-Brexit high of 103.40.
Commodity Market News
Crude oil prices fell in Asian trading amid wider market turmoil set off by mounting concerns over the economic impact of Britain’s vote to leave the European Union. U.S. crude was down 23 cents at $46.37 a barrel. The contract fell 5% to end at $46.60 on Tuesday as U.S. investors digested news of an OPEC increase in production after the July 4 holiday on Monday closed trading. Brent futures were down 18 cents at $47.78. On Tuesday they settled down 4.3% at $47.96 a barrel. Spot gold touched its highest since March 2014 at $1,371.40, and was trading up 0.9% at $1,367.20 an ounce.
US Market News
U.S. stocks fell on Tuesday following continued uncertainty in the wake of Britain’s decision to leave the European Union and as tumbling oil prices weighed on energy stocks. The S&P 500 lost 0.68%, to 2,088.55. Tesla’s (NASDAQ:TSLA) shares fell 1.2% after the electric car maker missed vehicle delivery targets for the second consecutive quarter. Netflix (NASDAQ:NFLX) rose 1.3% after it reached an agreement with Comcast (NASDAQ:CMCSA) for its services to be available on the cable company’s set-top box. Comcast closed down 0.4%.
Bond Market News
The yields on the benchmark 10-year Japanese government bond and other long JGBs fell to record lows on Wednesday, as a renewed bout of turmoil struck financial markets amid worries over the global economic fallout from Britain’s vote to exit the European Union. The 10-year yield fell 1 basis point to minus 0.265 percent , while the 20-year JGB yield fell 1.5 basis points 0.015 percent after earlier touching a record low of zero. The 30-year JGB yield also shed 2.5 basis points to a record low of 0.030 percent.
Economic Calendar
- 09:00 GMT+1 EU ECB President Draghi Speaks
- 13:30 GMT+1 CAD Trade Balance
- 15:00 GMT+1 US ISM Non-Manufacturing PMI
- 19:00 GMT+1 US FOMC Meeting Minutes
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