Tuesday 05 June 2018
Asian stocks dipped on Tuesday as the markets took a breather after the previous day’s rally, although tech-inspired Wall Street gains helped limit the losses, with investor focus moving away from trade concerns and back to benign economic fundamentals.
Friday’s better-than-expected May U.S. employment report has helped revive investor optimism for the world’s biggest economy, shifting the focus away from recent trade tensions.Italy’s anti-establishment parties formed a coalition government on Friday to end three months of deadlock and averting potentially destabilizing snap elections.
The 10-year U.S. Treasury note yield stood near an 11-day high of 2.946 percent.The dollar index against a basket of six major currencies was little changed at 94.040 after edging down 0.2 percent overnight. The People’s Bank of China (PBOC) set the Yuan reference rate at 6.4157 vs previous day’s fix of 6.4208.
In commodities, crude oil was on the defensive with expanding U.S. production and possible global supply growth weighing on prices. U.S. crude futures CLc1 were 0.3 percent higher at $64.96 a barrel after dropping 1.6 percent overnight and touching $64.57, the lowest since April 10.