Morning Report

Monday, 30 July 2018

  • Asian stocks declined on Monday, tracking losses seen on Wall Street that had been led by tech.
  • U.S. second-quarter GDP grew 4.1 percent, its fastest pace since 2014.
  • The yen was steady, with the Bank of Japan’s policy statement due on Tuesday.

Asian stocks declined early on Monday, as markets took cues from declines in Wall Street’s last session, with focus this week shifting to the Bank of Japan.

The Nikkei 225 declined 0.69 percent, The broader Topix traded lower by 0.47 percent,  the Kospi shed 0.48 percent. The S&P/ASX 200 eased 0.58 percent as all sectors barring telecommunications traded in negative territory.

The negativity in the Asian session followed declines in U.S. stocks seen on Friday as earnings news stateside overshadowed the release of solid second-quarter U.S. gross domestic product data, with tech leading the losses. The Dow Jones Industrial Average edged down by 0.3 percent, or 76.01 points, to 25,451.06, the S&P 500 finished the session lower by 0.66 percent at 2,818.82 and the Nasdaq Composite dropped 1.46 percent to 7,737.42.

Meanwhile, U.S. second-quarter GDP grew at 4.1 percent, in line with expectations, with a jump in consumer spending and business investment contributing to the figure. That was the quickest pace of growth since 2014.

In foreign exchange, the U.S. currency was steady after softening on Friday, with the dollar index, which tracks the greenback against a basket of peers, last trading at 94.662. The People’s Bank of China (PBOC) set the Yuan reference rate at  6.8131 vs Friday’s fix of 6.7942, opening doors for another round of selling in the Chinese currency.

On the commodities front, Brent crude futures were mostly firm at $74.31 per barrel and U.S. West Texas Intermediate crude rose 0.38 percent to trade at $68.95.

Source : Reuters

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