Morning Report

Asian shares dip, worries over growth and trade sour mood

Asian stocks edged down on Wednesday on mounting signs of slowing global growth and anxiety over a yet-unresolved Sino-U.S. trade dispute

Japan’s Nikkei dropped 0.7 percent while MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent.

On Wall Street, the S&P 500 the Nasdaq and the Dow all posted their biggest one-day percentage drops since Jan. 3 on Tuesday. The S&P lost 1.42 percent.

World Economic growth takes a dip

U.S. home sales tumbled 6.4 percent in December, falling short of the weakest forecast, to their lowest level in three years. Compared from a year ago, they were down more than 10 percent for the first time since 2011.

Canadian factory sales and wholesale trade both slumped more than expected in November, while in Germany survey by the ZEW research institute showed morale among German investors improved slightly in January, but their assessment of the economy’s current condition deteriorated to a four-year low.

Japan’s exports and imports also fell short of market expectations, with exports posting the biggest fall in more than two years.


U.S. bond prices rebounded, with the benchmark 10-year yield slipping to 2.741 percent from Friday’s high of 2.799 percent, the highest level since Dec. 27, with money market futures pricing out any chance of a Fed rate hike this year.


As U.S. yields fell, the dollar lost steam against the yen, fetching 109.33 yen , off Friday’s three-week high of 109.895.

But the euro weakened against the dollar under the weight of recent weakness in the euro zone economy and worries about fallouts from Brexit. The common currency traded at $1.1362, having hit a three-week low of $1.1336 on Tuesday.


Oil markets have been underpinned this year by production cuts led by the Organization of the Petroleum Exporting Countries (OPEC), aimed at reining in an emerging supply overhang.

In commodities, U.S. West Texas Intermediate (WTI) crude futures fell 0.4 percent to $52.79 per barrel after shedding 1.9 percent the previous day.

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