Article / 10 June 2016 at 7:00 GMT

Morning Markets: Asian shares wilt as risk-off sets in

Editor / Saxo Bank

Morning Markets: Prices


  • Germany: Jens Weidmann opens Bundesbank Spring Conference (0700 GMT)
  • US June Michigan Consumer Expectations (1400 GMT)

Asian stocks headed lower to close out the week with the yen also heading slightly down against the USD. Hong Kong's Hang Seng index also closed in the red while mainland exchanges are closed for the three-day Dragon Boat Festival.

The first data relase of the European day comes from Germany where consumer prices fell 0.4% for April, marking an annual decline of 0.1%. The figures were in line with forecasts, but still do not show the uptick in inflation that was expected to come along with the recovery in crude oil prices. 

In commodities, Brent and WTI crude have both retreated from their recent highs, as has gold; the euro, the pound, and the Japanese yen have also retreated. 

Stateside, we have the Michigan consumer expectations report for June out at 1400 GMT which may provide markets – and the greenback – with some direction as the Federal reserve continues to weigh the data. 

Market signals

Asian session

  • Japan's Producer Price Index declined 4.2% year-on-year in May
  • Japan's Nikkei 225 headed lower, deepening Thursday's losses
  • It was back to business in Hong Kong following the Dragon Boat festival public holiday
  • Markets were closed in China again for the holiday; Sunday will be a working day instead
  • Korea's Kospi Composite dropped 0.32% to 2,017.63.
  • India's S&P BSE Sensex gained 0.5% to close at 26.896,62
  • Top Australian miners retreated after falls overnight for dual-listed miners in London
  • Leading miners weighed heavily on Australia's benchmark S&P/ASX200
  • The S&P/ASX200 dropped 0.92% to 5,312.60
  • The Aussie dollar will end up at 0.40, says Vimal Gor from BT Investment Management 
  • BT fund manager says excessive spending will make Australia an emerging market

Forex ahead

  • The US dollar edged higher against the yen before retreating back below 107.00
  • NZD retraces versus USD after sharp rally, crossing below 0.71
  • Aussie dollar holding gains above 0.74 into the European open
  • EURUSD slips lower to trade in range just above the 1.13 handle
  • GBP continues steady decline from polling data-fuelled rally

From the Floor

Brexit’s shadow.Markets don’t want to take anything out of the zone until the referendum is behind us”, says Hardy.

Sour coffee.Trouble in China is impacting the future prospects there of Starbucks”, says Garnry. 

Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.

In opinion


The Federal Reserve's June meeting next week comes with a press conference, providing its last opportunity to prepare investors for a July rate hike, predicts Juhani Huopainen

Ore hopes

Despite China's slowdown and flagging iron ore prices, top Australian miner BHP Billiton is looking at a massive new ore project, says the team at Saxo Capital Markets Australia

Saxo on Brexit
Britain's vote on its European (or not) future is just a few short trading weeks away. Volatility is sure to be high, but the risk event of risk events can be traded says Martin O'Rourke.

Beyond Britain
The UK's apparent dissatisfaction with the EU might be hogging the eurosceptic headlines, but Britain is just one of many countries considering its options writes Stephen Pope.

Hot coffee
Soft commodites have been enjoying a sharp rally of late, but sugar and coffee traders will be watching the weather as well as the charts in the coming days and weeks says Ole Hansen.

 Beijing railway station will be a hive of activity on the weekend, as workers flock back to China's capital after enjoying the three-day long Dragon Boat holiday. Photo: iStock

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