Morning Markets: Stocks sink on Trump trade complaints
- Germany: Manufacturing orders (0700 GMT)
- Germany: Services PMI (0855 GMT)
- EU: Eurozone Services PMI (0900 GMT)
- EU: Eurozone producer price index (1000 GMT)
Asian equities started the weak on a soft footing with European stocks expected to open in the red as well after US president Trump criticised the nature of the US-Japan trade relationship.
The Nikkei 225 managed to edge into the green by 0.04% but the South Korean Kossi index declined by 0.33% while the S&P ASX 200 lost 0.10% of its value.
Trump’s remarks, while limited to the specifics of US-Japanese trade policy, nonetheless spooked investors who remain broadly sceptical of his apparent departure from free trade norms. Crude oil prices, meanwhile, picked up overnight along with the Australian dollar.
Today's data calendar has services PMI releases due from France, Germany, and the European Union with EU PPI due out at 1000 GMT.
- US payrolls data on Friday provided a mixed picture of the strength of the labour market
- Donald Trump and Shinzo Abe stepped up the pressure on N Korea in a joint briefing
- Trump claims that trade with Japan is not fair or open, and defended dumping the TPP
- High leverage makes China's financial system vulnerable: PBOC governor
- Trump's trade ire and the PBOC governor's warning weighed on equities in Asia
- BoJ governor Haruhiko Kuroda said it’s crucial for Japanese inflation to exceed 2%
- The Nikkei 225 rebounded from an earlier fall; it was up 0.12% to 22,566.37 at 0552 GMT
- Hong Kong's Hang Seng was down by 0.24% to 28,535.36 at 0613 GMT
- The Shanghai Composite reversed early falls; it was up 0.05% to 3,373.57 at 0530 GMT
- Crude added to recent gains; WTI had risen to $55.86/b at 0604 GMT
- The Brent crude benchmark price had risen 0.5% to $62.40/b at 0604 GMT
- Falls for Westpac weighed on the S&P/ASX200; the index closed down 0.10% at 5,953.80
- Talks between Trump and Abe could impact forex, particularly USDJPY
- The US dollar was worth ¥114.3125 at 0615 GMT
- The Aussie dollar took a 0.8% tumble; it was worth just 0.7650 at 0615 GMT
- Tuesday's RBA's cash rate decision and comments could impact AUD
From the Floor
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US president Donald Trump hopes to make progress in trimming his nation's massive $69bn trade deficit with Japan during his meetings with Shinzo Abe in Japan. Photo: Shutterstock
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