Monday, 06 July, 2020

Asian shares mostly higher ahead of Fed chief testimony

GBP  USD daily chart Asian shares mostly higher ahead of Fed chief testimony
Ginger Lawrence | 10 July, 2019, 16:01

Elsewhere, the World Gold Council said on Tuesday that holdings in global gold-backed ETFs and similar products registered their largest monthly increase in seven years in June as investors priced in a new round of easing from central banks. Australia's S&P/ASX 200 added 0.5% to 6,700.10.

U.S. markets are poised to open slightly lower.

The market rallied through much of June after the central bank signaled it's prepared to cut rates for the first time in a decade to offset slowing global growth and the fallout from US trade conflicts. "The employment data showed the United States economy added 224,000 jobs in June, about a third more than predicted and roughly triple the figure for May".

Given the strength shown in that data, investors now expect US Federal Reserve Chairman Jerome Powell to slow rate cuts this year. "This will support the dollar".

Investors are looking for clues from Federal Reserve Chairman Jerome Powell's congressional testimony due later in the day.

Asian indices closed broadly lower with the Shanghai Composite and SZSE Component down 0.4%, and Japan's Nikkei down 0.2%.

"Whether the negotiators can find a solution to the hard structural issues that remain between the two sides is another matter, and Kudlow cautioned there was "no timeline" to reach an agreement", National Australia Bank strategist Rodrigo Catril said.

The official YouTube app has finally returned to Amazon Fire TV devices
The first evidence that the spat might be resolved came in December 2018 when Amazon began stocking Chromecast products again. Additionally, users can use voice commands to play, pause, rewind, fast forward and skip to the next video within YouTube.

The Turkish lira stabilized after falling sharply on Monday in the wake of President Tayyip Erdogan's decision to dismiss the central bank governor.

But Trump's tweets about Mexico had a particularly unsettling impact, touching off enough volatility and doubt about the future that it pushed the Fed towards the very rate cuts Trump has demanded for other reasons.

The dollar index stood at 97.233, down marginally on the day but near the 3-week high of 97.443 hit on Friday.

Earlier rounds of US tariffs on trading partners including China had been dismissed as of little macroeconomic importance, with the Fed in early May still anticipating its policy rate would remain unchanged for the rest of the year.

Four hours later, the Fed is due to release the minutes from its last policy meeting, when officials edged toward a rate cut as early as this month.

Geopolitics may be in focus this week following news on Sunday that Iran will boost its uranium enrichment, in breach of the 2015 nuclear deal. "But given signs of economic resilience, scope for Fed easing may be more shallow and short-lived than previously expected", said Joe Manimbo, senior market analyst at Western Union Business Solutions. Brent crude oil, the worldwide standard, rose 60 cents to close at $64.76 a barrel. US West Texas Intermediate was 0.12 percent down at $57.44 a barrel, and Spot gold gained 0.4 percent to $1,404.48 an ounce.