Friday – Asian stocks are now mixed, and the U.S. equity is edging lower as a wave of risks flooded the world financial market. It also hinted with signs of reduction. Now, the Japanese bond yields are now heading exit from its negative terrain.
The equities in Hong Kong hollowed, while both the Chinese and Japanese shares are gaining. The S&P 500 future is now coming to an end as the index hits another high record. The 10-year government bond of Japan yields is now heading towards what could be their most significant increase since May of 2013. It is also the month that marked the start of the taper tantrum.
Gold is now heading towards its worst week since May of 2017. It is the year when the global economic narrative was still big in growing synchronously.
Numerous indications hinted both U.S. and China are coming up on an agreement to put an end to the trade war. Both officials from these big countries released a statement last Thursday, saying that they have completed the first phase of their agreement. And with that comes a tariff rollback on their goods.
The global head of alternative investments at Well Fargo Investment Institute, in an interview with the Bloomberg TV, says that the move from non-escalation to de-escalation would cause a tariff rollback, stirring up everyone in the market in excitement.
This week, it is also noticeable that the bonds are more notable mover compared to the stocks. France and Belgium’s ten-year yields have increased above 0%, a sudden move after being still for months.
On the other side, the Japanese 10-year rates are now inching a few basis points from zero while the German equivalent skyrocketed to 10 basis points.
There is little to no changes in the dollar, while the oil hollowed a bit, but still managed to reach its weekly gain. This is despite the drastic changes that the progress on the trade has caused the market.
Other major moves worth noting in the stock market include Hong Kong’s Hang Seng hollowing at 0.3%, South Korea’s Kospi sliding by 0.1%, and Shanghai Composite adding 0.4%.
When it comes to bonds, the Treasuries’ ten-year yields are now at 1.92%, the 10-year yield of Australia rising up to 1.29%.
Lastly, in the currencies, the yen remained at 109.25 per dollar, while the offshore yuan is still trading at 6.974 per dollar.