Respite for Asia Markets

HONG KONG] Asian traders trod carefully Tuesday as profit-taking from the previous day’s rally offset a healthy lead from Wall Street, while the pound briefly fell after authorities said a blast in Manchester could be terror-related.

Global markets pushed higher Monday as energy firms benefited from a surge in oil prices as Opec and Russia look set to extend an output cut, while US dealers welcomed an optimistic survey on US manufacturing.

But crude was unable to press on with gains on Tuesday, weighing on petroleum-linked firms ahead of a meeting between Opec and Russia later in the week.

With Donald Trump on his first overseas trip, the political crisis that drove huge losses last week has calmed for now.

Markets were hammered on fears about Mr Trump’s economy-boosting agenda with his presidency engulfed in a crisis over his firing of FBI chief James Comey and allegations he disclosed sensitive intelligence to Russian officials.

“Thankfully there’s been a pleasant reprieve for the Comey/Trump headlines, but the melodrama is expected to pick up after (US) Memorial Day and (British) Spring Bank Holiday when Trump returns to Washington,” said Stephen Innes, senior trader at Oanda, in a note.

Hong Kong added 0.3 per cent, Shanghai slipped 0.2 per cent, Seoul was up 0.7 per cent and Sydney eased 0.1 per cent while Tokyo also gave up 0.1 per cent by the break.

On foreign exchanges, the pound fell to US$1.2974 from close to US$1.30 late in New York after police said they were treating as terror-linked an explosion that killed at least 19 people outside a concert in Manchester.

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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