Calm before the storm

Asian markets were mixed in Friday trade after bond yields rose overnight and markets digested the second day of Federal Reserve Chair Janet Yellen’s testimony.

Japan’s Nikkei 225 gained 0.19 percent.

The Kospi advanced 0.17 percent to trade above the 2,410 level, making gains for a second-straight day after closing at a record level in the last session.

Down Under, the S&P/ASX 200 rose 0.47 percent.

Greater China markets traded sideways. Hong Kong’s Hang Seng Indexedged up 0.01 percent to hold near two-year highs. Mainland markets recorded declines. The Shanghai Composite slid 0.14 percent and the Shenzhen Composite slid 0.204 percent.

In the U.S., Yellen said Thursday that achieving President Donald Trump’s 3 percent growth target would be “challenging” due to reasons related to productivity growth.

Bond yields rose overnight. Yields of the 10-year U.S. Treasury were steady after rising to around 2.35 percent in the previous session. 10-year German Bund yields rose to 0.6 percent overnight following news on Thursday of the European Central Bank possibly adjusting its policy outlook.

The Fed’s dovish slant has underpinned optimism among equity investors of late, OANDA Senior Trader Stephen Innes said, adding that U.S. June CPI data due later in the day would be a key metric influencing moves in the dollar next week.

CNBC

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

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and specialises in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is based in Singapore as the Head of Trading Asia Pacific with OANDA.Stephen's market views focus on the movement of G-10 and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Garvin Guy Butler, and 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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