TOKYO (Reuters) – Asian stocks fell on Monday as investors lowered expectations for an aggressive fall in Federal Reserve interest rates, while crude oil prices rose from the tightening in the Middle East after the capture of a British tanker from Iran.
MSCI's broadest Asia-Pacific Share Index outside Japan () dropped 0.4%. (1
At the start of European trade, the Euro-Stoxx 50 () rose by 0.06%, German DAX futures () rose by 0.02% and UK futures () added 0.05 %. 19659004] Global equity markets rose briefly towards the end of last week after encouraging comments from New York President John Williams (NYSE 🙂 raised expectations the central bank to cut interest rates by 50 basis points at its meeting on 30-31 July
But the stock markets returned those gains on Friday after Wall Street shares fell after the New York federation withdrew Williams' comments, saying his speech was not related to potential policy action at the upcoming Fed meeting.
Expectations for a larger reduction were further reduced after the Wall Street Journal reported that the Fed would likely cut interest rates by 25 basis points. this month, and may make further cuts in the future, given global growth and trade uncertainty.
A 50-bit cut is almost dissipated due to the WSJ report and the New York Fed's attempt to soften Williams's previous comments, "writes Kenji Yamamoto, an economist at Daiwa Securities.
Dollar and US dollars rose in greater likelihood of a smaller percentage decrease.
() against a basket of six major currencies was stable at 97,174 after a 0.4% gain on Friday. The euro () was slightly changed to $ 1.1216 after losing 0.5% on Friday. Green money rose 0.25% to 108.00 yen
"A factor that could target stocks this week is US President Donald Trump's tweets related to trade issues with China," said Junichi Ishikawa, senior forex strategist at IG Securities.
"Stocks may decline if it continues to make challenging trade comments targeting China this week."
Trump has pressed Beijing last week by renewing the threat of imposing tariffs on another $ 325 billion in Chinese goods, even when they hoped the two sides could resume face-to-face negotiations soon in an attempt to put an end to year-old commercial war.
Oil increases profits
1.55% at $ 63.44 per barrel Increase of around 0.9% on Friday.
The Iranian Revolutionary Guard on Friday conquered a British oil tanker in the Strait of Hormuz after Britain seized an Iranian ship earlier this month, further exacerbating tensions over a vital international oil supply route.
US crude futures () advanced by 0.77% to $ 56.06.
Gold fell from the six-year high after the dollar solidified and as expectations for a deep fall in Fed's price were rolled back