Asian stocks collapsed on Thursday after the Hong Kong market was hit for the second session after a mass street protest, while oil prices rocked by a five-month low due to higher stocks and
The fading hopes that the United States and China will conclude deal in a tower the summit of the 20th group summit in Osaka on 28-29 June also hurt moods and led to a decline in bonds.
not even a plan for bilateral ministerial meetings prior to the G20 summit. You can not expect any big deal, "said Hirokazu Cabei, chief global strategist at Daiwa Securities.
European stocks are expected to decline, with futures and Germ each falling by about 0.2%.
MSCI's broadest Asia-Pacific Share Index outside Japan fell to 1
Hong Kong collapsed 1.8% after a decline of 1.7% on Wednesday. Hong Kong came after legislation that would allow citizens to be extradited to China triggered mass protests and some of the worst turmoil seen in the territory after the UK handed it over to the Chinese government in 1997
Japanese futures lost 0.8% The fall of 0.2% in Asia, following the small losses from the previous day, when the decline was 0.20%.
Oil was moving close to the five-month minimum, under the pressure of another unexpected rise in US crude oil reserves, as well as weak prospects for prospecting. of a prolonged trade war between China and the United States.
futures barely moved at $ 60.06 after 3.7% sliding on Wednesday to $ 59.97 a barrel, the lowest price on the benchmark benchmark on Jan. 28.
United States. Western Texas futures futures amounted to 51.12 dollars a barrel, compared to $ 50.72 a barrel on the previous day, the worst deal since January 14.
They remain relatively supported. But one thing is for sure. Poor oil prices will curb inflation and raise expectations for price hikes, "said Daiwa Kaiya.
Government data showed that US consumer prices rose only in May, with main annual inflation slowing down to 2.0 %, compared with a peak of 2.4% in July last year, adding to the rising expectations of a fall in the Federal Reserve rate in the coming months
Investors will look for what Federal Reserve policymakers will say after their next political meeting on June 1819, with federal funds valuing futures prices at 25 basis points for the subsequent policy review on July 30-31
This is totally contrary to the Fed's forecasts three months ago when policy makers saw a gradual rise in interest rates in the coming years
"The real US economy has not deteriorated so much. But taking into account market expectations, the Fed will have no choice but to cut rates … It will take action as insurance against potential risks to the economy as Chinese – So far, the US trade deal seems unlikely – said Kooz Koide, Chief Economist in Asset Management One.
10-year US government bond yields fell to 2,103%, close to 2,053% on Friday, which is its lowest level since September 2017.
Bond yields have also fallen in Asia. Long-term government bond yields in Japan reached their lowest levels since August 2016, with yields of 20 years falling by 2.5 basis points to 0.220% before rising to a weak 30-year bond auction. The high-yielding currency fell to record low, with three-year yield now falling below 1%, as job vacancies in the country point to another one-percent interest rate cut in July, followed last week.
In the forex market, the yen rose 0.2% to 108.32 against the dollar as risky moods worsened while the Australian dollar fell 0.25% to $ 0.6910.
The euro did not change to $ 1.1293 after US President Donald Trump said he was considering sanctions for the Russian Nord Stream 2 gas pipeline project and warned Germany not to be dependent on Russia for energy.
British MPs defeated the attempt of the opposition Labor Party to block Brexit without mastering the parliamentary agenda from the government.
Sterling picked up $ 1.2688, not far from this week, as low as $ 1.2653.