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Asia stocks are under more pressure of fear in the trade war



(June 3): Faced with concerns about US trade fears over Mexico and India over China's reprisals against US measures, Asian stocks are close to the start of the week. The yen recorded near a six-month high.

US. Futures declined and contracts signaled a slight decline in equities in Japan and Australia. The S & P 500 fell 1.3% on Friday and the 10-year government bond yield fell below 2.13% after the Trump government threatened Mexico with tariffs for immigration issues. China has carried out tariff increases on Saturday, announcing that it is acting against "unreliable" foreign companies, with a list of violations outstanding. Crude Oil continues to slide in the face of global demand concerns and trades near $ 52 a barrel.

With the exception of bonds, May was a brutal month for almost every asset class in which money managers sought the relative safety of government bonds. When June began, China said it really did not want a trade war, but did not shy away from it. China is also investigating FedEx because the company did not deliver the items to the right addresses. The company may have responded to reports that packages for Huawei were diverted to the United States.

India was the last country to be targeted by the Trump administration on Friday night, eliminating the country's ability to export a range of products duty-free to the United States. The outlook for growth is so bleak for traders that they are counting on the Federal Reserve to cut its policy rate by half a percentage point by the end of the year. In the meantime, Morgan Stanley predicted that a global recession was imminent and could start in nine months, with Trump introducing 25% duty on additional $ 300 billion in Chinese imports and China retaliation.

Here are some notable events: [1

9659002] The US ISM Manufacturing PMI will be released on Monday. US President Donald Trump meets British Prime Minister Theresa May in London on Monday. The Policy Meeting of the Reserve Bank of Australia will take place on Tuesday, with many anticipating a rate cut. China's President Xi Jinping starts a two-day visit to Russia on Wednesday. Theresa May resigns as chairman of the Conservative Party on Friday. Friday's US employment report reveals that employment increased by 190,000 in May, unemployment stood at 3.6%, a 49-year low, and average hourly earnings growth was 3.2%.

These are the main moves in the markets: [19659002] Stocks

Futures on the Japanese Nikkei 225 fell 0.6% late on Friday in Singapore. Hang Seng futures were flat. Futures on the Australian S & P / ASX 200 Index fell 0.4%. S & P 500 futures fell 0.6%. On Friday, the S & P 500 Index fell 1.3%.

Currencies

The yen was at $ 108.22 per dollar, up 0.9% last week. The offshore yuan was stable at 6.9412 per dollar. The euro was unchanged at $ 1,1172. The Australian fell by 0.1% to 69.29 US cents.

Bonds

10-year government bond yields fell more than 8 basis points to 2.1246% on Friday.

Commodities

West Texas crude declined 2% to 2%, down 52.43 US dollars a barrel. Gold gained 0.2% to $ 1,307.91 per ounce. – Bloomberg


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