SHANGHAI (Reuters) – Asian shares pulled back on Friday as worries over renewed Sino-U.S. losses in check out of China.
FILE PHOTO: Passerby's walk past an electric screen showing Asian markets indices outside a brokerage in Tokyo, Japan, July 1
Consumer inflation in June, and helped to lift the S & P 500 index to a record closing on Thursday. S & P 500 e-mini futures ESc1 were last up 0.21% at 3.010.25.
Jerome Powell, Federal Reserve Chairman, said on Wednesday that he would not be able to make his decision, he said.
On Friday, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.05% in early deals, with Australian shares dipping 0.16% and Japan's Nikkei stock index .N225 trimming 0.11%.
"Markets have enjoyed a bit of a calm spot in the US-China trade was saga since the announcement of a truce and restarting trade talks at the G20 meeting. Unfortunately, ANZ analysts wrote in a morning note.
U.S. President Donald Trump said on Thursday that China was not buying any agricultural products from American farmers.
"While this is not a big market mover, it does serve as a reminder that things could flare up again," the analysts said.
Later on Friday, China wants release trade data for June, with analysts expecting exports to fall as weakening global demand and a sharp hike in U.S. tariffs took a heavy toll on the world's largest trading nation.
On Thursday, the S & P 500.SPX gained 0.23% to finish at a record high of 2.999.91 points and the Dow Jones Industrial Average .DJI so hit a record high close of 27.0888.08 points, rising 0.85% on the day.
The Nasdaq Composite .IXIC fur 0.08%.
U.S. Treasury yields were higher than weak demand for a $ 16 billion 30-year bond auction on Thursday and after the United States. Laboratory said its consumer price rose 0.3% in June, its biggest increase since January 2018.
The poorly received a 30-year yield as high as 2.672% on Thursday, according to Refinitive data ,
The yield on benchmark 10-year Treasury notes US10YT = RR was 2.1361%, up from its US close of 2.12% on Thursday, while the 30-year yield touched 2.6512%, up from a close of 2.639%.
The two-year yield US2YT = RR, which rises with traders' expectations of higher Fed fund rates, which at 1.8605%, up from a close of 1.852%.
"The CPI report does not want to have any Fed impact on the Fed or has any significant impact on the Fed's big debate around 25 or 50," said Stephen Innes, managing partner at Vanguard Markets Pte, referring to expectations of the size of a July rate cut.
"After all, the FOMC is unquestionably willing to let it run, it's the better part of a decade trying to ignite those flames," he said.
JPY =, while the euro EUR = edged 0.06% higher to buy $ 1.1259.
The dollar index .DXY, which tracks the greenback against a basket of six major rivals, was flat at 97,044.
The oil price of 29.27 million barrels per day (bpd) of crude oil from its members in 2020, 1.34 million bpd less than this year.
Global benchmark Brent crude LCOc1 gained 0.53% to $ 66.87 per barrel and West Texas Intermediate (WTI) crude CLc1 was up 0.61% to $ 60.57 a barrel.
Gold prices dulled by the stronger-than-expected U.S. Consumer inflation data, regained some of their shine. Spot gold XAU = last traded up 0.28% at $ 1,407.56 per ounce.
Reporting by Andrew Galbraith; Editing by Shri Navaratnam