Wednesday Morning Briefing: Asia Sluggish As Investors Seek Safe Havens
Asian shares edged lower after a weak session on Wall Street while the Japanese Yen hovered near its highest level in a month as investors braced for caution amidst a slew of events this week.
Sentiment turned jittery before former FBI Director James Comey's testimony on Thursday. Elections in the UK and the European Central Bank's policy decision on the same day only added to the cautiousness.
The Bloomberg Dollar Spot Index traded near an eight-month low after the S&P 500 Index fell the most since mid-May. Gold remained near a seven-month high.
SGX Nifty futures indicate a slightly positive start for Indian equities after the NSE Nifty index closed lower on Tuesday.
Eventful Thursday
Thursday is shaping up to be a pivotal day for financial markets. Comey's testimony may give clues on how politically effective the Trump administration will be in refocusing attention on its policy agenda.
The European Central Bank's policy decision probably won't surprise, but the bank may drop the reference to “downside” risks to growth, while reiterating a weak inflation outlook, Bloomberg Intelligence said.
Surveys conducted among voters in the UK, over the past few weeks indicate a tight race, increasing chances of the present Prime Minister Theresa May might not be able to bolster a majority in Parliament.
Also Read: Five Questions About the Fed's $4.5 Trillion Balance Sheet
Crude Hovers Near $47
Oil resumed its fall as U.S. industry data showed gasoline stockpiles expanded, countering a fall in crude inventories.
Inventories of the motor fuel increased by 4.08 million barrels last week, the American Petroleum Institute was said to report.
Brent crude for August settlement fell 0.40 percent to $49.92 per barrel on the London-based ICE Futures Europe exchange while the West Texas Intermediate for July delivery dropped 0.42 percent to $47.99 a barrel on the New York Mercantile Exchange.
Also Read: Oil Pares Gains as API Said to Report Gasoline Supply Surge
Positive Start?
The SGX Nifty Index rose 0.1 percent to 9,689 as of 06:40 a.m., indicating a positive start to the Indian markets.
Indian stocks declined the most in over a week on Tuesday as investors held back their bets ahead of the central bank's policy decision later in the day.
Shares of Reliance Communications Ltd. will be in focus today after Moody's Investors Services and Fitch Ratings again downgraded debt ratings of the telecom operator.
Also Read: Reliance Communications Downgraded Again By Moody's And Fitch
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