 The financial markets are generally weighed down by risk aversion. Geopolitical tensions heightened after US blamed Iran for involving in the oil tanker attacks near the entrance to the Persian Gulf on Thursday. But Iranian officials denied any involvement and reiterated calls for a regional dialogue. Adding to that China's data showed notable slowdown in both fixed asset investments and industrial production, indicating further impact from trade war with the US. Gold finally breaks through 1348.22 resistance to resume medium term rally, reaching as high as 1358.16 so far. WTI crude oil is hovering at around 52.2 for now, after defending 50 handle again earlier this week. IN the currency markets, commodity currencies are the weakest one, as led by New Zealand Dollar after poor NZ PMI manufacturing. Yen is currently the strongest one, followed by Euro and Swiss Franc. Technically, EUR/JPY finally breaks 112.10 minor support, which suggests that corrective recovery from 120.78 has completed at 123.18. Deeper fall should be seen back to retest 120.78 low. In terms of down trend resumption, USD/JPY and GBP/JPY could lead the way through 107.81 and 136.55 respectively. These two levels are worth a watch today. For now, EUR/USD is holding above 1.1251 minor support. Thus, Euro is having an upper hand over Dollar. But break will reverse their fortune. In Europe, major indices open mildly lower with FTSE down -0.28%, DAX down -0.31% and CAC down -0.22%. German 10-year yield is down -0.0021 at -0.260. In Asia, Nikkei closed up 0.40%. Hong Kong HSI is down -0.79%, China Shanghai SSE closed down -0.99%. Singapore Strait Times is down -0.23%. Japan 10-year JGB yield is down -0.016 at -0.126. Overnight, DOW rose 0.39%. S&P 500 rose 0.41%. NASDAQ rose 0.57%. 10-year yield dropped -0.036 to 2.091, back below 2.1 handle. |
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