Tuesday Morning Briefing: Asian Stocks Mixed, Crude Gains
Here’s your Tuesday morning briefing of the global markets.
Asian shares were mixed in early trade, as the selloff in technology showed signs of easing. The Hang Seng rebound after falling as much as 1.3 percent, the most in two months, a day before. Shares in Japan fluctuated while equities in South Korea and Australia climbed.
The British pound was steady as U.K. Prime Minister Theresa May fought to survive the fallout from the British general election. Two potential rivals, Foreign Secretary Boris Johnson and Brexit secretary David Davis pledged their loyalties to the Tories leader, saying that this wasn't the right time to change the leadership of the country.
Also Read: May Faces Furious Party As Tories Fight Selves Over Europe
Crude oil traded above $46 a barrel following its first two-day gain in three weeks.
U.S. Stocks Fall
The Nasdaq 100 Index held on to its biggest two-day decline since September on Monday, while S&P 500 and the Dow Jones index remained little changed.
Markets were still reeling from a sudden slide in tech stocks after they largely ignored a surprise U.K. election and testimony from Former FBI Director James Comey.
Investors may get more drama from Washington as Attorney General Jeff Sessions will testify publicly Tuesday before the Senate Intelligence Committee. The committee is likely to grill Session on his role in the firing of Comey and his contacts that he and his associates of President Trump had with the Russians officials.
Meanwhile, the U.S. Federal Reserve is set to hike interest rates this week, the second time this year.
Oil Above $46-Mark
Oil held gains above $46 a barrel before the U.S. government data forecast to show crude stockpiles resumed declined after an unexpected rise.
Inventories are forecast to have slid by 2.5 million barrels last week, according to a Bloomberg survey before an Energy Information Administration report Wednesday. Crude stockpiles expanding for the first time in nine weeks through June 2.
Output at major U.S. shale plays will reach a record in July, according to the EIA.
“Oil seems to have bottomed and is showing some signs of forming a base after reacting to the surprise gain in U.S. inventories,” said Ric Spooner, an analyst at CMC Markets in Sydney to Bloomberg.
Good Start?
The Singapore traded SGX Nifty, an early indicator of Nifty Index’s performance in India, climbed 0.25 percent to 9,646, at 7:05 a.m.
Reliance Capital Ltd. will remain in focus for the day as the ADAG Group looks to list its general insurance arm. The move is in line with the Anil Ambani-led group's ambition to make Reliance Capital a core investment company.
The country’s third largest technology company Wipro will be focus as well.According to a PTI report, the NYSE suspended trading in Wipro ADRs.
As per trading data, the company’s ADRs plunged over 47 percent to $10.45 in pre-market trade on Monday. The steep volatility has been witnessed ahead of the company fixing 14 June as the record date for issuance of bonus shares to the shareholders in India.
