Asian shares subdued, dollar benefits as sterling suffers

Asian shares drifted off on Wednesday as anxious investors awaited more earnings reports from corporate America, while the dollar held firm in the wake of robust U.S. retail data and a Brexit-driven dive in the pound.

Asian Shares

  • In stock markets trade was generally muted with MSCI’s broadest index of Asia-Pacific shares outside Japan off 0.3%.
  • Japan’s Nikkei eased 0.5% and South Korea 1%, while Chinese blue chips dipped into the red.
  • E-Mini futures for the S&P 500 were a fraction firmer.
  • Futures are 100% priced for a cut of 25 basis points, and imply a 25% chance of 50 basis points.
  • The Dow eased 0.09% on Tuesday, while the S&P 500 lost 0.34% and the Nasdaq 0.43%.

Currency

  • The pound was last at $1.2412, a big come-down from its March peaks of $1.3383.
  • The dollar was a major beneficiary at 97.351 on a basket of currencies, having risen 0.5% overnight.
  • The euro settled at $1.1210, after a loss of 0.4% on Tuesday.
  • The dollar held at 108.18 yen.
  • The dollar’s gains tarnished gold a little, with the precious metal easing to $1,405.45 per ounce from a high above $1,418 on Tuesday.

Oil Prices

  • Oil prices were mixed after falling more than 3% overnight.
  • Brent crude futures edged up 14 cents to $64.49.
  • U.S. crude dipped 5 cents to $57.57 a barrel.

Source

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