- Shares trade mixed in Asia-Pacific sessions after a strong overnight rally in S&P 500 Futures and US 10-year Treasury yields.
- The US-China tensions again in the boil after Trump comments at the RNC.
Fed’s Powell speech helped the US equities to register a strong rally yesterday. Still, traders didn’t share the optimism in the Asia-Pacific session as the remarks by Trump against China in his acceptance speech to the 2020 Republican National Convention worried market participants.
MSCI’s index of Asia-Pacific shares outside Japan was up 0.24 Percent; the Australia and New Zealand equities were in red ahead of Friday’s London open.
Trump said he would end reliance on China and also threatened to put harsh sanctions; he had also warned the companies which are helping Beijing to maintain its control in the South China Sea.
Japan’s Prime Minister Shinzo Abe urged for massive testing to trace Coronavirus spread as well as to have access to the vaccines against the pandemic.
China hasn’t so far accepted the allegations regarding the virus spread and at the same time has been ready to iron out trade disputes during the phase-one deal with the US.
The European Central Bank and the Reserve Bank of New Zealand took a favourable view of the Fed’s Average Inflation Targeting method. Market participants might have started to read beyond the inflation targeting in the speech and would be scanning the comments about the employment and inflation for additional clues about future policy course.