Entering into US session, European stocks are trading broadly lower while US futures also point to lower open. Sentiments are hurt as US is stepping up measures to isolate China’s telecom giant Huawei as trade war intensifies. Chipmakers including Intel, Qualcomm, Broadcom indicated that they will stop supply to Huawei. Germany’s Infineon Technologies is also reported to have halted shipments to the Chinese company. But most importantly, Google will also cut up supply of hardware and some software services.
However, the reactions in currency markets are relatively muted. Australian Dollar remains the strongest one, as boosted by election results over the weekend. New Zealand and Canadian Dollars follow. There is no apparent lift on Yen and Swiss Franc despite risk aversion. On the other hand, Dollar, Euro and Yen are the weakest ones for now.
In Europe, currently:
- FTSE is down -0.96%.
- DAX is down -1.50%.
- CAC is down -1.61%.
- German 10-year yield is up 0.0105 at -0.091.
Earlier in Asia:
- Nikkei rose 0.24%.
- Hong Kong HSI dropped -0.57%.
- China Shanghai SSE dropped -0.41%.
- Singapore Strait Times dropped -0.77%.
- Japan 10-year JGB yield rose 0.008 to -0.047.