SYDNEY, Nov 7 2019 : Asian shares managed to cling near multi-month peaks today while bonds eked out a bounce as reports of delays in sealing a preliminary Sino-U.S. trade deal left investors frustrated at the lack of concrete progress.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased a slight 0.1%, just off a six-month high hit earlier in the week.
Shanghai blue chips .CSI300 added 0.3%, while E-Mini futures for the S&P 500 were down a touch.
Reuters reported yesterday a meeting between U.S. President Donald Trump and Chinese President Xi Jinping to sign an interim trade deal could be delayed until December as discussions continue over terms and venue.
Among various suggestions was to sign a deal after a scheduled NATO meeting in early December.
“One could take the view that by not committing to meet the original deadline it gives more time for a somewhat more comprehensive agreement to be thrashed out,” said Ray Attrill, head of FX strategy at National Australia Bank.
“But markets have understandably jumped the other way, exhibiting a slight loss of confidence that anything more substantial than an agreement not to further lift tariffs, in return for some increase in US agricultural purchases, can be agreed by way of an initial deal.”
The pause in the risk rally helped bonds recoup a little of their recent losses. Yields on benchmark U.S. 10-year notes US10YT=RR fell back to 1.81% from a two-month top of 1.87%.
That in turn restrained the dollar, which eased to 108.77 yen JPY= from a weekly high of 109.24. The dollar was steady on a basket of currencies at 97.965.
The euro was struggling to sustain any bounce at $1.1064 EUR=, perilously close to chart support at $1.1060.
Spot gold was little changed at $1,490.64 per ounce and well within recent tight trading ranges.
Oil prices nursed losses after taking a hit from a surprisingly large build in U.S. crude inventories.
U.S. crude was 2 cents lower at $56.33 a barrel, while Brent crude was unchanged at $61.74. – Reuters