Asian session players took on more risk as Trump and Kim Jong Un signal progress over their historic meeting.
- Japan’s BSI manufacturing index slips from 2.9 to -3.2 in Q1 2018
- Japan’s PPI (y/y) up by 2.7% vs. 2.1% expected and previous
- Australia’s NAB business confidence drops from 11 to 6 in May
- Japan’s tertiary industry activity up by 1.0% v. 0.6% expected, -0.3% previous
Weaker Australian reports
Data printed from National Australia Bank (NAB) saw Australia’s business conditions pulling back from record highs in May. The index slipped 6 points to +15 with the profitability index leading the declines across several components. Business confidence met a similar fate, sliding 5 points to +6 for the month.
A separate release showed Australia’s home loans falling by another 1.4% after already slipping by 2.3% in March.
Luckily for the Aussie, traders were more interested in pricing in positive outcomes from Trump and Jong-Un’s meeting today.
Optimism over Trump-Jong Un meeting
There were no major economic reports from the Asian economies today, so all eyes were on the historic meeting between U.S. President Trump and North Korea’s Kim Jong-Un.
The positive vibes that dominated the market scene before the meeting was sustained during the process. And why not? Trump himself shared that the meeting went “better than anybody could have expected,” while Jong-Un described the meeting as “a good prelude to peace.”
If successful, we might see not only a denuclearization of the Korean peninsula, but also a more politically stable region that could encourage more risk-taking.
- Nikkei is up by 0.42% to 22,899.8
- A SX 200 is down by 0.30% to 6,058.6
- Hang Seng is up by 0.28% to 31,152.0
- Shanghai index is up by 0.46% to 3,066.815
Even the comdolls reflected the overall risk-taking with the safe-haven gold taking a step back and crude oil prices taking a breather from their previous losses.
- Gold is down by 0.22% to $1,297.54
- Brent crude oil is up by 0.13% to $76.45
- U.S. WTI is up by 0.20% to $66.17
Trump and Jong-Un are reportedly working on signing a post-meeting document right now, with Trump giving a presser at around 8:00 am GMT. Make sure you stick around!
Major Market Mover(s):
AUD/JPY is up by 28 pips (+0.33%) to 84.00
AUD/CHF is up by 19 pips (+0.25%) to .7516
AUD/CAD is up by 19 pips (+0.20%) to .9894
EUR/AUD is down by 29 pips (-0.19%) to 1.5452
NZD/USD is up by 7 pips (+0.10%) to .7030
NZD/JPY is up by 30 pips (+0.39%) to 77.55
NZD/CAD is up by 23 pips (+0.25%) to .9135
NZD/CHF is up by 22 pips (+0.31%) to .6939
USD/JPY is up by 29 pips (+0.27%) to 110.33
EUR/JPY is up by 17 pips (+0.13%) to 129.80
GBPJPY is up by 24 pips (+0.16%) to 147.40
Watch Out For:
- 5:30 am GMT: No changes expected from France’s 0.3% final private payrolls (q/q) growth
- 8:00 am GMT: Italy’s quarterly unemployment rate (11.1% expected, 11.0% previous)
- 8:30 am GMT: U.K.’s labour market numbers. Read a quick trading guide here!
- 9:00 am GMT: Germany’s ZEW economic sentiment (-14.6 expected, -8.2 previous)
- 9:00 am GMT: Euro Zone’s ZEW economic sentiment (0.1 expected, 2.4 previous)