Asia coming to you live from new york, sydney and hong kong. dear coming down t we are counting down to asias major market open. On worries of middle east tensions and higher for longer Interest Rates traders are on watch for yen intervention. Humanitarian aid trickles into gaza as the death toll rises. Aid may be delayed as israel backs diplomatic efforts. Theyre working with china following tax audits. Annabelle at the open of the asx 200 you can see we are in the red. Trading lower for a Third Straight session just tells you how much of an impact what is going on in the middle east is having on markets because the moves we have seen in treasury yields after stabilizing you are seeing muted action in the australian three year and 10 year and earnings as well because we are in the thick of earnings season. Betterthanexpected numbers coming out of u. S. Companies, were seeing the index moving in tandem which tells us again it is geopolitical concerns in the middle east, other parts of
China down, hsi and outperformer today above the 17,000 level. All sectors in the green. We are keeping watch on the kiwi , as the rbnz pushback on expectations for rate cuts despite lingering concerns about growth. Markets pricing in nearly three rate cuts for the year. Were keeping an eye and the nikkei as well, under pressure. The governor avoiding sounding dovish on Monetary Policy. In traders on guard for possible currency intervention. Investors are waiting the key u. S. Inflation reading in the coming hours. Inflation will be sticky. It will be absolutely sticky. Were going to get stuck at around 2. 5 3 . I think that warrants over the longterm the fed rethinking its inflation target. Haslinda the cftc says firms that use borrowed money to amplify returns increase short returns in the futures market for the first time in two months. We saw record size trade in shortterm Interest Rate futures which appear consistent. Lets bring in Garfield Reynolds , what prompted that record fut
Dent traders Risk Appetite ahead of the earnings season. That is the state of play for japanese equities, tracking the yen, 152 is the line for intervention but when we reach that point depends on the u. S. Inflation print. Stickier or hotter than expected. As we said, korea is shut, but australia is just starting to trade. Haidi staggered start to trading, 1 10 of 1 upside. Watching big miners as we see commodities getting that lift. Iron ore as well, that supportive rally headed for the biggest twoday rally in more than two years. Brighter consumption outlook boosting commodities sector. Aussie dollar is trading steady ahead of the u. S. Cpi print in focus. We have more moves when it comes to trading around the kiwi ahead of the rbn said decision. Not expecting much, but indicators suggest there could be hope in the markets that we see a pivoted. The aussie kiwi pair, number of numura is not confident that they will meet the dovish pricing that we see a. Watching crude, the other par
For continuity or change. , i am to daybreak asia haidi lun here in sydney. Betty i am betty liu in new york. Talking about Hurricane Harvey Recovery Efforts and now we are focused on Hurricane Irma and how the markets are looking at this. 108. Nt to pull up a chart, 4 benchmark catastrophe bond index, which shows you how much these bonds have fallen in the face of these hurricanes and storms. Matthew,ee hurricane the big decline we saw in that. In 2012, this is hurricane they, which devastated northeast region. I remember vividly being out of power for over a week. This on the right sound right hand side is Hurricane Harvey so far. Milder than the catastrophes of the other storms. However, many are saying that Hurricane Irma could be just as bad, maybe even worse than what we saw back here in 2012. Think you dont want to about it that way, but barclays said it could be the most expensive storm in u. S. History. You can see that price action playing out in with orange juice futures, su
How far will this scandal take us . Turbulence and the discount carrier space. We are less than a half hour away from the start of european trading. No sense of direction. The agent session did not give us much. It didnt take us forward. The treasuries were closed yesterday in the United States. Aat we are starting with, is blank piece of paper when it comes to the markets, and a directional story we will talk about. It is going to be interesting to see how we work through the day. Wasstory out of asia interesting in a few ways. The biggest story to me, the big political story coming up is what happens in china this morning. Austria, interesting. The town out of this is that the dollar is weaker. First word bloomberg update. Banks, guy. Catalonia faces a day of reckoning. Barcelonas mayor has said the results of the referendum cannot serve as a basis for secession. Read more companies are leading the region. Three more companies are leaving the region. The u. S. Has blamed turkey for i