Welcome to daybreak australia. Markets have just come online. We are counting down to asias Major Trading opens. The top stories this hour. Asia set for a weaker open after another hot u. S. Inflation report reinforces bets the fed will not be rushing to cut rates. Oil hitting a high. Energy markets kicking off a cyclical upswing. We hear exclusively from the u. S. Ambassador to china Nicholas Burns about the bill to ban tiktok and curbing beijings access to hightech chips. The Peoples Liberation army will take advantage of that technology to strengthen itself at the expense of the american military. We are not going to do that. We are not going to compromise on National Security and we are not going to negotiate. Lets get to the friday fray as markets come online. Looking like a mixed picture as we head into the final trading session of the week. A bit of weakness, quite apparent when it comes to the start of trading in sydney. The staggered start, a quarter of 1 lower in the first fe
Japanese yen holding fairly steady. We saw that kneejerk reaction overnight and we had local immediate reporting they would exit away from negative policy settings next week the focus on those union group negotiations. Nomura saying the wage hike is likely to be around the 5. 1 range. This is the state of play so far. Yen strength, we have seen it putting pressure on japanese stocks and we saw the miners outperforming yesterday. It will be interesting to see how that sub index performs today considering we are seeing iron ore going down. Equities more broadly so far under pressure ahead of the boj meeting that concludes early next week. Lets take a look at the outlook for career, very much driven by wall street. Further weakness. It was that focus on the fed and the message or the takeaway perhaps from the ppi data, we had further data around resilience in the labor market. Perhaps the fed can afford to take its time when it comes to cutting rates as we saw moves higher for treasury yi
Set back from the brink, putting independence on hold and calling for negotiations with madrid. Betty we hear often, what are the black swans out there . Perhaps a few months ago you would not have heard catalonia who would have thought this . We have seen Market Reaction in europe in particular to the further independence moves by catalonia. Spain saying this is deferred independence we are facing. I want to show a quick chart to show so far how isolated this is. It looks like it could possibly spread. 99, the white line showing you that point where we started to see more and more about the independence referendum. Falling, dramatically diverging with the euro stoxx 600 index. That gap looks to widen as we see a bigger and bigger rift between catalonia and the madrid government. Yvonne seems they are still delaying this independence push. Country, the politics and economics side of things, threatening a key economic region for spain in particular. We heard from of the imf, they have r
Down the president. Americansler bows to first jobs policy. Looking positive out there, the absence of japanese trading, a Public Holiday they are, 30 minutes before the start of the session in hong kong and shanghai, the open in kuala lumpur, taipei, and singapore. Here is Sophie Kamaruddin. Sophie a number of markets coming online, checking that space. We are seeing continued gains on the asx and new zealand, and the kospi reversing gains made in the morning. Space,look at the data whats happening with Dollar Strength, resuming strength following the friday jobs report. Note, the yield of seven basis points friday. Bill gross is expecting a breakthrough to the 2. 6 level, pushing it into bear market territory, gross saying the treasuries are at an inflection point. Gold edging higher after falling in the wake of the u. S. Payroll data, gaining demand for alternative assets, and equities soft in. The robust case for u. S. Interest rates going higher could make bullion less appealing.
, but this isnes not working right now. Thee can see perhaps on bigger map here, we can see whats going on with the nikkei two to five, japanese shares down. 8 , family mart showing what is happening with the retail space as retailers struggle with softening consumer demand. Some poor results posted overnight, and later this afternoon, fast retailing and others. Thehe region, gains on kospi, the shanghai composite higher. , shares other red spot and wellington down 10 , materials lifting the story on the asx 200. The big theme is what is happening with that dollar drop, lower for a second day. As we started off, that yen strengthening. Well, our top story, thank you very much indeed for that, sophie. Being questioned as part of this bribery investigation in golfing the country. It has already brought down the president there. The tentacles reaching further and further. Lee has been question before, but this is the first time brought in by the special Prosecutors Office. This raises the