Asia stocks drop as focus turns to Fed testimony

Federal Reserve Shelton

United States stocks finished slightly lower on Friday following a stronger than expected jump in hiring in June, which called into question the speed - but not the likelihood - of interest rate cuts by the Federal Reserve over what remained of 2019.

The Nikkei 225 in Japan slid 0.98 percent while the Topix index was down 0.89 percent.

Investors now focus on Federal Reserve Chairman Jerome Powell's Congressional testimony, due on Wednesday and Thursday, as well as US inflation data due later this week. A steady stream of weak economic data and external threats to growth such as the US-China trade war had fueled anticipation among investors that the Federal Reserve would lower rates this month.

The US dollar index climbed to as high as 97.443 on Friday, its highest level since June 19, as US Treasury yields rose across the board.

The New Zealand dollar recovered some of its losses, with markets still expecting a rate cut from the US Federal Reserve this month despite strong jobs growth there. The major traded flat at 1.2526, having hit a low of 1.2481 on Friday, it's lowest since January 3. The European currency traded flat at 1.1220, having touched a low of 1.1207 on Friday, its lowest since June 19.

"So far U.S. -Iran tensions have not had a material impact on markets, but if tensions escalate it could be a different story", said NAB's Catril.

Germany's DAX declined 0.1 percent at 12,599.01 points; France's CAC 40 trades 0.1 percent lower at 5,585.90 points.

USA producer prices are due on Friday.

Oil prices are fluctuating with West Texas Intermediate crude down 0.1% at $57.40, and Brent crude up 0.2% at $64.30.

"The re-adjustment in expectations did push the dollar higher and had a negative effect on Asia but Europe has been supported by investors saying "whatever the Fed does, the ECB [European Central Bank] will still cut", said Andrew Milligan, head of global strategy at Aberdeen Standard Investments.

Spot gold jumped 0.5 percent at $1,406.79 per ounce, at 0721 GMT.

Gold futures finished lower last week, ending a six-week winning streak.

This week, Federal Reserve Chairman Jerome Powell might be delivering his semi-annual Monetary Policy Report to Congress on Wednesday and Thursday, and the Federal Open Market Committee (FOMC) may also launch its June meeting minutes on Wednesday. The U.S. Treasury yields rose on Friday on better-than-expected U.S. payroll numbers in June, helping the Australian 10-yer yield to rise about 4 basis points. The yield on the benchmark 10-year Treasury yield remained 1-1/2 basis points lower at 2.030 percent, the super-long 30-year bond yields traded almost 2 basis points down at 2.530 percent and the yield on the short-term 2-year remained almost 1-1/2 basis points lower at 1.860 percent.

"We continue to see rate cuts as the most likely outcome, " with 60% odds of a July quarter-point cut, 15% odds of a half-point reduction, and 25% odds of no policy change.

Related News:

  • Prosecco hills inscribed on Unesco World Heritage list

    Prosecco hills inscribed on Unesco World Heritage list

    Iraq has been trying since 1983 to secure Unesco status for the site - a huge 10 sq km complex of which just 18 per cent has been excavated.
    Lakers bring back Caldwell-Pope, McGee

    Lakers bring back Caldwell-Pope, McGee

    They will play alongside LeBron James and Anthony Davis as the team works to improve from a 37-45 record from last season. Green took to Instagram late Friday night to announce he was leaving the Toronto Raptors to join the Lakers.
    Facebook’s outage reveals how company’s AI tags photos

    Facebook’s outage reveals how company’s AI tags photos

    Finally, WhatsApp was in a fixed at the same time, since it faced trouble sending messages, voice, videos, and photos as well. Twitter also confirmed in a tweet that its service is "currently having some issues with DM delivery and notifications".
  • One minor goring, four others injured in Spain's running of bulls

    One minor goring, four others injured in Spain's running of bulls

    Revellers from around the world flock to Pamplona every year to take part in the eight days of the running of the bulls. Hundreds of "runners" race ahead of or next to the bulls, while the more risk-averse watch from balconies.
    North Korea says released Australian student was ‘spying’

    North Korea says released Australian student was ‘spying’

    Alek Sigley was released on Thursday and deported to China after being held for several days in Pyongyang. Until now, neither Sigley nor the North's government had publicly explained why he had been detained.
    Official start: Royal send off as 2019 Tour de France starts

    Official start: Royal send off as 2019 Tour de France starts

    The Welshman confirmed that he was largely unharmed by the fall: "Yeah, I'm fine". "I have to wait a bit to find out about my form".
  • Dog Treats Linked to Salmonella

    Dog Treats Linked to Salmonella

    Health officials in MI found a different strain of salmonella when testing pig ear treats sold at stores, the CDC said. However, infected dogs "usually have diarrhea that may contain blood or mucus", per the federal health agency.
    Jackets' Milano, Avs' Greer arrested

    Jackets' Milano, Avs' Greer arrested

    The trio were arguing over a bar tab that had been paid hours earlier at 1 Oak, a popular hangout in Chelsea, the Post said. Milano and Greer were arrested for the attack and brought to the 6th Precinct station house, according to sources.
    Buhari attends AU summit in Niger Republic

    Buhari attends AU summit in Niger Republic

    The Niamey Summit will be one of the most attended AU Summit by Heads of State and other personalities in recent time, he noted. The goal of the new free trade area is to significantly increase trade within Africa.
  • Venezuela's Maduro Urges Dialogue, Guaido Demands Regime Change

    Venezuela's Maduro Urges Dialogue, Guaido Demands Regime Change

    But Nicolas Maduro remains defiant, despite growing criticism over his government's brutal tactics against his opponents. Speaking to a gathering of top military officials, Mr.
    Apple is developing 5G foldable iPad Report

    Apple is developing 5G foldable iPad Report

    Remember, although this information comes from a reputable analyst firm, we have to take it with tweezers until Apple comments . So the new generation iPad will also come with at least 13 Inch of size so that the users can use it as a Laptop and Tablet.
    Push to expand 2023 Women's World Cup to 32 teams

    Push to expand 2023 Women's World Cup to 32 teams

    Approval to expand the field for the 2023 Women's World Cup would have to come quickly because bidding is already under way. Infantino's final proposal dealt with the game at all levels.

Most liked

Mariah Carey conquers bottle cap challenge without throwing a kick
While Tiger Shroff wore a blindfold and performed it, actor Vidyut Jamwal nailed the challenge with three bottles. The victor of the fight has already been crowned though and the Queen is no other than Mariah Carey .

Ford GT Mk II Unveiled at Goodwood
The partners started with a road-going GT, adding more extreme aerodynamic elements and upgrading the engine. The brakes are better than those found in the racecar, as those aren't allowed to be carbon ceramics.

Deutsche Bank's problem is that it is not Deutsche enough
The investment bank generates about half of Deutsche's revenue but is also a volatile business. The bank said it did not expect to have to raise additional capital from shareholders.

Toddler dies after being 'dropped by grandfather' on cruise ship
Freedom of the Seas is the 15th largest passenger ship in the world and can hold almost 5,000 passengers and crew. Both sets of her grandparents, her parents and her younger brother were also on the ship, Primera Hora reported .

China talks on N.Korea
Then, at the G20 Summit in Osaka last weekend, Xi urged Trump to be flexible and consider easing sanctions on North Korea. Chinese President Xi Jinping has been doing his bit to promote a resumption of the talks in his recent diplomatic moves.

Wolff joins elite company with 3M Open win
Wilkinson's 10-foot birdie putt caught the left edge, and Brehm made the winning putt, one hole later than he expected. Danielson, 25, playing on a sponsor's exemption this week, is showing he belongs on the PGA Tour.

Celebs Cheer Team USA's 2019 Women's World Cup Victory
Wiegman, meanwhile, is hoping the Netherlands can add the World Cup to the European Championship they won as hosts in 2017. Alexandria Ocasio-Cortez of NY said the women should be paid even more than the men in light of their latest trophy.

How Kawhi Leonard told Raptors' Nick Nurse the bad news
The deals were widely reported late Friday, although no official confirmation was provided by the players or teams involved. The Clippers also got a first-round protected pick from Miami, which waived Ryan Anderson to help swing the trade.

Brazilian bossa nova pioneer Joao Gilberto dies at 88
He was influenced by USA jazz greats and recorded songs in the United States where he lived for much of the 1960s and 1970. Gilberto released numerous live albums throughout the 1980s and '90s, largely retreating from public life in this period.

Samsung Galaxy Tab A 8.0 (2019) Wi-Fi Price, Specifications, Features, Comparison
At 345g, the thing is at least fairly light and easy to handle, but that's no less than you'd expect from a small tablet. In the camera department, the Galaxy Tab A sports an 8MP rear camera with autofocus support and a 2MP front camera.

India to closely monitor shadow lending sector: Sitharaman
Banks have steering clear of any lending to them after IL&FS defaulted on payments to them, dragging down as many as eight banks with them.

EU's Juncker regrets lack of transparency in von der Leyen's nomination
So, this isn't a shoe-in voting process just yet and we could see some more twists and turns along the way in a couple of weeks' time.

Biden only Democratic candidate with wide lead over Trump
Biden said that he was "wrong" to "give the impression" that he was somehow praising segregationist senators. Elizabeth Warren, who is also challenging for the Democratic nomination.

20,000 Barcelona fans turn out to greet new signing Frenkie De Jong
De Ligt has been linked with a host of Europe's biggest clubs, with Juventus , Paris Saint-Germain, Barcelona and Manchester United reportedly keen on the Ajax teenager.

Mozilla teases ad-free news subscription for 5
How Mozilla will distribute the payment is not clear, but once the full details will keep you updated. Mozilla is partnering with Scroll , an ad-free news startup to provide this service.