Risk assets took a hit across the globe on Tuesday while the Japanese yen and U.S. Treasury prices gained as <a href="https://www.wionews.com/business-economy/global-markets-shares-swept-new-year-gains-gold-oil-prices-jumps-and-iran-trade-threats-272528">financial markets</a> reacted to mounting concern about a new strain of the flu-like virus in China. The World Health Organization called a meeting for Wednesday to consider declaring a global health emergency while authorities in China confirmed the coronavirus could spread through human contact. The mayor of Wuhan, where the virus may have originated, confirmed a sixth virus-related death.

Investors are worried about the threat of contagion as hundreds of millions travel for the Chinese Lunar New Year holidays, which peak over the coming weekend. Traders recalled the fallout from a Severe Acute Respiratory Syndrome (SARS) outbreak in 2002-2003 that killed about 800 people globally and which China initially covered up.

<a href="https://www.wionews.com/business-economy/no-dearth-of-crude-oil-in-global-market-says-union-minister-dharmendra-pradhan-273737">Emerging market</a> stocks lost 1.58%. MSCI's broadest index of Asia-Pacific shares outside Japan&nbsp;closed 1.63% lower, while Japan's Nikkei&nbsp;lost 0.91%. Hong Kong, which suffered badly during the SARS outbreak, saw its index&nbsp;fall 2.8%. The overnight chill in Asia carried over to <a href="https://www.wionews.com/business-economy/global-markets-oil-gold-safe-haven-assets-gains-as-us-strike-kills-iranian-commander-271901">European markets</a>. Shares of luxury goods makers - which have large exposure to China - were among those declining the most.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/global-markets-asian-shares-lower-as-investors-book-decade-end-profits-271229">Global Markets: Asian shares lower as investors book decade-end profits</a>

A U.S. index of airline stocks fell 2.3% and hotel and casino operators Las Vegas Sands Corp and Wynn Resorts Ltd, both of which have large operations in China, dropped over 4%. The virus outbreak "seems to be the biggest negative," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida. "We may see U.S. markets try to spit it out because it doesn't have that much of an impact on U.S. economy."

<img alt="New York Stock Exchange" data-entity-type="file" data-entity-uuid="44f15713-342b-487d-90f5-6d86f21ace64" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%2859%29_0.jpg" /> 
[&nbsp;Traders work on the floor at the New York Stock Exchange (Courtesy: Reuters) ]

The Dow Jones Industrial Average&nbsp;fell 20.99 points, or 0.07%, to 29,327.11, the S&amp;P 500&nbsp;lost 1.13 points, or 0.03%, to 3,328.49 and the Nasdaq Composite&nbsp;added 1.12 points&nbsp;or 0.01%, to 9,390.06. The pan-European FTSEurofirst 300 index lost 0.16% and MSCI's gauge of stocks across the globe&nbsp;shed 0.29%.

In other markets, U.S.- and German 10-year government bond yields touched a two week low while the safe-haven yen&nbsp;strengthened 0.23% versus the dollar at 109.95.

"The fear is that it could be a SARS-type event, which was an economic issue," said Ellis Phifer, market strategist at Raymond James in Tennessee. "But this is all cautionary. The market is not panicking or anything."

Benchmark 10-year notes&nbsp;last rose 16/32 in price to yield 1.7795%, from 1.835% late on Friday. Monday was a U.S. market holiday. The dollar index fell 0.04%, with the euro&nbsp;down 0.04% to $1.109.Sterling&nbsp;was last trading at $1.3051, up 0.32% on the day. The Australian dollar&nbsp;dropped on the flu worries since the country attracts large numbers of Chinese tourists, who tend to be big spenders over the Lunar New Year holidays.

Some investors were relieved that U.S. President Donald Trump and French President Emmanuel Macron seemed to have struck a truce over a proposed digital tax. They agreed to hold off on a potential tariffs war until the end of the year, a French diplomatic source said.

A tariff war between China and the United States was blamed for the economic growth slowdown of last year. U.S. gold futures&nbsp;fell 0.22% to $1,555.40 an ounce. Oil prices were mixed on expectations that a well-supplied market would be able to absorb disruptions that have cut Libya's crude production to a trickle. U.S. crude&nbsp;rose 0.17% to $58.64 per barrel and Brent was last at $64.98, down 0.34% on the day.

&nbsp;

Risk assets took a hit across the globe on Tuesday while the Japanese yen and U.S. Treasury prices gained as financial markets reacted to mounting concern about a new strain of the flu-like virus in China.

Risk assets took a hit across the globe on Tuesday while the Japanese yen and U.S. Treasury prices gained as financial markets reacted to mounting concern about a new strain of the flu-like virus in China. The World Health Organization called a meeting for Wednesday to consider declaring a global health emergency while authorities in China confirmed the coronavirus could spread through human contact. The mayor of Wuhan, where the virus may have originated, confirmed a sixth virus-related death. Investors are worried about the threat of contagion as hundreds of millions travel for the Chinese Lunar New Year holidays, which peak over the coming weekend. Traders recalled the fallout from a Severe Acute Respiratory Syndrome (SARS) outbreak in 2002-2003 that killed about 800 people globally and which China initially covered up. Emerging market stocks lost 1.58%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 1.63% lower, while Japan's Nikkei lost 0.91%. Hong Kong, which suffered badly during the SARS outbreak, saw its index fall 2.8%. The overnight chill in Asia carried over to European markets. Shares of luxury goods makers - which have large exposure to China - were among those declining the most. Also Read: Global Markets: Asian shares lower as investors book decade-end profits A U.S. index of airline stocks fell 2.3% and hotel and casino operators Las Vegas Sands Corp and Wynn Resorts Ltd, both of which have large operations in China, dropped over 4%. The virus outbreak "seems to be the biggest negative," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida. "We may see U.S. markets try to spit it out because it doesn't have that much of an impact on U.S. economy." [ Traders work on the floor at the New York Stock Exchange (Courtesy: Reuters) ] The Dow Jones Industrial Average fell 20.99 points, or 0.07%, to 29,327.11, the S&P 500 lost 1.13 points, or 0.03%, to 3,328.49 and the Nasdaq Composite added 1.12 points or 0.01%, to 9,390.06. The pan-European FTSEurofirst 300 index lost 0.16% and MSCI's gauge of stocks across the globe shed 0.29%. In other markets, U.S.- and German 10-year government bond yields touched a two week low while the safe-haven yen strengthened 0.23% versus the dollar at 109.95. "The fear is that it could be a SARS-type event, which was an economic issue," said Ellis Phifer, market strategist at Raymond James in Tennessee. "But this is all cautionary. The market is not panicking or anything." Benchmark 10-year notes last rose 16/32 in price to yield 1.7795%, from 1.835% late on Friday. Monday was a U.S. market holiday. The dollar index fell 0.04%, with the euro down 0.04% to $1.109.Sterling was last trading at $1.3051, up 0.32% on the day. The Australian dollar dropped on the flu worries since the country attracts large numbers of Chinese tourists, who tend to be big spenders over the Lunar New Year holidays. Some investors were relieved that U.S. President Donald Trump and French President Emmanuel Macron seemed to have struck a truce over a proposed digital tax. They agreed to hold off on a potential tariffs war until the end of the year, a French diplomatic source said. A tariff war between China and the United States was blamed for the economic growth slowdown of last year. U.S. gold futures fell 0.22% to $1,555.40 an ounce. Oil prices were mixed on expectations that a well-supplied market would be able to absorb disruptions that have cut Libya's crude production to a trickle. U.S. crude rose 0.17% to $58.64 per barrel and Brent was last at $64.98, down 0.34% on the day.

Risk assets slip on Chinese virus anxiety

Asian shares took a sudden turn for the worse on Tuesday as mounting concerns about a new strain of coronavirus in China sent a ripple of risk aversion through markets.

Safe-haven bonds and the yen edged higher as investors were reminded of the economic damage done by the SARS virus in 2003, particularly given the threat of contagion as hundreds of millions travel for the Lunar New Year holidays.

"It's an essential enough development that markets will monitor it on the risk radar as, if things turn critical, it could provide a massive blow to the airline industry and a knockout punch to local tourism," said Stephen Innes, Asia Pacific market strategist at AxiCorp.

<img alt="China Stock Market" data-entity-type="file" data-entity-uuid="2eb92339-9586-4c42-b886-0cf231f8a2da" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%2832%29_2.jpg" /> 
[&nbsp;Investors look at computer screens showing stock information at a brokerage house in Shanghai (Courtesy: Reuters) ]

The mood swing saw MSCI's broadest index of Asia-Pacific shares outside Japan slipped 1 per cent&nbsp;after a steady start. Hong Kong, which suffered badly during the SARS outbreak, saw its index fall 2 per cent.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/world-stocks-hit-all-time-high-after-trump-tweets-close-to-china-deal-267973">World stocks hit all time high after Trump tweets 'close to China deal'</a>

Japan's Nikkei lost 0.8 per cent&nbsp;and Shanghai blue chips 1.5 per cent&nbsp;with airlines under pressure. The caution spread to E-Mini futures for the S&amp;P 500 which eased 0.4 per cent, while Eurostoxx&nbsp;50 futures lost 0.3 per cent.

Investors had already been guarded after the International Monetary Fund trimmed its global growth forecasts, mostly due to a surprisingly sharp slowdown in India and other emerging markets.

There had been some relief as U<a href="https://www.wionews.com/business-economy/oil-ends-higher-as-trade-deal-progresses-spurs-energy-demand-hopes-275526">S&nbsp;President Donald Trump</a> and French President Emmanuel Macron seemed to have struck a truce over a proposed digital tax.

The two agreed to hold off on a <a href="https://www.wionews.com/business-economy/wall-street-stocks-surge-after-us-china-trade-accord-274737">potential tariffs war</a> until the end of the year, a French diplomatic source said. Trump is due to deliver a speech at the World Economic Forum in Davos later on Tuesday, and trade and tariffs could be on the agenda.

In a tweet late on Monday, Trump said he would be bringing "additional Hundreds of Billions of Dollars back to the United States of America! We are now NUMBER ONE in the Universe, by FAR!!"

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Heading to Davos, Switzerland, to meet with World and Business Leaders and bring Good Policy and additional Hundreds of Billions of Dollars back to the United States of America! We are now NUMBER ONE in the Universe, by FAR!!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1219424278216470528?ref_src=twsrc%5Etfw">January 21, 2020</a></blockquote>
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The Bank of Japan cited lessened trade risks when nudging up forecasts for economic growth after holding a policy meeting on Tuesday. As widely expected, the BOJ maintained its short-term interest rate target at -0.1 per cent&nbsp;and a pledge to guide 10-year government bond yields around 0 per cent, by a 7-2 vote.

Japan's yen picked up a bid on the safe-haven move and the dollar dipped to 109.92 from an early 110.17. It also gained on the euro, leaving the single currency flat on the dollar at $1.1092. Against a basket of currencies, the dollar was steady at 97.599, just off a four-week high of 97.729.

The Australia dollar took a knock from the flu worries since it attracts large numbers of Chinese tourists, who tend to be big spenders over the Lunar New Year holidays. Australia said it would step up the screening of some flights from Wuhan.

The outbreak was particularly badly timed as the tourism industry has been mauled already by bushfires sweeping the country. Spot gold edged up to $1,566.71 per ounce, and back toward a seven-year peak of $1,610.90 reached last week.

Oil prices hesitated, having earlier gained on the risk of supply disruption in Libya. Brent crude futures eased 31 cents to $64.89 a barrel, while US&nbsp;crude fell 5 cents to $58.49.

Asian shares took a sudden turn for the worse on Tuesday as mounting concerns about a new strain of coronavirus in China sent a ripple of risk aversion through markets.

Asian shares took a sudden turn for the worse on Tuesday as mounting concerns about a new strain of coronavirus in China sent a ripple of risk aversion through markets. Safe-haven bonds and the yen edged higher as investors were reminded of the economic damage done by the SARS virus in 2003, particularly given the threat of contagion as hundreds of millions travel for the Lunar New Year holidays. "It's an essential enough development that markets will monitor it on the risk radar as, if things turn critical, it could provide a massive blow to the airline industry and a knockout punch to local tourism," said Stephen Innes, Asia Pacific market strategist at AxiCorp. [ Investors look at computer screens showing stock information at a brokerage house in Shanghai (Courtesy: Reuters) ] The mood swing saw MSCI's broadest index of Asia-Pacific shares outside Japan slipped 1 per cent after a steady start. Hong Kong, which suffered badly during the SARS outbreak, saw its index fall 2 per cent. Also Read: World stocks hit all time high after Trump tweets 'close to China deal' Japan's Nikkei lost 0.8 per cent and Shanghai blue chips 1.5 per cent with airlines under pressure. The caution spread to E-Mini futures for the S&P 500 which eased 0.4 per cent, while Eurostoxx 50 futures lost 0.3 per cent. Investors had already been guarded after the International Monetary Fund trimmed its global growth forecasts, mostly due to a surprisingly sharp slowdown in India and other emerging markets. There had been some relief as US President Donald Trump and French President Emmanuel Macron seemed to have struck a truce over a proposed digital tax. The two agreed to hold off on a potential tariffs war until the end of the year, a French diplomatic source said. Trump is due to deliver a speech at the World Economic Forum in Davos later on Tuesday, and trade and tariffs could be on the agenda. In a tweet late on Monday, Trump said he would be bringing "additional Hundreds of Billions of Dollars back to the United States of America! We are now NUMBER ONE in the Universe, by FAR!!" Heading to Davos, Switzerland, to meet with World and Business Leaders and bring Good Policy and additional Hundreds of Billions of Dollars back to the United States of America! We are now NUMBER ONE in the Universe, by FAR!! — Donald J. Trump (@realDonaldTrump) January 21, 2020 × The Bank of Japan cited lessened trade risks when nudging up forecasts for economic growth after holding a policy meeting on Tuesday. As widely expected, the BOJ maintained its short-term interest rate target at -0.1 per cent and a pledge to guide 10-year government bond yields around 0 per cent, by a 7-2 vote. Japan's yen picked up a bid on the safe-haven move and the dollar dipped to 109.92 from an early 110.17. It also gained on the euro, leaving the single currency flat on the dollar at $1.1092. Against a basket of currencies, the dollar was steady at 97.599, just off a four-week high of 97.729. The Australia dollar took a knock from the flu worries since it attracts large numbers of Chinese tourists, who tend to be big spenders over the Lunar New Year holidays. Australia said it would step up the screening of some flights from Wuhan. The outbreak was particularly badly timed as the tourism industry has been mauled already by bushfires sweeping the country. Spot gold edged up to $1,566.71 per ounce, and back toward a seven-year peak of $1,610.90 reached last week. Oil prices hesitated, having earlier gained on the risk of supply disruption in Libya. Brent crude futures eased 31 cents to $64.89 a barrel, while US crude fell 5 cents to $58.49.

Asian shares dip as China virus spreads

To reduce its fiscal deficit, the <a href="http://13.235.153.162/world/us-space-force-unveils-camouflage-uniform-gets-trolled-on-twitter-275237">US</a> government bringing back a bond it had last issued in 1986.

After contemplating its options, the US treasury decided that it will issue a new 20-year bond within the first six months of 2020.

The <a href="http://13.235.153.162/world/us-treasury-slaps-punitive-sanctions-on-turkeys-defence-minister-255960">US treasury</a> will evaluate the feedback of this bond and will meanwhile consider whether to issue 50-year and 100-year bonds or not.

''Our goal is to finance the government with the least possible burden on the taxpayers. For this purpose, we are assessing our potential options,'' said &nbsp;<a href="http://13.235.153.162/world/us-treasury-secretary-mnuchin-says-trade-deal-with-china-to-boost-global-economy-268327">Steven Mnuchin</a>, Treasury Secretary.

Also read:&nbsp;<a href="http://13.235.153.162/business-economy/us-industrial-output-fell-1-in-december-last-year-compared-to-2018-federal-reserve-274933">US industrial output fell 1% in December last year compared to 2018: Federal Reserve</a>

What is <a href="http://13.235.153.162/business-economy/india-to-miss-fiscal-deficit-target-by-30-50-basic-points-report-256454">fiscal deficit</a>?

It is the difference between total revenue and total expenditure of the government.

Why are these bonds are being issued?

The US government needs to return some debts issued to finance corporate tax cut and the tax reforms in 2017.

''To meet these needs, its treasury needs a new reliable source and its other options are long-dated,'' said Mark Cabana, the head of US interest rates strategy at <a href="http://13.235.153.162/business-economy/fears-of-earnings-recession-keep-investors-away-from-stocks-bank-of-america-merrill-lynch-240172">Bank of America</a>.

These bonds will attract insurance companies that need to manage the liabilities of a longer-term.&nbsp;

They can also help the government fund its infrastructure expenditure or another round of tax cuts.

To reduce its fiscal deficit, the US government bringing back a bond it had last issued in 1986. After contemplating its options, the US treasury decided that it will issue a new 20-year bond within the first six months of 2020.

To reduce its fiscal deficit, the US government bringing back a bond it had last issued in 1986. After contemplating its options, the US treasury decided that it will issue a new 20-year bond within the first six months of 2020. The US treasury will evaluate the feedback of this bond and will meanwhile consider whether to issue 50-year and 100-year bonds or not. ''Our goal is to finance the government with the least possible burden on the taxpayers. For this purpose, we are assessing our potential options,'' said Steven Mnuchin, Treasury Secretary. Also read: US industrial output fell 1% in December last year compared to 2018: Federal Reserve What is fiscal deficit? It is the difference between total revenue and total expenditure of the government. Why are these bonds are being issued? The US government needs to return some debts issued to finance corporate tax cut and the tax reforms in 2017. ''To meet these needs, its treasury needs a new reliable source and its other options are long-dated,'' said Mark Cabana, the head of US interest rates strategy at Bank of America. These bonds will attract insurance companies that need to manage the liabilities of a longer-term. They can also help the government fund its infrastructure expenditure or another round of tax cuts.

US brings back a bond it last issued in 1986 to decrease fiscal deficit

Minister of Petroleum and Natural Gas <a href="https://www.wionews.com/india-news/government-approves-funding-of-774-million-for-northeastern-gas-pipeline-272999">Dharmendra Pradhan</a> on Saturday said that there was no dearth of crude oil in the global market and the government was keeping a sharp eye on the global developments.

Speaking to reporters on the sidelines of an event, Pradhan said, "Due to geopolitical situation, conflict in the <a href="https://www.wionews.com/world/us-iran-tensions-washington-turns-down-iraqi-request-to-remove-troops-273509">Middle East</a> there was a spike in the price of crude oil. It is subdued in the last two weeks. Let us wait and watch, let's not create panic. Things are under control. Government of India (GoI) has kept a sharp eye on global development."

He also appealed to oil-producing countries and their leadership for peace and stability in the global economy.

"There is no dearth of crude oil in the global market. We are taking it from <a href="https://www.wionews.com/business-economy/oil-edges-above-65-as-middle-east-concerns-support-273441">OPEC</a>, OPEC+, non-OPEC countries. The issue is&nbsp;price. We are appealing to oil-producing countries and responsible leaderships that there should be peace and stability in the global economy", he added.

Earlier in the day, Pradhan had launched PURVODAYA: Accelerated development of eastern India through an integrated steel hub in Kolkata.

Minister of Petroleum and Natural Gas Dharmendra Pradhan on Saturday said that there was no dearth of crude oil in the global market and the government was keeping a sharp eye on the global developments.

Minister of Petroleum and Natural Gas Dharmendra Pradhan on Saturday said that there was no dearth of crude oil in the global market and the government was keeping a sharp eye on the global developments. Speaking to reporters on the sidelines of an event, Pradhan said, "Due to geopolitical situation, conflict in the Middle East there was a spike in the price of crude oil. It is subdued in the last two weeks. Let us wait and watch, let's not create panic. Things are under control. Government of India (GoI) has kept a sharp eye on global development." He also appealed to oil-producing countries and their leadership for peace and stability in the global economy. "There is no dearth of crude oil in the global market. We are taking it from OPEC, OPEC+, non-OPEC countries. The issue is price. We are appealing to oil-producing countries and responsible leaderships that there should be peace and stability in the global economy", he added. Earlier in the day, Pradhan had launched PURVODAYA: Accelerated development of eastern India through an integrated steel hub in Kolkata.

No dearth of crude oil in global market: Union Minister Dharmendra Pradhan

<a href="https://www.wionews.com/business-economy/global-markets-bonds-reign-supreme-equities-struggle-on-recession-brexit-fears-246318">World stocks</a> set new record highs on Friday and the prices of safe-haven assets such as gold pulled back as investors cheered an apparent de-escalation in <a href="https://www.wionews.com/opinions/why-did-iran-and-us-step-back-from-all-out-war-273243">US-Iran </a>tensions and looked instead toward prospects of improved global growth.

Markets have swiftly reversed the sharp falls seen at the start of the week after the United States killed Iran's most senior general, as investors have concluded that a full-scale military confrontation is unlikely.

The MSCI world equity index, which tracks shares in 49 countries, has quickly resumed its rally and added another 0.12 percent&nbsp;on Friday to hit a new record high. It is almost 1.5 percent&nbsp;above the lows seen on Monday.

European shares also rose, although not quite hitting new records. The pan-European Euro Stoxx 50 gained 0.1&nbsp;and the German DAX 0.23 percent, while Britain's FTSE 100 was unchanged.

The three major share indexes on Wall Street touched new record highs on Thursday, and S&amp;P 500 futures were 0.28 percent higher, pointing to a stronger open ahead of all-important US&nbsp;non-farm payrolls data due at 1330 GMT.

A Reuters poll of economists is forecasting the <a href="https://www.wionews.com/opinions/could-a-weakening-us-economy-imperil-trumps-trade-war-against-china-226753">US&nbsp;economy</a> will have added 164,000 jobs in December, down from 254,000 in November, typically a strong month for hiring. Investors will also be focusing on underlying wage growth data for a gauge of underlying labour market strength.

Stock markets have got off to a decent start in 2019 despite US&nbsp;President Donald Trump's decision to kill military commander Qassem Soleimani, the second most powerful figure in Iran, in a missile strike in Baghdad.

FULL CIRCLE

"In the space of a few days we appear to have swung full circle; with investors seem convinced that the problems in the Middle East appear to have settled down, at least for the time being," said Michael Hewson, chief markets analyst at CMC Markets.

"Investors now have the opportunity to focus on the signing of the new <a href="https://www.wionews.com/world/no-phase-two-us-china-deal-on-the-horizon-officials-say-264312">US-China phase one trade</a> deal next week, as well as the health of the US&nbsp;economy today, and in particular the labour market which has continued to look resilient," he added.

Adding to the bullish mood, investors welcomed news that sales of Apple's iPhones in China in December jumped more than 18 percent&nbsp;on the year. They digested the report as a prelude to the upcoming visit by China's Vice Premier Liu He, head of the country's negotiation team in Sino-U.S. trade talks, to Washington next week to sign a trade deal.

MSCI's emerging market currency index, although little changed on Friday, hit 1-1/2-year highs on Thursday in what is likely to be its sixth straight week of gains. It has also benefited from three US&nbsp;rate cuts last year.

Safe haven assets extended their drop.

Gold eased 0.1&nbsp;percent&nbsp;&nbsp;to $1,550 per ounce from a seven-year high of $1,610.90 hit right after Iran's missile attack on Wednesday.

Against the Japanese yen, which investors often buy in times of uncertainty, the US&nbsp;dollar strengthened 0.2percent&nbsp;&nbsp;to a two-week high of 109.65 yen.

The dollar was slightly firmer. The euro dropped 0.1percent&nbsp;to $1.1085, its lowest in about two weeks.

Oil prices, which briefly spiked at the start of the week on worries that tensions with Iran would disrupt global supplies, recovered some of their subsequent losses.

Brent crude rose 0.3&nbsp;percent&nbsp;&nbsp;to $65.57 a barrel and was heading for its first decline in six weeks and its biggest since October, down around 4.5%.

US&nbsp;crude oil rallied 0.22percent&nbsp;&nbsp;to $59.69 a barrel but was also on track for its first weekly drop in six, falling 5.3% from last Friday's close.

Government bond yields, which rose on Thursday as investors' nerves about the situation in the Middle East eased, edged lower on Friday.

The benchmark 10-year German bond yield fell marginally to -0.221 per cent but for the week remains up 6 basis points, in a strong signal of investors' willingness to pull back from safe-haven government debt for riskier assets.

The 10-year US&nbsp;Treasury yield slipped to 1.852 percent&nbsp;&nbsp;but it too remains up more than 6 basis points on the week.

"With risk appetite showing little sign of abating following another resurgent 24 hours in markets, the next potential hurdle to jump is the first payrolls Friday of the new decade," said Deutsche Bank macro strategists.

World stocks set new record highs on Friday and the prices of safe-haven assets such as gold pulled back as investors cheered an apparent de-escalation in US-Iran tensions and looked instead toward prospects of improved global growth.

World stocks set new record highs on Friday and the prices of safe-haven assets such as gold pulled back as investors cheered an apparent de-escalation in US-Iran tensions and looked instead toward prospects of improved global growth. Markets have swiftly reversed the sharp falls seen at the start of the week after the United States killed Iran's most senior general, as investors have concluded that a full-scale military confrontation is unlikely. The MSCI world equity index, which tracks shares in 49 countries, has quickly resumed its rally and added another 0.12 percent on Friday to hit a new record high. It is almost 1.5 percent above the lows seen on Monday. European shares also rose, although not quite hitting new records. The pan-European Euro Stoxx 50 gained 0.1 and the German DAX 0.23 percent, while Britain's FTSE 100 was unchanged. The three major share indexes on Wall Street touched new record highs on Thursday, and S&P 500 futures were 0.28 percent higher, pointing to a stronger open ahead of all-important US non-farm payrolls data due at 1330 GMT. A Reuters poll of economists is forecasting the US economy will have added 164,000 jobs in December, down from 254,000 in November, typically a strong month for hiring. Investors will also be focusing on underlying wage growth data for a gauge of underlying labour market strength. Stock markets have got off to a decent start in 2019 despite US President Donald Trump's decision to kill military commander Qassem Soleimani, the second most powerful figure in Iran, in a missile strike in Baghdad. FULL CIRCLE "In the space of a few days we appear to have swung full circle; with investors seem convinced that the problems in the Middle East appear to have settled down, at least for the time being," said Michael Hewson, chief markets analyst at CMC Markets. "Investors now have the opportunity to focus on the signing of the new US-China phase one trade deal next week, as well as the health of the US economy today, and in particular the labour market which has continued to look resilient," he added. Adding to the bullish mood, investors welcomed news that sales of Apple's iPhones in China in December jumped more than 18 percent on the year. They digested the report as a prelude to the upcoming visit by China's Vice Premier Liu He, head of the country's negotiation team in Sino-U.S. trade talks, to Washington next week to sign a trade deal. MSCI's emerging market currency index, although little changed on Friday, hit 1-1/2-year highs on Thursday in what is likely to be its sixth straight week of gains. It has also benefited from three US rate cuts last year. Safe haven assets extended their drop. Gold eased 0.1 percent to $1,550 per ounce from a seven-year high of $1,610.90 hit right after Iran's missile attack on Wednesday. Against the Japanese yen, which investors often buy in times of uncertainty, the US dollar strengthened 0.2percent to a two-week high of 109.65 yen. The dollar was slightly firmer. The euro dropped 0.1percent to $1.1085, its lowest in about two weeks. Oil prices, which briefly spiked at the start of the week on worries that tensions with Iran would disrupt global supplies, recovered some of their subsequent losses. Brent crude rose 0.3 percent to $65.57 a barrel and was heading for its first decline in six weeks and its biggest since October, down around 4.5%. US crude oil rallied 0.22percent to $59.69 a barrel but was also on track for its first weekly drop in six, falling 5.3% from last Friday's close. Government bond yields, which rose on Thursday as investors' nerves about the situation in the Middle East eased, edged lower on Friday. The benchmark 10-year German bond yield fell marginally to -0.221 per cent but for the week remains up 6 basis points, in a strong signal of investors' willingness to pull back from safe-haven government debt for riskier assets. The 10-year US Treasury yield slipped to 1.852 percent but it too remains up more than 6 basis points on the week. "With risk appetite showing little sign of abating following another resurgent 24 hours in markets, the next potential hurdle to jump is the first payrolls Friday of the new decade," said Deutsche Bank macro strategists.

Stocks march back to record highs as Middle East tensions ease

Tensions escalate in the Middle East after the killing of Iranian commander of Quds Force, <a href="https://www.wionews.com/world/latest-updates-on-iran-general-qassem-soleimanis-death-272457">Qasem Soleimani</a> by the USA erased&nbsp;new year gains on Monday as investors&nbsp;pushed safe-haven gold to a seven-year high, and oil jumped to its highest since September.

The United States detected a heightened state of alert by Iran's missile forces, as President <a href="https://www.wionews.com/world/should-iran-strike-us-will-quickly-strike-back-says-trump-272374">Donald Trump</a> warned the US&nbsp;would strike back, "perhaps in a disproportionate manner", if Iran attacked any American person or target.

Iraq's parliament on Sunday recommended all foreign troops be ordered out of the country after the US&nbsp;killing of the Iranian military commander and an Iraqi militia leader in a drone strike on a convoy at Baghdad airport.

Spot gold gained 1.6 per cent&nbsp;to $1,579.72 per ounce in jittery trade to reach its highest since April 2013.

Oil prices extended gains on fears any Middle East conflict could disrupt global supplies.

Brent crude futures rose 2.04 per cent&nbsp;to $70 a barrel, while US&nbsp;crude climbed 1.7 per cent&nbsp;to $64.12.

<a href="https://www.wionews.com/business-economy/global-markets-asian-shares-at-18-month-highs-nikkei-finishes-year-up-18-270993">European shares</a> extended losses and were set for their worst day in a week, with the pan-European STOXX 600 index down 1.12 per cent&nbsp;by 0838 GMT. The European oil and gas stock index rose about 0.74 per cent&nbsp;and was the sole gainer among its peers, hitting its highest since July.

Watch:&nbsp;Equities crash on US-Iran tensions, Nifty sinks below 12,100

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"Geopolitical events by their nature are unpredictable, but previous periods of increased tensions suggest that the impact on wider markets tends to be short-lived, with more lasting effects confined to local markets," said Mark Haefele, chief investment officer at UBS Global Wealth Management.

"In general, this supports holding a diversified portfolio."

MSCI's All-Country World Index, which tracks shares in 47 countries, was down 0.43 per cent, erasing all its new year gains in its biggest two-day fall since early December.

In Asia, Japan's Nikkei slid almost 2 per cent&nbsp;in a sour return from holiday, while E-Mini futures for the <a href="https://www.wionews.com/business-economy/sp-500-snaps-win-streak-as-middle-east-tensions-push-down-wall-street-272037">S&amp;P 500</a> fell 0.7 per cent.

Chinese shares, which had opened in the red, reversed their losses, as did Australian shares which ended the day flat. Hong Kong's Hang Seng index lost 0.8 per cent.

Sovereign bonds benefited from the safety bid with yields on 10-year Treasuries down at 1.7725 per cent&nbsp;having fallen 10 basis points on Friday.

The yen remained the favoured safe haven among currencies thanks to Japan's massive holdings of foreign assets. Investors assume Japanese funds would repatriate their money during a truly global crisis, pushing the yen higher.

"Iran is almost certainly to respond in some scale, scope and magnitude," said Lee Hardman, currency analyst at MUFG.

Therefore "market participants are likely to remain nervous until there is more clarity over how geopolitical tensions between the US&nbsp;and Iran will proceed", Hardman said, noting that geopolitical tensions could hurt global economic growth, especially if the price of oil increases.

On Monday, the dollar was last at 107.965 yen, after falling to a three-month trough of 107.77 earlier in the session. The euro likewise eased to 120.61 yen having hit a three-week low.

The dollar was steadier against other majors, with the euro a tad firmer at $1.1172. Against a basket of currencies, the dollar was holding at 96.839.

The risk-sensitive currencies of Australia and New Zealand were on track for their fourth straight session of losses.

Tensions escalate in the Middle East after the killing of Iranian commander of Quds Force, Qasem Soleimani by the USA erased new year gains on Monday as investors pushed safe-haven gold to a seven-year high, and oil jumped to its highest since September.

Tensions escalate in the Middle East after the killing of Iranian commander of Quds Force, Qasem Soleimani by the USA erased new year gains on Monday as investors pushed safe-haven gold to a seven-year high, and oil jumped to its highest since September. The United States detected a heightened state of alert by Iran's missile forces, as President Donald Trump warned the US would strike back, "perhaps in a disproportionate manner", if Iran attacked any American person or target. Iraq's parliament on Sunday recommended all foreign troops be ordered out of the country after the US killing of the Iranian military commander and an Iraqi militia leader in a drone strike on a convoy at Baghdad airport. Spot gold gained 1.6 per cent to $1,579.72 per ounce in jittery trade to reach its highest since April 2013. Oil prices extended gains on fears any Middle East conflict could disrupt global supplies. Brent crude futures rose 2.04 per cent to $70 a barrel, while US crude climbed 1.7 per cent to $64.12. European shares extended losses and were set for their worst day in a week, with the pan-European STOXX 600 index down 1.12 per cent by 0838 GMT. The European oil and gas stock index rose about 0.74 per cent and was the sole gainer among its peers, hitting its highest since July. Watch: Equities crash on US-Iran tensions, Nifty sinks below 12,100 × "Geopolitical events by their nature are unpredictable, but previous periods of increased tensions suggest that the impact on wider markets tends to be short-lived, with more lasting effects confined to local markets," said Mark Haefele, chief investment officer at UBS Global Wealth Management. "In general, this supports holding a diversified portfolio." MSCI's All-Country World Index, which tracks shares in 47 countries, was down 0.43 per cent, erasing all its new year gains in its biggest two-day fall since early December. In Asia, Japan's Nikkei slid almost 2 per cent in a sour return from holiday, while E-Mini futures for the S&P 500 fell 0.7 per cent. Chinese shares, which had opened in the red, reversed their losses, as did Australian shares which ended the day flat. Hong Kong's Hang Seng index lost 0.8 per cent. Sovereign bonds benefited from the safety bid with yields on 10-year Treasuries down at 1.7725 per cent having fallen 10 basis points on Friday. The yen remained the favoured safe haven among currencies thanks to Japan's massive holdings of foreign assets. Investors assume Japanese funds would repatriate their money during a truly global crisis, pushing the yen higher. "Iran is almost certainly to respond in some scale, scope and magnitude," said Lee Hardman, currency analyst at MUFG. Therefore "market participants are likely to remain nervous until there is more clarity over how geopolitical tensions between the US and Iran will proceed", Hardman said, noting that geopolitical tensions could hurt global economic growth, especially if the price of oil increases. On Monday, the dollar was last at 107.965 yen, after falling to a three-month trough of 107.77 earlier in the session. The euro likewise eased to 120.61 yen having hit a three-week low. The dollar was steadier against other majors, with the euro a tad firmer at $1.1172. Against a basket of currencies, the dollar was holding at 96.839. The risk-sensitive currencies of Australia and New Zealand were on track for their fourth straight session of losses.

Global Markets: Shares swept new year gains, gold, oil prices jumps on US and Iran trade threats

Asian stocks camped out at 18-month peaks on Wednesday having climbed for five straight sessions, while the British pound was licking fresh wounds as revived Brexit fears came back to bite it.

MSCI's <a href="https://www.wionews.com/business-economy/it-stocks-propel-indian-shares-to-all-time-peaks-268818">broadest index</a> of Asia-Pacific shares outside Japan inched up 0.1 per cent to its highest since June last year. Japan's <a href="https://www.wionews.com/business-economy/sensex-rallies-by-413-points-to-scale-new-high-nifty-closes-at-12165-268755">Nikkei</a> dipped 0.3 per cent&nbsp;and off a 2019 top.

Shanghai blue chips added 0.3 per cent, after hitting an eight-month peak on Tuesday, as Beijing trimmed another short-term interest rate.

E-Mini futures for the S&amp;P 500 were little changed, while <a href="https://www.wionews.com/business-economy/global-stocks-rattled-after-donald-trump-says-no-deadline-on-us-china-trade-deal-266025">EUROSTOXX 50</a> futures fell 0.1 per cent.

Upbeat economic news had helped the S&amp;P 500 reach a record for the fourth straight session, building on its 27 per cent&nbsp;gain this year. The Dow ended Tuesday up 0.19 per cent, while the S&amp;P 500 gained 0.07 per cent&nbsp;and the Nasdaq 0.11 per cent.

U.S. housing starts were surprisingly strong in November, and building permits rose to the highest level since May 2007. Manufacturing output picked up more than expected as a strike at General Motors Co ended.

A run of better data recently has helped calm fears of recession while the "phase one" Sino-US&nbsp;deal on trade seems to have lifted some of the uncertainty on the&nbsp;global&nbsp;outlook.

The sea change was clear in BofA&nbsp;Global&nbsp;Research's latest survey of fund managers with recession concerns diving 33 per cent points to a net 68 per cent&nbsp;of investors saying a recession is now unlikely in 2020.

Global&nbsp;growth expectations jumped 22 per cent points, marking the biggest 2-month rise on record. As a result, funds' allocation to&nbsp;global&nbsp;equities climbed 10 per cent points to a net 31 per cent&nbsp;overweight, the highest level in a year.

Yet it might be too soon to declare an all-clear on the political front with UK Prime Minister Boris Johnson upsetting&nbsp;markets&nbsp;by taking a <a href="https://www.wionews.com/world/boris-johnson-uses-threat-of-brexit-cliff-edge-to-demand-eu-trade-deal-by-end-of-2020-268681">hard line</a> on Brexit talks.

Johnson will use the prospect of a Brexit cliff-edge at the end of 2020 to demand the EU give him a comprehensive free trade deal in less than 11 months.

The threat of a hard exit sent shivers through sterling, which slid 1.5 per cent&nbsp;in its largest one-day fall this year.

The pound was down another 0.4 per cent&nbsp;on Wednesday at $1.3075 having shed all the gains made during the Conservative Party's big election win.

"Johnson's move aimed at cancelling the possibility of an extension, has essentially increase the possibility of a no deal Brexit," said <a href="https://www.wionews.com/business-economy/asian-markets-rally-as-trump-says-trade-talks-going-very-well-255147">Rodrigo Catril</a>, a senior FX strategist at NAB.

"It suggests sterling's path in 2020 looks set to be a volatile one, a hard Brexit cannot be ruled out, but the probability of a positive Brexit resolution has also increased."

Sterling's slide gave the dollar index a lift to 97.243 against a basket of currencies, extending a bounce from last week's five-month low of 96.588.

The euro also surged on the pound and was steady on the dollar at $1.1140. The yen was little changed at 109.46 per dollar.

Spot gold idled at $1,475.24 per ounce, after a couple of very quiet sessions.

Oil prices eased from three-month highs as data showed US crude stocks rose unexpectedly in the most recent week.

US&nbsp;crude fell 38 cents to $60.56 a barrel, while Brent crude futures lost 29 cents to $65.81.

Asian stocks camped out at 18-month peaks on Wednesday having climbed for five straight sessions, while the British pound was licking fresh wounds as revived Brexit fears came back to bite it.

Asian stocks camped out at 18-month peaks on Wednesday having climbed for five straight sessions, while the British pound was licking fresh wounds as revived Brexit fears came back to bite it. MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1 per cent to its highest since June last year. Japan's Nikkei dipped 0.3 per cent and off a 2019 top. Shanghai blue chips added 0.3 per cent, after hitting an eight-month peak on Tuesday, as Beijing trimmed another short-term interest rate. E-Mini futures for the S&P 500 were little changed, while EUROSTOXX 50 futures fell 0.1 per cent. Upbeat economic news had helped the S&P 500 reach a record for the fourth straight session, building on its 27 per cent gain this year. The Dow ended Tuesday up 0.19 per cent, while the S&P 500 gained 0.07 per cent and the Nasdaq 0.11 per cent. U.S. housing starts were surprisingly strong in November, and building permits rose to the highest level since May 2007. Manufacturing output picked up more than expected as a strike at General Motors Co ended. A run of better data recently has helped calm fears of recession while the "phase one" Sino-US deal on trade seems to have lifted some of the uncertainty on the global outlook. The sea change was clear in BofA Global Research's latest survey of fund managers with recession concerns diving 33 per cent points to a net 68 per cent of investors saying a recession is now unlikely in 2020. Global growth expectations jumped 22 per cent points, marking the biggest 2-month rise on record. As a result, funds' allocation to global equities climbed 10 per cent points to a net 31 per cent overweight, the highest level in a year. Yet it might be too soon to declare an all-clear on the political front with UK Prime Minister Boris Johnson upsetting markets by taking a hard line on Brexit talks. Johnson will use the prospect of a Brexit cliff-edge at the end of 2020 to demand the EU give him a comprehensive free trade deal in less than 11 months. The threat of a hard exit sent shivers through sterling, which slid 1.5 per cent in its largest one-day fall this year. The pound was down another 0.4 per cent on Wednesday at $1.3075 having shed all the gains made during the Conservative Party's big election win. "Johnson's move aimed at cancelling the possibility of an extension, has essentially increase the possibility of a no deal Brexit," said Rodrigo Catril, a senior FX strategist at NAB. "It suggests sterling's path in 2020 looks set to be a volatile one, a hard Brexit cannot be ruled out, but the probability of a positive Brexit resolution has also increased." Sterling's slide gave the dollar index a lift to 97.243 against a basket of currencies, extending a bounce from last week's five-month low of 96.588. The euro also surged on the pound and was steady on the dollar at $1.1140. The yen was little changed at 109.46 per dollar. Spot gold idled at $1,475.24 per ounce, after a couple of very quiet sessions. Oil prices eased from three-month highs as data showed US crude stocks rose unexpectedly in the most recent week. US crude fell 38 cents to $60.56 a barrel, while Brent crude futures lost 29 cents to $65.81.

Global Markets: Asia shares eke out another peak, pound fears Brexit redux

&nbsp;Hopes of a trade deal between Washington and Beijing turned world stock markets and other risk assets higher on Friday, though an escalating wave of<a href="https://www.wionews.com/.../urban-unrest-propels-global-wave-of-protests- 262305"> global protests from Hong Kong</a><a href="https://www.wionews.com/.../urban-unrest-propels-global-wave-of-protests- 262305"> to Chile</a> left some deep scars.

Europe's main bourses followed Asia and <a href="https://www.wionews.com/.../wall-street-subdued-as-economic-trade-doubts- persist-262154">Wall Street</a> higher after White House economic advisor Larry Kudlow said on Thursday that the US&nbsp;and China were getting close to an agreement and were talking every day.

"We're getting close," he told an event at the Council on Foreign Relations in Washington. "The mood music is pretty good, and that has not always been so in these things."

It kept alive hopes that MSCI's 49-country world index and Europe's STOXX 600 could both avoid their first weekly falls since the start of October, but others had little chance.

Emerging market stocks&nbsp;were down 1.7 per cent&nbsp;for the week, while the violent escalation of pro-democracy protests in Hong Kong left the Hang Seng down 4.7 per cent&nbsp;&lt;.HSI&gt;, its worst weekly performance in four months.

Chinese blue-chip shares ended the day down 0.75 per cent&nbsp;and 2.4 per cent, their biggest fall since August, while fierce anti-government protests in Chile gave its currency its worst week since 2011 with a 7 per cent&nbsp;plunge.

Shane Oliver, chief economist at AMP Capital in Sydney, likened regional markets' bullish reaction to positive trade news to being in a relationship with an alcoholic, driven by entrenched hopes for recovery.

"Markets want to believe that there will be some sort of resolution to this issue, some sort of lasting truce at least, even though the experience of the last 18 months doesn't give a lot of cause for comfort," he said.

However, Oliver said weaker Chinese and US&nbsp;economies as well as the <a href="https://www.wionews.com/.../fierce-proceedings-expected-as-impeachment- testimony-against-donald-trump-set-to-telecast-today-261802">US&nbsp;presidential election </a>next year put pressure on both sides to come to an agreement.

In currencies, the safe-haven yen&nbsp;weakened, with the dollar rising 0.17 per cent&nbsp;to buy 108.57 yen. The euro&nbsp;was barely changed at $1.1023 and the dollar index, which tracks the greenback against a basket of six major rivals was off just 0.02 per cent&nbsp;at 98.143.

Higher US&nbsp;Treasury yields also illustrated the risk-on tone in the Asian session, with the 10-year yield&nbsp;rising to 1.848 per cent&nbsp;from a US close of 1.815 per cent&nbsp;on Thursday.

The policy-sensitive two-year yield rose to 1.6101 per cent&nbsp;from 1.593 per cent on Thursday after US&nbsp;Federal Reserve Chair Jerome Powell said the risk of the U.S. economy facing a dramatic bust is remote.

A Reuters poll of more than 100 economists showed that while concerns have eased over a US&nbsp;recession, few see an economic rebound, and most believe a trade truce is unlikely in the coming year.

&nbsp;

&nbsp;

Government borrowing costs in Germany and France also inched up on Friday, but were set for sizeable weekly declines, in contrast to southern European countries that have come under heavy selling pressure again this week.

Germany's 10-year Bund yield was at -0.33 per cent off more than one-week lows hit on Thursday. But it is down 8 bps on the week, set for the biggest weekly fall since mid-August. Dutch 10-year bond yields are down 7 bps this week, and French yields are 5 bps lower.

Data on Thursday had showed Germany's economy grew just 0.1 per cent&nbsp;in the third quarter, with consumer spending helping the country to avoid a mild contraction and a technical recession of two quarters of economic shrinkage.

"In general, there has been risk aversion in recent days and a shift to core bond markets from the periphery," said Daniel Lenz, a rates strategist at DZ Bank.

Global sentiment has been buffeted in recent weeks by conflicting assessments of progress in talks between the United States and China aimed at ending their 16-month-long trade war.

<a href="https://www.wionews.com/.../asian-markets-boosted-by-fresh-china-us-trade- optimism-262213">China's commerce ministry</a> said the two countries are holding "in-depth" discussions on a first phase trade agreement, and that cancelling tariffs is an important condition to reaching a deal.

China has also ended a nearly five-year ban on imports of US&nbsp;poultry meat, which the US&nbsp;Trade Representative said would lead to more than $1 billion in annual shipments to China.

Those developments followed comments from officials from both countries last week that they had a deal to roll back tariffs, only to have US&nbsp;President Donald Trump deny that any such deal had been agreed to.

The new record for the S&amp;P, which gained just 0.08 per cent&nbsp;to 3,096.63, came despite a grim outlook from network gear maker Cisco Systems &lt;CSCO.O&gt; that underlined the impact of trade uncertainty.

In commodity markets, US&nbsp;crude prices rebounded after sliding Thursday on rising US&nbsp;crude inventories. US&nbsp;West Texas Intermediate crude was 0.44 per cent&nbsp;higher at $57.02 a barrel.

Global benchmark Brent crude added 0.37 per cent&nbsp;to $62.51 per barrel.

Gold retreated from gains that had been prompted by trade uncertainty. Spot gold&nbsp;was last trading at $1,463.90 per ounce, down 0.48 per cent.

($1 = 6.9941 Chinese yuan)

Hopes of a trade deal between Washington and Beijing turned world stock markets and other risk assets higher on Friday, though an escalating wave of global protests from Hong Kong to Chile left some deep scars.

Hopes of a trade deal between Washington and Beijing turned world stock markets and other risk assets higher on Friday, though an escalating wave of global protests from Hong Kong to Chile left some deep scars. Europe's main bourses followed Asia and Wall Street higher after White House economic advisor Larry Kudlow said on Thursday that the US and China were getting close to an agreement and were talking every day. "We're getting close," he told an event at the Council on Foreign Relations in Washington. "The mood music is pretty good, and that has not always been so in these things." It kept alive hopes that MSCI's 49-country world index and Europe's STOXX 600 could both avoid their first weekly falls since the start of October, but others had little chance. Emerging market stocks were down 1.7 per cent for the week, while the violent escalation of pro-democracy protests in Hong Kong left the Hang Seng down 4.7 per cent <.HSI>, its worst weekly performance in four months. Chinese blue-chip shares ended the day down 0.75 per cent and 2.4 per cent, their biggest fall since August, while fierce anti-government protests in Chile gave its currency its worst week since 2011 with a 7 per cent plunge. Shane Oliver, chief economist at AMP Capital in Sydney, likened regional markets' bullish reaction to positive trade news to being in a relationship with an alcoholic, driven by entrenched hopes for recovery. "Markets want to believe that there will be some sort of resolution to this issue, some sort of lasting truce at least, even though the experience of the last 18 months doesn't give a lot of cause for comfort," he said. However, Oliver said weaker Chinese and US economies as well as the US presidential election next year put pressure on both sides to come to an agreement. In currencies, the safe-haven yen weakened, with the dollar rising 0.17 per cent to buy 108.57 yen. The euro was barely changed at $1.1023 and the dollar index, which tracks the greenback against a basket of six major rivals was off just 0.02 per cent at 98.143. Higher US Treasury yields also illustrated the risk-on tone in the Asian session, with the 10-year yield rising to 1.848 per cent from a US close of 1.815 per cent on Thursday. The policy-sensitive two-year yield rose to 1.6101 per cent from 1.593 per cent on Thursday after US Federal Reserve Chair Jerome Powell said the risk of the U.S. economy facing a dramatic bust is remote. A Reuters poll of more than 100 economists showed that while concerns have eased over a US recession, few see an economic rebound, and most believe a trade truce is unlikely in the coming year. Government borrowing costs in Germany and France also inched up on Friday, but were set for sizeable weekly declines, in contrast to southern European countries that have come under heavy selling pressure again this week. Germany's 10-year Bund yield was at -0.33 per cent off more than one-week lows hit on Thursday. But it is down 8 bps on the week, set for the biggest weekly fall since mid-August. Dutch 10-year bond yields are down 7 bps this week, and French yields are 5 bps lower. Data on Thursday had showed Germany's economy grew just 0.1 per cent in the third quarter, with consumer spending helping the country to avoid a mild contraction and a technical recession of two quarters of economic shrinkage. "In general, there has been risk aversion in recent days and a shift to core bond markets from the periphery," said Daniel Lenz, a rates strategist at DZ Bank. Global sentiment has been buffeted in recent weeks by conflicting assessments of progress in talks between the United States and China aimed at ending their 16-month-long trade war. China's commerce ministry said the two countries are holding "in-depth" discussions on a first phase trade agreement, and that cancelling tariffs is an important condition to reaching a deal. China has also ended a nearly five-year ban on imports of US poultry meat, which the US Trade Representative said would lead to more than $1 billion in annual shipments to China. Those developments followed comments from officials from both countries last week that they had a deal to roll back tariffs, only to have US President Donald Trump deny that any such deal had been agreed to. The new record for the S&P, which gained just 0.08 per cent to 3,096.63, came despite a grim outlook from network gear maker Cisco Systems <CSCO.O> that underlined the impact of trade uncertainty. In commodity markets, US crude prices rebounded after sliding Thursday on rising US crude inventories. US West Texas Intermediate crude was 0.44 per cent higher at $57.02 a barrel. Global benchmark Brent crude added 0.37 per cent to $62.51 per barrel. Gold retreated from gains that had been prompted by trade uncertainty. Spot gold was last trading at $1,463.90 per ounce, down 0.48 per cent. ($1 = 6.9941 Chinese yuan)

Global Markets: US-China trade hopes revive stocks, protests leave scars

Asian shares sank on Monday, the safe-haven yen rose and gold jumped as fresh violence broke out in <a href="https://www.wionews.com/videos/hong-kong-protests-turn-violent-police-shoot-protester-amid-clashes-261252">Hong Kong</a>, while uncertainty still remained over whether the United States and China could end their damaging trade war.

Hong Kong's Hang Seng index led the losses in Asia, down more than 2 per cent, after police fired live rounds at protestors on the eastern side of Hong Kong island. Cable TV and other Hong Kong media reported at least one protester being wounded. Video footage showed a protester lying in a pool of blood.

Chinese shares too faltered with the blue-chip CSI300 index down 1.3 per cent. South Korea's KOSPI lost 0.4 per cent.

Japan's Nikkei gave up early gains to drift away from a recent 13-month high after data showed the country's core machinery orders fell for a third straight month.

Australian shares bucked the downbeat trend, rising 0.55 per cent&nbsp;to a two-week high.

That left MSCI's broadest index of Asia-Pacific shares outside Japan down 0.5 per cent.

"The<a href="https://www.wionews.com/world/china-us-agree-tariff-rollback-if-phase-one-trade-deal-is-completed-260641"> China-US&nbsp;trade war</a> and the Hong Kong protest are combining to cast a negative pall on Asian markets today," said James McGlew, analyst at stockbroking firm Argonaut.

"Hong Kong protests have been dragging on for a while and the view from the financial world is that it's really starting to bite now. The further this drags on it's certainly going to be very negative."

In Asian hours on Monday, E-minis for the S&amp;P500 were 0.25 per cent&nbsp;lower indicating a weak open later in the day.

US&nbsp;bond markets are closed on Monday, but currency and equity markets are open.

Gold, which rises during times of uncertainty, rebounded from a three-month low touched on Friday to be last up 0.3 per cent&nbsp;at $1,462.11 an ounce.

In currencies, the Japanese yen gained on the dollar to 109.01 while the Australian dollar, a liquid gauge for risk, was off slightly at $0.6853.

The dollar index was a touch softer at 98.33 while the euro ticked up to $1.1022.

Market attention was also on the US-China trade talks.

<a href="https://www.wionews.com/world/trump-faces-perilous-test-as-impeachment-hearings-open-261230">US&nbsp;President Donald Trump </a>told reporters on Saturday that talks with China had moved more slowly than he would have liked, but added that Beijing wanted a deal more than he did.

That was a more upbeat tone than just a few days earlier when he had stressed that the White House would not agree to a full rollback of existing tariffs, remarks that hit stock prices and the dollar.

"Despite his bluster that 'China wants a trade deal more than I do', markets sense that Trump is likely quite keen to call a truce on what is becoming a serious U.S. economic risk heading into the 2020 election year," said David Bassanese, Sydney-based economist at Betashares.

By the close of Wall Street on Friday, optimism had returned to the market as investors bet that Washington needs a deal and it is in the interest of China, too. All three major US&nbsp;indexes eked out record closing highs.

The Dow inched up while the S&amp;P 500 climbed 0.3 per cent&nbsp;and the Nasdaq Composite added 0.5 per cent. The record closing high by the S&amp;P 500 was the fourth in six sessions.

"It will be the US-China trade talks that will continue to dictate the daily swings in sentiment this week," said Jeffrey Halley, senior analyst at OANDA.

Halley noted the negotiations were "starting to drag on in a disturbingly Brexit-like manner," referring to Britain's divorce deal with the European Union which is still up in the air almost three years after the country voted to leave the bloc.

US&nbsp;officials said a lot of work remained to be done when Trump announced the outlines of an interim deal last month, and Beijing has since pushed back on US&nbsp;demands for big agricultural purchases, among other issues.

Analysts said the outlook for equities was highly dependent on US&nbsp;economic data as a US-China trade agreement would help bolster manufacturing and industrial sectors.

"The Hong Kong protests have seen a knee-jerk rotation out of risk positioning," OANDA's Halley said. "The effects are more likely to be passing than permanent...as long as the trade talks stay on target."

Data on October US&nbsp;industrial production and retail sales, along with the National Federation of Independent Business's monthly small business survey, are scheduled for release this week.

In commodities, benchmark Brent crude fell 57 cents to $61.94 a barrel while West Texas Intermediate (WTI) crude slipped 48 cents to $56.76 a barrel.

Asian shares sank on Monday, the safe-haven yen rose and gold jumped as fresh violence broke out in Hong Kong, while uncertainty still remained over whether the United States and China could end their damaging trade war.

Asian shares sank on Monday, the safe-haven yen rose and gold jumped as fresh violence broke out in Hong Kong, while uncertainty still remained over whether the United States and China could end their damaging trade war. Hong Kong's Hang Seng index led the losses in Asia, down more than 2 per cent, after police fired live rounds at protestors on the eastern side of Hong Kong island. Cable TV and other Hong Kong media reported at least one protester being wounded. Video footage showed a protester lying in a pool of blood. Chinese shares too faltered with the blue-chip CSI300 index down 1.3 per cent. South Korea's KOSPI lost 0.4 per cent. Japan's Nikkei gave up early gains to drift away from a recent 13-month high after data showed the country's core machinery orders fell for a third straight month. Australian shares bucked the downbeat trend, rising 0.55 per cent to a two-week high. That left MSCI's broadest index of Asia-Pacific shares outside Japan down 0.5 per cent. "The China-US trade war and the Hong Kong protest are combining to cast a negative pall on Asian markets today," said James McGlew, analyst at stockbroking firm Argonaut. "Hong Kong protests have been dragging on for a while and the view from the financial world is that it's really starting to bite now. The further this drags on it's certainly going to be very negative." In Asian hours on Monday, E-minis for the S&P500 were 0.25 per cent lower indicating a weak open later in the day. US bond markets are closed on Monday, but currency and equity markets are open. Gold, which rises during times of uncertainty, rebounded from a three-month low touched on Friday to be last up 0.3 per cent at $1,462.11 an ounce. In currencies, the Japanese yen gained on the dollar to 109.01 while the Australian dollar, a liquid gauge for risk, was off slightly at $0.6853. The dollar index was a touch softer at 98.33 while the euro ticked up to $1.1022. Market attention was also on the US-China trade talks. US President Donald Trump told reporters on Saturday that talks with China had moved more slowly than he would have liked, but added that Beijing wanted a deal more than he did. That was a more upbeat tone than just a few days earlier when he had stressed that the White House would not agree to a full rollback of existing tariffs, remarks that hit stock prices and the dollar. "Despite his bluster that 'China wants a trade deal more than I do', markets sense that Trump is likely quite keen to call a truce on what is becoming a serious U.S. economic risk heading into the 2020 election year," said David Bassanese, Sydney-based economist at Betashares. By the close of Wall Street on Friday, optimism had returned to the market as investors bet that Washington needs a deal and it is in the interest of China, too. All three major US indexes eked out record closing highs. The Dow inched up while the S&P 500 climbed 0.3 per cent and the Nasdaq Composite added 0.5 per cent. The record closing high by the S&P 500 was the fourth in six sessions. "It will be the US-China trade talks that will continue to dictate the daily swings in sentiment this week," said Jeffrey Halley, senior analyst at OANDA. Halley noted the negotiations were "starting to drag on in a disturbingly Brexit-like manner," referring to Britain's divorce deal with the European Union which is still up in the air almost three years after the country voted to leave the bloc. US officials said a lot of work remained to be done when Trump announced the outlines of an interim deal last month, and Beijing has since pushed back on US demands for big agricultural purchases, among other issues. Analysts said the outlook for equities was highly dependent on US economic data as a US-China trade agreement would help bolster manufacturing and industrial sectors. "The Hong Kong protests have seen a knee-jerk rotation out of risk positioning," OANDA's Halley said. "The effects are more likely to be passing than permanent...as long as the trade talks stay on target." Data on October US industrial production and retail sales, along with the National Federation of Independent Business's monthly small business survey, are scheduled for release this week. In commodities, benchmark Brent crude fell 57 cents to $61.94 a barrel while West Texas Intermediate (WTI) crude slipped 48 cents to $56.76 a barrel.

Global Markets: Asian shares a sea of red as Hong Kong chaos hits sentiment

Asian share markets firmed on Monday as signs of progress in the Sino-US&nbsp;trade standoff whetted risk appetite, though investors were wary of the damage already done to the global economy.

Indeed, data out from China underlined the pain felt with dollar-denominated exports and imports both falling by more than expected in September.

Liquidity was also lacking with Japan off and a partial market holiday in the United States for Columbus Day. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.1 per cent&nbsp;in light trade.

Australia's main index gained 0.7 per cent and South Korea 1.3 per cent. Shanghai blue chips&nbsp;added 1.6 per cent.

While Tokyo was on holiday, Nikkei futures were trading at 22,075 compared with a Friday close of 21,798 in the Nikkei cash index. E-Mini futures for the S&amp;P 500 nudged up 0.2 per cent&nbsp;after jumping on Friday.

Sentiment had been boosted when US&nbsp;President Donald Trump outlined the <a href="https://www.wionews.com/world/us-president-donald-trump-announces-partial-trade-deal-with-china-255358">first phase of a deal </a>to end a trade war with China and suspended a threatened tariff hike, though officials on both sides said much more work needed to be done.

The emerging deal, covering agriculture, currency and some aspects of intellectual property protections, would represent the biggest step by the two countries in 15 months.

Analysts, however, advised caution.

"We have seen a truce established, and then broken, before," said Tai Hui, chief market strategist for Asia at JPMorgan Asset Management.

"The threat to global growth is weak corporate capex, and potentially spilling over into the consumer sector," Hui added. "CEOs are not going to restart investing again merely because of the latest round of agreement between the two sides."

The drag from the trade war was a major reason Singapore's central bank eased monetary policy on Monday for the first time in three years as data showed the city-state's economy had only narrowly dodged recession.

The progress on trade was still enough to slug safe-haven bonds with yields on US&nbsp;10-year Treasury notes climbing 23 basis points last week to stand at 1.74 per cent.

The yield curve also steepened as short-term rates were held down by news the Fed would start buying about $60 billion per month in Treasury bills to ensure "ample reserves" in the banking system.

The rally in risk assets had seen the yen ease across the board, leaving the dollar holding at 108.32 on Monday after hitting a 10-week top around 108.61 on Friday.

The dollar fared less well elsewhere, partly due to a jump in sterling, and was last at 98.435 against a basket of currencies&nbsp;after losing 0.5 per cent last week.

The dollar also slipped on the Chinese yuan to stand at 7.0646.

The pound was trading cautiously at $1.2598 having surged to a 15-week high around $1.2705 on Friday on optimism Britain could reach a deal on Brexit with the European Union.

However, officials from Downing Street and the EU said on Sunday a lot more work would be needed to secure an agreement on Britain's departure from the bloc.

The two sides will hold more talks on Monday ahead of a summit of EU leaders in Brussels on Thursday and Friday.

The general improvement in risk sentiment saw spot gold ease another 0.2 per cent&nbsp;to $1,486.85 per ounce.

Oil prices pared gains made on Friday when reports surfaced that an Iranian state-owned oil tanker had been attacked in the Red Sea.&nbsp;

Investors were also anxiously watching<a href="https://www.wionews.com/videos/day-5-of-turkeys-military-operation-in-syria-255702"> Turkey's incursion into Syria</a> as the White House threatened to impose heavy sanctions on Ankara.

Brent crude&nbsp;futures eased 31 cents at $60.20, while US&nbsp;crude&nbsp;lost 30 cents to $54.40 a barrel.

Asian share markets firmed on Monday as signs of progress in the Sino-US trade standoff whetted risk appetite, though investors were wary of the damage already done to the global economy.

Asian share markets firmed on Monday as signs of progress in the Sino-US trade standoff whetted risk appetite, though investors were wary of the damage already done to the global economy. Indeed, data out from China underlined the pain felt with dollar-denominated exports and imports both falling by more than expected in September. Liquidity was also lacking with Japan off and a partial market holiday in the United States for Columbus Day. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.1 per cent in light trade. Australia's main index gained 0.7 per cent and South Korea 1.3 per cent. Shanghai blue chips added 1.6 per cent. While Tokyo was on holiday, Nikkei futures were trading at 22,075 compared with a Friday close of 21,798 in the Nikkei cash index. E-Mini futures for the S&P 500 nudged up 0.2 per cent after jumping on Friday. Sentiment had been boosted when US President Donald Trump outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike, though officials on both sides said much more work needed to be done. The emerging deal, covering agriculture, currency and some aspects of intellectual property protections, would represent the biggest step by the two countries in 15 months. Analysts, however, advised caution. "We have seen a truce established, and then broken, before," said Tai Hui, chief market strategist for Asia at JPMorgan Asset Management. "The threat to global growth is weak corporate capex, and potentially spilling over into the consumer sector," Hui added. "CEOs are not going to restart investing again merely because of the latest round of agreement between the two sides." The drag from the trade war was a major reason Singapore's central bank eased monetary policy on Monday for the first time in three years as data showed the city-state's economy had only narrowly dodged recession. The progress on trade was still enough to slug safe-haven bonds with yields on US 10-year Treasury notes climbing 23 basis points last week to stand at 1.74 per cent. The yield curve also steepened as short-term rates were held down by news the Fed would start buying about $60 billion per month in Treasury bills to ensure "ample reserves" in the banking system. The rally in risk assets had seen the yen ease across the board, leaving the dollar holding at 108.32 on Monday after hitting a 10-week top around 108.61 on Friday. The dollar fared less well elsewhere, partly due to a jump in sterling, and was last at 98.435 against a basket of currencies after losing 0.5 per cent last week. The dollar also slipped on the Chinese yuan to stand at 7.0646. The pound was trading cautiously at $1.2598 having surged to a 15-week high around $1.2705 on Friday on optimism Britain could reach a deal on Brexit with the European Union. However, officials from Downing Street and the EU said on Sunday a lot more work would be needed to secure an agreement on Britain's departure from the bloc. The two sides will hold more talks on Monday ahead of a summit of EU leaders in Brussels on Thursday and Friday. The general improvement in risk sentiment saw spot gold ease another 0.2 per cent to $1,486.85 per ounce. Oil prices pared gains made on Friday when reports surfaced that an Iranian state-owned oil tanker had been attacked in the Red Sea. Investors were also anxiously watching Turkey's incursion into Syria as the White House threatened to impose heavy sanctions on Ankara. Brent crude futures eased 31 cents at $60.20, while US crude lost 30 cents to $54.40 a barrel.

Asia relieved at latest trade truce, China data disappoints

Asian shares turned lower on Thursday after the US&nbsp;Federal Reserve cut interest rates as expected but signalled a higher bar to further policy easings.

Treasury yields rose broadly and the curve flattened as Fed Chairman Jerome Powell took a cautious approach to any further reductions in borrowing costs, while division among central bankers has increased uncertainty over how much further rates might fall.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.36 per cent.

Hong Kong shares shed 0.96 per cent, but Japan's Nikkei rose 1.01 per cent.

The yen rose from a seven-week low versus the dollar and held onto those gains after the Bank of Japan kept policy on hold, as expected, but signalled it could ease next month.

Central banks around the world have been loosening policy to counter the risks of low inflation and recession. Easier monetary policy has generally supported equities.

However, some analysts argue that a bond market rally has gone too far, saying yields have fallen too fast and curves flattened too much.

Others are worried about the growing amount of sovereign debt with negative yields.

"This is a small positive for share prices as long as there is no recession," said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney.

"The only problem is a 25 basis-point cut was already expected, and the comments and dot-plot forecasts were not as dovish as the market hoped. I think the Fed will have to cut again. There are still some risks from the yield curve."

US&nbsp;stock futures fell 0.23 per cent in Asia on Thursday. The S&amp;P 500 reversed losses to end 0.03 per cent higher after Powell said he did not see an imminent recession or think the Fed will adopt negative rates.

The Fed cut interest rates for a second time this year to 1.75 per cent - 2.00 per cent in a 7-3 vote but signalled further cuts are unlikely as the labour market remains strong.

The rate cut was widely expected, but the split vote has raised some concern about predicting the future path of monetary policy.

So-called dot-plot forecasts from all 17 policymakers showed even broader disagreement, with seven expecting a third rate cut this year, five seeing the current rate cut as the last for 2019, and five who appeared to have been against even Wednesday's move.

The yield on benchmark 10-year Treasury notes rose to 1.8013 per cent, while the two-year yield rose to 1.7703 per cent.

The spread between two- and 10-year Treasury yields, the most commonly used measure of the yield curve, was near the lowest since September&nbsp;9.

The curve inverted on August&nbsp;14 for the first time since 2007 when long-term yields traded below short-term yields, a widely accepted indicator of a coming recession.

The Australian dollar fell 0.5 per cent to $0.6793 after data showed the nation's jobless rate rose slightly to 5.3 per cent in August, bolstering expectations for the central bank to cut rates.

The yen rose around 0.3 per cent to 108.14 per dollar.

The BOJ maintained its pledge to guide short-term interest rates at minus 0.1 per cent and the 10-year government bond yield around 0 per cent.

Investors will closely watch BOJ Governor Haruhiko Kuroda's post-decision press conference later on Thursday to gauge how he assesses risks to Japan's economic outlook.

The US&nbsp;crude futures rose 0.24 per cent to $58.25 per barrel.

Oil markets have stabilised after attacks on Saudi Arabia over the weekend triggered a supply shock and sent prices soaring, but the volatility is still a risk as Middle East tensions remain high.

Washington has blamed Iran for the attacks, a charge which Tehran denies.

The US&nbsp;Secretary of State Mike Pompeo has said the strike was "an act of war."

Sterling traded at 88.50 pence per euro, near its strongest level since May 30. The pound was little changed at $1.2467.

Investors are awaiting a Bank of England policy meeting later Thursday. The BOE is expected to keep rates unchanged, but uncertainty about how the UK will exit from the European Union has complicated the outlook for monetary policy.

Asian shares turned lower on Thursday after the US Federal Reserve cut interest rates as expected but signalled a higher bar to further policy easings. Treasury yields rose broadly and the curve flattened as Fed Chairman Jerome Powell took a cautious approach to any further reductions in borrowing costs, while division among central bankers has increased uncertainty over how much further rates might fall.

Asian shares turned lower on Thursday after the US Federal Reserve cut interest rates as expected but signalled a higher bar to further policy easings. Treasury yields rose broadly and the curve flattened as Fed Chairman Jerome Powell took a cautious approach to any further reductions in borrowing costs, while division among central bankers has increased uncertainty over how much further rates might fall. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.36 per cent. Hong Kong shares shed 0.96 per cent, but Japan's Nikkei rose 1.01 per cent. The yen rose from a seven-week low versus the dollar and held onto those gains after the Bank of Japan kept policy on hold, as expected, but signalled it could ease next month. Central banks around the world have been loosening policy to counter the risks of low inflation and recession. Easier monetary policy has generally supported equities. However, some analysts argue that a bond market rally has gone too far, saying yields have fallen too fast and curves flattened too much. Others are worried about the growing amount of sovereign debt with negative yields. "This is a small positive for share prices as long as there is no recession," said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney. "The only problem is a 25 basis-point cut was already expected, and the comments and dot-plot forecasts were not as dovish as the market hoped. I think the Fed will have to cut again. There are still some risks from the yield curve." US stock futures fell 0.23 per cent in Asia on Thursday. The S&P 500 reversed losses to end 0.03 per cent higher after Powell said he did not see an imminent recession or think the Fed will adopt negative rates. The Fed cut interest rates for a second time this year to 1.75 per cent - 2.00 per cent in a 7-3 vote but signalled further cuts are unlikely as the labour market remains strong. The rate cut was widely expected, but the split vote has raised some concern about predicting the future path of monetary policy. So-called dot-plot forecasts from all 17 policymakers showed even broader disagreement, with seven expecting a third rate cut this year, five seeing the current rate cut as the last for 2019, and five who appeared to have been against even Wednesday's move. The yield on benchmark 10-year Treasury notes rose to 1.8013 per cent, while the two-year yield rose to 1.7703 per cent. The spread between two- and 10-year Treasury yields, the most commonly used measure of the yield curve, was near the lowest since September 9. The curve inverted on August 14 for the first time since 2007 when long-term yields traded below short-term yields, a widely accepted indicator of a coming recession. The Australian dollar fell 0.5 per cent to $0.6793 after data showed the nation's jobless rate rose slightly to 5.3 per cent in August, bolstering expectations for the central bank to cut rates. The yen rose around 0.3 per cent to 108.14 per dollar. The BOJ maintained its pledge to guide short-term interest rates at minus 0.1 per cent and the 10-year government bond yield around 0 per cent. Investors will closely watch BOJ Governor Haruhiko Kuroda's post-decision press conference later on Thursday to gauge how he assesses risks to Japan's economic outlook. The US crude futures rose 0.24 per cent to $58.25 per barrel. Oil markets have stabilised after attacks on Saudi Arabia over the weekend triggered a supply shock and sent prices soaring, but the volatility is still a risk as Middle East tensions remain high. Washington has blamed Iran for the attacks, a charge which Tehran denies. The US Secretary of State Mike Pompeo has said the strike was "an act of war." Sterling traded at 88.50 pence per euro, near its strongest level since May 30. The pound was little changed at $1.2467. Investors are awaiting a Bank of England policy meeting later Thursday. The BOE is expected to keep rates unchanged, but uncertainty about how the UK will exit from the European Union has complicated the outlook for monetary policy.

Asian shares turn lower on guarded Fed, yen rises after BOJ

Airbus on Wednesday increased its estimate of the number of new aircraft needed over the coming two decades as airlines seek more fuel-efficient planes even as it trimmed its forecast for the increase in demand for air travel.

In its latest Global Market Forecast for the next 20 years, the European aircraft maker said it expects air traffic to grow by 4.3 per cent annually, a drop from the 4.4 per cent annual growth it forecast last year.

Nevertheless, Airbus now expects even higher demand for new aircraft than it did last year thanks to airlines increasingly retiring older planes for new ones that offer lower operating costs as they consume less fuel.

Airbus anticipates demand for new aircraft over the coming two decades at 39,210 planes, a rise of nearly 2,000 from its forecast last year, due to a sharp increase in replacements.

Unlike last year, it did not provide a cost estimate.

"Developments in superior fuel efficiency are further driving demand to replace existing less fuel-efficient aircraft," said Airbus in a statement.

However, it scaled back the number of planes it expects airlines to acquire to meet growth in demand for air travel by more than 1,500 aircraft to 25,000.

Airbus said that nevertheless, the annual growth of more than 4 per cent reflects the resilient nature of aviation from economic shocks and its increasingly key role in the global economy.

"Economies thrive on air transportation. People and goods want to connect," said Christian Scherer, Airbus Chief Commercial Officer and Head of Airbus International.

"Globally, commercial aviation stimulates GDP growth and supports 65 million livelihoods, demonstrating the immense benefits our business brings to all societies and global trade," he added.

The firm also stressed that with its latest more fuel-efficient models it will help the airline industry limit its environmental impact.

"Airbus believes it will largely contribute to the progressive decarbonisation of the air transport industry and the objective of carbon-neutral growth from 2020 while connecting more people globally," it said.

The airline industry aims to freeze its carbon footprint at its 2020 level thanks to more fuel-efficient aircraft and through offsets like planting trees

Airbus on Wednesday increased its estimate of the number of new aircraft needed over the coming two decades as airlines seek more fuel-efficient planes even as it trimmed its forecast for the increase in demand for air travel.

Airbus on Wednesday increased its estimate of the number of new aircraft needed over the coming two decades as airlines seek more fuel-efficient planes even as it trimmed its forecast for the increase in demand for air travel. In its latest Global Market Forecast for the next 20 years, the European aircraft maker said it expects air traffic to grow by 4.3 per cent annually, a drop from the 4.4 per cent annual growth it forecast last year. Nevertheless, Airbus now expects even higher demand for new aircraft than it did last year thanks to airlines increasingly retiring older planes for new ones that offer lower operating costs as they consume less fuel. Airbus anticipates demand for new aircraft over the coming two decades at 39,210 planes, a rise of nearly 2,000 from its forecast last year, due to a sharp increase in replacements. Unlike last year, it did not provide a cost estimate. "Developments in superior fuel efficiency are further driving demand to replace existing less fuel-efficient aircraft," said Airbus in a statement. However, it scaled back the number of planes it expects airlines to acquire to meet growth in demand for air travel by more than 1,500 aircraft to 25,000. Airbus said that nevertheless, the annual growth of more than 4 per cent reflects the resilient nature of aviation from economic shocks and its increasingly key role in the global economy. "Economies thrive on air transportation. People and goods want to connect," said Christian Scherer, Airbus Chief Commercial Officer and Head of Airbus International. "Globally, commercial aviation stimulates GDP growth and supports 65 million livelihoods, demonstrating the immense benefits our business brings to all societies and global trade," he added. The firm also stressed that with its latest more fuel-efficient models it will help the airline industry limit its environmental impact. "Airbus believes it will largely contribute to the progressive decarbonisation of the air transport industry and the objective of carbon-neutral growth from 2020 while connecting more people globally," it said. The airline industry aims to freeze its carbon footprint at its 2020 level thanks to more fuel-efficient aircraft and through offsets like planting trees

Airbus ups estimate of 20-year demand for new planes

China's threat to impose countermeasures in retaliation for the latest US tariffs knocked stocks sprawling on Thursday, checking earlier attempts to recover from a rout sparked by fears of a world recession.

China's threat to impose countermeasures in retaliation for the latest US tariffs knocked stocks sprawling on Thursday, checking earlier attempts to recover from a rout sparked by fears of a world recession. Wall Street futures signalled another weak open for US stocks, which fell 3 per cent on Wednesday after long-dated bond yields dropped, raising fears the US economy was hurtling towards recession and dragging world stocks with it. Expectations that the US Federal Reserve and other central banks would respond robustly to the recession warning helped world stocks to steady earlier. But that recovery was cut short by the latest rhetoric from Beijing "The only game in town is the central banks, hence the bond markets are rallying," said Peter Schaffrik, global macro strategist at RBC Capital Markets. "We have regional bonfires in Hong Kong, Argentina, Japan against South Korea, and none of these is going away easily; everyone is not necessarily strong enough to cause trouble." Recession fears grew on Wednesday after yields on 10-year Treasury bonds dropped to less than two-year rates for the first time in 12 years when the same yield curve inversion presaged the 2008 recession. The curve has inverted before every recession in the past 50 years and sent a false signal just once. The latest inversion has since reversed, albeit marginally, and yields on 30-year Treasuries rose off the record 1.965 per cent low reached in Asian trade. But they are still down 60 basis points in just 12 sessions. Markets appear to be pinning their hopes, yet again, on central banks, betting that scale of the scare would alarm policymakers, especially at the Fed. Money markets price in a growing chance the Fed will cut rates by half a point at its September meeting. "We have seen stocks trading very poorly as a result of the yield curve inversion, so that will be flashing some additional warning lights for the Fed that they have to do more," said Andrea Iannelli, investment director at Fidelity International. "The only question is, can the Fed out-dove the market? At the very least they will have to match market expectations in the short term." The Chinese comments sent a pan-European equity index down half a per cent and markets in London and Frankfurt lost over 1 per cent. Earlier, Asian shares fell 0.5 per cent. Japan's Nikkei shed 1.2 per cent as the recent yen surge hit the export-heavy market. German 30-year yields are below minus 0.2 per cent for the first time. Ten-year yields touched a record low of minus 0.67 per cent. The growth worries come amid economic stress in Argentina and some other emerging markets, fears of Chinese military intervention in Hong Kong and trade tensions that show no sign of abating. "Hoping for the best on the policy front but positioning for the worst on the economic backdrop seems to be the flavour of the day," said Stephen Innes, a managing partner at Valour Markets. "The Fed, now out of necessity alone, will need to adjust policy much more profoundly than they expected." Not everyone buys the argument that recession is inevitable bond markets have been distorted by a decade of multi-trillion-dollar central bank stimulus. Mark Haefele, chief investment officer at UBS Global Wealth Management, said how long the curve remained inverted, and to what extent, was crucial. "If Fed rate cuts successfully steepen the curve comfortably into positive territory, this brief curve inversion may be a premature recession signal. Neither does a yield curve inversion indicate it is time to sell equities," Haefele said. He noted that since 1975, every curve inversion had been followed by an S&P 500 rally that lasted almost two years and delivered average gains around 40 per cent. Safety plays As the Sino-US trade war escalates, long-dated bond yields have fallen across the developed world, flattening yield curves in what is considered a clear signal of a worsening growth outlook. What sent the US curve over the brink into inversion was German data on Wednesday that showed the economy had contracted in the quarter to June. That came on the heels of dire Chinese data for July. The British yield curve also inverted. The German curve is at its flattest since 2008. Oil prices plunged with Brent crude losing another 2 per cent to $58.4 a barrel, after shedding 3 per cent overnight. Safe-haven gold was up 0.3 per cent at $1,520 per ounce, just off recent six-year highs. The yen was flat at 105.8 to the dollar, having earlier traded at 106.74. The currency has gained against the dollar for eight of the past 10 sessions. Excluding a mini-crash episode in January, it recently hit 17-month highs.

Global Markets: China's trade threats deal a fresh blow to world stock

Global stocks extended already substantial losses on Tuesday as China's yuan currency dropped to an 11-year low after Washington designated Beijing a currency manipulator in a rapid escalation of the US-China trade war.

Safe-haven assets, including bonds and some currencies such as the yen and Swiss franc, benefited as investors scurried to avoid risk.

US Treasury Secretary Steven Mnuchin said on Monday the government had determined that China is manipulating its currency, and that Washington would engage the International Monetary Fund to eliminate unfair competition from Beijing.

"Given the fragile state of markets, this is likely to be viewed as an escalation of the trade war and exacerbate the market sell-off," wrote Steve Englander, head of global G10 FX research at Standard Chartered Bank.

"In market terms, the designation, however meretricious, will likely be seen as a further ramping up of the trade dispute and possibly leading to some reaction by China."

The Trump administration's dramatic move against China hastened the risk aversion seen in global markets this week. On Monday, China let the yuan slide in response to the latest US tariffs, which are expected to further aggravate trade tensions between the world's two largest economies.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5% to its lowest level since January.

The Shanghai Composite Index retreated 2%.

Japan's Nikkei shed 2.1%, Australian stocks fell 2.3% and South Korea's KOSPI slid 1.6%.

"Following the latest development in the US-China trade war, all the economic views and moves in the currency and equity markets are driven by a 'risk off' mentality, which in turn is boosting bonds," said Kota Hirayama, senior emerging markets economist at SMBC Nikko Securities.

"The fact that US yields are falling sharply even though Federal Reserve Chairman Jerome Powell did not signal further easing explains it all."

S&amp;P 500 futures were down 0.5% in Asian trade. Wall Street's major indexes posted their biggest percentage drop of the year on Monday on concerns about the US-China trade war.

MSCI's All Country World Index, which tracks shares in 47 countries, extended last week's slide and slumped 2.5% to a two-month low on Monday.

The Chinese yuan onshore fell to an 11-year low on Tuesday, brushing 7.0699 per dollar. In a symbolic move, Beijing let the yuan breach 7-per-dollar on Monday for the first time since late 2008.

China's offshore yuan stretched the previous day's slide, weakening to 7.1288, the lowest level since international trading in the Chinese currency began in 2010. It last traded at 7.0945.

The Japanese yen, a perceived safe-haven in times of market turmoil and political tensions, touched a seven-month high of 105.520 per dollar before slipping back to 106.290.

The Swiss franc, another currency sought in times of turmoil, has gained roughly 1% against the dollar this week. It touched a six-week peak of 0.9700 franc per dollar.

Investor demand for other safe-havens such government bonds also remained high as risk aversion gathered momentum.

The 10-year US Treasury yield extended sharp falls overnight and declined to 1.672%, its lowest since October 2016.

Japan's 10-year yield fell to a three-year trough of minus 0.215%.

Brent crude oil futures plumbed a seven-month low of $59.07 per barrel as the trade war raised concerns about lower demand for commodities. Brent last traded at $59.89.

Global stocks extended already substantial losses on Tuesday as China's yuan currency dropped to an 11-year low after Washington designated Beijing a currency manipulator in a rapid escalation of the US-China trade war.

Global stocks extended already substantial losses on Tuesday as China's yuan currency dropped to an 11-year low after Washington designated Beijing a currency manipulator in a rapid escalation of the US-China trade war. Safe-haven assets, including bonds and some currencies such as the yen and Swiss franc, benefited as investors scurried to avoid risk. US Treasury Secretary Steven Mnuchin said on Monday the government had determined that China is manipulating its currency, and that Washington would engage the International Monetary Fund to eliminate unfair competition from Beijing. "Given the fragile state of markets, this is likely to be viewed as an escalation of the trade war and exacerbate the market sell-off," wrote Steve Englander, head of global G10 FX research at Standard Chartered Bank. "In market terms, the designation, however meretricious, will likely be seen as a further ramping up of the trade dispute and possibly leading to some reaction by China." The Trump administration's dramatic move against China hastened the risk aversion seen in global markets this week. On Monday, China let the yuan slide in response to the latest US tariffs, which are expected to further aggravate trade tensions between the world's two largest economies. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5% to its lowest level since January. The Shanghai Composite Index retreated 2%. Japan's Nikkei shed 2.1%, Australian stocks fell 2.3% and South Korea's KOSPI slid 1.6%. "Following the latest development in the US-China trade war, all the economic views and moves in the currency and equity markets are driven by a 'risk off' mentality, which in turn is boosting bonds," said Kota Hirayama, senior emerging markets economist at SMBC Nikko Securities. "The fact that US yields are falling sharply even though Federal Reserve Chairman Jerome Powell did not signal further easing explains it all." S&P 500 futures were down 0.5% in Asian trade. Wall Street's major indexes posted their biggest percentage drop of the year on Monday on concerns about the US-China trade war. MSCI's All Country World Index, which tracks shares in 47 countries, extended last week's slide and slumped 2.5% to a two-month low on Monday. The Chinese yuan onshore fell to an 11-year low on Tuesday, brushing 7.0699 per dollar. In a symbolic move, Beijing let the yuan breach 7-per-dollar on Monday for the first time since late 2008. China's offshore yuan stretched the previous day's slide, weakening to 7.1288, the lowest level since international trading in the Chinese currency began in 2010. It last traded at 7.0945. The Japanese yen, a perceived safe-haven in times of market turmoil and political tensions, touched a seven-month high of 105.520 per dollar before slipping back to 106.290. The Swiss franc, another currency sought in times of turmoil, has gained roughly 1% against the dollar this week. It touched a six-week peak of 0.9700 franc per dollar. Investor demand for other safe-havens such government bonds also remained high as risk aversion gathered momentum. The 10-year US Treasury yield extended sharp falls overnight and declined to 1.672%, its lowest since October 2016. Japan's 10-year yield fell to a three-year trough of minus 0.215%. Brent crude oil futures plumbed a seven-month low of $59.07 per barrel as the trade war raised concerns about lower demand for commodities. Brent last traded at $59.89.

Stock losses steepen as US puts yuan in crosshairs

Global shares slipped on Thursday on growing signs that a trade dispute between the United States and China was taking a toll on corporate earnings, with nerves spreading from Wall Street through Asia to European markets.

MSCI world equity index, which tracks shares in 47 countries, fell 0.2% to its lowest in nine days, while the Euro STOXX 600 slipped 0.5% to its lowest in almost three weeks.

The earnings season, kicking off this week brought bad signs as rail freight giant CSX Corp, cut its revenue forecast as it warned of the impact of the US-China trade war, pushing down Wall Street indexes on Wednesday.

In Europe, too, earnings were top of the agenda. Tech stocks led the slide as software firm SAP, Europe's most valuable tech stock by market cap, reported poor results, also flagging the impact of the US-China trade war.

With nerves already on edge over when face-to-face talks between the United States and China will resume, US President Donald Trump on Tuesday maintained pressure on Beijing with a threat to put tariffs on another $325 billion of Chinese goods.

Investors also cited a report that progress toward a US-China trade deal has stalled as the Trump administration works out how to address Beijing's demands that it ease restrictions on Huawei Technologies.

"It's still about the US and China dispute," Christophe Barraud, chief economist and strategist at Market Securities. "The trade war is creating uncertainty, weighed on capEx, and clearly on trade flows."

"There are also problems with guidance, especially in the transportation sector. The fact is that one of the key stories of this year is global trade flows contraction," he said.

Adding to the concerns over corporate health, Netflix shed US subscribers for the first time in 8 years, sending shares falling over 10% after the close of the market.

Compounding the trade concerns were concerning signs for the economy emerging from Japan to the United States.

Japan's exports slumped yet again, falling 6.7% in June, while manufacturers' confidence fell to a three-year low in July on the back of the trade tensions and slowing China's growth.

US housebuilding fell in June for a second consecutive month, with building permits also falling, in a possible sign of more trouble ahead for the housing market.

The earnings anxiety and macro data boosted demand for safe-haven assets, with yields on benchmark 10-year and 30-year US Treasuries climbing overnight.

Eurozone government bond yields slipped back towards record lows on Thursday as economic indicators and corporate earnings deepened gloom on the global economy and increased bets on interest-rate cuts by major central banks.

Amid the gloomy outlook, bets for further monetary policy easing from major central banks have grown, with speculation on whether the US Federal Reserve will be cut by 25 basis points or 50 basis points in July.

While markets take comfort from central banks' willingness to support growth, said Sunil Krishnan, head of multi-asset funds at Aviva Investors, there were concerns for equity markets that have rallied on the back of stimulus expectations.

The weak start to the Q2 earnings season may spill over into the outlook for the remainder of the year, threatening equity markets' stellar rally this year.

"We are probably in the middle of analysts downgrading Q3 company earnings expectations," he said.

Earlier in the day, MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.3%, with Tokyo's benchmark Nikkei tumbling 2.0%, its biggest one-day fall in four months.

POUND TO PARITY?

In currencies, the dollar edged lower against its rivals on the softer US&nbsp;Treasury yields, with investors focusing their attention on the Fed's meeting next week.

Against a basket of its rivals, the dollar edged 0.1% lower to 97.195.

Sterling was a shade higher at $1.244, off its lowest since April 2017 touched on Wednesday amid growing risks of Britain leaving the European Union in a no-deal Brexit.

Major British banks, such as HSBC, are already talking of the possibility of the pound breaching post-Brexit referendum lows of $1.149, with some asking whether the pound is headed for parity against both the dollar and the euro.

Oil prices were mixed, with US&nbsp;crude extending losses after data showed U.S. stockpiles of gasoline and other products rising sharply last week, suggesting weak demand.

Brent crude futures were up 6 cents, or 0.1%, at $63.71 a barrel by 0755 GMT. They fell by 1.1% on Wednesday.

Global shares slipped on Thursday on growing signs that a trade dispute between the United States and China was taking a toll on corporate earnings, with nerves spreading from Wall Street through Asia to European markets.

Global shares slipped on Thursday on growing signs that a trade dispute between the United States and China was taking a toll on corporate earnings, with nerves spreading from Wall Street through Asia to European markets. MSCI world equity index, which tracks shares in 47 countries, fell 0.2% to its lowest in nine days, while the Euro STOXX 600 slipped 0.5% to its lowest in almost three weeks. The earnings season, kicking off this week brought bad signs as rail freight giant CSX Corp, cut its revenue forecast as it warned of the impact of the US-China trade war, pushing down Wall Street indexes on Wednesday. In Europe, too, earnings were top of the agenda. Tech stocks led the slide as software firm SAP, Europe's most valuable tech stock by market cap, reported poor results, also flagging the impact of the US-China trade war. With nerves already on edge over when face-to-face talks between the United States and China will resume, US President Donald Trump on Tuesday maintained pressure on Beijing with a threat to put tariffs on another $325 billion of Chinese goods. Investors also cited a report that progress toward a US-China trade deal has stalled as the Trump administration works out how to address Beijing's demands that it ease restrictions on Huawei Technologies. "It's still about the US and China dispute," Christophe Barraud, chief economist and strategist at Market Securities. "The trade war is creating uncertainty, weighed on capEx, and clearly on trade flows." "There are also problems with guidance, especially in the transportation sector. The fact is that one of the key stories of this year is global trade flows contraction," he said. Adding to the concerns over corporate health, Netflix shed US subscribers for the first time in 8 years, sending shares falling over 10% after the close of the market. Compounding the trade concerns were concerning signs for the economy emerging from Japan to the United States. Japan's exports slumped yet again, falling 6.7% in June, while manufacturers' confidence fell to a three-year low in July on the back of the trade tensions and slowing China's growth. US housebuilding fell in June for a second consecutive month, with building permits also falling, in a possible sign of more trouble ahead for the housing market. The earnings anxiety and macro data boosted demand for safe-haven assets, with yields on benchmark 10-year and 30-year US Treasuries climbing overnight. Eurozone government bond yields slipped back towards record lows on Thursday as economic indicators and corporate earnings deepened gloom on the global economy and increased bets on interest-rate cuts by major central banks. Amid the gloomy outlook, bets for further monetary policy easing from major central banks have grown, with speculation on whether the US Federal Reserve will be cut by 25 basis points or 50 basis points in July. While markets take comfort from central banks' willingness to support growth, said Sunil Krishnan, head of multi-asset funds at Aviva Investors, there were concerns for equity markets that have rallied on the back of stimulus expectations. The weak start to the Q2 earnings season may spill over into the outlook for the remainder of the year, threatening equity markets' stellar rally this year. "We are probably in the middle of analysts downgrading Q3 company earnings expectations," he said. Earlier in the day, MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.3%, with Tokyo's benchmark Nikkei tumbling 2.0%, its biggest one-day fall in four months. POUND TO PARITY? In currencies, the dollar edged lower against its rivals on the softer US Treasury yields, with investors focusing their attention on the Fed's meeting next week. Against a basket of its rivals, the dollar edged 0.1% lower to 97.195. Sterling was a shade higher at $1.244, off its lowest since April 2017 touched on Wednesday amid growing risks of Britain leaving the European Union in a no-deal Brexit. Major British banks, such as HSBC, are already talking of the possibility of the pound breaching post-Brexit referendum lows of $1.149, with some asking whether the pound is headed for parity against both the dollar and the euro. Oil prices were mixed, with US crude extending losses after data showed U.S. stockpiles of gasoline and other products rising sharply last week, suggesting weak demand. Brent crude futures were up 6 cents, or 0.1%, at $63.71 a barrel by 0755 GMT. They fell by 1.1% on Wednesday.

Global Markets: Stocks slide as US-China trade war takes toll on earnings

Asian stock&nbsp;markets&nbsp;were mixed on Friday, with sentiment torn between investors worried that the <a href="https://www.wionews.com/world/china-says-us-must-show-sincerity-for-trade-talks-to-continue-221010">US-China trade war</a> was becoming more protracted, and others hope that the world's two largest economies would reach a settlement soon.

European stock&nbsp;markets&nbsp;looked slightly more optimistic. In early trade, futures for the pan-region Euro Stoxx 50 index and German DAX futures gained 0.4%, and London's FTSE futures were up 0.3%.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan bounced back to trade flat after hitting a four-month low earlier. The index is still on track for a third straight weekly loss, down 0.8% so far on the week.

Chinese equities firmed as some investors took advantage of cheap share prices. The Shanghai Composite gained 0.1% and the blue-chip CSI 300 rose 0.4% in afternoon trade. Hong Kong's Hang Seng added 0.3%.

Japan's Nikkei average was lower by 0.3%.

On Wall Street, the Dow Jones Industrial Average fell 1.1%, the S&amp;P 500 lost 1.2% and the Nasdaq Composite dropped 1.6%, as traders dumped cyclical names on fears that the escalating US-China trade war would stymie&nbsp;global&nbsp;economic growth.

US President Donald Trump said on Thursday that Washington's complaints against Huawei Technologies might be resolved within the framework of a US-China trade deal while calling the Chinese telecom giant "very dangerous."

Jasper Lawler, head of research at London Capital Group, said,&nbsp;&nbsp;"the fact that Trump is still talking about a trade agreement is offering some optimism to the&nbsp;markets."

"Traders have been focused on the damage to the&nbsp;global&nbsp;economy that a prolonged trade war could cause, so a break from the bad news is cautiously lifting sentiment," he wrote in a note on Friday, commenting on the expected higher European open.

Washington last week effectively banned US firms from doing business with Huawei, the world's largest networking gear maker, citing national security concerns.

The US Commerce Department said on Thursday it was proposing a new rule to impose anti-subsidy duties on products from countries that undervalue their currencies, in another move that could penalise Chinese products.

China's Commerce Ministry hit back on Thursday, with its spokesman saying "if the United States wants to continue trade talks, they should show sincerity and correct their wrong actions."

Masanari Takada, the cross-assets strategist at Nomura Securities in Tokyo, said the US-China trade conflict "has not yet fully dented the&nbsp;global&nbsp;investor sentiment, so there is no panic-selling. But at the same time, the sentiment will likely remain weak."

As flight-to-safety plays dominated&nbsp;global&nbsp;markets, the benchmark 10-year US Treasury note yield hit 2.292%, the lowest level since mid-October 2017, with the key parts of the yield curve inverted. The yield last stood at 2.3237%.

Chotaro Morita, the chief fixed-income strategist at SMBC Nikko Securities, said big falls shown in a fresh US manufacturing survey appear to reflect expectations of a breakdown in the US-China trade talks.

"In the last couple of years, the PMI has had a very small gap with hard data, such as industrial output. So if that holds true this time, we could see factory production plunging into negative levels (compared to a year ago)."

"Since the&nbsp;global&nbsp;financial crisis, US&nbsp;output has fallen only once: from 2015 to early 2016 when the shale industry was badly hit.&nbsp;Markets&nbsp;could start to fret over a&nbsp;global&nbsp;slowdown as they have done late last year."

The dollar index, which measures it against six major currencies, hit a high of 98.371 on Thursday US&nbsp;time. It was last quoted at 97.847, little changed on the day.

The euro on Thursday slumped to levels last seen in May 2017 as a recovery in eurozone business activity was weaker than expected. Early Friday, the currency was flat on the day at $1.1181.

Sterling weakened again on Thursday as pressure mounted on<a href="https://www.wionews.com/world/british-pm-theresa-may-expected-to-announce-her-departure-on-friday-report-220845"> British Prime Minister Theresa May</a> to name a date for her departure after a backlash over her last-ditch plans for Britain's exit from the European Union.

The pound was last traded at $1.2663, little changed on the day. Sterling suffered its 14th consecutive day of losses against the euro on Thursday, its longest losing streak on record. It stood at 0.8829 pounds to the euro.

Other major currencies were relatively calm. The dollar was holding at 109.59 yen, flat on the day.

In commodity&nbsp;markets, oil prices tumbled on Thursday as trade tensions dampened the demand outlook, with the crude benchmarks posting their biggest daily falls in six months.

Oil prices stabilised on Friday amid OPEC supply cuts and tensions in the Middle East.

US crude was last seen at $58.58 a barrel, up 1.16%, after Thursday's 5.7% fall that took it to the lowest in two months. Brent crude futures rebounded 1.18% to $68.56 per barrel, after falling 4.6% in the previous session.

Asian stock markets were mixed on Friday, with sentiment torn between investors worried that the US-China trade war was becoming more protracted, and others hope that the world's two largest economies would reach a settlement soon.

Asian stock markets were mixed on Friday, with sentiment torn between investors worried that the US-China trade war was becoming more protracted, and others hope that the world's two largest economies would reach a settlement soon. European stock markets looked slightly more optimistic. In early trade, futures for the pan-region Euro Stoxx 50 index and German DAX futures gained 0.4%, and London's FTSE futures were up 0.3%. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan bounced back to trade flat after hitting a four-month low earlier. The index is still on track for a third straight weekly loss, down 0.8% so far on the week. Chinese equities firmed as some investors took advantage of cheap share prices. The Shanghai Composite gained 0.1% and the blue-chip CSI 300 rose 0.4% in afternoon trade. Hong Kong's Hang Seng added 0.3%. Japan's Nikkei average was lower by 0.3%. On Wall Street, the Dow Jones Industrial Average fell 1.1%, the S&P 500 lost 1.2% and the Nasdaq Composite dropped 1.6%, as traders dumped cyclical names on fears that the escalating US-China trade war would stymie global economic growth. US President Donald Trump said on Thursday that Washington's complaints against Huawei Technologies might be resolved within the framework of a US-China trade deal while calling the Chinese telecom giant "very dangerous." Jasper Lawler, head of research at London Capital Group, said, "the fact that Trump is still talking about a trade agreement is offering some optimism to the markets." "Traders have been focused on the damage to the global economy that a prolonged trade war could cause, so a break from the bad news is cautiously lifting sentiment," he wrote in a note on Friday, commenting on the expected higher European open. Washington last week effectively banned US firms from doing business with Huawei, the world's largest networking gear maker, citing national security concerns. The US Commerce Department said on Thursday it was proposing a new rule to impose anti-subsidy duties on products from countries that undervalue their currencies, in another move that could penalise Chinese products. China's Commerce Ministry hit back on Thursday, with its spokesman saying "if the United States wants to continue trade talks, they should show sincerity and correct their wrong actions." Masanari Takada, the cross-assets strategist at Nomura Securities in Tokyo, said the US-China trade conflict "has not yet fully dented the global investor sentiment, so there is no panic-selling. But at the same time, the sentiment will likely remain weak." As flight-to-safety plays dominated global markets, the benchmark 10-year US Treasury note yield hit 2.292%, the lowest level since mid-October 2017, with the key parts of the yield curve inverted. The yield last stood at 2.3237%. Chotaro Morita, the chief fixed-income strategist at SMBC Nikko Securities, said big falls shown in a fresh US manufacturing survey appear to reflect expectations of a breakdown in the US-China trade talks. "In the last couple of years, the PMI has had a very small gap with hard data, such as industrial output. So if that holds true this time, we could see factory production plunging into negative levels (compared to a year ago)." "Since the global financial crisis, US output has fallen only once: from 2015 to early 2016 when the shale industry was badly hit. Markets could start to fret over a global slowdown as they have done late last year." The dollar index, which measures it against six major currencies, hit a high of 98.371 on Thursday US time. It was last quoted at 97.847, little changed on the day. The euro on Thursday slumped to levels last seen in May 2017 as a recovery in eurozone business activity was weaker than expected. Early Friday, the currency was flat on the day at $1.1181. Sterling weakened again on Thursday as pressure mounted on British Prime Minister Theresa May to name a date for her departure after a backlash over her last-ditch plans for Britain's exit from the European Union. The pound was last traded at $1.2663, little changed on the day. Sterling suffered its 14th consecutive day of losses against the euro on Thursday, its longest losing streak on record. It stood at 0.8829 pounds to the euro. Other major currencies were relatively calm. The dollar was holding at 109.59 yen, flat on the day. In commodity markets, oil prices tumbled on Thursday as trade tensions dampened the demand outlook, with the crude benchmarks posting their biggest daily falls in six months. Oil prices stabilised on Friday amid OPEC supply cuts and tensions in the Middle East. US crude was last seen at $58.58 a barrel, up 1.16%, after Thursday's 5.7% fall that took it to the lowest in two months. Brent crude futures rebounded 1.18% to $68.56 per barrel, after falling 4.6% in the previous session.

Asia stocks flat as trade worries linger, Europe to open higher

Asian&nbsp;shares&nbsp;carved out a&nbsp;four-month&nbsp;trough on Thursday amid worries the Sino-US trade conflict was fast morphing into a technology cold war between the world's two largest economies.

Late Wednesday, Reuters reported the US&nbsp;administration was considering Huawei-like sanctions on Chinese video surveillance firm Hikvision over the country's treatment of its Uighur Muslim minority, according to a person briefed on the matter.

After the United States placed<a href="https://www.wionews.com/world/huawei-unwanted-asian-shops-shun-phone-trade-ins-on-google-suspension-worries-220614"> Huawei Technologies </a>on a trade blacklist last week, British chip designer ARM has halted relations with Huawei in order to comply with the blockade.

"For China, the key risk is that the combined effects of investment restrictions, export controls, and tariffs will rewire supply chains and weaken manufacturing investment, particularly in the technology sectors driving growth," ratings agency S&amp;P warned in a special report.

Shanghai blue chips shed 1.5% in response to be near their&nbsp;lowest since February. MSCI's broadest index of&nbsp;Asia-Pacific shares outside Japan slid 0.9% to reach its&nbsp;lowest in&nbsp;four&nbsp;months.

Japan's Nikkei lost 1%, while South Korea shed 0.7%. Also feeling the pain, E-Mini futures for the S&amp;P 500 dropped 0.5%.

Minutes of the US Federal Reserve's last meeting out on Wednesday underlined its readiness to be patient on policy "for some time" given the uncertain&nbsp;global&nbsp;outlook.

The chance of a rate cut seemed to diminish as many Fed policymakers saw recent weakness in inflation as "transitory", though the latest escalation in the trade war means&nbsp;markets&nbsp;are still wagering on an eventual easing.

Yields on two-year Treasuries of 2.237% are also well below&nbsp;the current effective fund's rate at 2.39%.

There remains no end in sight to the trade dispute. Treasury Secretary Steven Mnuchin on Wednesday said it would be at least a month before the US&nbsp;would enact proposed tariffs on $300 billion in Chinese imports as it studies the impact on American consumers.

The mood on Wall Street was cautious with the Dow ending Wednesday down 0.39%, while the S&amp;P 500 lost 0.28% and the Nasdaq 0.45%.

Shares&nbsp;in chipmaker Qualcomm Inc dived 10.9% after a federal judge ruled the company illegally suppressed competition in the market for smartphone chips by threatening to cut off supplies and extracting excessive licensing fees.

MORE BREXIT CHAOS

In currencies, constant trade friction saw the&nbsp;safe&nbsp;haven&nbsp;yen&nbsp;in demand again as the dollar dipped to 110.20&nbsp;yen&nbsp;and away from the week's top of 110.67.

The dollar fared better on the euro at $1.1151 and was steady on a basket of currencies at 98.111.

Sterling was the main mover, sliding to a&nbsp;four-month&nbsp;low&nbsp;at $1.2625 before steadying at $1.2651 in&nbsp;Asia.

<a href="https://www.wionews.com/world/time-to-resign-uk-pm-mays-final-brexit-gambit-bombs-220672">British Prime Minister Theresa May</a> came under intense pressure after her latest Brexit gambit backfired and fuelled calls for her to quit.

Prominent Brexit supporter Andrea Leadsom resigned from the government on Wednesday and British media reported May could announce her departure date as early as Friday.

"Uncertainty is the only clear certainty in the near term," said Westpac macro strategist Tim Riddell.

"The risk of a hard-Brexit replacement for May has increased the risks of a hard Brexit result or even a forced no-deal exit," he added. "Such an event would likely force GBP&nbsp;lower, increase risks of assets sliding and BOE (Bank of England) taking counteraction to support assets."

In commodity&nbsp;markets, spot gold edged up a touch to $1,274.10 per ounce.

Oil prices added to losses suffered overnight after an unexpected build in the US&nbsp;crude inventories compounded investor worries about demand.

The US&nbsp;crude was last down 44 cents at $60.98 a barrel, while Brent crude futures lost 45 cents to $70.54.

Asian shares carved out a four-month trough on Thursday amid worries the Sino-US trade conflict was fast morphing into a technology cold war between the world's two largest economies.

Asian shares carved out a four-month trough on Thursday amid worries the Sino-US trade conflict was fast morphing into a technology cold war between the world's two largest economies. Late Wednesday, Reuters reported the US administration was considering Huawei-like sanctions on Chinese video surveillance firm Hikvision over the country's treatment of its Uighur Muslim minority, according to a person briefed on the matter. After the United States placed Huawei Technologies on a trade blacklist last week, British chip designer ARM has halted relations with Huawei in order to comply with the blockade. "For China, the key risk is that the combined effects of investment restrictions, export controls, and tariffs will rewire supply chains and weaken manufacturing investment, particularly in the technology sectors driving growth," ratings agency S&P warned in a special report. Shanghai blue chips shed 1.5% in response to be near their lowest since February. MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.9% to reach its lowest in four months. Japan's Nikkei lost 1%, while South Korea shed 0.7%. Also feeling the pain, E-Mini futures for the S&P 500 dropped 0.5%. Minutes of the US Federal Reserve's last meeting out on Wednesday underlined its readiness to be patient on policy "for some time" given the uncertain global outlook. The chance of a rate cut seemed to diminish as many Fed policymakers saw recent weakness in inflation as "transitory", though the latest escalation in the trade war means markets are still wagering on an eventual easing. Yields on two-year Treasuries of 2.237% are also well below the current effective fund's rate at 2.39%. There remains no end in sight to the trade dispute. Treasury Secretary Steven Mnuchin on Wednesday said it would be at least a month before the US would enact proposed tariffs on $300 billion in Chinese imports as it studies the impact on American consumers. The mood on Wall Street was cautious with the Dow ending Wednesday down 0.39%, while the S&P 500 lost 0.28% and the Nasdaq 0.45%. Shares in chipmaker Qualcomm Inc dived 10.9% after a federal judge ruled the company illegally suppressed competition in the market for smartphone chips by threatening to cut off supplies and extracting excessive licensing fees. MORE BREXIT CHAOS In currencies, constant trade friction saw the safe haven yen in demand again as the dollar dipped to 110.20 yen and away from the week's top of 110.67. The dollar fared better on the euro at $1.1151 and was steady on a basket of currencies at 98.111. Sterling was the main mover, sliding to a four-month low at $1.2625 before steadying at $1.2651 in Asia. British Prime Minister Theresa May came under intense pressure after her latest Brexit gambit backfired and fuelled calls for her to quit. Prominent Brexit supporter Andrea Leadsom resigned from the government on Wednesday and British media reported May could announce her departure date as early as Friday. "Uncertainty is the only clear certainty in the near term," said Westpac macro strategist Tim Riddell. "The risk of a hard-Brexit replacement for May has increased the risks of a hard Brexit result or even a forced no-deal exit," he added. "Such an event would likely force GBP lower, increase risks of assets sliding and BOE (Bank of England) taking counteraction to support assets." In commodity markets, spot gold edged up a touch to $1,274.10 per ounce. Oil prices added to losses suffered overnight after an unexpected build in the US crude inventories compounded investor worries about demand. The US crude was last down 44 cents at $60.98 a barrel, while Brent crude futures lost 45 cents to $70.54.

Asia shares sink to four-month low, yen a safe harbour

European stocks slipped on Monday as concerns about an escalating fallout from a US&nbsp;crackdown on <a href="https://www.wionews.com/business-economy/huawei-founder-says-growth-may-slow-but-only-slightly-after-us-restrictions-219759">China's Huawei Technologies</a> offset a slightly more positive tone on trade.

Asian shares managed to reverse some of last week's heavy losses on Monday after the United States said it would lift tariffs in North America, as investors cheered apparent wins by Conservative incumbent parties in elections in Australia and India.

But the mood did not carry over to European markets. The pan-European Euro STOXX 600 fell 0.1%, the German DAX slipped 0.17%, while France's CAC 40 weakened 0.21%.

US President Donald Trump's government added Huawei to a trade blacklist last week, imposing restrictions that will make it difficult to do business with US&nbsp;companies.

The repercussions of that move became evident as Google suspended some business with Huawei.

In Europe, chipmakers Infineon Technologies, AMS and STMicroelectronics dropped sharply after Nikkei Asian Review reported that German chipmaker Infineon had halted shipments to Huawei. The company had no immediate comment.

"Market volatility continues to stem from announcements and interpretations of what is going on in trade disputes between the US&nbsp;and its trading partners, but principally China," said Jasper Lawler, head of research at London Capital Group.

"Whilst the latest headlines over Canada are supportive of sentiment, a news bite which increases risk aversion could be just around the corner. Investors know this and are on edge right now. That won’t change overnight. China is unlikely to take Google's suspension of business with Huawei lying down."

On the positive side, a US&nbsp;decision on Friday to remove tariffs on Canadian steel and aluminium prompted Canada's foreign minister to vow the quick ratification of a new North American trade agreement.

The MSCI index of world shares, which tracks shares in 47 countries, rose 0.08%. It remains some 3.6% below its 2019 highs as the sudden return of trade war jitters sent the stock market's strong rally into reverse.

The US&nbsp;S&amp;P 500 e-mini futures turned higher, rising 0.23% following losses on Wall Street on Friday.

Prominent investor Jim Rogers, who co-founded the Quantum Fund with George Soros, told the Reuters Global Markets Forum that he believed Washington and Beijing would soon announce a trade deal, although the current spat would not be the last time Trump tried to exploit the prospect of a trade war.

"These are negotiating tactics from Mr Trump at the moment. What will happen is we will have some good news, the market will have a rally. It will probably be the last rally," he said.

Oil jumps

Oil prices jumped after Saudi Energy Minister Khalid al-Falih said that there was the consensus among the members of the Organization of the Petroleum Exporting Countries to maintain production cuts to "gently" reduce inventories.

Both US&nbsp;crude and Brent crude jumped more than 1.1% on Monday, with West Texas Intermediate fetching $63.5 a barrel and Brent crude at $73.04 per barrel.

Rising tensions in the Middle East, which have supported oil prices, ratcheted up another notch on the weekend as Trump issued new threats, tweeting that a conflict with Iran would be the "official end" of that country.

In currency markets, the Australian dollar jumped nearly 1% after the centre-right Liberal-National Coalition pulled off a shock win in a federal election, beating the centre-left Labor party.

The Indian rupee also rallied after exit polls pointed to a majority for Prime Minister<a href="https://www.wionews.com/opinions/modi-checkmated-oppositions-attempt-to-turn-advanis-statement-against-current-bjp-leadership-208323"> Narendra Modi's Bharatiya Janata Party</a> and allies. The rupee was last up 1.1%.

China's offshore yuan rebounded after touching its weakest against the dollar since November on Friday. It last traded up 0.1% at 6.9441 per dollar.

Sources told Reuters China's central bank is expected to use foreign exchange intervention and monetary policy tools to stop it weakening past the 7-per-dollar level in the near term.

The dollar slipped slightly against the euro to $1.1161.

Sterling recovered 0.3% to $1.2751 after suffering its biggest weekly loss since 2017 after an apparent collapse in Brexit talks in London.

German government bond yields moved slightly higher. That followed a fall towards new 2-1/2 year lows last week after investors flocked to safe-haven debt.

Austrian yields held firm after a scandal prompted Chancellor Sebastian Kurz to pull the plug on his coalition with the far right at the weekend, raising the chances of a snap election.

European stocks slipped on Monday as concerns about an escalating fallout from a US crackdown on China's Huawei Technologies offset a slightly more positive tone on trade.

European stocks slipped on Monday as concerns about an escalating fallout from a US crackdown on China's Huawei Technologies offset a slightly more positive tone on trade. Asian shares managed to reverse some of last week's heavy losses on Monday after the United States said it would lift tariffs in North America, as investors cheered apparent wins by Conservative incumbent parties in elections in Australia and India. But the mood did not carry over to European markets. The pan-European Euro STOXX 600 fell 0.1%, the German DAX slipped 0.17%, while France's CAC 40 weakened 0.21%. US President Donald Trump's government added Huawei to a trade blacklist last week, imposing restrictions that will make it difficult to do business with US companies. The repercussions of that move became evident as Google suspended some business with Huawei. In Europe, chipmakers Infineon Technologies, AMS and STMicroelectronics dropped sharply after Nikkei Asian Review reported that German chipmaker Infineon had halted shipments to Huawei. The company had no immediate comment. "Market volatility continues to stem from announcements and interpretations of what is going on in trade disputes between the US and its trading partners, but principally China," said Jasper Lawler, head of research at London Capital Group. "Whilst the latest headlines over Canada are supportive of sentiment, a news bite which increases risk aversion could be just around the corner. Investors know this and are on edge right now. That won’t change overnight. China is unlikely to take Google's suspension of business with Huawei lying down." On the positive side, a US decision on Friday to remove tariffs on Canadian steel and aluminium prompted Canada's foreign minister to vow the quick ratification of a new North American trade agreement. The MSCI index of world shares, which tracks shares in 47 countries, rose 0.08%. It remains some 3.6% below its 2019 highs as the sudden return of trade war jitters sent the stock market's strong rally into reverse. The US S&P 500 e-mini futures turned higher, rising 0.23% following losses on Wall Street on Friday. Prominent investor Jim Rogers, who co-founded the Quantum Fund with George Soros, told the Reuters Global Markets Forum that he believed Washington and Beijing would soon announce a trade deal, although the current spat would not be the last time Trump tried to exploit the prospect of a trade war. "These are negotiating tactics from Mr Trump at the moment. What will happen is we will have some good news, the market will have a rally. It will probably be the last rally," he said. Oil jumps Oil prices jumped after Saudi Energy Minister Khalid al-Falih said that there was the consensus among the members of the Organization of the Petroleum Exporting Countries to maintain production cuts to "gently" reduce inventories. Both US crude and Brent crude jumped more than 1.1% on Monday, with West Texas Intermediate fetching $63.5 a barrel and Brent crude at $73.04 per barrel. Rising tensions in the Middle East, which have supported oil prices, ratcheted up another notch on the weekend as Trump issued new threats, tweeting that a conflict with Iran would be the "official end" of that country. In currency markets, the Australian dollar jumped nearly 1% after the centre-right Liberal-National Coalition pulled off a shock win in a federal election, beating the centre-left Labor party. The Indian rupee also rallied after exit polls pointed to a majority for Prime Minister Narendra Modi's Bharatiya Janata Party and allies. The rupee was last up 1.1%. China's offshore yuan rebounded after touching its weakest against the dollar since November on Friday. It last traded up 0.1% at 6.9441 per dollar. Sources told Reuters China's central bank is expected to use foreign exchange intervention and monetary policy tools to stop it weakening past the 7-per-dollar level in the near term. The dollar slipped slightly against the euro to $1.1161. Sterling recovered 0.3% to $1.2751 after suffering its biggest weekly loss since 2017 after an apparent collapse in Brexit talks in London. German government bond yields moved slightly higher. That followed a fall towards new 2-1/2 year lows last week after investors flocked to safe-haven debt. Austrian yields held firm after a scandal prompted Chancellor Sebastian Kurz to pull the plug on his coalition with the far right at the weekend, raising the chances of a snap election.

Global Markets: European shares hobbled as worries about Huawei fallout mount

Fresh <a href="https://www.wionews.com/world/as-us-chinese-officials-meet-for-trade-talks-trumps-tariffs-on-china-set-to-take-effect-217361">US-China tariff </a>war volleys pressured Asian shares on Tuesday but comment from US&nbsp;President Donald Trump that he expects trade negotiations to be the successfully aided sentiment.

Chinese markets that were pummelled in early trade trimmed losses amid signs of state support.

China on Monday announced it would impose higher tariffs on $60 billion of US&nbsp;goods following Washington's decision last week to hike its own levies on $200 billion in Chinese imports.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.9% as volatile<a href="https://www.wionews.com/business-economy/sensex-falls-over-200-points-as-us-china-tensions-roil-global-markets-217166"> </a><a href="https://www.wionews.com/business-economy/asian-shares-near-two-month-lows-ahead-of-looming-us-tariff-hike-217382">Chinese markets</a><a href="https://www.wionews.com/business-economy/sensex-falls-over-200-points-as-us-china-tensions-roil-global-markets-217166"> </a>paused for their midday break. The index had earlier fallen as much as 1.25% to its lowest since Jan. 30.

Providing some support for Asian markets were comments from Trump late on Monday that trade talks with China are "going to be very successful". That helped lift US stock futures more than 0.5%, though sentiment remained fragile.

Prakash Sakpal, Asia economist at ING in Singapore, said Monday's volatility showed how a "180-degree" turn in US&nbsp;rhetoric on trade negotiations had spooked markets.

"We don't see any quick end to this state of the markets until we see some resolution, constructive dialogue and something very solid in terms of deals. But the hopes for that are a bit misplaced currently," he said.

Broader Asian markets were dragged lower by sagging Chinese shares, with the MSCI China index dropping 1.6%. China's blue-chip CSI300 index swung between losses and gains amid signs of possible state support, before finishing the morning session down 0.2%.

"Politicians may be willing to focus less on the market impact until things get more severe, making it doubtful there will be an early resolution to the current breakdown in negotiations simply based on market moves," said Kerry Craig, global market strategist at J.P. Morgan Asset Management.

"Furthermore, as there isn't a clear schedule for meetings between Chinese and US&nbsp;negotiators, markets are likely to be more volatile."

Australian shares lost 0.9% while Japan's Nikkei stock index slid 0.8%, touching its lowest since mid-February.

The US&nbsp;Trade Representative's office on Monday said it planned to hold a public hearing next month on the possibility of imposing duties of up to 25% on a further $300 billion worth of imports from China.

The tariff escalation has rattled global markets, even as Trump said he would meet with Chinese President Xi Jinping next month.

On Monday, the Dow Jones Industrial Average fell 2.38% to 25,324.99, the S&amp;P 500 lost 2.41% to 2,811.87 and the Nasdaq Composite dropped 3.41% to 7,647.02.

As investors flocked to safe-haven assets, US&nbsp;Treasury yields remained near six-week lows early on Tuesday, though they moved higher following Trump's comments. Benchmark 10-year Treasury notes last yielded 2.4157% compared with a US&nbsp;close of 2.405% on Monday.

The two-year yield, which rises with traders' expectations of higher Fed fund rates, ticked up to 2.1945% from a US&nbsp;close of 2.193%. But data from CME Group continued to show a more than 70% chance of the Fed cutting rates by the end of 2019.

After an earlier inversion, US&nbsp;10-year yields moved higher than those on three-month Treasury bills. A sustained inversion of this part of the yield curve has preceded every US recession in the past 50 years.

On Monday, some traders were concerned that China, the largest foreign US&nbsp;creditor, could dump Treasuries to counter the Trump administration's hardening trade stance. But most analysts downplayed such a possibility.

"If China did start to (sell Treasuries) it will galvanise both sides of politics in the US&nbsp;against China and the Fed would be sent into the market to buy bonds," Greg McKenna, strategist at McKenna Macro said in a note to clients.

"That would expand its balance sheet but it would allow it to neutralise China's efforts to disturb US&nbsp;financial markets. So I doubt they'll try to sell Treasuries."

After earlier falling against the yen, the dollar strengthened 0.25% against the Japanese currency to 109.57.

The single currency was up about 0.1% on the day at $1.1238, while the dollar index, which tracks the greenback against a basket of six major rivals, was nearly unchanged at 97.313.

China's offshore yuan hit a fresh 2019 low early in Asia on Tuesday before rebounding. It was the last trading at 6.8933 per dollar, up 0.28% on the day.

Its onshore counterpart strengthened to 6.8733 per dollar after touching four-month lows on Monday, sparking speculation China's central bank may be letting the currency weaken amid the intensifying trade war.

Oil prices edged higher, buoyed by Middle East tensions though gains were checked by trade war concerns. Saudi Arabia said two of its oil tankers were among those attacked off the coast of the United Arab Emirates, describing it as an attempt to undermine the security of supply amid United States-Iran tensions.

The US&nbsp;crude was 0.33% higher at $61.24 per barrel while Brent crude gained 0.36% to $70.48 per barrel.

Fresh US-China tariff war volleys pressured Asian shares on Tuesday but comment from US President Donald Trump that he expects trade negotiations to be the successfully aided sentiment.

Fresh US-China tariff war volleys pressured Asian shares on Tuesday but comment from US President Donald Trump that he expects trade negotiations to be the successfully aided sentiment. Chinese markets that were pummelled in early trade trimmed losses amid signs of state support. China on Monday announced it would impose higher tariffs on $60 billion of US goods following Washington's decision last week to hike its own levies on $200 billion in Chinese imports. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.9% as volatile Chinese markets paused for their midday break. The index had earlier fallen as much as 1.25% to its lowest since Jan. 30. Providing some support for Asian markets were comments from Trump late on Monday that trade talks with China are "going to be very successful". That helped lift US stock futures more than 0.5%, though sentiment remained fragile. Prakash Sakpal, Asia economist at ING in Singapore, said Monday's volatility showed how a "180-degree" turn in US rhetoric on trade negotiations had spooked markets. "We don't see any quick end to this state of the markets until we see some resolution, constructive dialogue and something very solid in terms of deals. But the hopes for that are a bit misplaced currently," he said. Broader Asian markets were dragged lower by sagging Chinese shares, with the MSCI China index dropping 1.6%. China's blue-chip CSI300 index swung between losses and gains amid signs of possible state support, before finishing the morning session down 0.2%. "Politicians may be willing to focus less on the market impact until things get more severe, making it doubtful there will be an early resolution to the current breakdown in negotiations simply based on market moves," said Kerry Craig, global market strategist at J.P. Morgan Asset Management. "Furthermore, as there isn't a clear schedule for meetings between Chinese and US negotiators, markets are likely to be more volatile." Australian shares lost 0.9% while Japan's Nikkei stock index slid 0.8%, touching its lowest since mid-February. The US Trade Representative's office on Monday said it planned to hold a public hearing next month on the possibility of imposing duties of up to 25% on a further $300 billion worth of imports from China. The tariff escalation has rattled global markets, even as Trump said he would meet with Chinese President Xi Jinping next month. On Monday, the Dow Jones Industrial Average fell 2.38% to 25,324.99, the S&P 500 lost 2.41% to 2,811.87 and the Nasdaq Composite dropped 3.41% to 7,647.02. As investors flocked to safe-haven assets, US Treasury yields remained near six-week lows early on Tuesday, though they moved higher following Trump's comments. Benchmark 10-year Treasury notes last yielded 2.4157% compared with a US close of 2.405% on Monday. The two-year yield, which rises with traders' expectations of higher Fed fund rates, ticked up to 2.1945% from a US close of 2.193%. But data from CME Group continued to show a more than 70% chance of the Fed cutting rates by the end of 2019. After an earlier inversion, US 10-year yields moved higher than those on three-month Treasury bills. A sustained inversion of this part of the yield curve has preceded every US recession in the past 50 years. On Monday, some traders were concerned that China, the largest foreign US creditor, could dump Treasuries to counter the Trump administration's hardening trade stance. But most analysts downplayed such a possibility. "If China did start to (sell Treasuries) it will galvanise both sides of politics in the US against China and the Fed would be sent into the market to buy bonds," Greg McKenna, strategist at McKenna Macro said in a note to clients. "That would expand its balance sheet but it would allow it to neutralise China's efforts to disturb US financial markets. So I doubt they'll try to sell Treasuries." After earlier falling against the yen, the dollar strengthened 0.25% against the Japanese currency to 109.57. The single currency was up about 0.1% on the day at $1.1238, while the dollar index, which tracks the greenback against a basket of six major rivals, was nearly unchanged at 97.313. China's offshore yuan hit a fresh 2019 low early in Asia on Tuesday before rebounding. It was the last trading at 6.8933 per dollar, up 0.28% on the day. Its onshore counterpart strengthened to 6.8733 per dollar after touching four-month lows on Monday, sparking speculation China's central bank may be letting the currency weaken amid the intensifying trade war. Oil prices edged higher, buoyed by Middle East tensions though gains were checked by trade war concerns. Saudi Arabia said two of its oil tankers were among those attacked off the coast of the United Arab Emirates, describing it as an attempt to undermine the security of supply amid United States-Iran tensions. The US crude was 0.33% higher at $61.24 per barrel while Brent crude gained 0.36% to $70.48 per barrel.

Global Markets: Asian shares fall to 3-1/2 month low as trade war escalates

<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/global-markets-asia-stocks-cling-to-nine-month-high-on-china-hopes-wall-street-dented-by-earnings-210835&amp;sa=U&amp;ved=2ahUKEwjtua3fiP_hAhVG6nMBHRNYD-cQFjAHegQIBRAC&amp;usg=AOvVaw22TOmawiULbH-zIT2trxra">World stocks</a> were battling to avoid their first weekly fall in six weeks on Friday, as investors waited to see whether key US&nbsp;jobs data later would give the Federal Reserve another reason to dismiss rate cut calls.

Europe's bourses nudged fractionally higher early on as earnings from banks HSBC and Societe Generale cheered traders and encouraging Adidas profits sent the German sportswear firm's shares leaping 7 per cent to a record high.

The dollar was also trying to end the week on a firmer note having seen markets scale back bets on a US&nbsp;rate cut this week.

As well as the jobs figure later, there are no less than eight Federal Reserve policymakers due to speak.

Bond and commodity markets remained firmly on the back foot however with most benchmark government bond yields up on the day and Brent oil slipping back towards $70 a barrel again for what will be its worst week in over two months.

Fund manager UBP strategist Koon Chow said it all pointed to a little bit of the steam coming out of the markets after a flying start to the year.

"For the last four months it has been the unwinding the extreme pessimism that had built up (last year)" he said, referring to trade war nerves and the slowdown in many of the world's largest economies.

"So here we are now in search of the next big thing, and I think today, and for the last few weeks, it is a view and portfolio repositioning exercise."

The US&nbsp;employment figures are due at 1230 GMT, which are forecast to show 185,000 net new jobs were added in April and the unemployment rate at a steady 3.8 per cent.

A report by payrolls processor ADP on Wednesday showed US private employers added 275,000 jobs last month.

A solid official reading later would bolster the notion the world's biggest economy remains on track for its longest expansion ever, further boosting the dollar potentially and the prospects for corporate earnings.

Overnight Asian trading had remained thin with both Japan and China traders still enjoying holidays.

Hong Kong was in though and climbed 0.4 per cent, the Australian market gained 0.1 per cent, while Korea's KOSPI slipped 0.5 per cent.

Overnight on Wall Street, major indices had given up an initial attempt to regain their record highs and closed in the red, weighed down by energy shares.

Oil prices had plunged again after US crude production output set a new record, though the losses were capped by the intensifying political crisis in Venezuela and the stopping of Iranian oil sanction waivers by Washington.

US crude was still in the red in early London trade down 0.3 per cent at $61.65 a barrel, while Brent slipped 0.5 per cent to $70.42.

PRESSURE DOWN UNDER

In the currency markets,<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/uber-hit-with-australia-class-action-ahead-of-stock-listing-215549&amp;sa=U&amp;ved=2ahUKEwij0cXcif_hAhVE6nMBHVWlBwU4ChAWMAV6BAgDEAI&amp;usg=AOvVaw0WrZHDtTpH4a0iHsXTQ8NB"> Australian and New Zealand dollars </a>both fell as speculators wagered both countries could see interest cuts next week.

The Aussie slipped below the psychological support of $0.7000 overnight to the lowest since early January while the kiwi dollar drifted closer to a recent five-month trough of $0.6581.

The weakness in the antipodean currencies also came as the US dollar gained on remarks by US&nbsp;Federal Reserve Chair Jerome Powell earlier this week that recent weakness in inflation owed to "transitory" factors.

That led traders to start paring expectations for a Fed rate cut.

Futures now imply about a 49 per cent probability of an easing at year-end, down from 61 per cent late on Wednesday, according to CME Group's FedWatch program.

The dollar index held at 97.842, inching towards a two-year peak of 98.33 touched last week.

Against the Japanese yen, the dollar was little changed at 111.48 having spent the entire week in a tight 111.03-111.89 range, while the euro stayed close to $1.12.

World stocks were battling to avoid their first weekly fall in six weeks on Friday, as investors waited to see whether key US jobs data later would give the Federal Reserve another reason to dismiss rate cut calls.

World stocks were battling to avoid their first weekly fall in six weeks on Friday, as investors waited to see whether key US jobs data later would give the Federal Reserve another reason to dismiss rate cut calls. Europe's bourses nudged fractionally higher early on as earnings from banks HSBC and Societe Generale cheered traders and encouraging Adidas profits sent the German sportswear firm's shares leaping 7 per cent to a record high. The dollar was also trying to end the week on a firmer note having seen markets scale back bets on a US rate cut this week. As well as the jobs figure later, there are no less than eight Federal Reserve policymakers due to speak. Bond and commodity markets remained firmly on the back foot however with most benchmark government bond yields up on the day and Brent oil slipping back towards $70 a barrel again for what will be its worst week in over two months. Fund manager UBP strategist Koon Chow said it all pointed to a little bit of the steam coming out of the markets after a flying start to the year. "For the last four months it has been the unwinding the extreme pessimism that had built up (last year)" he said, referring to trade war nerves and the slowdown in many of the world's largest economies. "So here we are now in search of the next big thing, and I think today, and for the last few weeks, it is a view and portfolio repositioning exercise." The US employment figures are due at 1230 GMT, which are forecast to show 185,000 net new jobs were added in April and the unemployment rate at a steady 3.8 per cent. A report by payrolls processor ADP on Wednesday showed US private employers added 275,000 jobs last month. A solid official reading later would bolster the notion the world's biggest economy remains on track for its longest expansion ever, further boosting the dollar potentially and the prospects for corporate earnings. Overnight Asian trading had remained thin with both Japan and China traders still enjoying holidays. Hong Kong was in though and climbed 0.4 per cent, the Australian market gained 0.1 per cent, while Korea's KOSPI slipped 0.5 per cent. Overnight on Wall Street, major indices had given up an initial attempt to regain their record highs and closed in the red, weighed down by energy shares. Oil prices had plunged again after US crude production output set a new record, though the losses were capped by the intensifying political crisis in Venezuela and the stopping of Iranian oil sanction waivers by Washington. US crude was still in the red in early London trade down 0.3 per cent at $61.65 a barrel, while Brent slipped 0.5 per cent to $70.42. PRESSURE DOWN UNDER In the currency markets, Australian and New Zealand dollars both fell as speculators wagered both countries could see interest cuts next week. The Aussie slipped below the psychological support of $0.7000 overnight to the lowest since early January while the kiwi dollar drifted closer to a recent five-month trough of $0.6581. The weakness in the antipodean currencies also came as the US dollar gained on remarks by US Federal Reserve Chair Jerome Powell earlier this week that recent weakness in inflation owed to "transitory" factors. That led traders to start paring expectations for a Fed rate cut. Futures now imply about a 49 per cent probability of an easing at year-end, down from 61 per cent late on Wednesday, according to CME Group's FedWatch program. The dollar index held at 97.842, inching towards a two-year peak of 98.33 touched last week. Against the Japanese yen, the dollar was little changed at 111.48 having spent the entire week in a tight 111.03-111.89 range, while the euro stayed close to $1.12.

Global Markets: Shares claw higher before US jobs data, oil sinks again

Gold prices hit a six-month high on Wednesday as concerns over global growth and a partial government shutdown in the United States fuelled risk aversion, prompting investors to seek refuge in the metal.

Spot gold climbed 0.3 per cent to $1,271.85 per ounce as at 0429 GMT. The metal hit $1272.56 in early trade, its highest since June 20.

US&nbsp;gold futures were up 0.3 per cent at $1,275.8 per ounce.

Investors are uneasy about global economic growth and are seeking gold as a safe-haven, said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank, adding the sharp sell-off in stock markets has also lent support.

"We always see good demand for gold in the year-end. I would not be surprised if we see gold surpass $1,300 in the near future."

Asian equities were shaky following a Christmas eve US&nbsp;stocks plunge. Wall Street has dropped sharply in recent weeks on concerns over weaker economic growth, compounded by political instability in the United States after a partial government shutdown.

The US&nbsp;Senate has been unable to break an impasse over&nbsp;Trump's demand for more funds for a wall on the border with Mexico, and a senior official said the shutdown could continue until January 3.

Tensions between the White House and the US&nbsp;Federal Reserve over monetary policy tightening also weighed on sentiment in the wider markets.

President Donald&nbsp;Trump&nbsp;largely laid the blame for economic headwinds on the Fed, openly criticizing its chairman, Jerome Powell, whom he appointed.

"The latest move on gold should be a stark reminder to investors that gold in any form should be an essential part of any long-term investment strategy as again they yellow metal has proven its weight when markets turn turbulent," Stephen Innes, APAC trading head at OANDA in Singapore, said in a note.

Among other metals, silver rose 0.5 per cent to $14.80 per ounce, while platinum rose 0.3 per cent to $784.50.

Palladium was up 0.5 per cent to $1,252.24 per ounce.

Gold prices hit a six-month high on Wednesday as concerns over global growth and a partial government shutdown in the United States fuelled risk aversion, prompting investors to seek refuge in the metal.

Gold prices hit a six-month high on Wednesday as concerns over global growth and a partial government shutdown in the United States fuelled risk aversion, prompting investors to seek refuge in the metal. Spot gold climbed 0.3 per cent to $1,271.85 per ounce as at 0429 GMT. The metal hit $1272.56 in early trade, its highest since June 20. US gold futures were up 0.3 per cent at $1,275.8 per ounce. Investors are uneasy about global economic growth and are seeking gold as a safe-haven, said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank, adding the sharp sell-off in stock markets has also lent support. "We always see good demand for gold in the year-end. I would not be surprised if we see gold surpass $1,300 in the near future." Asian equities were shaky following a Christmas eve US stocks plunge. Wall Street has dropped sharply in recent weeks on concerns over weaker economic growth, compounded by political instability in the United States after a partial government shutdown. The US Senate has been unable to break an impasse over Trump's demand for more funds for a wall on the border with Mexico, and a senior official said the shutdown could continue until January 3. Tensions between the White House and the US Federal Reserve over monetary policy tightening also weighed on sentiment in the wider markets. President Donald Trump largely laid the blame for economic headwinds on the Fed, openly criticizing its chairman, Jerome Powell, whom he appointed. "The latest move on gold should be a stark reminder to investors that gold in any form should be an essential part of any long-term investment strategy as again they yellow metal has proven its weight when markets turn turbulent," Stephen Innes, APAC trading head at OANDA in Singapore, said in a note. Among other metals, silver rose 0.5 per cent to $14.80 per ounce, while platinum rose 0.3 per cent to $784.50. Palladium was up 0.5 per cent to $1,252.24 per ounce.

Gold climbs to six-month peak on waning risk appetite

The rupee gained 19 paise against the US dollar Wednesday to trade at 69.95 after increased selling of the US currency by exporters and banks.

However, a lower opening of the domestic equity markets capped the rise, dealers said.

At the Interbank Foreign Exchange, the rupee opened on a strong note at 69.79 a dollar against the previous close of 70.14. Further, the domestic unit surrendered early gains to quote at 69.95, showing a gain of 19 paise.

Financial markets were closed on Tuesday on account of Christmas.

On Monday, the <a href="http://www.wionews.com/business-economy/rupee-recovers-4-paise-on-weak-dollar-falling-crude-186203">rupee had recovered 4 paise</a> to close at 70.14 against the American currency, following weak crude oil prices and the dollar's losses in global markets due to political uncertainty in the US.

Meanwhile, the benchmark BSE Sensex plunged over 350 points as investors turned jittery over political uncertainty in the US and fears of a global economic slowdown amid heavy selloff by foreign investors.&nbsp;

The rupee gained 19 paise against the US dollar Wednesday to trade at 69.95 after increased selling of the US currency by exporters and banks. However, a lower opening of the domestic equity markets capped the rise, dealers said.

The rupee gained 19 paise against the US dollar Wednesday to trade at 69.95 after increased selling of the US currency by exporters and banks. However, a lower opening of the domestic equity markets capped the rise, dealers said. At the Interbank Foreign Exchange, the rupee opened on a strong note at 69.79 a dollar against the previous close of 70.14. Further, the domestic unit surrendered early gains to quote at 69.95, showing a gain of 19 paise. Financial markets were closed on Tuesday on account of Christmas. On Monday, the rupee had recovered 4 paise to close at 70.14 against the American currency, following weak crude oil prices and the dollar's losses in global markets due to political uncertainty in the US. Meanwhile, the benchmark BSE Sensex plunged over 350 points as investors turned jittery over political uncertainty in the US and fears of a global economic slowdown amid heavy selloff by foreign investors.

Rupee surges 19 paise against dollar despite low opening of domestic markets

The <a href="http://www.wionews.com/business-economy/fpis-infuse-rs-4000-cr-in-3-weeks-on-strengthening-rupee-easing-crude-prices-185952">rupee</a> gained 8 paise against the US dollar Monday to trade at 70.10 in on selling of the US currency by exporters and banks.

The dollar was weak against major currencies in <a href="http://www.wionews.com/world/global-markets-stocks-dip-ahead-of-federal-news-oil-prices-drop-185217">global markets</a> which supported the local currency, a currency dealer said, but the choppy trend at the stock exchanges limited the gains.

The rupee opened a shade lower at 70.19 a dollar against the previous close of 70.18 a dollar. It moved in a range of 70.21 to 70.12 a dollar in early trade before quoting at 70.10, showing a gain of 8 paise.

On Friday, the rupee snapped its four-day rising streak by falling 48 paise to close at 70.18 against the US currency due to month-end dollar demand and sharp losses in domestic equities.

Meanwhile, the benchmark BSE Sensex fell by 34.30 points, or 0.11 per cent to 35,703 in early choppy trade Monday after rising to 35,872.02.

The rupee gained 8 paise against the US dollar Monday to trade at 70.10 in on selling of the US currency by exporters and banks. The dollar was weak against major currencies in global markets which supported the local currency, a currency dealer said, but the choppy trend at the stock exchanges limited the gains.

The rupee gained 8 paise against the US dollar Monday to trade at 70.10 in on selling of the US currency by exporters and banks. The dollar was weak against major currencies in global markets which supported the local currency, a currency dealer said, but the choppy trend at the stock exchanges limited the gains. The rupee opened a shade lower at 70.19 a dollar against the previous close of 70.18 a dollar. It moved in a range of 70.21 to 70.12 a dollar in early trade before quoting at 70.10, showing a gain of 8 paise. On Friday, the rupee snapped its four-day rising streak by falling 48 paise to close at 70.18 against the US currency due to month-end dollar demand and sharp losses in domestic equities. Meanwhile, the benchmark BSE Sensex fell by 34.30 points, or 0.11 per cent to 35,703 in early choppy trade Monday after rising to 35,872.02.

Rupee gains 8 paise against dollar

Foreign investors have pulled out close to Rs 400 crore from the Indian stock market in the last five trading sessions amid weakness in global equities due to the arrest of a high-profile Chinese executive.

This comes following a net inflow of over Rs 6,900 crore in the equity market by Foreign Portfolio Investors (FPIs) on easing crude oil prices and a strengthening rupee.

According to depositories, FPIs withdrew a net amount of Rs 383 crore from equities from December 3-7.

However, they put in Rs 2,744 crore in the debt markets during the period under review.

After making a spirited comeback in November, FPIs have once again turned net sellers in the Indian equity markets in the month of December.

"In fact, the sell-off was triggered on Thursday, December 6, when FPIs sold net assets worth Rs 361 crore in a single day. This could be largely attributed to the weakness in the global markets due to the arrest of a high-profile Chinese executive which led to a sharp fall in the stock markets globally," said Himanshu Srivastava, Senior Analyst Manager Research, Morningstar Investment Adviser India.

"Investors fear that the relationship between the world's two biggest economies<a href="http://www.wionews.com/world/trump-upbeat-on-china-talks-aides-downplay-huawei-arrest-friction-182381"> US and China&nbsp;</a>could deteriorate following the arrest and hurt economic growth. Consequently, they chose to adopt a cautious stance and shun risky assets, such as their investments in emerging markets like India, which are more susceptible to weak global cues," he added.

The sell-off by FPIs was triggered after Chinese telecom giant<a href="http://www.wionews.com/world/huaweis-meng-wanzhou-faces-us-fraud-charges-linked-to-iran-bail-hearing-continues-monday-182324"> Huawei's CFO Meng Wanzhou</a>, who is also the company founder's daughter, was arrested in Canada for extradition to the US for suspected Iran sanctions violations.

FPIs have pulled out over Rs 85,600 crore from the capital markets so far this year. This includes more than Rs 35,600 crore from equities and Rs 50,000 crore from the debt market.

Foreign investors have pulled out close to Rs 400 crore from the Indian stock market in the last five trading sessions amid weakness in global equities due to the arrest of a high-profile Chinese executive.

Foreign investors have pulled out close to Rs 400 crore from the Indian stock market in the last five trading sessions amid weakness in global equities due to the arrest of a high-profile Chinese executive. This comes following a net inflow of over Rs 6,900 crore in the equity market by Foreign Portfolio Investors (FPIs) on easing crude oil prices and a strengthening rupee. According to depositories, FPIs withdrew a net amount of Rs 383 crore from equities from December 3-7. However, they put in Rs 2,744 crore in the debt markets during the period under review. After making a spirited comeback in November, FPIs have once again turned net sellers in the Indian equity markets in the month of December. "In fact, the sell-off was triggered on Thursday, December 6, when FPIs sold net assets worth Rs 361 crore in a single day. This could be largely attributed to the weakness in the global markets due to the arrest of a high-profile Chinese executive which led to a sharp fall in the stock markets globally," said Himanshu Srivastava, Senior Analyst Manager Research, Morningstar Investment Adviser India. "Investors fear that the relationship between the world's two biggest economies US and China could deteriorate following the arrest and hurt economic growth. Consequently, they chose to adopt a cautious stance and shun risky assets, such as their investments in emerging markets like India, which are more susceptible to weak global cues," he added. The sell-off by FPIs was triggered after Chinese telecom giant Huawei's CFO Meng Wanzhou, who is also the company founder's daughter, was arrested in Canada for extradition to the US for suspected Iran sanctions violations. FPIs have pulled out over Rs 85,600 crore from the capital markets so far this year. This includes more than Rs 35,600 crore from equities and Rs 50,000 crore from the debt market.

FPIs pull out nearly Rs 400 crore in just 5 sessions on global cues

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