Asian stocks set for cautious start on weak U.S. cues | Reuters

HONG KONG Asian stocks may slip for a second consecutive day on Thursday as a weak Wall Street and declining commodity prices, especially for oil, prompted investors to trim their exposure to risky assets.With the outcome of the French presidential elections due at the weekend, markets are set to trade in well worn trading ranges, barring any major data surprises in Asia.MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.5 percent in early trades after declining nearly 1 percent on Wednesday. 'Markets may continue to trade on a cautious tone with the French elections coming up this weekend,' ANZ strategists wrote in a daily note. Centrist Emmanuel Macron clung on to his status as favorite to win France's presidential election in a four-way race that is too close to call, as the camp of far-right challenger Marine Le Pen ramped up its eurosceptic rhetoric in a row with Brussels.Weak results from index heavyweight IBM (IBM.N) pulled the S&P 500 and Dow lower with falls in energy sector stocks .SPNY also weighing on the broader market

Reuters April 20, 2017 06:45:05 IST
Asian stocks set for cautious start on weak U.S. cues
| Reuters

Asian stocks set for cautious start on weak US cues
 Reuters

HONG KONG Asian stocks may slip for a second consecutive day on Thursday as a weak Wall Street and declining commodity prices, especially for oil, prompted investors to trim their exposure to risky assets.With the outcome of the French presidential elections due at the weekend, markets are set to trade in well worn trading ranges, barring any major data surprises in Asia.MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.5 percent in early trades after declining nearly 1 percent on Wednesday. "Markets may continue to trade on a cautious tone with the French elections coming up this weekend," ANZ strategists wrote in a daily note.

Centrist Emmanuel Macron clung on to his status as favorite to win France's presidential election in a four-way race that is too close to call, as the camp of far-right challenger Marine Le Pen ramped up its eurosceptic rhetoric in a row with Brussels.Weak results from index heavyweight IBM (IBM.N) pulled the S&P 500 and Dow lower with falls in energy sector stocks .SPNY also weighing on the broader market. [.N]

Bonds also came in for some profit taking after a recent rally, with yields on benchmark 10-year U.S. Treasury notes US10YT=RR firming to 2.21 percent from a five-month low of 2.165 percent hit on Tuesday. A run of disappointing U.S. economic data and doubts how far the Trump administration will progress with tax cuts have quelled expectations of faster inflation and boosted fixed-income debt.

The dollar failed to capitalize on higher U.S. yields with the greenback hugging the 200-day moving average of around 108.85 against the Japanese yen as traders preferred to trade on market technicals rather than take fresh bets. Oil languished near a two-week low after a surprising build in U.S. gasoline inventories and a rise in domestic crude output that is partially offsetting cutbacks by other countries trying to reduce a global glut. [O/R] U.S. crude futures CLc1 edged 0.42 percent higher to $50.65 a barrel, after posting a near 4 percent drop overnight, the biggest one-day decline since March 8.Elsewhere, gold XAU= was trading at $1279.48 per ounce, below Monday's peak of $1,295.42. (Reporting by Saikat Chatterjee; Editing by Eric Meijer)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Guinea president 'captured', govt dissolved, claim army putschists'; attack on presidential palace repulsed, say authorities
World

Guinea president 'captured', govt dissolved, claim army putschists'; attack on presidential palace repulsed, say authorities

Reports suggest that they captured President Alpha Conde and dissolved the government, bust the ground situation remains unclear

Cryptocurrency prices tumble and exchange trading falters as snags crop up
News & Analysis

Cryptocurrency prices tumble and exchange trading falters as snags crop up

NEW YORK (Reuters) -The price of cryptocurrencies plunged and crypto trading was delayed on Tuesday, a day in which El Salvador ran into snags as the first country to adopt bitcoin as legal tender. Shares of blockchain-related firms also fell as crypto stocks were hit by trading platform outages. But the major focus was on El Salvador, where the government had to temporarily unplug a digital wallet to cope with demand.

Ford poaches Apple's car project chief Doug Field
News & Analysis

Ford poaches Apple's car project chief Doug Field

By Joseph White and Sanjana Shivdas (Reuters) -The head of Apple Inc's car project, Doug Field, is going to work for Ford Motor Co to lead the automaker's advanced technology and embedded systems efforts, a hiring coup for Ford Chief Executive Jim Farley.