- Asian shares hold lower ground amid jittery markets before the key testimony by Fed Chair Powell, US Treasury Secretary Yellen.
- Western alliance joins hands to combat China’s alleged human rights violation, Beijing fights back.
- Germany unveils fears of virus resurgence, Powell–Yellen sound cautiously optimistic.
- New Zealand announces measures to control housing market, Australia bears the burden of floods.
Asian equities remain depressed as regional leader China battles the Western pressure. Also challenging the sentiment is the cautious mood ahead of a prime-time appearance by US Fed Chair Jerome Powell and Treasury Secretary Janet Yellen in front of Congress.
America, Europe, Canada and the UK join hands to voice against China’s human rights violation in Xinjiang. The European Union (EU) goes a step farther and sanctions 10 diplomats from Beijing, to which the dragon nation responds with hints of summoning the EU ambassador to protest the punitive measures.
Challenges to the People’s Bank of China’s (PBOC) easy money policy and hopes of a strong economy are extra filters to the risks that weigh on Chinese markets and exert downside pressure on major Asia bourses. While portraying the same, MSCI’s index of Asia-Pacific shares outside Japan drops 0.40% whereas Japan’s Nikkei 225 declines 0.15% during the early Tuesday.
Stocks in New Zealand buck the trend amid the government’s heavy measures to tame the housing market bubble, however, Australia’s ASX 200 struggles for a clear direction amid a flood in New South Wales and easy Treasury yields. Elsewhere, Indonesia’s IDX Composite prints 0.20% intraday losses while Indian’s BSE Sensex prints mild gains on mixed clues.
Read: S&P 500 Futures track US Treasury yields to south ahead of Powell–Yellen duet
Finally, the coronavirus (COVID-19) resurgence and the vaccine jitters are extra catalysts that traders will need to follow in addition to the US congressional testimony. Given the hopes of upbeat statements from top-line US policymakers, any disappointment or hints of reflation can weigh on the market’s mood more than feared.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.