Asian stocks mixed as Mexico tensions sap risk appetite
Asian stock markets traded mixed as discussions between the Trump
administration and Mexican officials on tariffs ended Wednesday without
an agreement, putting a dampener on the week’s rally in risk assets. The
yen edged up.
Japanese and Chinese shares dipped, while they were flat in Hong Kong. S&P 500 futures and Treasuries steadied following a mixed batch of economic data. US stocks closed higher Wednesday as President Donald Trump said Mexico wanted to make a deal before later reports showed that no accommodation had been reached. Trump said talks will resume tomorrow. The peso sank. Oil held its recent losses.
Investor sentiment remains fragile as optimism over monetary policy is offset by ongoing concerns over trade. The most recent US tariff threat on Mexico has led several analysts to forecast increased risk of a recession in the world’s largest economy, which could put pressure on the Federal Reserve to cut rates.
Elsewhere, West Texas Intermediate crude entered a bear market and Brent tumbled below $60 after US petroleum inventories ballooned. The peso was also under pressure after Mexico’s credit rating was cut by Fitch and its outlook was changed to negative at Moody’s.
Japanese and Chinese shares dipped, while they were flat in Hong Kong. S&P 500 futures and Treasuries steadied following a mixed batch of economic data. US stocks closed higher Wednesday as President Donald Trump said Mexico wanted to make a deal before later reports showed that no accommodation had been reached. Trump said talks will resume tomorrow. The peso sank. Oil held its recent losses.
Investor sentiment remains fragile as optimism over monetary policy is offset by ongoing concerns over trade. The most recent US tariff threat on Mexico has led several analysts to forecast increased risk of a recession in the world’s largest economy, which could put pressure on the Federal Reserve to cut rates.
Elsewhere, West Texas Intermediate crude entered a bear market and Brent tumbled below $60 after US petroleum inventories ballooned. The peso was also under pressure after Mexico’s credit rating was cut by Fitch and its outlook was changed to negative at Moody’s.
No comments