Asian stocks steadied as investors paused for breath after the previous day’s rally, although tech-inspired Wall Street gains supported broader sentiment as focus shifted to bullish economic fundamentals, away from trade concerns. May U.S. employment report has helped revive investor optimism about the world’s biggest economy, shifting the focus away from recent trade tensions.
Australia’s central bank left its cash rate at 1.5 percent on Tuesday, a widely expected decision given policymakers have said they see no strong case for a chance in policy. The Reserve Bank of Australia (RBA) made the announcement following its monthly policy meeting.
Italy’s anti-establishment parties formed a coalition government on Friday to end three months of deadlock and averting potentially destabilising snap elections.
In Currencies, EURUSD slipped 0.1 percent to 1.1688, nudged off the 12-day peak of 1.1754 on the decrease in concerns towards Italy. USDJPY continues the uptrend trading near 110.00 handle as the rebound in US Yields lifted the dollar.
In Commodities Gold was little changed at 1,290.54 an ounce after posting three days of losses. Oil prices edged higher after falling nearly 2 percent in the previous session, but growing U.S. production and expectations of higher OPEC supplies limited the bounce.
Brent crude futures added 0.15 percent to 75.40 a barrel after losing 2 percent on Monday’s. US Crude futures were up 0.5 percent at 65.07 a barrel after finishing the previous session down 1.6 percent.
For today important economic releases include Services PMI in UK and later on ISM Non-Manufacturing PMI in USA. Moderate to high volatility is expected in the forex market for GBP and US dollar.