Asian shares pared gains as Chinese stocks swung into negative territory, driven lower by the escalating Sino-U.S. trade war, though Beijing’s efforts to stop sharp declines in the yuan helped support the currency. The trade dispute remains a live issue for markets with China proposing tariffs on $60 billion worth of U.S. goods on Friday, while a senior Chinese diplomat cast doubt on prospects of talks with Washington to resolve the bitter trade conflict. The dollar held firm against a basket of its peers on Monday after U.S. job data reinforced investors’ expectations the Federal Reserve will gradually raise interest rates this year. Investor attention has shifted to the yuan after the People’s Bank of China on Friday made it more expensive to bet against the currency, which helped it rebound from a near 15-month low against the greenback.
In currencies, EUR/USD inched lower trading at 1.1500. GBPUSD hovered near 11-day lows at 1.299 following remarks by Bank of England Governor Mark Carney that Britain faced an “uncomfortably high” risk of a “no deal” Brexit.
In commodities, Gold bounced from near 17-month lows after weaker-than-expected U.S. jobs data and was last up 0.2 percent at 1,215.45. Oil prices edged up amid reports that Saudi Arabia pumped fewer crude barrels in July, while the U.S. saw a drop in active drilling rigs, Baker Hughes’ weekly data showed. Brent crude futures rose 22 cents to 73.43, while U.S. crude oil futures added 28 cents to 68.77 a barrel.
For today minor economic releases are coming from European zone. German Factory Orders m/m, Sentix Investor Confidence and BRC Retail Sales Monitor from UK.