Asian stocks slipped to 14-month lows on Wednesday with investor confidence chilled by the latest round of verbal threats in an intensifying U.S.-China trade conflict. The mood was dimmed by the verbal sparring between Washington and Beijing as the months-long escalation in trade tensions between the world’s two biggest economies took its toll on riskier assets. China told the World Trade Organization (WTO) on Tuesday it wanted to impose $7 billion a year in sanctions on the United States in retaliation for Washington’s non-compliance with a ruling in a dispute over U.S. dumping duties.
In In currency markets, EURUSD was down 0.2 percent at 1.1575, while the pound also shed nearly 0.3 percent to $1.2970, coming off a one-month high of $1.3087 reached on Monday as a rise in optimism over prospects for a Brexit trade deal with the European Union faded. Turkey’s lira was largely stable ahead of a closely-watched meeting on Thursday by the country’s central bank, where the monetary policy committee is expected to raise interest rates.
In commodities, Crude oil stretched its gains from the previous day, when the market rallied as U.S. sanctions squeezed Iranian crude exports and after U.S. crude oil production in 2019 was forecast to rise more slowly than previously expected. Brent crude futures were 0.35 percent higher at $79.33 per barrel after surging more than 2 percent on Tuesday. U.S. crude added 0.9 percent to $69.87 per barrel. Gold prices fell below $1,200 in Asia session as investors shy away from precious metals on concerns of the burgeoning U.S.-China trade war. The yellow precious metal nosedived over 12% from a peak in April this year, losing its safe-haven status to the U.S. dollar.
The investors today will assess macroeconomic events and reports such as US PPI (m/m) and Crude oil Inventories.