Asian share markets found support on Thursday as a rally in Chinese stocks helped offset the latest escalation in the Sino-U.S. trade war, while Russia’s rouble tumbled as the United States slapped fresh sanctions on the country. China had already announced additional tariffs of 25 percent on $16 billion worth of U.S. imports from fuel to autos. The tariffs will apply to billions of dollars in U.S. gasoline, diesel and other oil products, though not crude. Russian rouble sank after Washington said it would impose fresh sanctions because it had determined that Moscow had used a nerve agent against a former Russian agent and his daughter in Britain. There were also reports of a new U.S. Senate bill that would impose widespread sanctions on Russia for election meddling. The rouble duly slid to its lowest since late 2016, with the dollar buying 65.74 rubles having jumped 3.3 percent overnight.
In currencies, EUR/USD remained relatively steady at 1.1610. GBPUSD skidded to its lowest against the dollar and euro in almost a year as fears grew Britain might leave the EU without a deal on trade with Brussels. USDJPY eased to 110.95 yen after stretching as high as 111.44.
In commodities, oil market took the news hard on Wednesday, suffering losses of more than 3 percent. Prices steadied a little currently, with U.S. crude edging up 12 cents to 67.08 per barrel, while Brent bounced 24 cents to 72.52. Gold prices rose to 1216yesterday as the US Dollar retreated alongside Treasury bond yields after hitting a 13-month high intraday.
For today major economic releases are coming from US. US (PPI) Producer Price Index & Unemployment Claims will be released at 12:30 with moderate to high volatility expected on USD.