Welcome to GulfBase Live Support
Asian markets mostly turned lower Wednesday following a negative lead from Wall Street and Europe, with analysts saying Britain's shock decision to call a snap election added to global uncertainties.
The pound held onto its gains after Prime Minister Theresa May announced a snap poll for June 8 as she looks to cement a mandate heading into key Brexit talks with her EU counterparts.
The move comes as France prepares for the first round of its presidential elections at the weekend, while Germany is set for a vote this year. Both could have huge implications for the future of the eurozone.
Added to that, said Greg McKenna, chief market strategist at AxiTrader, was the face-off between the US and North Korea and the cooling of relations between Washington and Moscow over the Syria crisis.
May's announcement "has added another layer of uncertainty for traders", McKenna added. "It all sounds dire at the moment."
The news sent the pound surging more than two percent against the dollar, although it dipped slightly Wednesday. Stephen Innes, a senior trader at forex firm OANDA, said May's move "will lessen the likelihood of an unruly Brexit" and mean she could "become less dependent on the periphery elements within her party".
- 'Wait-and-see' -
However, the strong pound hit London stocks the most since last June's referendum to leave the EU. The FTSE fell 2.5 percent, while the Dow sank 0.6 percent on Wall Street. In early European trade Wednesday London and Paris each fell 0.1 percent but Frankfurt was 0.1 percent higher.
Hong Kong slipped 0.4 percent by the close, Shanghai sank 0.8 percent, Sydney lost 0.6 percent and Singapore gave up 0.5 percent. There were also losses in Taipei, Manila and Wellington.
"The market dislikes uncertainty," said Yutaka Miura, a senior technical analyst at Mizuho Securities.
"Investors had already been a little on edge over the French presidential election, and now the UK general election is creating further uncertainty in Europe," he told Bloomberg News.
But by the close in Tokyo the Nikkei index was 0.1 percent up. Safe-haven assets were holding up as investors fret over the global outlook. Gold is up more than two percent since Donald Trump ordered missile strikes on a Syrian airbase earlier this month, sparking fears of a possible conflict with Russia which is backing the Damascus regime.
The yen edged slightly lower against the dollar but was still sitting around five-month highs, while yields on safe-bet Japanese government 10-year bonds slipped to zero for the first time since November.
There was a "growing wait-and-see mood due to such uncertainties as the French election and British snap poll", said Okasan Online Securities chief strategist Yoshihiro Ito in a commentary.
There was little response in Asia after the International Monetary Fund raised its growth outlook for the global, Japanese and Chinese economies.
he risk of a no-deal Brexit is playing on investors’ minds. The European Union is likely to confirm this week that Brexit talks have not made sufficient progress to move onto discussions about a fut
World stocks advanced for a fourth straight day on Friday on expectations of broad-based global growth, while the dollar was on course for its worst week in five as investors awaited US inflation dat
October blues are starting to weigh on the pound — again. Sterling is headed for its worst week in a year as questions swirl about whether Theresa May will stay or go, even as the prime minister sai
Most major currencies will hold on to their gains made in 2017 against the dollar over the coming year, according to a Reuters poll of currency strategists who were not entirely convinced of the U.S.
The dollar extended gains to an almost three-month high and Treasury yields rose as confidence in the world’s largest economy grows in the buildup to the latest jobs data. European shares edged lower