China’s influence drags down Asian shares as Treasury yields rise

Photographers capture the bustling activity at the Tokyo Stock Exchange (TSE) as the market opens on a Friday, October 2, 2020. With Wall Street closed for the Thanksgiving holiday, Asian shares are impacted by China’s losses and the dollar remains low while Treasury yields experience a slight increase.

News of a four-day ceasefire begins between Israel and Hamas, with a focus on the release of hostages and aid being sent to the Gaza enclave. While markets in Europe remain mostly flat, Asia-Pacific shares show a slight decline, with Japan’s Nikkei climbing and data revealing mixed economic indicators.

Chinese markets faced losses, with Hang Seng index in Hong Kong experiencing a significant drop. Expert opinions suggest a period of consolidation in the markets and skepticism about the “Santa rally” during the last weeks of December. In Europe, the euro and shares saw slight increases, while the U.S. dollar remained weak. The business survey led to projections on the timeline for the first Bank of England rate cut, impacting sterling. Oil prices continue to worry investors, with concerns about the delayed OPEC+ meeting resulting in extended losses.

As Asia resumes trading, cash Treasuries see a small decline, and gold prices observe a modest increase. These market dynamics contribute to the complex and ever-changing world of international finance.

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