AFP, Hong Kong :
Traders trod water in Asia on Wednesday as they nervously await a string of major events that could either hammer global markets or fuel a rally.
Thursday sees Britain voting in a general election, the European Central Bank’s policy meeting and-potentially the biggest market-mover-sacked FBI boss James Comey testifying to Congress on President Donald Trump’s possible campaign links to Russia. Adding to the sense of unease is a brewing crisis in the Middle East, where Saudi Arabia, the UAE and Egypt cut off ties and transport links to Qatar-citing its alleged support for extremism.
There are fears the dispute could turn into a wider conflict involving Qatar ally Iran, with Trump wading into the row in a series of tweets signalling support for Riyadh on the issue.
After a recent rally trading floors have quietened as dealers take a wait-and-see attitude, lifting safe-haven assets such as the yen and gold.
“There seems to be a little bit of nervousness in the market over Comey’s testimony,” Greg McKenna, chief market strategist at AxiTrader, said in a note. “Whether it is geopolitics and the Middle East, worries about James Comey’s testimony, the ECB or UK election, traders backed off a little overnight.”
The yen rose to 109.37 against the dollar, more than 1.5 percent stronger than last week,
Traders trod water in Asia on Wednesday as they nervously await a string of major events that could either hammer global markets or fuel a rally.
Thursday sees Britain voting in a general election, the European Central Bank’s policy meeting and-potentially the biggest market-mover-sacked FBI boss James Comey testifying to Congress on President Donald Trump’s possible campaign links to Russia. Adding to the sense of unease is a brewing crisis in the Middle East, where Saudi Arabia, the UAE and Egypt cut off ties and transport links to Qatar-citing its alleged support for extremism.
There are fears the dispute could turn into a wider conflict involving Qatar ally Iran, with Trump wading into the row in a series of tweets signalling support for Riyadh on the issue.
After a recent rally trading floors have quietened as dealers take a wait-and-see attitude, lifting safe-haven assets such as the yen and gold.
“There seems to be a little bit of nervousness in the market over Comey’s testimony,” Greg McKenna, chief market strategist at AxiTrader, said in a note. “Whether it is geopolitics and the Middle East, worries about James Comey’s testimony, the ECB or UK election, traders backed off a little overnight.”
The yen rose to 109.37 against the dollar, more than 1.5 percent stronger than last week,
