Asian Markets Lost Strength, Crude Oil Fell on July 6



Economic calendar

7:30 AM EST – ECB publishes account of Monetary Policy Meeting

8:15 AM EST – ADP non-farm employment change (June)

8:30 AM EST – initial jobless claims

8:30 AM EST – trade balance (May)

9:45 AM EST – Markit composite PMI (June)

9:45 AM EST – services PMI (June)

10:00 AM EST – FOMC member Powell speaks

10:00 AM EST – ISM non-manufacturing employment (June)

10:00 AM EST – ISM non-manufacturing PMI (June)

11:00 AM EST – crude oil inventories

7:30 PM EST – FOMC member Stanley Fischer speaks

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After rising to the highest levels since April 17 on Wednesday, China’s Shanghai Composite Index closed positive on July 6. The Shanghai Composite Index started the day lower and traded with weakness in the early hours. However, it recovered and ended the day at more than 2.5-month high price levels.

On Thursday, weakness in oil and mixed signals from the Fed’s FOMC meeting minutes weighed on Asian markets. Crude oil lost strength on July 5 amid Russia’s opposition to deepening supply cut limits. The dented sentiment weighed on the energy sector in China’s markets. On July 6, the Shanghai Composite Index rose 0.17% and ended the day at 3,212.44. The SPDR S&P China ETF (GXC) fell 0.16% to $89.88 on July 5.

Hong Kong

Hong Kong’s Hang Seng Index regained strength on Wednesday and rebounded from six-week low price levels. It opened higher on July 6 but lost strength and maintained weakness throughout the day. The decline in the energy and telecom sectors weighed on the Hang Seng Index. The telecom sector lost its shine after Morgan Stanley cut China Mobile and China Unicom’s ratings. They’re major telecom providers in China. The index fell 0.22% and closed the day at 25,465.22. The iShares MSCI Hong Kong ETF (EWH) fell 0.6% to $23.2 on July 5.


After regaining strength and closing above 20,000 on Wednesday, Japan’s Nikkei Index fell on July 6. The stronger yen along with a decline in crude oil were the prime reasons behind Nikkei’s weakness. Weakness in the railway and bus, pharma, and warehousing sectors added weakness to the market on July 6. Nikkei closed the day at 19,994.06—a fall of 0.44%.

In the next part, we’ll discuss how European markets performed in the morning session on July 6.


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