Gold Silver Reports (GSR) – Asian Stocks Edge Lower After U.S. Rally Ebbs — Indexes fell in Japan, Australia and South Korea in a muted start to Tuesday trading. Despite gains in technology stocks driving U.S. equities higher on Monday, the S&P 500 Index erased about two-thirds of its advance amid news the FBI conducted a raid at the office of President Donald Trump’s longtime lawyer, Michael Cohen. Treasuries pared losses and oil rebounded from the declines on Friday.
Asian stocks edged lower as traders look for any response to the barrage of tariff threats from the Trump administration in a speech from China President Xi Jinping, and U.S. political risks reemerge. The dollar held losses.
Trade relations remain front and center of investors’ minds. China was said to be reviewing ways to use its currency as a weapon with President Xi set to deliver his keynote speech to the Boao Forum for Asia Tuesday that may include a strong warning about the consequences of a prolonged dispute. Political risk also took another turn in the White House, as Special Counsel Robert Mueller’s investigation of Russian meddling in the U.S. election resurfaced.
“At the moment, everyone’s in a wait and see on a lot of things,” Nick Twidale, chief operating officer at Rakuten Securities’ Australian unit said.
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Meanwhile, in Russia the ruble plunged and the Moex Russia Index of stocks tumbled the most in four years after the U.S. sanctioned some prominent Kremlin-connected billionaires and their companies. Aluminum posted the biggest gain in more than six years and palladium jumped amid concerns that supply may be disrupted after the U.S. imposed restrictions. – Neal Bhai Reports