Yellen is scheduled to take part in a discussion on global economic issues at London's Royal Academy and a number of other top Fed officials are also due to speak later in the global day. Later Tuesday investors will closely watch comments from Federal Reserve Chairwoman Janet Yellen to support the Fed's projection for one more interest rate rise this year.
Oil prices were largely unchanged as the market took a breather after stabilising over the past three days. Crude oil delivery for August was currently up by 0.11 percent or $43.49 per barrel. The crude oil price nudged higher, stemming steep recent losses on talk of OPEC's resolve to re-balance oil markets.
Looking ahead later in the global day, European Central Bank President Mario Draghi is expected to speak at the European Central Bank Forum on Central Banking, in Portugal. Reserve Bank of Australia Assistant Governor Guy Debelle is expected to speak at the Global FX Code of Conduct Launch in Singapore, via satellite. Bank of England Governor Mark Carney is scheduled to hold a press conference about the Financial Stability Report, in London.
In the New York session, U.S. S&P/Case-Shiller home price index for April, U.S. consumer confidence index for June, and U.S. Richmond Fed manufacturing index for June are slated for release. Federal Reserve Bank of Philadelphia President Patrick Harker is expected to speak about the economic outlook and international trade at the European Economics & Financial Centre, in London. Federal Reserve Chair Janet Yellen will speak on global economic issues at the British Academy 'President's Lecture', in London.
Among Asian bourses
Australia Stocks edge lower
Australian equity market ended edge lower after swinging between positive and negative territory in narrow range, as gains among the major banks and miners failed to counter weakness in the Utilities, Healthcare and Consumer Staples sectors. The S&P/ASX 200 index closed down 0.1% or 5.96 points to 5,714.20 at the close of trade.
The gains on the financial trimmed the losses on the index. Commonwealth Bank of Australia and Australia & New Zealand Banking both rose for a second day running, recovering from another bout of selling last week after South Australia's state government proposed a tax that would piggyback on a new federal levy on the biggest banks' liabilities that has raised concerns other state governments could follow. The pair gained 0.7% and 1%, respectively, while Westpac Banking and National Australia Bank were little changed. Leading insurer QBE Insurance Group which fell 1.5% hitting over a six-month low earlier in the day, ended the session 1.3% higher. Bank of Queensland closed 1.9% higher while BT Investment Management rose 1%.
Shares of material sector also advanced. Among the miners, BHP Billiton inched higher while Fortescue Metals Group climbed 3.8% as iron-ore prices have stabilized in recent sessions, and Chinese futures were modestly higher on Tuesday. Rio Tinto rose 0.5% after signalling an end to the bidding war for its NSW coal operations by saying it still plans to sell to to Yancoal after the Chinese company raised its bid to $US2.69 billion ($A3.55 billion) in response to a rival offer by Glencore
Blackmores dropped by 4.4% after the vitamins producer said Chief Executive and Managing Director Christine Holgate was stepping down after nine years at the helm, to take over running Australia Post.
Energy giant Santos ended 0.3% down after the company has agreed to form a strategic partnership with key Chinese shareholders to jointly invest in gas exploration and LNG production in Australia and Papua New Guinea.
Nikkei rises on softer yen
The Japan share market finished session edge higher, as investors' sentiments buoyed by as the yen's retreat against the U.S. dollar, with shares of iron and steel, rubber product and mining-linked sectors being major gainers. However, market gains limited as investors became more circumspect ahead of U.S. Federal Reserve Chair Janet Yellen's speech later in the day. The 225-issue Nikkei Stock Average added 71.74 points, or 0.36%, to close the day at 20,225.09. The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 6.81 points, or 0.42%, to finish the day at 1,619.02.
Advancing issues outpaced declining ones by 1,215 to 654 on the First Section. Trading volume on the main section on Tuesday came to 1,573.97 million shares, rising from Monday's volume of 1,395.60 million shares. The turnover on the second trading day of the week totaled 2,142.0 billion yen.
Shares of export-related issues gained after the dollar stood tall on Tuesday, hitting a more than one-month high against the yen as investors waited to see if Federal Reserve Chair Janet Yellen would stick to her positive economic outlook at an event later in the global session. The dollar was at 112.07 yen, the highest since May 24. Among exports, Toyota Motor Corp rose 0.7%, while Panasonic Corp added 1.3% and Canon Inc advanced 0.8%.
Also on the positive side was the steel sector which got a boost with reports highlighting a positive reversal in steel prices. Goldman Sachs wrote in a report that East Asian steel prices are clearly turning up after bottoming in early June. JFE Holdings soared 2.5% and Nippon Steel & Sumitomo Metal Corp surged 2.7%.
Troubled air bag inflator maker Takata Corp, which filed for bankruptcy protection in the United States and Japan on Monday, tumbled to 110 yen, a daily limit low. Takata apologised on Tuesday to victims of its faulty air bags linked to at least 16 deaths and 180 injuries around the world. Executives offered the apology at the firm's last annual shareholder meeting as a listed company.
China Stocks up on industrial profit data
The Mainland China equity market closed higher after recouping earlier losses, as sentiments firmed up on news that Chinese industrial profits growth accelerated in May from a year ago. Data from the National Bureau of Statistics showed that China's industrial profits grew at a faster pace of 16.7% year-over-year in May, following a 14% spike in April. However, gains were limited as investors turned cautious amid a strong rally in blue-chips after MSCI decided last week to add 222 China-listed stocks to its Emerging Markets Index. Sector performance was mixed, with gains were led by bank stocks, while real estate stocks dragged behind after jumping nearly 9% during the previous two sessions. The blue-chip CSI300 index rose 0.2%, to 3,674.72 points, while the Shanghai Composite Index added 0.2% to 3,191.20 points.
With the blue-chip index trading at the highest level since early 2016, some investors aren't sure if the index can run up much further amid signs Beijing will continue to keep liquidity conditions relatively tight. Citing "relatively high" liquidity levels in the banking system, China's central bank on Tuesday skipped open market operations for a third consecutive day, as short-term borrowing rates have eased recently.
Data from the National Bureau of Statistics (NBS) released on Tuesday showed profitability growth in Chinese industrial companies accelerated in May 2017. The combined profits of Chinese industrial firms rose 16.7% year-on-year to CNY626 billion in May, up 2.7%age points from the 14% y/y growth rate in April. For the first five months of this year, total profits rose 22.7% to CNY2.905 trillion. The growth rate was 1.7%age points lower than the 24.4% gain in the first four months. The NBS attributed the rise in May profit growth compared to April to a faster growth in investment profits and products sales.
Hong Kong Stocks end down
The Hong Kong stock market ended slight lower in narrow trade on tracking the mixed performance of the US markets overnight, tumble in the growth enterprise market (GEM) for start-ups due to worries over potential policy changes, and on caution ahead of ahead of U.S. Federal Reserve Chair Janet Yellen's speech later in the day. The Hang Seng index fell 0.1%, to 25,839.99, while the China Enterprises Index lost 0.3%, to 10,498.07 points. Turnover increased to HK$72.5 billion from HK$68.2 billion on Monday.
Geely Auto (00175) shot up 4.12% to HK$16.16 after its board lot size will be changed to 1,000 shares effective from 18 July.
A nearl-10% slump in GEM, the biggest drop in nearly two years, soured the mood. Over a dozen small-caps lost over 50% on Tuesday - some tumbling over 90% - amid speculation the Hong Kong stock exchange would delist thinly-traded stocks. China Jicheng Holdings lost 94%, while Greaterchina Professional Services tumbled 93%. Most small cap stocks under heavy selling are among the 50 stocks which shareholder activist David Webb recommended "not to own". Major Holdings (01389) plunged 80.99% to HK$0.192. GreaterChina Professional Services (08193) tumbled 93.4% to HK$0.064.
Indian market registers modest losses
Key benchmark indices closed the first trading session of the week with modest losses. The barometer index, the S&P BSE Sensex dropped 178.76 points or 0.57% at 30,959.45, as per the provisional closing data. The Nifty 50 index lost 60.35 points or 0.63% at 9,514.60, as per the provisional closing data. The Sensex provisionally settled below the psychological 31,000 level. Negative cues from European markets spoiled investors' sentiment.
Geopolitical tensions also weighed on market sentiment amid reports suggesting that China today, 27 June 2017 accused Indian troops of crossing the boundary in the Sikkim region and demanded their immediate withdrawal, while asserting that it stopped the Indian pilgrims who enter Tibet via the Himalayan pass of Nathu La for safety reasons in view of the border issue.
Index heavyweight and engineering and construction major L&T lost 1.34%. The company said its construction division has won orders worth Rs 2552 crore across various business segments. The announcement was made during market hours today, 27 June 2017.
State-run Bharat Heavy Electricals (Bhel) was down 0.48%. The company announced that it secured an order for setting up 15 megawatts (MW) Solar Photovoltaic (SPV) Power Plant on engineering, procurement and construction (EPC) basis, in Gujarat. The order has been placed on Bhel by Gujarat Alkalies and Chemical (GACL) for setting up the SPV Power Plant at Gujarat Solar Park at Charanka in Gujarat. The announcement was made during trading hours today, 27 June 2017.
Software major Infosys declined 1.84%. The company issued a press release regarding its settlement with New York Attorney General. The company said that its agreement concluded the State of New York's investigation relating to the amount of taxes the company paid in 2010-2011 without any criminal or civil charges being filed. While this investigation centered on alleged paperwork errors, the company committed no wrongdoing and denies all allegations made in this regard, Infosys said.
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