Asian stocks limp towards weekend, investors wary as to what’s next in US-China conflict

Asian stocks were mixed on Friday despite the stronger close for US equities, as markets limp towards the weekend. The recent flareup in US-China tensions continues to weigh on the collective mind, as investors hunker down for what is feared to be a long, drawnout dispute between the world’s two economic powerhouses.

At this point in time, it’s hard to see either the US or China having enough will to resolve their differences, much less before the new US tariffs on Chinese goods kick in on September 1. Should the barriers to global trade be raised next month, that would be another kick in the gut for risk appetite and may prompt another selloff in risk assets. cast by the ongoing US-China conflict should ensure that Gold can hang on to most of its 2019 gains, with the $1450 level serving as the stronger support level below $1500. month, with EURUSD hovering mostly around 1.12 in recent days. However, such gains may prove fleeting, as rising political tensions in Italy threaten to exacerbate the Euro’s outlook.

Political turmoil in Italy would add another layer of risk to the Euro, with investors already contending with the illeffects from Brexit uncertainties as well as the protracted US-China trade conflict. Should the Federal Reserve pour cold water on markets that are clamouring for more US interest rate cuts over the course of the year, any Dollar resurgence is set to cost the Euro, with scant upside catalysts evident for the bloc’s currency in the immediate future.