Asian market drop due to weak iron ore prices, euro close to three year peak


The Asian market fell on Tuesday as miners were affected by sluggish Chinese iron ore price, while euro is inches from their three year highs on increasing expectations that the European Central Bank would further cut its monetary stimulus.

MSCI Asia-Pacific shares .MIAPJ0000PUS fell 0.2 percent during the early trade. while Australian shares dropped 0.5 percent. United States markets were not open due to a public holiday on Monday.

On Monday, Chinese Iron ore futures fell 2 percent since China’s stockpiles of the steelmaking commodity climbed to its loftiest since around the year 2004, with lower steel prices also weighing on the market.

Nikkei .N225 of Japan was a smidge higher during the early trading, however, the momentum was difficult with exporters having a hard time to shake of the effect of a more robust Yen.

The euro rose slightly to $1.2265 EUR=, on track of its Monday peak of $1.2296, the currency’s highest level since December of 2014.

German average bond yields reached session peaks on Monday, following the statement of ECB’s rate-setter Ardo Hansson regarding the central bank and the probable end of its bond purchase scheme in one go after the month of September, if only the inflation and the economy develop as expected.

Further adding to the euro’s climb is the data showing that the trade surplus in the 19 country area climbed to record peaks within eight months, showing signs of companies weathering the influence of a robust currency.


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