INSUBCONTINENT EXCLUSIVE:
Asian shares barely budged in early Friday trade as investors were reluctant to make any big bets in the face of trade tensions, signs of
slowing earnings and Brexit negotiations.
A draft deal between Britain and the European Union on future relations offered some hope for
battered markets, though more evidence of pressure on corporate earnings in Europe kept equity investors sidelined.
With US markets closed
overnight for Thanksgiving and Japan on holiday on Friday, trading activity was relatively muted
The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent in early trade.
Australian shares were up 0.23 per cent,
and Seoul's Kospi was flat.
Despite the small gains, US equity futures were pointing to weakness on Wall Street when trading resumes Friday
SP E-mini futures were down 0.24 per cent at 2,642.75.
On Thursday, stock markets in Europe were hit by disappointing earnings on further
signs that corporate profit growth is peaking globally.
Those earnings underscored the lingering anxiety among equity investors as trade
tensions, slowing global investment and growth kept stock markets on the backfoot after a torrid October.
In the currency market, the pound
was flat, buying $1.2878 after rising more than 1 per cent on Thursday on news of the draft agreement between Britain and the EU, which
describes a close post-Brexit relationship
The agreement follows a draft treaty last week that set the terms for Britain's departure from the EU in March.
But the deal faces a rocky
ride once it reaches a deeply divided British parliament, with hardline eurosceptic and staunch pro-EU factions, and various shades of gray
in-between.
Indeed, analysts at National Australia Bank cautioned against early celebrations.
"After EU leaders are expected to rubber stamp
this political declaration alongside the withdrawal agreement at a summit on Sunday, the 'meaningful vote' in the UK Parliament is likely in
the second week in December
It would be far too optimistic to declare victory on a deal yet," they said in a note to clients.
The euro was a touch weaker at $1.1402,
and the dollar was up 0.03 per cent against the yen to 112.96.
The yield on benchmark 10-year Treasury notes rose to 3.0646 per cent
compared with its US close of 3.061 per cent ahead of the Thanksgiving holiday
The two-year yield , sensitive to market expectations of higher Fed fund rates, was barely changed at 2.816 per cent.
In commodities
markets, crude oil prices extended their recent slump as US inventories hit their highest level since December, adding to concerns about a
global crude glut.
US crude dipped 1.06 per cent at $54.05 a barrel.
Spot gold rose 0.07 per cent to trade at $1,227.54 per ounce.
