Yahoo Finance Markets Wait On Trade News, Weak Data Tanks Stocks, Volatility On Tap For Thursday
Asian Markets Closed Flat On Thursday
Most Asian equities indices closed flat on Thursday as traders and investors wait on concrete news on the US/China trade talks. The talks, in Beijing, start today and may bring much needed good news. According to reports from Chinese media President Xi is slated to meet with US trade representatives on Friday, a sign that some form of a deal is close to hand.
The Japanese Nikkei, the Shanghai Composite, the Hong Kong Heng Seng,and the Australian ASX all closed with losses but the moves were less than -0.10%. The Korean Kospi was the only index to move higher and it bucked the trend with an advance of 1.17%.
On the economic front trade data from China and GDP data from Japan helped support the market. In China, exports rose a sharp 9.1% over the last month, much better than the expected decline, while exports fell a mere -1.5% versus an expectation for a much larger decline. In Japan, GDP data came in as expected but was not enough to spark a rally in the yen.
European Markets Rise On Earnings, Fall On Data
EU indices were in the green across the board in midday trading but fell sharply in the wake of weak retail data from the US. The CAC was in the lead with an advance near 0.65% while the German DAX and UK FTSE were both up about 0.30% before the midmorning reversal. The DAX moved into negative territory while the CAC and FTSE maintained slight gains.
France’s Airbus was one of today’s top performers after it reported better than expected earnings. The company also says it will scrap its A380 Cruiseliner on word from Emirates Airlines it would be ordering fewer of the iconic airliners in favor of smaller jets. The airline will continue to use its current A380 well into the 2030’s. Shares of Airbus rose more than 4.0% on the news.
Germany’s Gerrisheimer also surged to the top of the rankings after it reported earnings. The medical device maker said it was back on a path to growth and sent its shares up more than 10.0%.
Weak Retail Sales Tanks Stocks
US futures were indicating a positive open in early Thursday trading until the retail sales data was released. The move was supported by growing optimism on trade and a possibility positive steps are being made but optimism wasn’t enough to offset an unexpected decline in retail sales.
In today’s trade news, US President Donald Trump is considering a 60-day extension to the March 2nd tariff deadline provided negotiators are able to make concrete progress before the deadline is reached.
On the economic front, a raft of weaker than expected data sent futures diving and the dollar moving lower against a basket of global currencies. On the inflation front PPI came in below expectations at the headline level, down -0.1% versus an expected increase of 0.10%, while Retail Sales fell -1.2% MOM and -1.4% YOY. The Retail Sales data was particularly important as it provides fresh evidence of slowing global economic activity.
This article was originally posted on FX Empire
