|Day's range||20,971.18 - 21,119.73|
|52-week range||18,948.58 - 24,448.07|
Chipmakers tumbled the most in almost a month, weighing on the S&P 500 Index after Broadcom Inc. cut its sales forecast, citing trade war concerns. The outlook for the Fed was in focus, with BMO strategists saying the odds of a cut next week are higher than many expect, while DoubleLine Capital’s Jeffrey Gundlach said he expects no reductions this month. “Investors face a steepening wall of worry as geopolitical risk now joins lingering trade and Fed policy uncertainty as sources of anxiety,” said Alec Young, the managing director of global markets research at FTSE Russell.
China’s growth worries haunted global markets today but the tremors were strongest closer to the mainland, in Hong Kong.
“At present, we do have some external pressures, but those external pressures will help us boost our self-reliance in innovation and accelerate the pace of high-speed development,” said Liu, who is also the lead negotiator in the U.S.-China trade talks.
Wednesday’s trading session was slightly bearish, as investors took more short-term profits off the table following the recent advances. However, the daily trading range was very narrow. The S&P 500 index reached the new local high on Tuesday and then it came back below the 2,900 mark. So was it a downward reversal or just correction before another leg up?
Hong Kong’s Hang Seng Index opened lower today and fell sharply in early trade in response to the political situation in the city. As life started getting back to normal in Hong Kong, the bulls returned and the index maintained upward momentum. The Hang Seng closed almost flat at the end of the session.
Once again, it appears that U.S. investors have been largely shielded from the worsening effects from the tariffs that have weakened other countries. Additionally, domestic GDP rose 2.9% in 2018 and 3.1% in the first quarter of 2019, inflation has been subdued and the labor market has held up for the most part.
With most major indexes in Asia and the U.S., for that matter, trading marginally up or down, the steep drop in Hong Kong’s Hang Seng Index stands out. For stock traders, Hong Kong’s continuing attractiveness as a base for international business is increasingly being questioned.
Some of the optimism generated by U.S. President Donald Trump’s deal to avoid tariffs on imports from Mexico was overshadowed by a new threat to raise duties again on China if President Xi Jinping doesn’t meet with him at this month’s Group of 20 summit. “We are going to continue to be range-bound,” Joe “JJ” Kinahan, the chief market strategist at TD Ameritrade, said in an interview at Bloomberg’s New York headquarters.
Hang Seng, Nikkei, and Topix Rise as China Loosens Purse(Continued from Prior Part)Australia and New ZealandAustralia’s market was back in business today after yesterday’s holiday for the Queen’s birthday. Australia’s S&P/ASX200 gained
Hang Seng, Nikkei, and Topix Rise as China Loosens PurseHang SengHong Kong’s Hang Seng Index followed mainland Chinese indexes to post its fourth consecutive gain today. The index rose 0.76% after rising by more than 2% yesterday. The iShares
As the digital age gives people fewer reasons to use paper, the material has nevertheless found itself in the global spotlight. This means more countries like Japan, the world’s second-biggest producer per capita of plastic waste after the US, will have to deal with their non-recyclables at home instead of shipping them to other countries. It is a welcome shift for Japan’s paper industry, which has faced steadily shrinking demand.
FT subscribers can click here to receive Market Forces every day by email. Equity markets are pushing towards a test of their April and early-May peaks. Optimism about a US and China trade deal has faded, with risk assets leaning heavily on the bond market's call for central bank easing in the coming months.
U.S. President Trump and Chinese President Xi Jinping may meet at this month’s G-20 meeting, but based on China’s trade balance report, there doesn’t appear to be any urgency to strike an immediate deal to end the trade dispute. Friendly trade negotiations could begin, but it’s starting to look like China is willing to extend the tariffs into the 2020 elections as it bets on the opportunity to negotiate with a new administration.
Emerging-market shares jumped the most since January as Mexico’s peso posted its best day in almost a year after the accord with the U.S. late Friday. The dollar edged higher while the onshore yuan fell to its weakest level since November after China’s central bank hinted it could fall further. Treasury Secretary Steven Mnuchin has said the “main progress” on trade may occur when presidents Trump and Xi Jinping meet at the G-20 summit later this month, while finance chiefs over the weekend warned about escalating risks from geopolitical tensions.
Treasury yields and the dollar fell. The S&P 500 Index had its best week since November on speculation the Fed will move to shore up the economy as a report showed employers added the fewest workers in three months and wage gains cooled. The peso rose after President Donald Trump said there’s a “good chance” the U.S. will reach a deal to avert imposing trade tariffs on Mexico.
Nikkei 225 Gains despite Underwhelming Economic DataNikkei 225The Nikkei 225 gained today after losing marginally yesterday. The index gained 0.53% today to end the day (and the week) at 20,844.71. During the week, the index gained 1.38%, advancing
This week’s stock market performance, in the wake of the on-going trade dispute between the United States and China, and the new tariffs on Mexico, clearly shows that investors are counting on the Fed and to a lesser-extent, the European Central Bank to cut rates or provide additional stimulus measures sooner than previously thought.
Treasuries pared gains and the peso rebounded from Thursday’s lows. The S&P 500 Index extended its advance after Bloomberg News reported that Mexico is pushing for more time to negotiate. Treasuries rose on speculation that major central banks will keep a dovish stance as the trade war jeopardizes growth.
Big banks surged as Wells Fargo analyst Mike Mayo said the industry would be set to “party like it’s 1995” if rates are cut. Treasury yields rose from multiyear lows as Powell stopped short of signaling an imminent move. Later in day, the Washington Post reported that Republican senators warned Trump administration officials they were ready to block efforts to impose duties on Mexican imports.
Nikkei and KOSPI Stay Flat on Global Worries and Economic DataNikkei 225 stays flatAfter falling by 0.92% yesterday, Japan’s Nikkei 225 was steady today. While the index opened higher, it gave up its gains throughout the day to close just one
Sitting almost side by side, the bridges are an unintended reflection of the rivalry between Japan and China in Cambodia and across much of the surrounding Mekong region, where the two countries are the largest foreign donors and investors. Japan’s bridge — built in the early 1960s, when the country was just starting its postwar boom — recently reopened after nearly two years of renovation. China’s is far newer, much like the nearly 3,000km of roads and numerous other bridges that it has built in Cambodia over the past decade.
The latest Nikkei India purchasing managers’ index, released on Monday, showed an uptick to 52.7 for the month, compared to 51.8 in April. The positive figures were prompted by factories raising their output on the back of rising consumer demand, both within India and from overseas customers. “A revival in new order growth promoted a faster upturn in manufacturing production,” said Pollyanna De Lima, principal economist at IHS Markit.
Japanese manufacturing activity swung back into contraction in May, a private survey confirmed on Monday, as exports from the world’s third-largest economy continued their slump amid global trade tensions. ...