|Day's range||21,348.67 - 21,451.23|
|52-week range||18,948.58 - 24,448.07|
The steady rise in stock prices may be masking trouble ahead. Markets face testimony from Jerome Powell, Trump’s visit to Vietnam, and a looming trade deadline.
U.S. stocks rallied on signs that negotiators are making headway in trade talks between America and China. The S&P 500 rose for a fourth-straight week after President Donald Trump said if he sees progress he will extend a trade truce to avoid more than doubling tariffs on some imports from China at the end of the month. The greenback fell against the yuan traded offshore after Treasury Secretary Steven Mnuchin said the two sides had reached a final agreement on currency.
U.S. stocks fell in thin trading, while Treasuries also declined as investors grappled with concerns about economic growth and the latest twists in global trade. The S&P 500 dropped for the first time in four sessions after economic data in both Europe and U.S. came in below expectations, reigniting worries about the world economy. Health-care stocks were pulled down as Johnson & Johnson dropped after the company said it received subpoenas from federal prosecutors tied to its talc baby-powder products.
The ongoing trade negotiations between the United States and China remain the “main focus” for markets and are likely to “provide the next catalyst for a strong move in sentiment,” Rakuten Securities Australia said in a morning note, following the release of the U.S. Federal minutes at 19:00 GMT.
The offshore Chinese Yuan rallied sharply higher on Tuesday after Bloomberg News reported that the U.S. is requesting that China keep the Yuan stable as part of the trade deal. The move would be aimed at mediating any effort by the Chinese to devalue the Yuan to counter American tariffs, people familiar with the situation told Bloomberg News.
Stocks in Europe advanced after a rally in Asia drove the region’s shares to their highest level since October amid optimism over China’s economic growth and trade talks. Commodities from oil to copper jumped. The Stoxx Europe 600 closed higher following a choppy morning as gains by telecommunications companies offset declines in carmakers, after President Donald Trump received a report that may be a preliminary step to raising tariffs on auto imports.
President Trump said at a White House news conference that Washington was closer than ever before to “having a real trade deal” with Beijing and that he would be “honored” to remove tariffs if an agreement can be reached. He added, however, that the talks were “very complicated.”
Risk appetite delivers early moves across the riskier asset classes. With a light economic calendar, vehicle sales out of China will be of interest.
Equities surged to a 10-week high as the U.S. consumer outlook brightened and positive developments in China trade talks overshadowed lingering concerns about global growth. The S&P 500 Index closed at session highs Friday, with all sectors gaining, on reports that the U.S. and China had reached consensus in principle on the main topics in their trade negotiations. U.S. consumer sentiment rebounded from a two-year low, further fueling the rally and bolstering the case that yesterday’s dire retail sales figures were out of sync with reality.
U.S. stocks edged lower in listless trading as disappointing economic data and reports the president will declare a national emergency overshadowed news that another government shutdown will be averted. Signs Congress would avert another shutdown boosted sentiment midday and shares drifted until the late slide that came with news that President Donald Trump intends to sign a government funding bill and simultaneously declare a national emergency to get more money for a border wall. Bank stocks were among the hardest hit, as the 10-year Treasury yield briefly sank below 2.65 percent.
Trade-related optimism supports global stock indices while weak data in the US sends the USD moving lower versus major world currencies.
(Bloomberg) -- There is not much to be enthusiastic about when it comes to Europe. Sluggish growth, low inflation, political instability, Brexit and trade wars are part of a long list that doesn’t inspire optimism, let alone confidence. After Germany narrowly managed to dodge the recession bullet, it remains to be seen whether the old continent is capable of bouncing back.
With the start of high-level trade talks between the United States and China, Asian market traders are taking a cautious approach to the stock market on Thursday. However, under the cautiousness, there is some optimism. China released better-than-expected January trade balance data early Thursday. The news seemed to have a positive effect on the Australian and New Zealand Dollars, but failed to add to this week’s strength in the major Asian stock markets.
U.S. equities put in their fourth straight session of gains as optimism over trade negotiations countered some of the jitters that Senator Marco Rubio triggered when he announced a bill to tax buybacks on equal footing with dividends. Rubio’s tweet Wednesday about his buyback proposal slowed an advance in the S&P 500 Index, but the benchmark still finished higher, even after Netflix dragged on the communication-services sector late in the day. Equities have been climbing this week in part on news that President Donald Trump is open to extending a March 1 deadline to raise tariffs on Chinese products if the two sides are near an agreement.
The major indices were all in the green in early pre-opening trading with the tech-heavy NASDAQ Composite in the lead posting an advance near 0.45%.
U.S. stocks shook off their malaise Tuesday, boosted by optimism over trade talks and a tentative deal among American lawmakers to avert a government shutdown. After four sessions of losses or whisker-thin gains, the S&P 500 Index registered its biggest one-day increase this month, breaking through its 200-day moving average. The rally was broad-based: Materials stocks led the charge, but financials and the FAANG cohort of tech stocks also advanced, and energy companies gained as oil rebounded from a two-week low after Saudi Arabia pledged to deepen production cuts.
U.S. stock market investors are also worried about a potential second government shutdown with border policy still the major issue driving a wedge between Democrats and Republicans. Trump tweeted over the weekend, “I actually believe they (Democrats) want a shutdown.”
SoftBank unveiled the repurchase program last week, promising to spend as much as 600 billion yen ($5.5 billion) on its own stock over the coming year. SoftBank’s shares soared 17.7 percent to a four-month high on Thursday. Buybacks shrink the public float, potentially reducing SoftBank’s weighting in benchmark indexes and causing passive investors that track those gauges to cut their holdings.
Operating profit in the year that ends in March may range from 20 billion yen to 30 billion yen ($180 million to $270 million) when the Tokyo-based company posts results Wednesday, far below the 60 billion yen it projected in November, Nikkei reported. In November, Toshiba pulled back from nuclear projects in the U.K. and bailed from a five-year misadventure in trading of liquefied natural gas, paying a Chinese company $806 million to take its interest in a U.S. LNG export venture. There’s also been a drag on profit from its chips systems business, Nikkei reported, while adding that there are some bright spots in point-of-sale systems, railway systems and air conditioning operation.
Toh Yen Kee was filled with optimism when Prime Minister Mahathir Mohamad was swept into power last May. She was so optimistic, in fact, that she quit her job as a top executive at a multinational company in Singapore, where she lived for 23 years, and returned home to work for the Malaysian government. “When the new government won the election, I basically told myself, ‘if not now, when?’” Ms Toh told the Nikkei Asian Review. Like many in Malaysia, Ms Toh saw the defeat of the decades-long ruling party led by former prime minister Najib Razak as a turning point for the country.
Equities were under pressure all day after Australia’s central bank joined European and British officials in tamping down economic forecasts, while at the same time the prospects for an extension of the U.S.’s trade detente with China continued to fade. Amazon slid as the feud between its CEO and President Donald Trump took an unexpected turn. China’s market remained shut for Lunar New Year, though Hong Kong reopened and shares finished slightly lower.