Japan takes title of world’s second-largest stock market from China. Chinese equities have seen $2.29tn in valuation wiped off since January.

Stock Market News Today
2018/08/03

Japan Stock Market News Today. For first time China has ceded the title since it overtook Japan for the number two spot in November 2014. The fall also underscores how the ongoing trade spat with the US, Beijing’s campaign to temper debt-fueled growth and signs of slowing domestic demand have combined to dampen investor sentiment for Chinese assets.

jappon vs china

The CSI 300 index of major stocks listed on the Shanghai and Shenzhen exchanges is down by more than 17 per cent year to date, while the onshore renminbi exchange rate has weakened 5.3 per cent against the dollar.

By comparison, Tokyo’s Topix index has fallen just 4 per cent in 2018, while Japan’s yen has gained nearly 1 per cent on the greenback.

Apple News Today. Apple won the race to become the first company to reach a trillion-dollar market capitalisation, beating Microsoft, Amazon and Alphabet to the finish line. Here’s a great interactive chart on how Apple’s worth stacks up against other companies and entire industries (add Disney and Bank of America and you’re only halfway there).

Brexit News Today. The Bank of England’s decision to raise interest rates on Thursday was seen in some quarters as a welcome step on the road to post-financial crisis normality. For others, it was a reckless misjudgment, given the growing risks of a no-deal Brexit. The FT editorial calls it a “false step”. Our FT Money reporters have also broken down what a no-deal outcome would mean for your finances.

Trump News Today. Top US intelligence chiefs issued a stark warning about ongoing Russian efforts to interfere in upcoming US elections. Donald Trump is focusing elsewhere: on China. Barely a week after the US president agreed to a ceasefire in his trade war with Europe, he has dramatically upped the ante in his battle with Beijing.

China News Today. Has China lost its ranking as the world’s number two stock market? After a Thursday slump, Chinese equities were worth $6.09tn, according to data compiled by Bloomberg. That compared with $6.17tn in Japan. Chinese equities and the nation’s currency have taken a beating this year amid a trade spat with the Trump administration.

US Jobs Report News Today. The US jobs report for July is expected to be positive, but what many observers will be looking at is wage growth. Are companies paying workers more because of the tight labour market? So far, not as much as past economic good times.

Stocks to Watch News Today. JPMorgan Cazenove raised Elementis, the chemical maker to “overweight” from “neutral” with a 290p target. Its upgrade follows Elementis last month announcing the $600m acquisition of Mondo, then saying earlier this week that it was exploring options for the deal after major shareholders expressed concerns.

Either a significant price cut or a deal termination “should be incrementally positive” for Elementis, JPMorgan said. “We believe an acquisition price of $450m to $500m versus the $600m proposed currently might make the deal more palatable to investors [and] substantially improve deal economics,” it said. And on a standalone basis, Elementis has priced in “a material deal-related discount” to its long-term valuation average of about 17 times earnings even allowing for an $18m termination fee.

In brief: Biffa upgraded to “buy” at Peel Hunt; Royal Dutch Shell cut to “equal-weight” at Morgan Stanley; Asos and Zalando rated new “outperform”, Boohoo rated new “market perform” at Wells Fargo; Scor upgraded to “buy” at HSBC; Sodexo downgraded to “market perform” at Bernstein; Lloyds Banking Group upgraded to “neutral” at Citigroup; Sabadell raised to “sector perform” at RBC.

Commodities News Today. Gold has touched its lowest level in over a year at $1,205.95 per troy ounce, after slipping on dollar strength.

Oil prices are mixed. Brent crude is down 0.1 per cent at $73.40 a barrel while West Texas Intermediate is up 0.1 per cent at $69.04.

Stocks – U.S. Futures Flat Ahead of Corporate Earnings. Euro zone economic sentiment edges lower in July. Oil prices edge higher but trade row caps gains

StockMarketNews.Today
2018/07/30

 

Stock Market News

U.S. futures were flat on Monday, as investors look ahead to earnings reports and central bank meetings this week.

The S&P 500 futures fell over one point or 0.06% to 2,815.75 as of 6:50 AM ET (10:50 GMT) while Dow futures inched up 11 points or 0.04% to 25,425.0. Meanwhile tech heavy Nasdaq 100 futures decreased 12 points or 0.17% to 7,289.0.

The Federal Open Market Committee (FOMC) meets on Tuesday and Wednesday, with a policy decision scheduled for Wednesday afternoon. Meanwhile the Bank of Japan ends its two-day meeting on Tuesday and the Bank of England is expected to make a policy decision on Thursday.

Earnings season continues in the last major week of corporate results, with Caterpillar (NYSE:CAT), AK Steel Holding Corporation (NYSE:AKS), Samsung Electronics (KS:005930) and others expected to report their financial results on Monday.

Waste manager Avalon Holdings Corporation (NYSE:AWX) was among the top gainers in pre-market trading, surging 95.122% while Fiat Chrysler Automobiles NV (NYSE:FCAU) gained 0.65% and Twitter Inc (NYSE:TWTR) rose 0.23%. AT&T (NYSE:T) was up 0.97% and semiconductor Tower International Inc (NYSE:TOWR) increased 1.285%.

Elsewhere Tesla (NASDAQ:TSLA) fell 0.68% while Microsoft (NASDAQ:MSFT) inched down 0.19% and social media app Snap Inc (NYSE:SNAP) slumped 1.40% and Cisco was down 0.49%.

On the data front, pending home sales is out at 10:00 AM ET (14:00 GMT), with the Dallas Fed’s manufacturing survey out at 10:30 AM ET (14:30 GMT).

In Europe stocks were down. Germany’s DAX fell 22 points or 0.18% while in France the CAC 40 decreased 15 points points or 0.28% and in London, the FTSE 100 was down 20 points or 0.27%. Meanwhile the pan-European Euro Stoxx 50 lost 13 points or 0.38% while Spain’s IBEX 35 inched down 32 points or 0.33%.

Gold futures fell 0.20% to $1,220.50 a troy ounce while crude oil futures surged 1.31% to $69.59 a barrel. The U.S. dollar index which measures the greenback against a basket of six major currencies, was down 0.17% to 94.31.

Testing times for tech. Asset managers’ concerns have been increasing about the outlook for the group of big US tech stocks such as Facebook, Amazon and Google parent Alphabet. The $120bn plunge in the value of Facebook last week sent a shockwave across US and European funds. Even so, Wall Street’s nine-year rally remains on firm footing to continue — many of the earnings disappointments are seen as isolated.

Next up: Apple. Staying with tech, the next big test for the sector comes on Tuesday when Apple reports its quarterly earnings. The iPhone maker’s “other products” division — which includes Apple Watch, AirPods earphones and HomePod speaker — will be a highlight. That’s because these accessories are now at risk of being caught up in the US-China trade war.

Economic Indicators News

Euro zone economic sentiment edges lower in July. Euro zone economic sentiment edged lower in July, pulled down by less optimism in industry and the retail sectors, despite a better mood in services, a monthly survey by the European Commission showed on Monday.

The Commission survey showed the economic sentiment indictor for the 19 countries sharing the euro currency eased to 112.1 points in July form 112.3 in June, continuing a downward trend started since a peak of 115.2 last December.

Separately, the Commission’s business climate indictor, which helps identify the phase of the business cycle, fell to 1.29 in July from 1.38 in June, following a similar downward path as economic sentiment since a peak of 1.63 in January.

The easing of sentiment in July was mainly due to a fall in the indicator for industry which decreased to 5.8 from 6.9, because managers were more pessimistic on production expectations, the current level of overall order books and stocks of finished products.

The survey suggested trade tensions between the European Union and the United States, that resulted in the U.S. imposing tariffs on European steel and aluminum exports in June as well as the threat of more tariffs on EU cars, had an effect.

“Managers’ assessment of past production improved while their views on export order books worsened,” the survey said.

Sentiment in services, which generate more than two thirds of euro zone gross domestic product, improved to 15.3 from 14.4 in June, while consumer sentiment held stable at -0.6 points — still high above the long-term average of -12.2.

The mood in the retail sector fell sharply to -0.1 from 0.7 as managers worried over the expected business situation and the adequacy of the volume of stocks.

Consumer inflation expectations over the next 12 months rose to 18.0, close to the long-term average of 18.6. Selling price expectations in industry fell to 9.7 in July from 10.1 in June.

Commodities & Futures News

Oil prices edge higher but trade row caps gains. Oil rose on Monday as investors remained cautious over the supply outlook, although the fallout from global trade tensions limited price gains.

October Brent crude futures were last up 36 cents at $75.12 a barrel by 0902 GMT. The September contract expires on Tuesday. U.S. crude futures were up 78 cents at $69.47 a barrel.

The oil price has been rallying almost uninterruptedly for the past two weeks, in part as trade tensions between the United States and China have heated up, but also as looming sanctions on Iran have already started to curtail flows of oil from the country.

“There are a myriad of factors to follow at the moment in the oil market but one way or the other we always arrive at the same conclusion. It is the impact of the U.S. sanctions on Iran that will decide the next $15 a barrel,” PVM Oil Associates Tamas Varga said in a note.

“The best case scenario is that the U.S. provides meaningful sanction waivers in the run-up to the mid-term elections and Iran can get away with a loss of around 500-700,000 barrels per day of exports. In case, however, President Trump plays hardball and puts its allies and foes under maximum pressure the loss of barrels could amount to 2 million barrels per day.”

The U.S. economy grew at its fastest pace in nearly four years in the second quarter, but with Washington and Beijing at loggerheads over trade, oil prices could struggle this week, analysts said.

“Oil prices could struggle this week,” said Stephen Innes, head of trading APAC at OANDA Brokerage.

“Concerns around the U.S.-China trade wars continue to weigh on prices, while the halt in Saudi shipments through the Red Sea waterway has seemingly failed to provide a bullish fillip,” he said.

Saudi Arabia last week said it was suspending oil shipments through the Red Sea’s Bab al-Mandeb strait, one of the world’s most important tanker routes, after Yemen’s Iran-aligned Houthis attacked two ships in the waterway.

U.S. energy companies added three oil rigs in the week to July 27, the first time in the past three weeks that drillers have increased activity, data released on Friday that showed.

Global Market Overview: Asia equities under pressure as trade jitters persist. Yen gains while dollar holds losses and oil retreats as global markets remain on edge.

StockMarketNews.Today

What you need to know:

Yen advances, dollar holds losses
> Japan sovereign debt yields jump on BoJ speculation.
> Global trade worries mount.
> Regional equities choppy.

Hot topic:

The Japanese yen strengthened and the US dollar held its losses as concerns over global trade tensions kept markets jittery.

yen001

The Japanese currency, often regarded as a haven during geopolitical uncertainty, climbed 0.4 per cent to ¥110.91 per dollar, after gaining close to 1 per cent on Friday, and amid speculation over a change in Bank of Japan policy.

The US dollar index, which measures the greenback against a basket of peers, was down 0.2 per cent after slumping on Friday.

The moves came after G20 finance ministers and central bank governors, meeting in Argentina over the weekend, warned that increasing trade tensions risk undermining the global economy.

Fresh concerns on Friday about the prospect of a global trade war further unsettled financial markets after President Donald Trump said he was ready to slap tariffs on all Chinese imports to the US.

The latest threat followed his criticism on Thursday of the Federal Reserve’s recent interest rate rises.

“Fears of a full-fledged currency war are elevate… and all attention will be on China’s financial markets,” ANZ analysts said on Monday.

renmbi monday

China’s offshore renminbi exchange rate was up 0.1 per cent at Rmb6.7675 per dollar. The onshore renminbi, which moves within a trading band of 2 per cent in either direction from a midpoint, was up 0.3 per cent at Rmb6.7476.

The People’s Bank of China injected $74bn into the banking system on Monday via loans to commercial banks, the latest sign Beijing is easing monetary policy as the economy slows.

The New Zealand dollar was up 0.1 per cent against the greenback at $0.6811 while the Australian dollar was flat at $0.7424.

Fixed income:

Japanese sovereign bond yields, which move inversely to prices, rose after speculation about potential changes to the country’s central bank policy. The 10-year Japanese government bond yield was up 5 basis points at 0.071 per cent, near its highest point since February.

Reuters, citing people familiar with the Bank of Japan, reported on Friday that policymakers had been in “unusually active discussions” ahead of this month’s monetary policy meeting, suggesting possible changes to interest rate targets and asset-purchase programmes.

“Some at the Bank of Japan are expressing increasing concern about unwelcome side-effects of prolonged ultra-loose monetary policy,” said Capital Economics senior Japan economist Marcel Thielant. “We aren’t convinced that those concerns justify any change in the policy stance at the moment, but it is worth asking whether they could become more pressing issues in future.”

The yield on US 10-year Treasuries was flat at 2.889 per cent while that on equivalent Australian government bonds rose 5 basis points to 2.659 per cent.

Equities:

Asia-Pacific equities were choppy as trade worries persisted.

The CSI 300 index of major Shanghai and Shenzhen stocks dipped as much as 0.7 per cent before recovering to be up 0.2 per cent.

In Hong Kong, the Hang Seng China Enterprises index was up 0.5 per cent, recovering from an initial 0.1 per cent dip, while the broader Hang Seng index gained 0.2 per cent.

Hong Kong-listed shares in Russian aluminium producer Rusal jumped as much as 15.5 per cent after US Treasury secretary Steven Mnuchin on Friday suggested the White House was open to finding a solution to sanctions placed on the company.

In Sydney, the S&P/ASX 200 was down 0.9 per cent with only energy stocks in positive territory, and with the key financials and basic materials segments each declining 0.9 per cent.

In Tokyo the Topix was off 0.4 per cent despite a 2.1 per cent gain for the financial segment, while in Seoul the Kospi Composite slid 0.6 per cent.

crude oil news today n2

Commodities:

Oil prices eased, with Brent crude down 0.1 per cent at $72.99 a barrel and West Texas Intermediate also off 0.1 per cent at $68.17. The price of gold was a touch higher at $1,232 an ounce.

China’s stock indices are lower and European stocks are trading cautiously as investors measure comments from the White House signalling that trade talks between Washington and Beijing are stalled.

StockMarketNews.Today

What you need to know:

> China stocks knocked as Kudlow signals that US-China trade talks are stalled
> European bourses drift in cautious opening trade after mixed run of earnings news
> Renminbi near one-year low while dollar holds around 2018 high

Hot topic:

China’s stock indices are lower and European stocks are trading cautiously as investors measure comments from the White House signalling that trade talks between Washington and Beijing are stalled.

The CSI 300 index of major Shanghai and Shenzhen stocks is down 0.2 per cent, fading from opening gains of 0.6 per cent. In Hong Kong, the Hang Seng China Enterprises index was up 0.9 per cent before moving lower to be up 0.2 per cent on the day.

hanssenghansseng2

The broader Hang Seng index in Hong Kong is also losing momentum, down 0.1 per cent overall and off earlier gains of 0.6 per cent.

China’s currency has slipped to near a one-year low and the dollar is steadier, after comments from the Federal Reserve chairman overnight. An upbeat Jay Powell reassured the market over prospects for the domestic US economy and underpinned expectations for interest rate rises.

The renminbi’s onshore exchange rate, which is permitted to move within a trading band of 2 per cent in either direction, is down 0.3 per cent to Rmb6.7398 per dollar, its lowest since late July last year.

The trading pattern comes after US National Economic Council director Larry Kudlow suggested that China could “end” the “tit-for-tat business” immediately by reducing tariffs and allowing American ownership of companies in China.

Mr Kudlow told CNBC’s Delivering Alpha conference that Chinese President Xi Jinping “does not wish to make a deal”.

Equities:

London’s FTSE 100 is ticking up 0.1 per cent, with Frankfurt’s Xetra Dax 30 down 0.3 per cent, while the Europe-wide Stoxx 600 is flat.

Earnings season continues with half-year results from Unilever, after which the Anglo-Dutch consumer goods group’s shares are down 0.6 per cent. ABB, the Swiss engineer, is up 4 per cent after its second-quarter profits beat forecasts.

In Sydney, the S&P/ASX 200 is up 0.5 per cent despite downward moves from utilities and telecommunications stocks. And Tokyo’s Topix was also flat after rising 0.5 per cent, led by early gains for energy and technology stocks.

The moves also came after strong earnings from Morgan Stanley boosted the S&P 500 financial sector to a gain 1.3 per cent on Wall Street overnight while the tech-heavy Nasdaq Composite ended fractionally lower.

Forex:

Australia’s dollar is up 0.3 per cent at $0.742 after jobs data exceeded forecasts and the country’s unemployment rate dropped to a five-year low.

The yen, which slipped past the ¥113 mark to a six-month low on Wednesday, was a touch firmer at ¥112.72. The New Zealand currency was 0.1 per cent weaker against the dollar at $0.6783.

Fixed income:

In the sovereign debt market, the US 10-year Treasury yield, which moves inversely to price, was up 2 basis points at 2.884 per cent. Yield on the Australian note was also 3bp higher at 2.66 per cent and the Japanese equivalent was flat at 0.031 per cent.

Commodities:

Oil prices were steady with Brent crude down 0.2 per cent at $72.75 a barrel while West Texas Intermediate was unchanged at $68.75 a barrel.

Asia-Pacific markets buoyed by solid Wall Street gains. Sydney leads as BHP Billiton rallies on upbeat iron ore output forecast.

StockMarketNews.Today — 2018/07/18/

What you need to know:

> Sydney leads Asia-Pacific stock markets higher
> Yen falls past ¥113 per dollar for first time in five months
> BHP Billiton up 3 per cent on new target for iron ore output
> Oil prices largely give up previous day’s gains

Overview:

Asia-Pacific bourses gained momentum from a solid day on Wall Street, with Japanese stocks getting a boost from a weaker yen while BHP Billiton led Australian miners higher after it raised its annual target range for iron ore output. Oil prices fell after climbing on Tuesday in the wake of a sharp sell-off at the start of the week.

Hot topic:

Stock markets across the region were buoyant after US benchmarks finished with solid gains, helped by Federal Reserve chairman Jay Powell expressing confidence in the outlook for the US economy. The S&P 500 index closed up 0.4 per cent.

Sydney’s S&P/ASX 200 was up 0.7 per cent as the mining segment gained 1.6 per cent and financials rose 0.4 per cent. BHP climbed as much as 3.4 per cent after the Anglo-Australian miner said it was aiming to increase iron ore production as much as 3 per cent during the 2019 financial year.

In Hong Kong, Xiaomi, the Chinese smartphone maker with a dual-class share structure, rose as much as 6.2 per cent after the territory’s stock exchange said it was working with mainland Chinese bourses to address the question of including companies with weighted voting rights in the Stock Connect programmes linking the markets. The benchmark S&P/ASX 200 index was up 0.3 per cent.

Tokyo’s Topix rose 0.6 per cent as the key industrial segment climbed 0.8 per cent, while Seoul’s Kospi Composite was up 0.2 per cent.

Forex and fixed income:

The dollar consolidated gains from Tuesday’s session, with the dollar index tracking the US currency against a basket of peers up 0.1 per cent at 95.038.

yen slipt

The Japanese yen slipped past the ¥113 mark for the first time since January as continuing geopolitical tensions took a back seat, undermining the currency’s perceived haven status. It weakened as much as 0.2 per cent to ¥113.08 per dollar.

Sovereign bonds were stable, with the yield on 10-year US Treasuries rising 1 basis point to 2.871 per cent.

Commodities:

Oil prices were walking back tentative gains from Tuesday. Brent crude, the international benchmark, was off 0.4 per cent at $71.86 a barrel, while US marker West Texas Intermediate was down 0.5 per cent at $67.72.

stock oil

Gold rose 0.1 per cent to $1,227.78 per ounce.

Samsung Shares Worth $14 Billion May Flood South Korea’s Market.

Brent crude is down more than 3 per cent as worries about potential supply disruptions eased and Libyan ports reopened.

StockMarketNews.Today — Monday 16:40 BST — 2018/07/16/

What you need to know:

>Energy stocks weigh on indices as Brent oil falls more than 3%.
>Well-received earnings from BofA help limit S&P losses
>Netflix due to report second-quarter figures after the close
>China GDP growth misses forecasts
>Investors on lookout for further Trump rhetoric on EU at meeting with Putin

Leading quote:

“There is no doubt that President Trump has been highly positive for US equity markets, which has fed through to rising global markets, but his increasingly erratic behaviour is making it very difficult for investors to work out whether he remains a friend or foe” — Rebecca O’Keeffe, head of investment at Interactive Investor.

“The first of the Faangs to report, Netflix earnings are hugely important for investors to confirm whether the outperformance of technology stocks is warranted or if the market has got ahead of itself.”

Hot topics:

Positive quarterly earnings from BofA-Merrill Lynch and solid US retail sales data are helping to limit the fallout from a fresh slide for energy stocks as participants also watch for potential disruption from geopolitics.

Brent crude is down more than 3 per cent as worries about potential supply disruptions eased and Libyan ports reopened. Shares in oil majors are dragging on London’s FTSE 100, which is down almost 1 per cent.

Second-quarter earnings from Bank of America have been well-received, with its shares up 2.2 per cent.

The S&P 500 is down 0.1 per cent from Friday’s five-month closing high. The Nasdaq Composite is also down 0.1 per cent.

Netflix is due to become the first of the Faang stocks to file its earnings later in the day. The wider group of companies — made up of Facebook, Amazon, Apple Netflix and Google’s parent Alphabet — have made some of the sharpest gains in the US stock market’s record-breaking run higher.

The dollar is retreating, looking tired after an advance to an 11-session high touched on Friday. The index tracking it is down 0.3 per cent at 94.46

With President Donald Trump meeting his Russian counterpart in Helsinki, sharp White House rhetoric toward the EU before the summit added to the uncertainty.

Equities:

Frankfurt’s Xetra Dax 30 is up 0.2 per cent, while the region-wide Europe-wide Stoxx 600 is down 0.2 per cent and the CAC 40 in Paris is 0.3 per cent weaker.

The FTSE 100 is falling further — down 0.9 per cent — with its heavily weighted resource stocks taking the biggest toll. BP is down 2.4 per cent and Royal Dutch Shell is weaker by 2.3 per cent.

The CSI 300 index of China’s major mainland stocks lost 0.6 per cent after the country’s official growth data came in at 6.7 per cent in the second quarter. The GDP reading reflected the impact of an aggressive deleveraging campaign on reduced investment in infrastructure and manufacturing.

Hong Kong’s Hang Seng ticked up 0.1 per cent.

Sydney’s S&P/ASX 200 slipped 0.4 per cent, as did the Kospi in Seoul.

Markets in Japan were closed for a national holiday.

Forex and fixed income:

The euro is up 0.3 per cent at $1.1715, while the pound is 0.1 per cent higher at $1.3250. Japan’s yen is steady at ¥112.31 per dollar.

In China, the onshore renminbi exchange rate, which moves within a trading band of 2 per cent to either side of a midpoint, was steady at Rmb6.6893 against the dollar.

The yield on the 10-year Treasury is up 4 basis points at 2.87 per cent and the two-year yield is 3bp higher at 2.61 per cent. US retail sales rose by 0.5 per cent in June, in line with expectations — the fifth straight monthly increase.

The strong run of numbers from US earnings season is helping to support a sense of cautious optimism on stock markets as investors also watch for potential disruption from geopolitics.

StockMarketNews.Today — Monday 14:05 BST — 2018/07/16/

What you need to know:

> Well-received earnings from Bank of America and BlackRock help the mood.
> Netflix is due to report its second-quarter figures later in the session.
> Wall Street’s S&P 500 set to hold 5-month high in opening trade.
> US retail sales meet forecasts for June, with a month-on-month rise of 0.5%.
> European bourses rise with industrial and healthcare stocks in demand.
> Investors on look out for further Trump rhetoric on EU at meeting with Putin.
> Asian stocks knocked as China Q2 GDP growth is slowest since 2016.

Leading quote:

“There is no doubt that President Trump has been highly positive for US equity markets, which has fed through to rising global markets, but his increasingly erratic behaviour is making it very difficult for investors to work out whether he remains a friend or foe” — Rebecca O’Keeffe, head of investment at Interactive Investor.

“The first of the Faangs to report, Netflix earnings are hugely important for investors to confirm whether the outperformance of technology stocks is warranted or if the market has got ahead of itself.”

Hot topics:

The strong run of numbers from US earnings season is helping to support a sense of cautious optimism on stock markets as investors also watch for potential disruption from geopolitics.

Second-quarter earnings from Bank of America and BlackRock have been well-received, with shares in both financial institutions rising in pre-market trade.

Netflix is due to become the first of the Faang stocks to file its earnings later in the session. The group — made up of Facebook, Amazon, Apple Netflix and Google’s parent Alphabet — have made some of the sharpest gains in the US stock market’s record-breaking run higher.

US retail sales data for June came in exactly in line with forecasts, showing a rise of 0.5 per cent month-on-month.

According to futures trade, the S&P 500 will stay steady at the open, holding the five-month high it hit on Friday, with the Nasdaq set to tick up 0.1 per cent.

The dollar is retreating, looking tired after an advance to an 11-session high touched on Friday. The index tracking it is down 0.3 per cent at 94/46

dollar index

With President Donald Trump meeting his Russian counterpart in Helsinki, sharp White House rhetoric toward the EU has added to the uncertainty.

Equities:

Frankfurt’s Xetra Dax 30 is up 0.2 per cent, with support from ThyssenKrupp, the steelmaker, after reports it is considering merging its elevator business with Kone.

The region-wide Europe-wide Stoxx 600 is also up 0.2 per cent, while the CAC 40 in Paris is 0.1 per cent firmer. London’s FTSE 100 is holding steady.

The CSI 300 index of China’s major mainland stocks lost 0.6 per cent after the country’s official growth data came in at 6.7 per cent in the second quarter. The GDP reading reflected the impact of an aggressive deleveraging campaign on reduced investment in infrastructure and manufacturing.

Hong Kong’s Hang Seng ticked up 0.1 per cent.

Sydney’s S&P/ASX 200 slipped 0.4 per cent, as did the Kospi in Seoul.

Markets in Japan were closed for a national holiday.

Forex:

The euro is up 0.2 per cent at $1.1705, while the pound is also 0.2 per cent higher at $1.3262. Japan’s yen is steady at ¥112.41 per dollar.

In China, the onshore renminbi exchange rate, which moves within a trading band of 2 per cent to either side of a midpoint, was steady at Rmb6.6893 against the dollar.

Commodities:

brentcrude

Oil prices are weaker, with Brent crude down 0.4 per cent at $75.03 a barrel and West Texas Intermediate off 0.7 per cent at $70.55.

Gold is up 0.3 per cent at $1,244 an ounce.

The pound is falling after comments from US president Donald Trump suggesting the UK’s current Brexit plans would forestall a bilateral trade deal.

StockMarketNews.Today – What you need to know:

> Pound lower on political exposure after Trump trade deal comments.
> Sterling’s losses deepen, taking it to an 8-session dollar low.
> Wider trend for a stronger dollar holds.
> Currencies investors watch renminbi’s run lower against the dollar.
> European bourses add to sustained stocks rebound after Asia mostly rises.
> Dollar ticks higher again, trading around an 8-session high.
> Oil prices back under pressure.
> JPMorgan Q2 revenue beats forecasts, stock rises in pre-market trade

Leading quote:
“UK political tensions aren’t helping matters for the pound, as the rally for the euro against it on the day shows” — Stephen Gallo, European head of forex strategy at the Bank of Montreal.

“But the elephant in the room right now is China, and the potential role of its currency in the trade dispute. The bounce in the dollar against the renminbi during the second half of the Asian session is the main focus in forex, and this has spilled over into the European trading day.”

Hot topics:
The pound is falling after comments from US president Donald Trump suggesting the UK’s current Brexit plans would forestall a bilateral trade deal, highlighting the currency’s exposure to politics.

Sterling is at an 8-session low, down 0.7 per cent at $1.3112, sending it towards the $1.3050 it hit in June, which came as a 7-month nadir. Worries that Theresa May’s agreement with her cabinet on the UK’s preferred terms of departure from the EU face a rebellion from proponents of a hard Brexit have deepened during Mr Trump’s visit.

Against the euro, the pound is 0.3 per cent weaker, with £0.8863 required for a unit of the shared currency.

Forex:
The run lower of China’s renminbi continues to set the tone across currency markets as investors watch for signs that the authorities will tolerate its weakness as a tool in the trade dispute. The onshore version of it is 0.5 per cent stronger at Rmb6.6973 per dollar.

The wider trend for a stronger dollar remains in place, with the index tracking the world’s reserve currency up 0.2 per cent overall.

The euro is down 0.3 per cent at $1.1642.

Equities:
Stocks are higher in Europe and Asia, and Wall Street is expected to make further gains, as global indices keep their poise as investors look beyond the trade tensions between the US and China.

US earnings season will test the wider improving mood, with second-quarter revenue from JPMorgan up 6 per cent year-on-year and stronger than forecast, helping its stock up 1.6 per cent in pre-market trade.

London’s FTSE 100 is up 0.7 per cent and marginally outperforming its European peers as the pound weakens. Frankfurt’s Xetra Dax 30 is up 0.4 per cent and the international Stoxx 600 is up 0.3 per cent.

The S&P 500 is expected to rise 0.2 per cent, having ended at a five-month high overnight. The Nasdaq Composite is set to add to its record close reached overnight, with a 0.3 per cent rise.

Tokyo led in Asia as the Topix index climbed 1.2 per cent. Hong Kong’s Hang Seng ticked up 0.2 per cent. The CSI 300 index of equities listed in Shanghai and Shenzhen rose 0.4 per cent.

Commodities:
Brent crude is down 1 per cent at $73.70 as the previous session’s recovery falters. The international oil marker is now almost 6 per cent weaker over the week, although off its low of $72.67 hit on Thursday when concern about the impact of the trade dispute on Chinese demand was at its deepest.

Gold was flat at $1,246.43 per ounce.

Asia-Pacific equities recover as US-China trade dispute fears ebb. Sterling dips briefly after Trump makes harsh Brexit comments on visit to Britain

StockMarketNews.Today – Stocks were mostly higher in Asia trading on Friday after a solid lead from Wall Street, where equities regained their poise after the previous day’s steep fall as investors attempted to look beyond mounting trade tensions between the US and China. The S&P 500 index rose 0.9 per cent and closed at a five-month high, while the tech-focused Nasdaq climbed 1.7 per cent to finish at a record level.

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Tokyo led the region higher as the Topix index climbed 1.2 per cent, bolstered by gains of around 1.5 per cent for technology and industrial stocks. Shares in Fast Retailing, which owns Uniqlo, jumped almost 6 per cent after the company’s third-quarter operating profit beat estimates.

In Hong Kong, the Hang Seng rose 0.6 per cent with gains across all sectors except telecoms stocks, which dropped 0.5 per cent. Stocks in China were broadly higher as the CSI 300 index of equities listed in Shanghai and Shenzhen rose 0.5 per cent.

Sydney-listed stocks broke ranks with the rest of the region, however, as the S&P/ASX 200 fell 0.1 per cent, with a drop of 0.5 per cent by financials and the mining segment shedding 0.1 per cent.

Forex and fixed income
Foreign exchange markets were relatively calm, although the pound briefly dipped as much as 0.3 per cent after Mr Trump said UK Prime Minister Theresa May’s Brexit blueprint “will probably kill” any bilateral trade deal between the two allies.

Sterling pulled back to be down 0.2 per cent at $1.317 in Asia trading. The dollar index tracking the greenback against a basket of peers was up 0.1 per cent at 94.883. Japan’s yen was 0.1 per cent weaker at ¥112.64 per dollar.

Sovereign bonds in the region were little moved as yields, which move opposite to prices, on 10-year US Treasuries rose 1 basis point to 2.853 per cent.

Commodities
Oil prices were down again after enjoying a partial recovery on Thursday from sharp falls earlier in the week amid trade war worries. Brent crude, the international benchmark, was off 0.5 per cent at $74.06 a barrel. US marker West Texas Intermediate fell 0.1 per cent to $70.26.

Gold was flat at $1,246.43 per ounce.

Asia-Pacific equities rose on Thursday after declining in the previous session on the latest development in the US-China trade spat, while oil prices steadied following the biggest one-day tumble in more than two years.

StockMarketNews.Today – Hong Kong’s Hang Seng index nudged higher, rising 0.1 per cent following a 1.3 per cent fall in the previous session after US President Donald Trump began the process of imposing tariffs on a further $200bn of Chinese goods.

The Hang Seng China Enterprises index of major Hong Kong-listed Chinese companies rose 0.4 per cent after a 1.5 per cent fall on Wednesday. Mainland Chinese shares posted better gains with the CSI 300, comprising Shanghai and Shenzhen stocks, up 0.9 per cent.

Concerns over US-China trade remained in focus. Robert Carnell, ING’s chief economist and Asia-Pacific head of research, said the recent pattern of market wobbles on the latest trade war news followed by a recovery could only continue for so long.

“The movements towards protectionism are significant and lasting . . . [and they] will reduce trade volumes and economic gains from trade,” he said. “This really does not merit the occasional small temporary correction, followed by swift recovery. But instead, deeper and prolonged selling.”

Shares in China’s ZTE jumped 21 per cent in Hong Kong after the US commerce department said it had signed an escrow agreement with the telecoms maker as part of a previously announced deal with the Trump administration that would allow it access to the US market.

Japan’s Topix was up 0.3 per cent buoyed by a weaker yen and a 1 per cent gain for consumer non-cyclicals. That gain came despite a 2.6 per cent fall for the energy sector on a slide in oil prices on Wednesday.

In Australia, the S&P/ASX 200 gained 0.6 per cent even as Australian mining and energy stocks took a hit from fall in commodity prices on Wednesday. The energy sector was down 1.4 per cent while basic materials fell 0.3 per cent.

Forex:
The dollar index, a measure of the greenback against a basket of peers, was hovering at a 10-day high after strengthening 0.6 per cent in the previous session. The yield on the 10-year US Treasury was flat at 2.853 per cent. The dollar was 0.2 per cent stronger versus the yen at ¥112.29, its highest in six months.

China’s currency weakened with the onshore renminbi, which trades within a 2 per cent band either side of a daily midpoint set by the country’s central bank, was down 0.4 per cent at Rmb6.7009 while the offshore renminbi was 0.1 per cent stronger at Rmb6.6991.

There was no respite for the Turkish lira, which weakened further to TL4.898, having earlier hit a fresh record low of TL4.9711 as investor angst over the country’s economy intensified. Turkish president Recep Tayyip Erdogan on Wednesday predicted a fall in interest rates.

The pound was 0.1 per cent weaker at $1.3193 while the euro was steady at $1.1674.

Commodities:
In commodities, Brent crude was 1.5 per cent higher at $74.49 a barrel following its biggest one-day decline in more than two years in the previous session. The global crude benchmark tumbled 6.9 per cent to settle at $73.40 a barrel on Wednesday, reflecting widespread weakness in commodity markets on US-China trade tensions. West Texas Intermediate was 0.3 per cent higher at $70.68 a barrel.

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Stock Market News: Top 3 Things to Watch

Traders-news

1. Inflation Data, Earnings in the Spotlight

Economic indicators are likely to set the market tone for the open Wednesday.

Wholesale inflation figures should get the most attention.

The headline producer price index (PPI) and the core PPI, which excludes volatile food and energy prices, are expected to show a smaller increase in inflation for June compared with May’s figures.

Economists expect both to have risen by 0.2%.

The latest data on wholesale inventories also arrives before the bell.

Looking to earnings, wholesale industrial and construction supplier Fastenal (NASDAQ:FAST) reports earnings before the bell tomorrow. Shares took a hit when the stock was downgraded to neutral from buy by Baird last Tuesday, but have since rallied as earnings approached.

 

2. Inventories and OPEC Should Call Oil Direction

Among stocks, energy shares will likely be active as investors get the latest oil inventory figures from the Energy Information Administration.

A drawdown in crude oil and gasoline inventories is expected for the week ended July 6. Distillate stockpiles are expected to have risen for the week.

OPEC’s monthly report will also give investors and traders a look at how the cartel is dealing with demands for more supply to keep a lid on prices.

Crude Oil WTI Futures settled up 26 cents to $74.11 on Tuesday.

 

3. Tough Trade Talk to Continue With Trump in Europe?

The prospect of further trade battles will continue to have an impact on the markets, especially as U.S. President Donald Trump travels to Europe.

Trump’s first meeting will be with NATO in Brussels on Wednesday. Along with his calls for European nations to pay more for NATO defense, he may take the opportunity to decry what he sees as unfair trade practices by the European Union.

The president tweeted on Tuesday that the U.S. loses $151 billion on trade with the EU and that the single bloc charges the U.S. big tariffs and enacts trade barriers.

Donald Trump’s administration on Friday imposed new tariffs on $34bn of imports from China as the US president threatened to extend levies to all $500bn of Chinese goods, the biggest shot so far in the trade war between the world’s two largest economies.

The US president reiterated plans for a further $16bn in trade to be targeted in the coming weeks and for far larger actions beyond that. He also repeated a warning that the US had plans “in abeyance” for a further $200bn in Chinese imports should China retaliate against the new US tariffs — something Beijing is expected to do within hours of the new tariffs taking effect on Friday.

“And then after the $200bn we have $300bn in abeyance, OK?” he said. “It’s only on China.” The $500bn threat would cover almost all US imports from China, which reached $505.5bn in 2017.

The president’s comments on Thursday came after the US Federal Reserve released minutes of its previous policy meeting showing that businesses were already putting capital investment plans on hold as a result of the uncertainty caused by Mr Trump’s trade policies.

The latest threats from the president also amounted to a blunt outline of his plans for an escalating trade war against China that business groups and farmers have warned would have further negative consequences for the US economy.

“It is now indubitable that [President] Trump’s threats of tariffs need to be taken both literally and seriously by US trading partners,” said Eswar Prasad, a Cornell University economist and China expert. “The two largest economies in the world are careening towards an open and ugly trade war that might prove difficult to contain or find an exit path from.”
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“This time they will certainly strike back,” said Tu Xinquan, a trade expert at the University of International Business and Economics in Beijing. “There will be no retreat.”

China’s customs agency said this week that Chinese retaliatory tariffs would take effect immediately after American tariffs on Chinese goods kicked in at 12.01am on Friday US Eastern time — just after midday on Friday in China.

Friday’s batch of US tariffs target products ranging from electric vehicles to industrial lathes and other components and machinery used by US manufacturers. In retaliation, China has promised to target US farm and energy exports such as politically sensitive soyabeans and crude oil.

US business and agricultural groups have warned that they will bear the brunt of any trade war with China as well as those that Mr Trump has launched with neighbours in North America and allies such as Japan and the EU by hitting them with steel tariffs and provoking retaliation.

China’s stock market remains under pressure and European stocks are drifting as investors continue to watch for signs that the trade dispute between China and the US could be influencing China’s policy on its currency.

The CSI 300 index of major stocks in Shanghai and Shenzhen ended 1.3 per cent lower after a volatile run during the session. The index, which touched a one-year low is down more than 20 per cent from its highest point this year, touched in late January.

London’s FTSE 100 is down 0.2 per cent, while Frankfurt’s Xetra Dax 30 is down 0.3 per cent. The Europe-wide Stoxx 600 is up 0.1 per cent. The Stoxx index tracking technology stocks is down 0.9 per cent after falls for the sector in the US overnight.

With Wall Street markets closed for the Independence Day holiday, trading volumes are likely to be thinner throughout the session.

After China’s central bank appeared to intervene to arrest a steep decline in the renminbi the previous day, the onshore version of the currency is stronger again, by 0.4 per cent at Rmb6.6106 per dollar. That keeps it off its weak point of Rmb6.7168 hit on Tuesday — its lowest point since August 2017 — amid fears that China’s economy is slowing at a time when the trade dispute poses a threat.

The turnround came as a result of what traders said was Chinese state banks aggressively selling dollars to support the renminbi, and after People’s Bank of China governor Yi Gang sought to calm markets, attributing renminbi weakness to a strong dollar and “some pro-cyclical behaviour”.

Hong Kong’s Hang Seng fell 1.1 per cent, while Tokyo’s Topix was flat for a second consecutive session.

On Wall Street overnight, tech stocks suffered broad weakness, with Facebook falling 2.3 per cent, hurt by fresh concerns over data breaches. The S&P 500 closed down 0.5 per cent and the tech-heavy Nasdaq shed 0.9 per cent.

Forex:
The euro is up 0.2 per cent at $1.1672, as the dollar looks tired after its sustained gains over the year to date. The index tracking the dollar against six other currencies is down 0.3 per cent on the session, taking its 2018 advance to just under 2.5 per cent.

Sterling turned positive for the session — up 0.1 per cent at $1.3205 — after robust data from the UK’s dominant services sector. The purchasing managers’ index (PMI) for June hit its highest level since October 2017. Before the data came out, it was down 0.2 per cent.

“The services PMI broadly confirms that the weakness in the first quarter of the year looks to have been an anomaly.

“We will learn more about the health of the economy next week as hard data for the second quarter emerges — commencing with the first release of monthly GDP. Our expectation is that the data will not be strong enough to encourage the Bank to hike as soon as August.”

Commodities:
Brent crude is up 0.2 per cent to $77.94 a barrel. Gold is 0.6 per cent firmer at $1,260 an ounce.

Major markets ended lower for the third straight week as U.S. trade policy took its toll on investor and business confidence.

In the U.S., Nike shares ended the day up 11.1 percent to $79.68, the biggest one-day gain in nearly four years for the sportswear maker, after a strong earnings report.

The Dow Jones Industrial Average rose 59.29 points, or 0.24 percent, to 24,275.34, the S&P 500 gained 2.32 points, or 0.09 percent, to 2,718.63 and the Nasdaq Composite added 6.62 points, or 0.09 percent, to 7,510.30.

MSCI’s gauge of stocks in major world markets gained 0.66 percent on Friday but ended down 1.26 percent for the week and 0.7 percent for June.

Canada struck back at the Trump administration over U.S. steel and aluminum tariffs on Friday, vowing to impose punitive measures on C$16.6 billion ($12.63 billion) worth of American goods until Washington relents.

“The markets are very much subject to headlines on trade and tariffs,” said Peter Cecchini, chief market strategist at Cantor Fitzgerald in New York.

“They are important from the standpoint that trade globalisation has been the cornerstone for growth and when you do something to sort of undermine that cornerstone, that’s a reasonable reason for concern.”

The U.S. administration is due to impose tariffs on Chinese goods worth $34 billion beginning July 6, likely prompting a tit-for-tat response from Beijing.

While Asian stocks also rose, the Chinese yuan suffered its worst month on record, losing 3.0 percent against the U.S. dollar in June as investors pulled money from a market likely to suffer from higher barriers to trade.

The yield curve between two-year and 10-year U.S. notes flattened to 30 basis points, the flattest since 2007, after U.S. consumer spending data disappointed some analysts’ expectations. Some investors see its flattening as a sign recession may be around the corner.

The next major U.S. economic release will be next week’s employment report for June, which will be scoured for any indications of rising wage pressures.

Oil prices extended gains to fresh highs on a tighter market as U.S. sanctions against Iran threatened to remove a substantial volume of crude oil from world markets amid rising demand.