equity markets

 
 

World stocks rally on China-US trade; pound slides on UK turmoil

LONDON, Dec 12 — Global stock markets rallied today on upbeat China-US trade news, while the pound hit yet another 20-month low as British Prime Minister Theresa May faces a no-confidence vote. Oil prices jumped one dollar as volatility continued…


US stocks rise on report of China trade talks progress

NEW YORK, Dec 11 — Wall Street stocks opened higher today, joining several overseas equity markets following a report that the United States and China resumed trade talks. About 15 minutes into trading, the Dow Jones Industrial Average stood at…


As India looks for new central bank head, investors worry about independence

MUMBAI, Dec 11 — Reserve Bank of India (RBI) Governor Urjit Patel’s shock resignation following a policy tussle with the government sent tremors through financial markets today, and investors are keen to see the government quickly name a…


Asian stock markets tumble as investors buffeted by negative issues

HONG KONG: Asian markets sank today as investors juggle a number of negative issues that have fuelled worries about the global outlook.

The China-US trade row, the Huawei crisis, signs of weakness in the Chinese and US economies, and Brexit are among the key matters depressing equities, though there was some upbeat news in Opec’s decision to slash crude production.

On Sunday, China summoned the US ambassador to protest at the arrest of top Huawei executive Meng Wanzhou in Canada last week over allegations of fraud linked to the breaking of Iran sanctions.

An angry China has demanded Washington drop its extradition request, as investors fret that the arrest could throw a spanner in the works of a fragile trade war truce between Beijing and Washington.

“Huawei … will likely remain in the headlines for some time as China continues to pressure both Canada and US to withdraw charges,“ said Stephen Innes, head of Asia-Pacific trade at OANDA.

“It’s more than apparent that US-China tensions are well beyond trade. And when combined with the fact ‘tariffs-limbo’ is likely to extend well into 2019, uncertainty is expected to remain high, and could still explode into a full-blown trade war.”

Still, US Trade Representative Robert Lighthizer said he did not expect the arrest to disrupt the talks.

Lighthizer, the man leading trade negotiations with China, also said he did not expect to see an extension past the March 1 deadline for a deal between the world’s top two economies.

Donald Trump and Xi Jinping agreed at the the G20 this month to a 90-day ceasefire in the multi-billion-dollar tariffs row that will allow officials to find a resolution. A threatened hike in levies on Chinese imports will be imposed if no agreement is reached.

Equity markets, which have been buffeted by the trade row this year – and were hammered by the arrest last week – were down today, tracking heavy losses in New York.

Hong Kong shed 1.4%, while Shanghai fell 0.8%. Tokyo lost 2.1%, with Japanese car giant Nissan diving 2.9% after ousted chairman Carlos Ghosn was charged and faced new allegations for alleged financial misconduct.

Sydney shed 2.3%, while Singapore and Seoul each gave up 1.1%. There were also losses for Manila, Taipei and Wellington.

Adding to investor unease was Chinese data showing growth in exports and imports both slowed in November while factory in-flation eased – indicating demand remains weak.

Also, the trade surplus with the US – a key point of irritation for Trump – ballooned to a record last month despite the imposition of tariffs. – AFP


asianmarkets

HONG KONG: Asian markets sank today as investors juggle a number of negative issues that have fuelled worries about the global outlook.

The China-US trade row, the Huawei crisis, signs of weakness in the Chinese and US economies, and Brexit are among the key matters depressing equities, though there was some upbeat news in Opec’s decision to slash crude production.

On Sunday, China summoned the US ambassador to protest at the arrest of top Huawei executive Meng Wanzhou in Canada last week over allegations of fraud linked to the breaking of Iran sanctions.

An angry China has demanded Washington drop its extradition request, as investors fret that the arrest could throw a spanner in the works of a fragile trade war truce between Beijing and Washington.

“Huawei … will likely remain in the headlines for some time as China continues to pressure both Canada and US to withdraw charges,“ said Stephen Innes, head of Asia-Pacific trade at OANDA.

“It’s more than apparent that US-China tensions are well beyond trade. And when combined with the fact ‘tariffs-limbo’ is likely to extend well into 2019, uncertainty is expected to remain high, and could still explode into a full-blown trade war.”

Still, US Trade Representative Robert Lighthizer said he did not expect the arrest to disrupt the talks.

Lighthizer, the man leading trade negotiations with China, also said he did not expect to see an extension past the March 1 deadline for a deal between the world’s top two economies.

Donald Trump and Xi Jinping agreed at the the G20 this month to a 90-day ceasefire in the multi-billion-dollar tariffs row that will allow officials to find a resolution. A threatened hike in levies on Chinese imports will be imposed if no agreement is reached.

Equity markets, which have been buffeted by the trade row this year – and were hammered by the arrest last week – were down today, tracking heavy losses in New York.

Hong Kong shed 1.4%, while Shanghai fell 0.8%. Tokyo lost 2.1%, with Japanese car giant Nissan diving 2.9% after ousted chairman Carlos Ghosn was charged and faced new allegations for alleged financial misconduct.

Sydney shed 2.3%, while Singapore and Seoul each gave up 1.1%. There were also losses for Manila, Taipei and Wellington.

Adding to investor unease was Chinese data showing growth in exports and imports both slowed in November while factory in-flation eased – indicating demand remains weak.

Also, the trade surplus with the US – a key point of irritation for Trump – ballooned to a record last month despite the imposition of tariffs. – AFP


Stock selloff snowballs on fresh fears for world growth

LONDON, Dec 10 — Losses on global stocks snowballed today, with European markets following Asian peers lower as fresh signs emerged of slowing growth worldwide and fears grew that simmering US-China tensions would torpedo chances of a trade deal….


Asia markets tumble as dealers buffeted by negative issues

HONG KONG, Dec 10 — Asian markets sank today as investors juggle a number of negative issues that have fuelled worries about the global outlook. The China-US trade row, the Huawei crisis, signs of weakness in the Chinese and US economies, and…


Stocks extend retreat as global growth worries clobber investors

TOKYO, Dec 10 — Global stocks extended their slump today, with US equity futures and Asian shares sliding on worries over slowing growth and fears that a fresh flare-up in tensions between Washington and Beijing could quash any chances of a trade…


Wall St week ahead: Licking their wounds, fund managers prep for rally in ‘19

NEW YORK, Dec 9 — With bond and equity markets from the United States to emerging markets all on pace to lose money this year, investors have not seen this much red on their screens since 1972, the last time no asset class returned at least 5 per…


Asia shares slump amid trade truce doubts

SHANGHAI: Asian shares fell today as relief over a pause in escalation of the trade war between the US and China gave way to doubt over the two countries’ ability to resolve differences.

Adding to market worries, an inversion at the short end of the US yield curve raised the spectre of a possible US recession. The sell-off appeared likely to extend into European trading, with spreadbetters expecting London’s FTSE 100 to fall 0.2% at the open, and both Frankfurt’s DAX and Paris’ CAC 40 to fall 0.4%.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.3% lower. Australia shares gave up 1% for the day and Seoul’s Kospi ended 0.8% lower.

Japan’s Nikkei stock index tumbled, closing 2.4% lower on profit taking and as foreign investors and hedge funds reduced their positions on risky assets.

But Chinese blue-chip shares in Shenzhen and Shanghai added 0.2% after struggling to break into positive territory for much of the day.

The temporary freeze on further hostilities in the trade war between the United States and China had sparked a global rally in equity markets on Monday, pushing MSCI’s all-country world index up 1.3%.

But even before the trading day ended, major US indexes pulled back from intraday highs on scepticism that Washington and Beijing can resolve their deep-seated differences in the three-month negotiating window that was agreed, after which tariffs could escalate again.

“It seems that more details and signs of progress will be needed if the initial trade truce warm fuzzy feeling is to be sustained,“ National Australia Bank analysts said in a note to clients.

Already, there was confusion over when the 90-day period would start. A White House official said it started on Dec1, while earlier, White House economic adviser Larry Kudlow told reporters it would start on Jan 1.

Moreover, none of the commitments that US officials said had been given by China, including reducing its 40% tariffs on autos, were agreed to in writing.