NEW YORK, Oct 4 — Wall Street stocks climbed yesterday after data showing US services-sector activity at a three-year low fuelled expectations that the Federal Reserve would cut interest rates to stem a wider economic downturn. Microsoft rose 1.2…
WASHINGTON, Oct 3 ― Hiring by US private employers slowed further in September, suggesting that trade tensions, which have pressured manufacturing, could be spilling over to the labour market. The ADP National Employment Report yesterday also…
LONDON, Oct 3 ― London's FTSE 100 index endured its worst day since January 2016 yesterday as an overhang from weak US manufacturing data rekindled global growth worries and cast a shadow over markets, while investors scrambled for more clarity as…
NEW YORK, Oct 3 ― Wall Street's main indexes suffered their sharpest one-day declines in nearly six weeks yesterday after employment and manufacturing data suggested that the US-China trade war is taking an increasing toll on the US economy….
TOKYO, Sept 6 — Asian stocks joined global peers and rose today while safe havens such as government bonds and the yen were on the defensive amid hopes for easing US-China trade tensions and as firm US economic data increased risk appetites….
SYDNEY: The Australian dollar hovered near a one-month high on Friday while its New Zealand cousin held on to recent gains as positive U.S. data and some optimism on coming Sino-U.S. trade talks lured investors into risk assets.
Safe haven Australian and New Zealand sovereign bonds were heavily sold off, sending yields to multi-week highs across the curve.
The Australian dollar was at $0.6809 at 0154 GMT after breaching overnight key chart resistance of $0.6800 for the first time since Aug. 1.
For the weeks, the Aussie was up 1.1%. If that gain is sustained, the currency will have its best weekly performance since late June.
The New Zealand dollar held at $0.6376 after hitting a 1-1/2 week top of $0.6395 overnight. For the week, the kiwi is up nearly 1%, on track for its best week since early July.
Investors cheered news on Thursday that the United States and China have agreed to hold high-level talks early in October, raising hopes for substantial progress in de-escalating the long, bitter trade conflict between the two.
“Although investors have become increasingly doubtful about President Trump’s commitment to reaching a trade deal with China, any sign of even a temporary de-escalation is welcome by the markets in a deteriorating global economic environment,” Raffi Boyadjian, senior investment analyst at XM said in a client note.
Risk sentiment was further improved by upbeat U.S. private payrolls which increased at the fastest pace in four months in August.
Separate figures showed the U.S. services industry rebounded last month and had its fastest expansion since February.
Investors will have their eyes fixed on non-farm payrolls figures, due later on Friday, that are expected to show an increase of 158,000 and the unemployment rate steady at 3.7%.
Still, some expect market volatility and uncertainties to dominate sentiment for some time to come.
“With any trade resolution unlikely soon, the erratic markets of August may persist into October,” said Bob Baur, chief economist for Principal Global Investors in the United States.
“If that’s the case, U.S. Treasury yields could re-test the lows of 2012 and 2016. Beyond that, government bond yields are surely tracing out a trough that will hold into 2021.”
Already yields on government bonds around the world have slid sharply to multi-year or even record lows on expectations of easier monetary policy globally.
Treasury yields rose overnight, also helped by a wave of corporate debt supply. That together with a better tone on trade boosted antipodean yields.
In New Zealand, yields on government bonds gained 5-7 basis points on the long-end of the curve.
Australian government bond futures slipped to multi-week lows, sending yields higher. The three-year bond contract fell 6.5 ticks to 99.185 while the 10-year contract was off 9.5 ticks to 98.93. – Reuters
TOKYO: Japanese shares reached another one-month on Friday as better-than-expected U.S. economic data and hopes for progress from coming trade talks between the United States and China bolstered risk appetites.
The benchmark Nikkei average gained as much as 0.7% to 21,241.29 in mid-morning trade, its highest level since Aug. 1, while the broader Topix rose as much as 0.5% to 1,542.38, its highest in a month.
Global equity markets welcomed upbeat data from the United States and news that Washington and Beijing agreed to high-level talks early in October, raising hopes for a de-escalation of the damaging conflict.
On Thursday, ADP data showed U.S. private payrolls increased in August at their fastest pace in four months. Separately, U.S. the services industry rebounded last month to its fastest expansion since February, according to the ISM’s non-manufacturing PMI.
The dollar climbed to a one-month high of 107.235 yen overnight, providing a tailwind for shares of Japanese exporters as a weak yen enhances corporate profits when they are repatriated.
Machinery and automakers, major beneficiaries of a weakening yen, were the two top performing sectors of the Tokyo’s 33 subindexes, up 1.5% and 1.3%, respectively. Nissan Motor Co climbed 2.5% and Honda Motor Co advanced 2.8%.
Bank shares gained broadly after U.S. Treasury yields ticked higher overnight. Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group rose up 1.7% and 1.4%, respectively, while the banking sector subindex added 1.2%.
Bucking the trend, Nikkei heavyweight SoftBank Group Corp shed 3.8% on media reports that WeWork, owner of office space sharing startup The We Company, might slash the valuation it will seek in a planned initial public offering. WeWork is backed by SoftBank Group, which has invested or committed to invest $10.65 billion since 2017.
Rakuten Inc dived 6.1% after media reports that the internet firm is pushing back the commercial launch of its wireless carrier service by six months because of delays in building the network.
Credit Saison Co jumped 3.0% after it and Daiwa Securities announced a capital alliance, with Daiwa acquiring 5% of Credit Saison’s shares. Daiwa rose 1.7%. – Reuters
WASHINGTON, Sept 5 — US services sector activity accelerated in August and private employers boosted hiring, suggesting the economy continued to grow at a moderate pace despite trade tensions which have stoked financial market fears of a…
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