wall street


Asian markets rally on fresh hopes for trade talks

HONG KONG: Asian markets rallied Monday following a strong lead from Wall Street and comments from Donald Trump’s top economic adviser hailing “positive” trade talks with top Chinese negotiators.

Optimism that central banks will provide fresh support to head off a global economic recession has also lent much-needed support to regional equities after last week’s sell-off, with eyes on an upcoming speech by Federal Reserve boss Jerome Powell for clues about its plans.

Investors were in an upbeat mood after White House chief economic adviser Larry Kudlow said that if talks between deputies from Beijing and Washington went well and “we can have a substantive renewal of negotiations” then “we are planning to have China come to the USA and meet with our principals to continue the negotiations”.

He added that high-level phone talks last week were “a lot more positive than has been reported”.

Trump provided further cause for hope by tweeting: “We are doing very well with China, and talking!”

Kudlow also raised the prospect of using cash taken from higher tariffs on Chinese goods to pay for tax cuts.

White House recycling

“This sort of recycling won’t clear the oceans of plastic or reduce global warming, but it is an elegant solution to reducing the pain of tariffs on the American consumer of China and may give equity markets a small boost as we start the week,” said Jeffrey Halley, senior market analyst for Asia-Pacific at OANDA.

The remarks helped Asian traders build on New York’s rally.

Hong Kong led gainers, surging 1.8 percent with dealers also cheered by three days of protests in the city not descending into violence.

Shanghai rose 0.6 percent and Tokyo added 0.5 percent by the break.

Sydney climbed 0.8 percent, Singapore put on 0.3 percent and Seoul jumped 0.5 percent with Wellington, Taipei and Jakarta in positive territory.

There remains a high level of concern about the global outlook and particularly the US economy after yields on 10-year US Treasury bonds slid last week below that of the two-year note, while the 30-year yield fell below two percent for the first time ever.

The so-called “inversion” — when short-term interest rates are higher than longer-term ones — is viewed as a harbinger of recession.

But investors are hopeful that authorities will unveil stimulus to limit any impact. Germany’s Der Spiegel said Angela Merkel’s government was ready to boost public spending, while China announced an interest rate reform that it said would lower borrowing costs for companies. – AFP

Asia stocks rise as stimulus, policy hopes calm nervous investors

TOKYO, Aug 19 — Asian stocks rose today as hopes of more stimulus from central banks around the world and steps being taken by major economies such as Germany and China soothed investors’ fears of a sharp global economic slump. Over recent…

Lower rates could boost US housing stocks, but risks remain

NEW YORK, Aug 17— Lower US interest rates could help support outperforming US homebuilder stocks, even as they raise worries about the economy, while a bonanza of industry data and Federal Reserve speakers next week are likely to help shape the…

FBM KLCI to stay range-bound amid global volatility

KUALA LIMPUR: Bursa Malaysia is expected to trade range bound next week against the backdrop of global volatility and despite a stronger than expected second quarter gross domestic product (GDP) announcement.

Phillip Capital Management Senior Vice President (Investment) Datuk Dr Nazri Khan Adam Khan said the market barometer is expected to decline towards the 1580 points support level next week, driven by global weakness.

“The benchmark FTSE Bursa Malaysia (FBM KLCI) joined the global equities rout as recession fears begin to appear. This is due to inverted US treasury yields and concerns over the US economic health.

“Following the mixed performance across the globe, we expect the FBM KLCI to hold up at the 1,600 points level against a healthy domestic economic outlook,” he told Bernama.

He said on the technical front, the FBM KLCI showed a resilient break below the meaningful 1,600 points support.

“The local bourse charted a small “Bearish Harami” candlestick pattern near the aforementioned support mark, an indication that the bears are pushing against the bulls,” Nazri Khan said.

He also said the immediate support for the local bourse would stay near 1,580 points and conversely, the immediate resistance is located at 1,600 points, while the next resistance is seen at 1,630 points

For the holiday-shortened week, the FBM KLCI slid from its support level of 1,600 in tracking the performance of Wall Street with the Dow Jones Industrial Average falling more than three per cent in two days, while dubbed the worst fall of the year.

On Wednesday, the market temporarily rebounded, as US President Donald Trump delayed the extra tariffs that were expected to hit Chinese export goods to December 15.

However, the local bourse market faced contraction on Thursday again, in line with regional peers, due to heightened global uncertainty.

On Friday, the local market ended mixed backed by the better than expected second-quarter GDP which is expected to be a temporary catalyst for the FBM KLCI next week.

On a Friday to Friday basis, the FBM KLCI fell 15.83 points to 1,599.22 from 1,615.05.

Trading in the week was heavily influenced by Wall Street’s performance, the tariff delay by the US on Chinese goods, as well as Malaysia’s GDP announcement.

The FBM Emas Index declined 132.22 points to 11,308.11, the FBMT 100 Index slipped 127.22 points to 11,145.65 and the FBM Emas Shariah Index fell 83.35 points to 11,843.22.

The FBM 70 weakened 230.25 points to 14,074.12 and the FBM Ace Index declined 109.92 points to 4,587.72.

Sector-wise, the Financial Services Index slid 317.48 points to 15,524.51, the Plantation Index advanced 30.94 points to 6,758.37 and the Industrial Products and Services Index eased 2.92 points to 149.72.

Weekly turnover declined to 8.33 billion units with a value of RM6.6 billion compared with 12.45 billion units valued at RM10.11 billion.

Main Market volume contracted to 5.38 billion shares worth RM5.99 billion compared with 7.64 billion shares worth RM9.19 billion.

Warrants turnover also slid to 1.75 billion units worth RM499.52 million from 2.41 billion units valued at RM596.71 million.

The ACE Market volume also declined to 1.17 billion shares worth RM187.90 million compared with 2.40 billion shares valued at RM318.84 million. — Bernama

Global stock markets recover at end of turbulent week

NEW YORK, Aug 17 — Global stock markets rose yesterday as investors put economic growth fears and trade jitters to one side, deciding that they had had enough drama and losses for one week. “We’re ending a turbulent week on a more positive…

Wall Street ends sharply higher on German stimulus optimism

NEW YORK, Aug 17 — US stocks rebounded yesterday as an ebbing bond rally and news of potential German economic stimulus brought buyers back to the equities market, closing the book on a tumultuous week. While all three major US stock averages…

Dollar firms, stocks soar on ECB rate cut expectations

NEW YORK, Aug 17 — US and European stocks surged on Friday on expectations the European Central Bank will cut interest rates but the dollar pared gains against the euro after a report said the German government was prepared to take on new debt to…

Wall Street opens higher on hopes for trade war relief

NEW YORK, Aug 16 — US stocks muscled higher at the open today as investors found relief in hope for progress in the US-China trade war, and housing data offered enough good news not to ruin the party. After a wild week in which the Dow posted its…

Wall Street rises after strong retail sales data, Walmart earnings

NEW YORK, Aug 15 — US stocks rose in choppy trading today, as strong July retail sales data and Walmart’s upbeat results eased some fears about the economy slipping into recession, but a slump in shares of network gear maker Cisco limited gains….

China’s trade threats deal fresh blow to world stocks

LONDON, Aug 15 — China’s threat to impose counter-measures in retaliation for the latest US tariffs knocked stocks sprawling today, checking earlier attempt to recover from a rout sparked by fears of a world recession. Wall Street futures…