The U.S. Equities Are Up In Early Trading
The U.S. equities are up in early Friday trading but only thing supporting the market is hope. The White House announced trade talks have been set for October 10-11 amid rising expectation a deal may come soon. President Trump’s remarks to reporters that a deal may come sooner than expected is good news but not something you can take to the bank. At this point, it is best to put no faith in trade-related hope until a deal has been announced by both sides. For now, markets must be satisfied with delayed tariffs and the possibility that escalation has ended.
In stock news, shares of Wells Fargo are up nearly 3.0% in premarket trading. The company announced BNY Mellon Chairman and CEO Charles Sharf will take over as permanent CEO on October 21. Shares of Micron are also on the move but in the opposite direction. The company’s 1st quarter guidance is weaker than expected and largely related to its business with Huawei.
In economic news, Personal Income and Spending Figures were a little on the weak side. Income rose by 0.4% which was as expected while spending increased only 0.1%. The 0.1% is a tenth less than expected and may be related to Amazon’s Prime Day holiday in July. On the inflation front, headline PCE prices held steady from last month and are up 1.4% from last year. At the core level, prices are up 0.1% and 1.8%. The 1.8% YOY read is up a tenth from the previous month and an indication FOMC rate cuts are doing their job.
European Markets Are Higher Amid Rising Uncertainty
The EU markets are higher amid rising uncertainty for a smooth Brexit. UK PM Boris Johnson is facing increased opposition and rising tempers in Parliament. The latest news comes from EU President Jean-Claude Juncker. Juncker says if no deal is reached and the UK hard-Brexit’s it will be the UK’s fault. The news did not stifle markets however, the FTSE gained about 1.0% where it is trading at midday. The DAX is up 0.80% and the CAC about 0.25%, basic resources are in the lead with an advance of 1.7%.
Asian Markets Closed The Week Mixed
Asian market finished the week on uncertain footing. The Nikkei, Hang Seng and Kospi all fell during the session with the Kospi leading. The Korean index fell -1.20%. The Shanghai Composite and Australian ASX posted to modest to moderate gains. In China, industrial profits fell -2.0% from the previous year. The news is unexpected and follows two months of mid-single-digit increases. In stock news, shares of Softbank were among today’s biggest losers falling -2.0%.
This article was originally posted on FX Empire
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