|Day's range||26,433.43 - 26,609.13|
|52-week range||24,540.63 - 30,280.12|
Oct.04 -- Dickie Wong, executive director of research at Kingston Securities, discusses the Hang Seng index, valuation and his outlook for the market. He speaks on “Bloomberg Markets: China Open.”
(Bloomberg) -- Stocks declined as investors mulled the implications of the partial trade deal reached last week between the U.S. and China. Oil retreated and the dollar strengthened.The S&P 500 Index had fluctuated most of Monday after China appeared to pour cold water on a pact touted by President Donald Trump, with people familiar with the situation saying it wanted to iron out details before signing it. Trading was about 28% below the 30-day average. A tweet from the Global Times’ editor-in-chief painted a more optimistic outlook, gave equities some support. U.S. debt markets are closed for the Columbus Day holiday.“I think given we’ve had a bit of good news, chances are we’re going to be on the doubting side this week,” said Peter Jankovskis, Oakbrook Investments LLC’s co-chief investment officer. “That’s been the natural ebb and flow of the whole process.”The iShares MSCI Turkey ETF slumped 3.9%. Trump said on Twitter that the U.S. will increase steel tariffs on Turkey back up to 50%. He also said some Turkish officials will also face sanctions and the U.S. will also stop trade negotiations with Turkey. Earlier, the nation’s stock market tumbled and its currency eased.The Stoxx Europe 600 Index closed lower, while Asia stocks climbed, helping sustain a rally in emerging-market assets after the positive conclusion of the latest round of trade talks.“I expect there will be a deal,” Treasury Secretary Steven Mnuchin said Monday on CNBC television. The sides made “substantial progress” last week in negotiations and Mnuchin said he expects Trump and President Xi Jinping to finalize the accord at a summit in Chile next month.The pound weakened, after rocketing for the past two sessions, as European Union negotiators warned that Brexit plans from U.K. Prime Minister Boris Johnson are not yet good enough to be the basis for an agreement.Elsewhere, West Texas crude oil dropped after surging the most in almost a month on Friday.Focus will soon turn to earnings season that begins with big U.S. banks including JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley.Here are some key events coming up this week:Wednesday brings a monetary policy decision in South Korea.U.S. retail sales are forecast to increase for a seventh straight month. Sales in the “control group” are also expected to rise. Consumer spending is carrying the weight of U.S. economic growth so the data will be monitored closely for any signs of slowing.China releases third-quarter GDP, September industrial production and retail sales data on Friday.Here are the main moves in markets:To contact the reporters on this story: Claire Ballentine in New York at email@example.com;Sarah Ponczek in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeremy Herron at email@example.com, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
“Big day of negotiations with China. They want to make a deal, but do I? I meet with the Vice Premier tomorrow at The White House,” Trump said in a tweet Thursday.
After the sharp break early in the session, Asian shares mounted a powerful comeback rally to turn higher for the day after the New York Times reported Wednesday evening stateside that U.S. President Donald Trump’s administration is set to grant licenses that would allow American firms to sell nonsensitive supplies to Huawei.
Now, just one day before the start of trade talks, reports from China are saying the Chinese delegation may cut short its planned stay in Washington and depart on Friday, dimming hopes for a trade deal.
U.S.-China trade talks are at the forefront, but investors are also monitoring the ongoing Brexit discussions and debating the degree of easing required from the Federal Reserve following the recent string of weakening U.S. activity indicators and the slowing in the labor market.
(Bloomberg) -- Hong Kong stocks fell as the city’s government said it will ban mask-wearing in a bid to deter protesters after months of violence.The Hang Seng Index slipped 1.1% to close below the key 26,000 point level. Stocks pared declines as Chief Executive Carrie Lam said the new law does not mean the government has declared a state of emergency. Property developers were the biggest losers, with Sun Hung Kai Properties Ltd. dropping the most in two months. Hong Kong’s markets are closed Monday for a holiday.Speculation circulated widely before the briefing, which was attended by Lam and her 16 ministers. The concern was that any decision to invoke emergency laws could backfire, potentially angering protesters and spurring more violence. It could also jeopardize the city’s standing as a global financial hub.“Enacting this law might damage Hong Kong’s reputation as city with freedom and a relatively stable market,” said Jackson Wong, a director at Amber Hill Capital Ltd. “This may cool down the protests but it could also escalate actions taken by the hard-core demonstrators.”Hong Kong stocks just suffered the worst quarter in four years as investors priced in escalating local tensions and a worsening economy. Corporate earnings -- which are already under pressure from a protracted U.S.-China trade war and the weaker yuan -- are expected to contract the most since the global financial crisis this year.The city’s economy is showing the strain of months of protests, with data this week showing retail sales plunged a record amount in August. A recession could take the Hang Seng measure down another 25% by the end of 2020, according to Oreana Financial Services Ltd.’s Isaac Poole.MTR Corp. dropped 1.9%. The operator of Hong Kong’s subway appealed to protesters to stop damaging facilities on the network. Some 800 access gates, 900 ticketing machines and 700 surveillance cameras have been broken during the four-month long protests, according to the firm.\--With assistance from Elena Popina.To contact the reporters on this story: Richard Frost in Hong Kong at firstname.lastname@example.org;Jeanny Yu in Hong Kong at email@example.comTo contact the editors responsible for this story: Sarah Wells at firstname.lastname@example.org, Sofia Horta e CostaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A weaker than expected headline number should drive the probability of a Fed rate cut to 100%. Treasury yields are likely to plunge and demand for safe-haven gold and Japanese Yen should jump.
The breaking story on Thursday is that the World Trade Organization (WTO) gave the Trump administration the right to put tariffs on $7.5 billion in European goods.
Given the escalating violence in Hong Kong, traders will be keeping a keen eye on the Hong Kong retail sales data for August. The sector has taken a hit amid protracted protests in the city that have lasted for months and periodically degenerated into violence.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Stocks slid as political turmoil in the U.S. whipsawed shares after reports said Democrats would launch a formal impeachment inquiry amid the Ukraine controversy.The S&P 500 fell the most in a month after it was reported that House Speaker Nancy Pelosi would announce a formal impeachment inquiry of President Donald Trump. The benchmark cut losses earlier in the day after Trump said he would release a complete transcript on Wednesday of his phone call with the Ukrainian president, which is the subject of a congressional investigation and a whistle-blower complaint from an unidentified intelligence official.A host of other factors also weighed on equities. FAANG stocks -- made up of Facebook Inc., Amazon.com Inc., Apple Inc., Netflix Inc., and Google parent Alphabet Inc. -- fell after Trump made negative remarks about China and the growing power of social media platforms during his speech at the United Nations Tuesday. Weakening consumer confidence added to the gloom.The 10-year Treasury yield hit a two-week low, while the dollar fell to session lows. The pound gained after the U.K.’s top judges inflicted an unprecedented legal defeat on Prime Minister Boris Johnson, adding to Brexit chaos.“We’re dealing with a bunch of geopolitical situations and uncertainties,” said Stephen Carl, a trader at Williams Capital Group. “They’re re-highlighting the China trade situation, uncertainties there, that’s coming back into focus. More so today Trump speaking with Ukraine and Iran is in the mix. Domestically Pelosi is potentially talking about impeachment talks. All this coming together in one day today really drove the selling pressure.”The new impeachment push in the U.S. adds to swirling concerns hovering over global markets. Trump’s speech at the United Nations Tuesday ratcheted up tensions between the U.S. and China, keeping markets on edge ahead of planned high-level talks between the world’s two biggest economies in October. His renewed pressure on some of the biggest American companies sent a jolt through technology indexes.Meanwhile, underwhelming economic indicators are muddying the picture, with the U.S. consumer showing signs of losing momentum adding to worries. Downbeat numbers from Japan and mixed data from Germany were stark reminders of the fragility of global growth. And political risks loom large for investors, from Brexit to a U.S. Congressional investigation into Trump’s dealings with Ukraine.Elsewhere, Oil fell on signs Saudi Arabia is making progress in restoring lost output following a drone attack on its facilities.These are some key events coming up this week:Chicago Fed President Charles Evans will discuss the economic outlook and monetary policy in Illinois on Wednesday.Decisions are due Wednesday from central banks in New Zealand and Thailand. Thursday brings a monetary policy decision in the Philippines.Core PCE -- the Fed’s preferred inflation measure -- is forecast for 1.8%. That’s due Friday.Here are the main moves in markets:StocksThe S&P 500 Index fell 0.8% as of 4 p.m. New York time.The Nasdaq 100 sank 1.4%.The Stoxx Europe 600 Index ended virtually unchanged. The DAX Index dropped 0.3% and the FTSE fell 0.5%The MSCI Emerging Market Index slid 0.4%.CurrenciesThe Bloomberg Dollar Spot Index slid 0.3%.The euro increased 0.2% to $1.1019.The British pound jumped 0.5% to $1.2493.The Japanese yen rose 0.5% to 107.03 per dollar.BondsThe yield on 10-year Treasuries sank nine basis points to 1.64%.The yield on two-year Treasuries declined six basis points to 1.61%.Germany’s 10-year yield dropped two basis points to -0.60%.Britain’s 10-year yield fell two basis points to 0.528%.Japan’s 10-year yield fell three basis points to -0.234%.CommoditiesWest Texas Intermediate crude fell 2.8% to $57.03 a barrel.Gold futures rose 0.6% $1,540.40 an ounce.\--With assistance from Yakob Peterseil and Todd White.To contact the reporters on this story: Jeremy Herron in New York at email@example.com;Vildana Hajric in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeremy Herron at email@example.com, ;Samuel Potter at firstname.lastname@example.org, Randall JensenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Emerging market shares fell on Monday as uncertainty over the United States and China reaching a trade deal anytime soon and dismal growth data from major economies kept investors on the sidelines. "We are indeed in a wait-and-see mode ahead of those talks, maybe an interim deal will be discussed, maybe not, it's still too close to call," said Jakob Christensen, head of EM research at Danske Bank. MSCI's index for emerging market stocks fell 0.3% led by mainland Chinese shares.
The major Asia Pacific stock indexes are mostly higher in the wake of interest rate and policy decisions from the U.S. Federal Reserve and the Bank of Japan.
Crude oil prices plunged on Tuesday after the Saudi energy minister said the kingdom’s oil supply will soon be back online. The drop in crude oil prices spread weakness throughout the Asia Pacific region on Wednesday.
(Bloomberg) -- Treasuries rallied and stocks eked out a gain a day before the Federal Reserve is expected to cut interest rates. Oil plunged as Saudi Arabia restarted the plant damaged in a weekend attack.Crude gave back some of Monday’s 15% surge as Saudi officials said they had restored just under half the output lost at the Abqaiq plant, one of the world’s biggest oil facilities. The S&P 500 Index posted a small advance, with dividend paying real-estate shares faring best. Ten-year Treasury yields fell toward 1.8% and the dollar weakened after the New York Fed took action to calm money markets, injecting billions in cash to quell a surge in short-term rates that was threatening to drive up borrowing costs for companies and consumers.As U.S. policy makers get ready to decide interest rates, investors are also trying to gauge the risk of a potential oil shortage weighing on a global economy that already seemed to be slowing down. Meanwhile, concerns linger about trade tensions, with U.S. and Chinese working-level negotiators set to resume talks in the next week, before a meeting of top officials in October.The Saudi attack has reminded investors about the risks of geopolitical tensions escalating, according to Nela Richardson, an investment strategist at Edward Jones in St. Louis.“We’ve pointed to U.S. trade escalation, we’ve pointed to Brexit, but we’ve seen that over the course of the last two years, unexpected triggers of risk can pop up,” she said. “And we don’t always know where that’s going to come from.”The Stoxx Europe 600 edged lower. Equities in Shanghai and Hong Kong slid after China’s central bank disappointed investors when it refrained from lowering a key interest rate. Italian bonds fell after former Prime Minster Matteo Renzi left the Democratic Party, raising the prospect of further government instability. Emerging-market stocks headed for their first decline in five sessions.These are some key events to keep an eye on this week:The Federal Reserve is widely expected to lower U.S. interest rates in response to slowing global economic growth and muted inflation. Chairman Jerome Powell will hold a post-decision press conference Wednesday.The Bank of Japan monetary policy decision is on Thursday, followed by a briefing from Governor Haruhiko Kuroda.Bank Indonesia and Bank of England also decide policy on Thursday.Australia jobs figures are out Thursday.Friday is quadruple witching day for U.S. markets. When the quarterly expiration of futures and options on indexes and stocks occurs on the same day, surging volatility and trading can follow.Here are the main moves in markets:StocksThe S&P 500 Index rose 0.2% at the close of trading in New York.The Stoxx Europe 600 Index slid less than 0.1%.The Shanghai Composite Index declined 1.7%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%.The British pound rose 0.6% to $1.25.The Japanese yen was little changed at 108.16 per dollar.The euro rose 0.7% to $1.1072.BondsThe yield on 10-year Treasuries declined four basis points to 1.8%.Germany’s 10-year yield rose one basis point to -0.48%.Britain’s 10-year yield was little changed at 0.69%.CommoditiesGold climbed 0.3% to $1,503.13 an ounce.WTI crude dropped 6.1% to $59.06 a barrel.\--With assistance from Gregor Stuart Hunter, Andreea Papuc and Laura Curtis.To contact the reporters on this story: Vildana Hajric in New York at email@example.com;Brendan Walsh in Austin at firstname.lastname@example.orgTo contact the editors responsible for this story: Samuel Potter at email@example.com, ;Jeremy Herron at firstname.lastname@example.org, Brendan Walsh, Todd WhiteFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Just as the Fed is set to ponder an interest rate cut amid fears of a US slowdown, the People’s Bank of China has kept its one-year interest rate steady.
(Bloomberg) -- China’s restrained approach to easing spooked financial markets Tuesday, with stocks and the yuan dropping the most in weeks.The Shanghai Composite Index retreated 1.7%, its biggest decline in more than two months, to close below the psychologically important 3,000 level. The onshore yuan fell 0.37%, the most in three weeks, to 7.0950 a dollar as of 5:23 p.m. in Shanghai. The yield on China’s 10-year government bonds rose for a sixth day. In Hong Kong, the Hang Seng Index lost 1.2%.China’s central bank drained funds from the financial system and kept the one-year rate on medium-term loans steady on Tuesday morning, a move analysts said shows it’s sticking with its prudent approach to stimulus. That’s even after data Monday signaled the economy slowed in August, with industrial output, retail sales and fixed-asset investment rising less than anticipated.“Investors now realize the central bank won’t ease its monetary policy as aggressively,” Zhang Gang, a strategist with Central China Securities Co. “The market was due for a pullback after the Shanghai index climbed above 3,000 point level. Turnover failed to keep up.”Tuesday’s losses break the calm that had returned to the country’s stocks, bonds and currency markets in recent weeks, helped by the expectation China wouldn’t allow anything to overshadow its National Day on Oct. 1. A thaw in the trade war had also helped boost sentiment.The move from the People’s Bank of China comes after its cuts to banks’ reserve ratios came into effect this week, adding an expected 800 billion yuan ($113 billion) in liquidity to the financial system. The Federal Reserve is widely expected to lower interest rates at its policy meeting this week.Stock turnover has dropped since early September, when the Shanghai Composite Index tested the key 3,000-point level intraday for the first time in two months. It was about 26% lower than this month’s high on Tuesday.\--With assistance from Ken Wang.To contact Bloomberg News staff for this story: Amanda Wang in Shanghai at email@example.com;Tian Chen in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Richard Frost at email@example.com, ;Sofia Horta e Costa at firstname.lastname@example.org, Philip GlamannFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Chinese retail sales and investment gauges also worsened, reinforcing views that China is likely to cut some of its key interest rates this week for the first time in over three years to prevent a sharper slump in activity.
Hong Kong Exchanges and Clearing Limited (HKEX) said Wednesday it had made a proposal to the board of London Stock Exchange Group Plc (LSE) to “combine the two companies,” in a deal which values the (LSE) at about 29.6 billion Pounds or $36.6 billion.
Cathay Pacific Airways Ltd has put a freeze on new hiring, according to an internal memo seen by Reuters, as the airline battles a slump in demand from fliers avoiding Hong Kong amid massive anti-government protests in the city. In a memo to staff on Wednesday evening, new Chief Executive Augustus Tang said he had asked executives to examine spending and focus on cutting costs. The airline will also not replace departing employees in non-flying positions unless approved by a spending control committee, he said.
HONG KONG/LONDON/NEW YORK (Reuters) - The London Stock Exchange's board will meet in coming days to decide on the Hong Kong bourse's surprise $39 billion takeover proposal, a source close to the British company said on Thursday, as the market poured cold water on the deal. The unsolicited takeover offer is not expected to succeed given a preference among LSE investors for the exchange to complete its $27 billion proposed acquisition of data and analytics group Refinitiv, the source close to the LSE said. The exchange wants to focus on executing that deal, rather than risk it being derailed by the Hong Kong bourse, the source said.
On Tuesday, Apple revealed launch dates and pricing for its much-anticipated Apple TV and Apple Arcade subscription services. Both services cost $4.99 per month, which undercuts competitors like Disney’s streaming platform, Disney+, and Google’s cloud gaming service, Stadia.