|Day's range||23,030.33 - 23,219.51|
|52-week range||18,948.58 - 23,591.09|
Nov.19 -- Jim McCafferty, joint head of APAC equity research at Nomura, discusses their target of 25,000 for the Nikkei 225, the economy and Abenomics. He speaks on “Bloomberg Markets: Asia.”
Japanese shares edged higher on Friday as cautious optimism about the prospect of the United States and China reaching a trade agreement lifted investor risk appetite. At 0150 GMT the Nikkei index rose 0.61 % to 23,178.77 as exporters in the IT sector and the industrial equipment sector paced gains. China is pushing to reach a preliminary trade agreement with the United States as both sides keep communication channels open, the Chinese commerce ministry said on Thursday, in an attempt to allay fears talks might be unravelling.
Asian equities rose on Friday, bouncing from a three-week low touched a day earlier, but gains were capped by persistent worries over the status of trade negotiations between China and the United States. Early in the Asian trading day, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.12%. The index had fallen as much as 1.41% on Thursday, hitting its lowest level since October 30, on concerns that U.S. legislation on Hong Kong threatened to undermine trade talks between the world's two largest economies.
(Bloomberg) -- Asia stocks saw modest gains Friday amid muted volumes, as investors awaited further details on U.S.-China trade discussions. Treasuries held Thursday’s losses.Japanese shares recovered after three days of declines, though volumes were down about a fifth. Stocks climbed in Hong Kong, South Korea, Australia and China. U.S. futures were flat. Earlier, the S&P 500 Index fell for a third day but remained within 1% of a record high. The yield on 10-year Treasuries edged up while the dollar held firm.It’s been a mixed picture on the trade front this week. Chinese Vice Premier Liu He has invited Robert Lighthizer to Beijing for further talks later this month, according to people familiar, and Washington will likely postpone new tariffs scheduled for December even if there’s no deal by then, the South China Morning Post reported. However, President Donald Trump may soon sign into law a bill supporting Hong Kong’s protesters, a decision Xinhua attacked again.“The market is looking for some bullish signal that things aren’t going to get worse and that we’re not going to see further deterioration in trade talks between the U.S. and China,” Erin Browne, a portfolio manager at Pacific Investment Management Co., told Bloomberg TV. “They just don’t want to see further escalation.”Elsewhere, oil retreated after climbing to a nine-week high. Gold held losses.These are the main moves in markets:StocksJapan’s Topix index rose 0.4% as of 10:25 a.m. in Tokyo.Hong Kong’s Hang Seng added 0.4%.The Shanghai Composite rose 0.1%.Futures on the S&P 500 Index were little changed. The underlying gauge fell 0.2% on Thursday.Australia’s S&P/ASX 200 Index added 0.5%.South Korea’s Kospi index rose 0.2%.CurrenciesThe yen was at 108.68 per dollar, little changed.The offshore yuan held at 7.0331 per dollar.The Bloomberg Dollar Spot Index was little changed.The euro bought $1.1063.BondsThe yield on 10-year Treasuries added one basis point to 1.78%.Australia’s 10-year yield rose four basis points to 1.11%.CommoditiesWest Texas Intermediate crude dipped 0.6% to $58.21 a barrel after two days of gains.Gold remained at $1,464.53 an ounce.To contact the reporter on this story: Adam Haigh in Sydney at email@example.comTo contact the editors responsible for this story: Christopher Anstey at firstname.lastname@example.org, Cormac MullenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- U.S. equities slid following losses in Europe and Asia as traders weighed conflicting signals about the outlook for a trade deal between Beijing and Washington.The S&P 500 Index fell for a third day, the longest losing streak in almost two months, but remained within 1% of a record high. The dollar held steady and Treasuries dipped as China’s chief trade negotiator reportedly said he was “cautiously optimistic” about reaching a phase-one accord. Pessimists focused on speculation Donald Trump may sign legislation backing Hong Kong protesters, setting up further conflict between the nations. TD Ameritrade soared on reports that Charles Schwab Corp. is in talks to buy the brokerage.Hong Kong’s deteriorating situation may prove crucial to the trade talks, and on Thursday a commentary from China’s state-run news agency accused the U.S. of applying a double standard. China has threatened to retaliate for the passage of the American bill and said supporting the protesters was a “gross” interference in Hong Kong affairs. Traders will be watching for signs of progress ahead of a Dec. 15 deadline for further tariffs.“Investors now are starting to worry again that we may not see that phase one in 2019,” said Chris Gaffney, president of world markets at TIAA. “It’s going to be tough to have the next leg up without a trade deal.”Elsewhere, oil futures rose. European bonds tracked Treasuries lower and emerging-market stocks slid.Here are some key events coming up this week:Economic indicators due for release include U.S. and European PMI data for November on Friday.These are the main moves in markets:StocksThe S&P 500 Index fell 0.2% at the close of trading in New York time.The Stoxx Europe 600 Index dipped 0.4%.The MSCI Asia Pacific Index declined 0.7%.The MSCI Emerging Market Index fell 0.7%.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The euro slipped 0.1% to $1.1057.The British pound slid 0.1% to $1.2906.The Japanese yen was little changed at 108.63 per dollar.BondsThe yield on 10-year Treasuries increased two basis points to 1.77%.Germany’s 10-year yield increased two basis points to -0.33%.Britain’s 10-year yield jumped two basis points to 0.75%.CommoditiesWest Texas Intermediate crude gained 2.3% to $58.42 a barrel.Gold decreased 0.5% to $1,464.50 an ounce.\--With assistance from Kyoungwha Kim, Andreea Papuc, Adam Haigh, Cormac Mullen, Yakob Peterseil and Todd White.To contact the reporter on this story: Vildana Hajric in New York at email@example.comTo contact the editors responsible for this story: Samuel Potter at firstname.lastname@example.org, ;Jeremy Herron at email@example.com, Brendan WalshFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investors had widely hoped for a U.S.-China trade deal by mid-November but the absence of one, and Washington's bill to support protesters in Hong Kong, has brought progress grinding to a halt. With U.S. President Donald Trump seen as likely to sign the bill, Deutsche Bank strategist Jim Reid said this "could risk progress towards a phase one trade deal". European shares nevertheless bounced back from day lows in late morning trade as fresh reports emerged that China has invited top U.S. trade negotiators for a new round of face-to-face talks in Beijing.
The U.S. House of Representatives on Wednesday passed two bills intended to support protesters in Hong Kong and send a warning to China about human rights. With U.S. President Donald Trump seen likely to sign the bill, Deutsche Bank strategist Jim Reid said this "could risk progress towards a phase one trade deal". European shares extended their losses from Wednesday with the pan-European STOXX 600 and the trade-sensitive Germany's DAX 30 both sliding 0.7% to fresh two-week lows.
Much of the near 8% surge in world stock markets since the start of the fourth quarter, and broader rally in risk assets, has been predicated on at least a partial trade truce between the United States and China that at least stops the escalation of tariff hikes and staves off recession next year. The key sticking point is the extent to which China is willing to make further concessions to ensure rollback of existing tariff rises. Asked on Wednesday about the status of the China deal, U.S. President Donald Trump told reporters in Texas: "I don't think they're stepping up to the level that I want." And with U.S. House of Representatives voting in two bills overnight aimed at supporting Hong Kong’s ongoing pro-democracy protests and warning China about human rights, the mood between the governments of the world’s two biggest economies has soured on many levels.
Australian shares extended losses on Thursday, pulled down by Westpac Banking Corp as accusations of money laundering breaches against the lender rattled the financial sector, which has been in regulatory crosshairs for nearly two years.
(Bloomberg) -- The S&P 500 Index posted its biggest loss in a month after a report that Washington and Beijing are unlikely to reach a trade deal this year. The dollar rose and oil jumped.Telecom companies and automakers led losses on the gauge after Reuters said that a pact may be delayed, though the index pared losses following a report that progress is being made. The developments came after China threatened to retaliate for the Senate’s passage of a bill that sought to support Hong Kong’s autonomy from Beijing. The House votes on the measure later Wednesday.After reaching fresh highs Monday, U.S. stocks have retreated on concern about the outlook for trade. While investors are sensitive to any reports on the economy, the potential of a detente between China and the U.S. had driven gains this year that left stocks poised for their best performance since 2013.“The market for most of the year has been trading off of trade -- trade hope and trade fear,” said Ed Clissold, chief U.S. strategist at Ned Davis Research Inc. “There were expectations over the last several weeks that some sort of interim deal would get done. And the reality of the situation is setting in.”Oil jumped, paring Tuesday’s more-than 3% loss, as American crude stockpiles rose less than expected and inventories at a key storage hub shrank by the most since August. Ten-year Treasury yields sank to a two-week low.Travel and leisure companies led the retreat in the Stoxx Europe 600 index. Swedbank AB dropped after a report that American authorities are investigating possible breaches of sanctions against Russia by the Swedish lender.Hong Kong shares fell along with Japanese and South Korean benchmarks. Australian equities slumped after allegations of financial crimes at Westpac Banking Corp. hit financial stocks.Here are some key events coming up this week:U.S. economic indicators due for release include initial jobless claims on Thursday.Federal Reserve speakers this week include district bank presidents Loretta Mester and Neel Kashkari.European central bankers speaking this week include European Central Bank President Christine Lagarde, Bundesbank chief Jens Weidmann, along with Yves Mersch, Luis de Guindos, Pablo Hernandez de Cos and Philip Lane.These are the main moves in markets:StocksThe S&P 500 Index fell 0.4% at the close of trading in New York.The Stoxx Europe 600 Index dropped 0.4%.The MSCI Emerging Markets Index fell 0.5%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.2%.The euro fell 0.1% to $1.1072.The British pound decreased 0.1% to $1.2918.The Japanese yen was little changed at 108.58 per dollar.BondsThe yield on 10-year Treasuries sank five basis points to 1.73%.Germany’s 10-year yield dipped one basis point to -0.35%.Britain’s 10-year yield was little changed at 0.73%.Japan’s 10-year yield sank three basis points to -0.124%.CommoditiesWest Texas Intermediate crude increased 3.4% to $57.11 a barrel.Gold was little changed at $1,472.34 an ounce.\--With assistance from Emily Barrett, Adam Haigh, Robert Brand and Sophie Caronello.To contact the reporters on this story: Sarah Ponczek in New York at firstname.lastname@example.org;Claire Ballentine in New York at email@example.comTo contact the editors responsible for this story: Samuel Potter at firstname.lastname@example.org, ;Jeremy Herron at email@example.com, Brendan WalshFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
World stocks were knocked off 22-month highs on Wednesday as a flare-up in Sino-U.S. tensions and the creeping return of U.S. recession fears fuelled a bid for bonds and other "safe" assets such as gold. Wall Street futures were marked lower and European equities tumbled 0.8%, edging further off recent four-year highs hit when it had appeared Washington and Beijing were about to agree the first phase of a trade deal.
China on Wednesday made a slight cut to a key interest rate. Japan’s exports tumbled at their quickest pace in three years in October. Australia’s anti money-laundering and terrorism financing regulator filed for civil penalty orders against Westpac.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.The Nasdaq Composite climbed to a fresh record on the back of gains in megacap tech companies even as the Dow Jones Industrial Average sank following disappointing reports from retailers.Gains in Facebook, Broadcom and Tesla lifted the Nasdaq while Home Depot was the biggest drag on the Dow after the company cut its annual forecast for the second time this year. Investors also mulled the implications of a report that U.S. and Chinese negotiators may link the size of tariff rollbacks to terms set during talks in May. Ten-year Treasury yields dipped below 1.8%, while oil tumbled for a second day.The dollar edged higher against its major peers after President Donald Trump said he “protested” U.S. interest rates that he considers too high in a meeting with Federal Reserve Chairman Jerome Powell at the White House. The Fed said Powell’s remarks were “consistent” with his recent public comments.Investors remain sensitive to any signs of whether U.S. consumers can continue supporting economic growth and are looking for developments on trade after months of closely watched negotiations. One challenge for stocks across developed markets lies in the MSCI World Index’s 21% advance this year, which has propelled the benchmark to its highest estimated price-earnings ratio since 2017.”More and more people are concluding that the economy has some strength, that it’s strong enough to support rising stock prices,” said Kate Warne, an investment strategist at Edward D Jones & Co. in St. Louis. “While consumer spending is falling, it’s not falling off a cliff. Overall most of the news has been good, investors are feeling more confident.”Elsewhere, European stocks ended lower. Equities fell in Tokyo and climbed in Shanghai. Gold held steady.Here are some key events coming up this week:U.S. economic indicators due for release include initial jobless claims on Thursday.Britain holds its first televised leadership debate before next month’s election Tuesday.Federal Reserve speakers this week include district bank presidents John Williams, Loretta Mester and Neel Kashkari.European central bankers speaking this week include European Central Bank President Christine Lagarde, Bundesbank chief Jens Weidmann, along with Yves Mersch, Luis de Guindos, Pablo Hernandez de Cos and Philip Lane.China announces its loan prime rates, a benchmark for borrowing costs, on Wednesday.These are the main moves in markets:StocksThe S&P 500 Index slipped less than 0.1% at the close of trade in New York; the Nasdaq Composite gained 0.2%; the Dow fell 0.4%.The Stoxx Europe 600 Index fell 0.1%The MSCI Emerging Market Index gained 0.4%.CurrenciesThe Bloomberg Dollar Spot Index rose less than 0.1%.The pound fell 0.2% to $1.2926.The euro increased less than 0.1% to $1.1077.The Japanese yen gained 0.1% to 108.55 per dollar.BondsThe yield on 10-year Treasuries dipped three basis points to 1.78%.Germany’s 10-year yield was little changed at -0.34%.Australia’s 10-year yield declined four basis points to 1.13%.CommoditiesWest Texas Intermediate crude declined 3.2% to $55.25 a barrel.Gold was little changed at $1,472.17 an ounce.\--With assistance from Andreea Papuc, Michael Msika, Todd White and Yakob Peterseil.To contact the reporters on this story: Vildana Hajric in New York at firstname.lastname@example.org;Claire Ballentine in New York at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Brendan WalshFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares in Europe dipped, Wall Street backed off record highs and the U.S. dollar was poised to extend a three-day losing streak as underwhelming earnings and uncertainty over an ongoing U.S. impeachment inquiry overshadowed hopes for a U.S.-China trade deal. The U.S. benchmark S&P 500 index was nominally lower and Home Depot Inc pulled the blue-chip Dow Jones Industrial index firmly into the red after the home improvement retailer cut its 2019 sales forecast. The inquiry focuses on a July 25 phone call in which President Donald Trump asked Ukrainian President Volodymyr Zelenskiy to carry out two investigations that would benefit him politically.
Hong Kong’s Hang Seng Index rose sharply for a second session this week on the hopes of fresh government stimulus and the news that Alibaba will close its order books to institutional investors early for its upcoming secondary listing in Hong Kong. The Australian share market rallied after it was revealed the Reserve Bank gave serious consideration earlier this month to cutting rates for a fourth time this year.
(Bloomberg) -- U.S. stocks edged higher to fresh records as investors looked for signs of progress in U.S.-China trade negotiations. The dollar weakened and Treasury yields dipped.The S&P 500, Dow Jones Industrial Average and Nasdaq Composite all fluctuated throughout the day, but ended up eking out a gain. Defensive shares such as consumer staples and utilities performed best. Word that the White House would extend a license to allow U.S. companies to do business with Chinese telecom firm Huawei competed with reports that said Beijing was skeptical about reaching a broad deal anytime soon.U.S. equities are showing their sensitivity to any developments on trade after months of closely followed negotiations. Today’s records extended gains from last week, when White House economic adviser Larry Kudlow said U.S.-China talks were nearing the final stages.“I don’t know how many times we’ve seen optimism turn into pessimism,” said Jerry Braakman, chief investment officer of First American Trust in Santa Ana, California, which manages around $1.7 billion. “If it was easy, it would already be signed.”Meanwhile, the dollar extended a slide after Federal Reserve Chairman Jerome Powell met with President Donald Trump and Treasury Secretary Steven Mnuchin on Monday to discuss the economy. Japanese and Chinese equities closed higher, while stocks slipped in India and Australia. Hong Kong’s market outperformed even as unrest in the city continued.Most members of the Stoxx Europe 600 Index fell. The pound jumped as the Conservative Party maintained its poll lead less than a month before U.K. elections.China’s yuan dipped after the country’s central bank lowered borrowing costs on short-term loans for the first time since 2015 and injected $26 billion into the financial system. The moves were seen as aimed at shoring up confidence following a string of poor data in the second-biggest economy.On the energy front, Saudi Arabia set an IPO valuation target for Aramco well below the kingdom’s goal of $2 trillion and pared back the size of the sale. It looks set to rely on local investors after most international money managers balked at even the reduced price target.Here are some key events coming up this week:U.S. economic indicators due for release include housing starts Tuesday and initial jobless claims on Thursday.Britain holds its first televised leadership debate before next month’s election Tuesday.Federal Reserve speakers this week include district bank presidents John Williams, Loretta Mester and Neel Kashkari.European central bankers speaking this week include European Central Bank President Christine Lagarde, Bundesbank chief Jens Weidmann, along with Yves Mersch, Luis de Guindos, Pablo Hernandez de Cos and Philip Lane.China announces its loan prime rates, a benchmark for borrowing costs, on Wednesday.These are the main moves in markets:StocksThe S&P 500 Index rose less than 0.1% at the close of trading in New York.The Stoxx Europe 600 Index was little changed.Hong Kong’s Hang Seng Index jumped 1.3%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.1%.The euro strengthened 0.2% to $1.1075.The Japanese yen rose 0.1% to 108.65 per dollar.The offshore yuan sank 0.3% to 7.0254 per dollar.The British pound gained 0.5% to $1.2955.BondsThe yield on 10-year Treasuries dipped two basis points to 1.81%.Britain’s 10-year yield rose two basis points to 0.75%.Germany’s 10-year yield was little changed at -0.34%.Italy’s 10-year yield fell two basis points to 1.21%.CommoditiesWest Texas Intermediate crude decreased 1.5% to $56.84 a barrel.Gold rose 0.2% to $1,471.77 an ounce.\--With assistance from Michael Msika, Andreea Papuc and Todd White.To contact the reporters on this story: Claire Ballentine in New York at email@example.com;Vildana Hajric in New York 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 WalshFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The dollar slipped and global equity markets traded little changed on Monday, halting a rally that lifted a key index to just under a new high, after a media report cast fresh doubts on reaching phase one of a U.S.-China trade deal. The safe-haven Japanese yen gained and gold prices erased losses after a CNBC report said the mood in Beijing about a trade deal is pessimistic due to U.S. President Donald Trump's reluctance to roll back tariffs on Chinese imports. The dip left MSCI's all-country world index up 0.11%, close to a peak set in January 2018.
World shares were within touching distance of a record high on Monday, after Beijing surprised markets by trimming a key interest rate for the first time since 2015. The news helped Asia's main markets get the week off to a solid start.
The markets were propped up by optimism over a possible U.S.-China trade deal, however, most investors were still awaiting concrete signs of progress in the trade talks. Sentiment in Asia got a lift after China’s central bank unexpectedly trimmed a closely watched lending rate on Monday, the first such cut in more than four years and a signal to markets that policymakers are ready to act to prop up slowing growth.
Protests in Hong Kong drove the Hang Seng Index down 4.79% last week with a violent turn Monday. China’s industrial output grew significantly slower than expected in October. The Nikkei was pressured by a report that showed growth in Japan’s economy ground to a near standstill in the third quarter. Shares in Australia were unpinned last week after disappointing October jobs data raised the chances of another rate cut by the Reserve Bank of Australia (RBA) in the coming months.
(Bloomberg) -- Stocks rose to all-time highs and Treasuries edged lower after an American official hinted that the U.S. and China are close to locking down a partial trade deal. The dollar declined.The S&P 500 reached another record and gained for the sixth week in a row, the longest streak in two years, after White House economic adviser Larry Kudlow said late Thursday negotiations between the two countries were nearing the final stages. Both the Dow Jones Industrial Average, which past 28,000 for the first time, and the Nasdaq Composite also hit all-time highs.Health care companies as well as trade-sensitive tech shares led the advance. Applied Materials Inc. surged after the maker of chip equipment boosted its sales forecast.The benchmark 10-year Treasury yield rose for the first time this week, while the dollar dropped for a second day following a mixed bag of retail sales figures and weak factory numbers. The yen fell along with gold.“The markets have priced in the fact that it may not get done even though you’ve seen it move higher. But if you look at whenever they say ‘trade war is on, trade tariffs are off,’ -- if you look at that maneuver, it’s volatile to a point but it’s not significant,” Matt Lloyd, chief investment strategist at Advisors Asset Management, said by phone. “Most of us have gotten used to it. We’ve re-calibrated. It’s like the boy who cried wolf.”Concerns about the chances of the U.S. and China completing a phase-one pact had propelled Treasuries earlier this week, and acted as a headwind to a stock rally that keeps taking American gauges to record highs. The S&P 500 closed slightly higher on Thursday, though a mixed bag of global economic data has also given investors plenty to think about.Elsewhere, European, emerging-market and Asian stocks gained. China’s yuan strengthened against the dollar.These are the main moves in markets:StocksThe S&P 500 Index rose 0.8% as of 4 p.m. New York time.The Stoxx Europe 600 Index climbed 0.4%.The MSCI Asia Pacific Index gained 0.6%.The MSCI Emerging Market Index rose 0.7%.CurrenciesThe Bloomberg Dollar Spot Index dipped 0.2%.The euro gained 0.3% to $1.1054.The British pound rose 0.2% to $1.2904.The onshore yuan increased 0.3% to 7.0043 per dollar.The Japanese yen dipped 0.2% to 108.68 per dollar.BondsThe yield on 10-year Treasuries gained one basis point to 1.83%.Germany’s 10-year yield increased one basis point to -0.34%.Britain’s 10-year yield advanced two basis points to 0.725%.Japan’s 10-year yield decreased less than one basis point to -0.068%.CommoditiesWest Texas Intermediate crude rose 1.6% at $57.70 a barrel.Gold fell 0.3% to $1,468.40 an ounce.\--With assistance from Namitha Jagadeesh, Samuel Potter and Claire Ballentine.To contact the reporters on this story: Randall Jensen 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, Yakob PeterseilFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Global markets edge higher on trade hopes but still no deal in sight, traders are warned to expect too much from the deal when and if it comes.
Later on Thursday, White House economic adviser provided another ray of hope when he said negotiations over the first phase of a trade agreement with China were coming down to the final stages, with the two sides in close contact.