^N225 - Nikkei 225

Osaka - Osaka Delayed price. Currency in JPY
21,466.99
+420.75 (+2.00%)
At close: 3:15PM JST
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Previous close21,046.24
Open21,146.50
Volume0
Day's range21,121.90 - 21,474.30
52-week range18,948.58 - 24,448.07
Avg. volume63,820
  • Futures Up On Earnings, Global Equities Firm On Rate Cut Hopes, Geopolitics Caps Gains
    FX Empire16 hours ago

    Futures Up On Earnings, Global Equities Firm On Rate Cut Hopes, Geopolitics Caps Gains

    Global equities firm as rate cut hopes are stoked but traders are cautioned not to expect too much from the FOMC.

  • Stats, Trade, Brexit and Corporate Earnings to Influence on the Day
    FX Empireyesterday

    Stats, Trade, Brexit and Corporate Earnings to Influence on the Day

    The Trade war, Brexit and economic data keep the majors in the spotlight through the day. There’s also the earnings calendar to consider…

  • U.S. Stocks Climb, Dollar Falls on Fed-Cut Wagers: Markets Wrap
    Bloomberg2 days ago

    U.S. Stocks Climb, Dollar Falls on Fed-Cut Wagers: Markets Wrap

    (Bloomberg) -- U.S. stocks rebounded and the dollar fell after Federal Reserve Bank of New York President John Williams highlighted the need for swift action should policy makers conclude the economy is in trouble.Consumer and financial stocks led gains in the S&P 500 Index, while Treasury 10-year yields dropped. A positive outlook from Apple Inc. supplier’s Taiwan Semiconductor Manufacturing Co.’s lifted chipmakers. The NYSE FANG+ Index slid on Netflix Inc.’s surprise loss of U.S. customers. A report that Iran made a “substantial” offer on its nuclear program in return for fewer sanctions gave a lift to equities that was later tempered by news that the U.S. shot down an Iranian drone. In after-hours trading, Microsoft Corp. and cybersecurity company CrowdStrike Holdings Inc. rallied after sales topped estimates.The futures market edged closer to the idea of a half-point U.S. rate cut this month, with fed funds now pricing in about 42 basis points of easing. Fed Vice Chairman Richard Clarida told Fox Business Network that policy makers shouldn’t wait for the economy to turn down to act. Cutting rates could help cushion some of the blow from uncertainty about trade that’s likely to prove persistent, according to Fed Bank of St. Louis President James Bullard.“We’re in a trade war, you’re seeing the impact on corporate earnings, you’re seeing the central banks forced to scramble to react to that,” Bob Michele, CIO and head of global fixed income at JPMorgan Asset Management, said in a Bloomberg TV interview.Elsewhere, oil slid to the lowest in almost a month as pessimism about a trade truce between the U.S. and China continued to dog markets, while the resumption of Russian pipeline flows fed worries about a supply glut. The pound climbed as the British Parliament backed measures to prevent the next prime minister suspending the legislature to pursue a no-deal Brexit.These are the main moves in markets:StocksThe S&P 500 rose 0.4% to 2,995.11 as of 4 p.m. New York time.The Stoxx Europe 600 Index decreased 0.2%.The MSCI Asia Pacific Index fell 0.6%.CurrenciesThe Bloomberg Dollar Spot Index dipped 0.5%.The euro gained 0.5% to $1.1276.The British pound climbed 1% to $1.2554.The Japanese yen added 0.6% to 107.26 per dollar.BondsThe yield on 10-year Treasuries dipped two basis points to 2.03%.Germany’s 10-year yield declined two basis points to -0.31%.Britain’s 10-year yield was unchanged at 0.759%.CommoditiesThe Bloomberg Commodity Index dipped 0.8%.West Texas Intermediate crude declined 2.6% to $55.30 a barrel.\--With assistance from Nancy Moran, Sophie Caronello, Todd White, Yakob Peterseil, Cecile Gutscher, Tom Keene, Nejra Cehic, Adam Haigh and Vildana Hajric.To contact the reporter on this story: Rita Nazareth in New York at rnazareth@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Rita NazarethFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Earnings Season Underway, EU Moves Lower On Trade Concerns, Uncertainty Dominant Theme On Wall Street
    FX Empire3 days ago

    Earnings Season Underway, EU Moves Lower On Trade Concerns, Uncertainty Dominant Theme On Wall Street

    Global indices retreat as trade woe resurfaces and corporate earnings roll in.

  • Financial Times3 days ago

    Mark Carney’s climate warning; SEC threatens governance crackdown

    FT subscribers can  click here to receive Moral Money every Wednesday by email. Welcome to Moral Money! This week the head of the UK central bank warned that regulation looms for environmental, social ...

  • Renewed US-China Trade Woes Weigh on Asian Shares
    FX Empire3 days ago

    Renewed US-China Trade Woes Weigh on Asian Shares

    It’s been more than two weeks since U.S. President Donald Trump and Chinese President Xi Jinping agreed to resume trade talks between the two economic powerhouses. However, conditions haven’t improved much.

  • European Equities: A Light Calendar Leaves Earnings and Trade in Focus
    FX Empire3 days ago

    European Equities: A Light Calendar Leaves Earnings and Trade in Focus

    A light economic calendar on the day ahead will leave earnings and any trade war chatter to drive the majors.

  • Stocks Drop on Trump’s Trade Remarks; Bonds Fall: Markets Wrap
    Bloomberg4 days ago

    Stocks Drop on Trump’s Trade Remarks; Bonds Fall: Markets Wrap

    (Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.U.S. stocks fell from a record high as President Donald Trump said he could impose more tariffs on China, reminding investors that the trade spat remains unresolved. Treasuries dropped and the dollar rose.The S&P 500 Index halted a five-day rally, with energy producers joining an oil sell-off and technology giants facing an antitrust showdown with Congress. Goldman Sachs Group Inc. jumped on better-than-estimated results in its trading unit, and JPMorgan Chase & Co. rebounded from losses triggered by a disappointing lending outlook. Benchmark 10-year yields climbed on solid data, then pared their surge after Federal Reserve Chairman Jerome Powell said the central bank “will act as appropriate” amid increased uncertainties.Investors remained locked into the notion of a Fed rate cut this month even after strong retail sales, factory output and housing data. While Powell’s remarks resembled his July 10-11 testimony to U.S. lawmakers, they continued to support the case for monetary easing amid risks stemming from Trump’s trade policies and slower global growth.“Trade’s a big, big issue,” said Dave Campbell, a principal at San Francisco-based BOS, which manages about $4.5 billion. “There’s a lot of uncertainties -- all of these are weighing on people’s minds right now.”Elsewhere, Bitcoin slid below $10,000 just three weeks after surging above it for the first time in more than a year as U.S. legislators expressed deep skepticism about the viability of cryptocurrencies. The euro slipped as investor confidence in Germany’s economic outlook fell. The pound slumped as the market once again reckoned with no-deal Brexit risk after the contenders to be U.K. prime minister toughened their rhetoric.Here are some key events coming up:Bank of America Corp. and Taiwan Semiconductor are among companies due to report results this week.Monetary policy decisions are due in Indonesia, South Korea and South Africa on Thursday.These are the main moves in markets:StocksThe S&P 500 dipped 0.3% to 3,004.04 as of 4 p.m. New York time.The Stoxx Europe 600 Index added 0.4%.The MSCI Asia Pacific Index decreased 0.2%.CurrenciesThe Bloomberg Dollar Spot Index increased 0.4%.The euro declined 0.4% to $1.1209.The British pound decreased 0.9% to $1.2408.The Japanese yen dipped 0.3% to 108.28 per dollar.BondsThe yield on 10-year Treasuries gained three basis points to 2.11%.Germany’s 10-year yield climbed one basis point to -0.24%.Britain’s 10-year yield increased two basis points to 0.821%.CommoditiesThe Bloomberg Commodity Index slid 1.1%.West Texas Intermediate crude sank to $57.62 a barrel.\--With assistance from Adam Haigh, Samuel Potter, Laura Curtis and Yakob Peterseil.To contact the reporters on this story: Rita Nazareth in New York at rnazareth@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Rita NazarethFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Financial Times4 days ago

    Club Med’s Chinese owner Fosun bets billions on family fun

    When Li Jingjie needs a break from her job as an editorial director in Shanghai, one of her favourite getaways is just a three-hour drive away: Club Med. At the foot of the Lingfeng Peaks in Zhejiang Province, nestled in bamboo forests, lies the Club Med Joyview Anji Resort. Fosun Tourism Group, the Chinese company that owns the France-based Club Med, is betting that millions of other Chinese vacationers will agree.

  • Asian Investors Jittery Ahead of US Earnings Reports; Looking for More Stimulus from PBOC
    FX Empire4 days ago

    Asian Investors Jittery Ahead of US Earnings Reports; Looking for More Stimulus from PBOC

    Due to the uncertainty caused by the US-China trade dispute, and the possibility that trade tensions may escalate again, some investors are sitting on the sidelines, hoping the People’s Bank of China steps in to introduce more fiscal stimulus in the months ahead to steady the economy and to prevent it from slowing too quickly.

  • Top Growth Sector Faces Test of Great Expectations
    Bloomberg4 days ago

    Top Growth Sector Faces Test of Great Expectations

    (Bloomberg) -- Signs of stabilization for China’s economy provided just what the stock market needed to be steady as investors dive into the earnings season. Among tech companies, SAP, ASML and Ericsson are scheduled to report this week, which might signal what’s next for the shares of Europe’s best-performing industry this year.The region’s technology sector is up 26% in 2019, keeping up with the Nasdaq 100, while the Philadelphia Semiconductor Index SOX has soared more than 30%. The SX8P has been bouncing near the 500-point level after recently hitting a one-year high following a truce in the U.S.-China trade dispute.The big question remains what impact the commerce wrangle will have on earnings. We’ve already seen numerous warnings from the semiconductor complex, with IQE, Siltronic and Broadcom setting alarm bells ringing at the end of June. Amid escalating tension between Japan and South Korea, Samsung saw its quarterly profit fall by more than half.Uncertainty stemming from the trade war and the potential drag on the global economy has prompted analysts at Evercore and DA Davidson to warn that a recovery in demand for the chip sector might not materialize until 2020. Bloomberg Intelligence analysts also highlight that the sector’s valuation against its growth picture isn’t a perfect match. Indeed, it’s the most expensive industry group in Europe with an estimated price-to-earnings ratio near 23 times for 2019.All this means the second-quarter earnings season will be a key test as to whether we’re getting closer to the bottom of the cycle. To be sure, there have been some upbeat signs recently, such as the previously mentioned truce, and the U.S. saying that it will grant licenses to Huawei suppliers. Elsewhere, Asian bellwether TSMC, which supplies Apple, saw quarterly sales beat expectations, while Chinese car sales rose for the first time in a year in June, a potential positive for chip makers exposed to autos, such as Infineon and Melexis.Analysts at Liberum highlight signs of improvement in areas such as servers, smartphones and cryptocurrency, as well as semiconductor companies reporting “green shoots” of recovery more broadly. They’re overweight on ASML and Ericsson.Meanwhile, Deutsche Bank analysts expect a significant step-up in inquiries for both Ericsson and Nokia regarding 5G infrastructure, driven by the need for continuity of supply, as well as ongoing security concerns. That said, they don’t think this will improve financials for either company for two years, though sentiment is still positive around margins in the home region.Looking at Ericsson’s and Nokia’s share price, the initial U.S. ban on sales to Huawei has only had a small effect so far. Any update on the matter will be scrutinized, especially after Nokia’s earnings shocker in April.In the meantime, Euro Stoxx 50 futures are trading 0.1% lower ahead of the open.SECTORS IN FOCUS TODAY:Watch miners and steelmakers sectors on Tuesday after iron ore prices jumped following the latest output data from Rio Tinto and on signs of healthy demand from steel mills. Watch the pound and U.K. stocks a difficult meeting was held between the chief negotiators of Brexit. While the EU is reportedly weighing up concessions it could offer to the U.K. to prevent a no-deal Brexit, the pound is at the weakest level ever for this time of year and, if history is anything to go by, it’s going to get worse in August.Watch trade-sensitive sectors after U.S. Treasury Secretary Steven Mnuchin U.S. trade chief Robert Lighthizer may travel to Beijing to hold trade negotiations. Meanwhile, the World Trade Organization is expected to give the U.S. the green light to slap new tariffs on Europe in the ongoing battle about illegal aircraft subsidies.Watch banks, as JPMorgan and Goldman Sachs will report earnings, after Citigroup kicked off the season on Monday with a mixed set of results.COMMENT:“Although the U.K. economy has surprised most commentators in its strength since the 2016 referendum and there is the promise of a fiscal dividend should Brexit be smoothly achieved, and while U.K. equities look cheap, a ‘radical overhaul’ will scare international investors into a rush for the exit,” Kames Capital CIO Stephen Jones writes in a note. “This is not the time to go strongly overweight U.K. assets – equities, Gilts or Sterling.”COMPANY NEWS AND M&A:CRH to Sell Europe Distribution for Ent. Value EU1.64B CashBayer’s Monsanto Called Reprehensible as Roundup Verdict CutRio’s Copper Flagship Faces $1.9 Billion Cost Blowout, Delay (1)Aroundtown Offering Prices 84m Shares at EU7.15/ShareAMS Ends Talks to Buy Osram in Boost for Private Equity SuitorsAtlantia Board Looked Through Genoa Bridge Collapse Report: FTSalini Impregilo Presents New Offer for Astaldi (1)Telenor Second Quarter Ebitda Misses Lowest EstimateBorregaard 2Q Op. Revenue Matches Ests., Adj. Ebita Beats (1)Schibsted Second Quarter Ebitda NOK1.06 BlnBillerudKorsnas Second Quarter Adjusted Ebitda Misses EstimatesSchmolz + Bickenbach Cuts FY Profit Views on Trade Conflicts (1)Partners Group AuM EU79.8b; Reconfirms 2019 Gross Client DemandNOTES FROM THE SELL SIDE:The rising probability the U.K. could face a no-deal Brexit prompts JPMorgan to cut Lloyds Banking Group to neutral from overweight given the pressure this could put on the bank’s earnings and revenue.Italian utilities have the highest returns and the lowest risk perception, however, unpriced risk is high now after regulatory risk is discounted in U.K. and Spain, Citi says, cutting Enel to neutral while raising A2A to neutral.Baader Helvea cuts Bossard to hold, removing the only buy rating among analysts tracked by Bloomberg, with the broker now applying a more negative growth/margin scenario.Liberum raised ITV to buy from hold with unchanged 145p price target, following drop in shares that leaves the stock 40% below the broker’s discounted cash flow valuation.TECHNICAL OUTLOOK for Stoxx 600 index:Resistance at 397.9 (May 2018 high); 403.7 (2018 high)Support at 385.7 (76.4% Fibo); 380.8 (50-DMA)RSI: 56.8TECHNICAL OUTLOOK for Euro Stoxx 50 index:Resistance at 3,520 (76.4% Fibo); 3,596 (May 2018 high)Support at 3,413 (50-DMA); 3,403 (61.8% Fibo)RSI: 60.1MAIN RESEARCH AND RATING CHANGES:UPGRADES:A2A upgraded to neutral at CitiAston Martin upgraded to hold at Jefferies; PT 10 PoundsElekta upgraded to hold at Jefferies; PT 126 KronorITV upgraded to buy at LiberumTelenor upgraded to hold at DNB Markets; Price Target 183 KronerDOWNGRADES:Coloplast cut to sell at DNB Markets; Price Target 700 KronerEnel downgraded to neutral at CitiGetinge downgraded to sell at SEB Equities; PT 120 KronorLloyds downgraded to neutral at JPMorgan; PT 70 PencePandox downgraded to hold at DNB Markets; PT 200 KronorINITIATIONS:Glenveagh rated new buy at Berenberg; PT 1.15 EurosGreen REIT rated new buy at Berenberg; PT 2 EurosHibernia REIT rated new buy at Berenberg; PT 1.70 EurosI-RES rated new buy at Berenberg; PT 2.10 EurosJohnson Service rated new overweight at Barclays; PT 2.05 PoundsMARKETS:MSCI Asia Pacific up 0.3%, Nikkei 225 down 0.6% S&P 500 little changed, Dow up 0.1%, Nasdaq up 0.2%Euro up 0.02% at $1.126Dollar Index up 0.01% at 96.94Yen down 0.08% at 108Brent up 0.1% at $66.6/bbl, WTI little changed at $59.6/bblLME 3m Copper up 0.3% at $5999/MTGold spot up 0.1% at $1415.3/ozUS 10Yr yield little changed at 2.09% ECONOMIC DATA (All times CET):10am: (IT) May Trade Balance EU, prior 1b10am: (IT) May Trade Balance Total, prior 2.89b10:30am: (UK) June Claimant Count Rate, prior 3.1%10:30am: (UK) June Jobless Claims Change, prior 23,20010:30am: (UK) May Average Weekly Earnings 3M/YoY, est. 3.1%, prior 3.1%10:30am: (UK) May Weekly Earnings ex Bonus 3M/YoY, est. 3.5%, prior 3.4%10:30am: (UK) May ILO Unemployment Rate 3Mths, est. 3.8%, prior 3.8%10:30am: (UK) May Employment Change 3M/3M, est. 45,000, prior 32,00011am: (EC) May Trade Balance SA, est. 17.8b, prior 15.3b11am: (EC) May Trade Balance NSA, prior 15.7b11am: (GE) July ZEW Survey Current Situation, est. 5, prior 7.811am: (GE) July ZEW Survey Expectations, est. -22, prior -21.111am: (EC) July ZEW Survey Expectations, prior -20.211am: (IT) June CPI FOI Index Ex Tobacco, prior 102.711am: (IT) June CPI EU Harmonized YoY, est. 0.8%, prior 0.8%* For a wrap on developments in Europe’s equity capital markets, click here.To contact the reporters on this story: Michael Msika in London at mmsika4@bloomberg.net;Kit Rees in London at krees1@bloomberg.netTo contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, Jon MenonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Futures Up As Earnings Season Starts, Global Markets Higher, China GDP Slowest In 27 Years
    FX Empire5 days ago

    Futures Up As Earnings Season Starts, Global Markets Higher, China GDP Slowest In 27 Years

    Global indices drift higher on earnings and FOMC hopes. Both earnings and FOMC hopes could suffer as the impact of trade tariffs lingers on.

  • A China Data Dump Sets the Tone, with the Economic Calendar Light Today
    FX Empire5 days ago

    A China Data Dump Sets the Tone, with the Economic Calendar Light Today

    The Kiwi and the Aussie find support off the back of better than expected numbers out of China. Trade war chatter may be a factor later in the day.

  • European Equities: Stats Out of China May Not Be Enough…
    FX Empire5 days ago

    European Equities: Stats Out of China May Not Be Enough…

    While economic data out of China came in better than expected this morning, a lack of stats will leave the European majors in the hands of Oval Office Chatter.

  • Financial Times6 days ago

    J-pop giant Johnny Kitagawa dies aged 87

    Johnny Kitagawa, the music mogul who created Japanese supergroups SMAP and Arashi, died on Tuesday of complications from a stroke at the age of 87. Born as Hiromu Kitagawa in Los Angeles, he served in the US military during the Korean war. Mr Kitagawa later worked at the US embassy in Tokyo, where he was inspired to promote boy bands after seeing the movie West Side Story.

  • Asia Pacific Shares Finish Week Lower but US Rate Cut Talk Provides Support
    FX Empire7 days ago

    Asia Pacific Shares Finish Week Lower but US Rate Cut Talk Provides Support

    On July 10, Federal Reserve Chairman Jerome Powell helped turn the global equity markets higher after he signaled a rate cut by the Fed at the end of July. He cited slowing business investments across the U.S. due to lingering uncertainties over the economic outlook as key reasons for his dovish tone.

  • Stocks End Record-Setting Week With Further Gains: Markets Wrap
    Bloomberg8 days ago

    Stocks End Record-Setting Week With Further Gains: Markets Wrap

    (Bloomberg) -- U.S. equities closed at a record high for a second straight day, and recorded a second consecutive weekly advance, as investors remained cautiously optimistic about prospects for easier monetary policy, despite a bigger-than-projected rise in a key inflation measure. The dollar retreated for a third day.The S&P 500 Index rose Friday, led by technology and industrial shares, while drug stocks continued to weigh on the benchmark. An unexpected increase in American producer prices seemed to do little to alter investor sentiment toward the Federal Reserve’s next policy move. Treasury 10-year yields slipped.“The important thing is that the Fed has reassured the market that ‘Hey, we’re not hiking rates anymore and we may actually ease, if necessary,”’ Scott Wren, a senior global equity strategist at Wells Fargo Investment Institute, told Bloomberg TV. “I think that’s really what the market wanted. It’s a very important concept that global central banks -- and you could have said this for the last several months -- they’re not in hiking mode anymore. They are in easing mode.” The Stoxx Europe 600 eked out its first gain of the week, while shares dipped in Australia and Japan and posted modest gains in Hong Kong, China and South Korea. Emerging-market shares declined. Government bonds extended declines in Europe, heading for the worst week since at least October, after industrial output data for the euro region beat expectations. The single currency advanced.The rally in risk assets is continuing to benefit from Federal Reserve Chairman Jerome Powell’s dovish comments this week, even after strong U.S. consumer inflation data on Thursday offered a potential complication to policy makers when they set rates at the end of the month.Meanwhile, weak data from both Singapore and China sent another warning shot to the world economy on the impact of trade tensions. The reports came after President Donald Trump complained that China hasn’t increased its purchases of American farm products, a promise he said he had secured at his G-20 meeting with the country’s president Xi Jinping last month.Elsewhere, West Texas intermediate crude gained as operators in the Gulf of Mexico braced for Tropical Storm Barry. The lira weakened after Turkey said it started receiving parts of a Russian-made missile defense system, a move opposed by the U.S.Here are the main moves in markets:StocksThe S&P 500 Index climbed 0.5% as of 4:01 p.m. New York time.The Stoxx Europe 600 Index gained less than 0.05%.The U.K.’s FTSE 100 Index fell 0.1%.The MSCI Emerging Markets Index sank 0.3%.CurrenciesThe Bloomberg Dollar Spot Index declined 0.3% to the lowest in over a week.The euro rose 0.2% to $1.1271.The British pound advanced 0.4% to $1.2573, the strongest in more than a week.The Japanese yen climbed 0.6% to 107.86 per dollar, the biggest gain in over three weeks.BondsThe yield on 10-year Treasuries declined three basis points to 2.11%, the biggest drop in over a week.Germany’s 10-year yield gained two basis points to -0.21%, the highest in more than five weeks.Britain’s 10-year yield decreased less than one basis point to 0.835%.CommoditiesWest Texas Intermediate crude increased 0.1% to $60.26 a barrel.Gold gained 0.8% to $1,414.69 an ounce.\--With assistance from Adam Haigh and Laura Curtis.To contact the reporter on this story: Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Andrew DunnFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Stocks Hit Record at Close as Treasuries Retreat: Markets Wrap
    Bloomberg9 days ago

    Stocks Hit Record at Close as Treasuries Retreat: Markets Wrap

    (Bloomberg) -- U.S. equities rallied late to close at a record high, while Treasuries retreated after the latest American inflation reading came in hotter than anticipated. The dollar dropped for a second day and gold slipped. The S&P 500 gained for a straight third day after drifting much of the session. The benchmark briefly crossed above 3,000, while the Dow Jones Industrial Average surpassed 27,000. A mid-morning tweet from President Donald Trump, complaining about China trade policy, sent equities into a fleeting swoon and showed how sensitive the market remains to trade-related developments. Financial and technology shares led gainers in the the S&P, while real estate and communications lagged.An oil rally stalled out as investors weighed the threat of a tropical storm off the U.S. Gulf Coast against the prospects of more trade conflict. Yields on 10-year Treasuries hit a one-month high.Federal Reserve Chair Jerome Powell, who struck a dovish tone before a congressional panel Wednesday, returned to Capitol Hill to answer senators’ questions and suggested that the central bank has room to ease as the tie between the inflation and jobless rates has broken down.“Inflation appears to have stabilized and this will put a wrench in some Fed rate-cut bet forecasts,” Edward Moya, senior market analyst at Oanda, wrote in a note. “With wage pressure not delivering a powerful effect on inflation, we should still see day two of Fed Chair Powell’s testimony keep the rate cut expectations in place for the July 30-31st meeting.”The Stoxx Europe 600 Index faded late in the session, putting in its fifth straight daily drop. Shares rallied across most of Asia, with the South Korean and Hong Kong markets outperforming and stocks in China edging higher. Emerging-market equities jumped alongside developing-nation currencies, while the pound continued its rebound from a two-year low as the greenback fell. This year’s rallies across stocks, bonds and credit got a fresh jolt on Wednesday thanks to comments from Powell that persuaded investors rates are headed lower by at least a quarter-point in July. Minutes from the central bank’s last meeting further cemented expectations for a cut in borrowing costs.Here are some key events coming up:U.S. producer prices are due on Friday.Here are the main moves in markets:StocksThe S&P 500 Index rose 0.2% to close at a record high as of 4:01 p.m. New York time.The Stoxx Europe 600 Index fell 0.1%.The U.K.’s FTSE 100 Index fell 0.3%, its sixth consecutive decline.The MSCI Emerging Market Index increased 0.6%.CurrenciesThe Bloomberg Dollar Spot Index dipped 0.1% to the lowest in a week.The euro climbed less than 0.05% to $1.1255.The British pound climbed 0.2% to $1.2525.The Japanese yen rose less than 0.05% to 108.45 per dollar.BondsThe yield on 10-year Treasuries climbed seven basis points to 2.13%, the highest in four weeks.Britain’s 10-year yield jumped eight basis points to 0.836%, the largest surge in 14 weeks.CommoditiesWest Texas Intermediate crude rose 0.1% to $60.47 a barrel.Gold dipped 0.8% to $1,407.11 an ounce.\--With assistance from Ruth Carson, Chester Yung, Cormac Mullen, Gregor Stuart Hunter and Laura Curtis.To contact the reporters on this story: Vildana Hajric in New York at vhajric1@bloomberg.net;Olivia Rinaldi in New York at orinaldi1@bloomberg.netTo contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, ;Jeremy Herron at jherron8@bloomberg.net, Andrew Dunn, Yakob PeterseilFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Blue Chip Bounce: Bandai Namco Limit Up on Nikkei 225 ‘Surprise’
    Bloomberg9 days ago

    Blue Chip Bounce: Bandai Namco Limit Up on Nikkei 225 ‘Surprise’

    (Bloomberg) -- Shares of Bandai Namco Holdings Inc. surged by their daily limit to a record after the game maker was chosen for inclusion in Japan’s Nikkei 225 Stock Average.The stock rose 1,000 yen, or 19%, to 6,190 yen at the close after it was untraded in the regular session with bids outweighing sell orders by 14-to-1 at one point. That’s the stock’s largest gain, and its highest close, since the 2005 merger that created the company.Bandai Namco will join the blue chip gauge on Aug. 1, replacing Chiyoda Corp., which is being demoted to the Tokyo Stock Exchange’s second section after reporting liabilities in excess of its assets.“This was a surprise to everyone I spoke to after the close yesterday,” analyst Travis Lundy wrote in a note on Smartkarma. Lundy estimates 27 million shares of Bandai Namco will need to be bought as funds tracking the Nikkei 225 seek to match its weightings. That may equal about one-third of the “net available to sell,” given the possibly limited desire among individual and foreign investors to dump the stock now.Quantitative analysts at brokers including Nomura Securities Co. and SMBC Nikko Securities Inc. had expected DMG Mori Co. to be chosen, as the company is in the same capital goods sector as Chiyoda. The Nikkei often picks a stock from the same industry in cases of replacement. DMG Mori’s stock dropped 9.8% to 1,599 yen.Bandai Namco makes games for Nintendo Co.’s Switch console, among other platforms. Demand may rise following Nintendo’s announcement Wednesday of a cheaper version of the Switch. Bandai Namco is also active in mobile games, which may be poised for improved growth in the second half of this year, Bloomberg Intelligence says.Chiyoda fell 2.6% to 305 yen at the close. Given its large price gap with Bandai Namco, the substitution is seen impacting other names on the price-weighted Nikkei 225. Fast Retailing Co. is the most expensive stock on the gauge at 67,650 yen.“We expect this addition of a highly priced stock to reduce the weighting of those stocks that have a high weighting in the Nikkei Average,” Junichi Hashimoto, an analyst at Daiwa Securities Co., wrote in a report.(Updates prices; adds details and quote about index impact in last two paragraphs.)To contact the reporter on this story: Kurt Schussler in Tokyo at kschussler1@bloomberg.netTo contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Kurt Schussler, Teo Chian WeiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • U.S. Stocks Rise With Gold, Dollar Slips on Powell: Markets Wrap
    Bloomberg10 days ago

    U.S. Stocks Rise With Gold, Dollar Slips on Powell: Markets Wrap

    (Bloomberg) -- U.S. stocks rose toward all-time highs, gold rallied and the dollar fell as comments by Jerome Powell cemented market bets for a rate cut this month. Treasuries were mixed.Equities that had slumped since Friday’s strong jobs report rallied back to intraday records after the Fed chairman signaled a willingness to lower rates, citing a slowing global economy and trade issues. Minutes from the Fed’s June meeting confirmed an inclination among officials to cut rates soon.Gains faded as Powell testified to Congress, with financial shares leading the pullback. The S&P 500 briefly topped 3,000 for the first time.“Psychologically, when you hit those round numbers you get a little bit of resistance -- you hit it and it fails,” said Aaron Clark, portfolio manager at GW&K Investment Management. “The big round numbers, you tend to get a level that’s tough to power through.”The yield on 10-year Treasuries fell as low as 2.04% after climbing above 2.10% for the first time in a month before settling around 2.06%. Two-year rates slumped while longer-dated bond yields rose. The dollar weakened versus major peers, gold topped $1,400 again and oil rose above $60 a barrel in New York.“A rate cut in July is now all but certain,” said James McCann, senior global economist at Aberdeen Standard Investments. “The strength of last week’s jobs number did lead some to think that the Fed may pause for thought. It’s clear from this that they won’t.”Powell’s remarks came ahead of two days of testimony in Congress on the economic and policy outlook. With both equities and bonds sitting on outsize gains since the start of the year, it’s unclear what further impetus they can get given that traders are already discounting a cycle of interest-rate cuts.In Europe, strong manufacturing data from France and low demand at an auction of German bunds weighed on government debt. The pound halted a drop to a two-year low as data showed the U.K. economy rebounded in May. The trading session in Asia was mixed, with modest gains in Hong Kong and South Korea and slides in Japan and China.Here are some key events coming up:Powell testifies to Senate Banking Committee on ThursdayECB minutes are due on Thursday.A key measure of U.S. inflation -- the core consumer price index, due Thursday -- is expected to have increased 0.2% in June from the prior month, while the broader CPI is forecast to remain unchanged.U.S. producer prices are due on Friday.Here are the main moves in markets:StocksThe S&P 500 rose 0.5% to 2,993 as of 4 p.m. New York time.The Dow Jones Industrial Average advanced 0.3%, while the Nasdaq-100 Index gained 1% to a record high.The Stoxx Europe 600 Index declined 0.2%.The MSCI Asia Pacific Index climbed 0.3%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%.The euro climbed 0.4% to $1.125.The British pound rose 0.3% to $1.2506.The Japanese yen added 0.4% to 108.448 per dollar.BondsThe yield on 10-year Treasuries fell one basis point to 2.06%.The two-year rate dropped nine basis points to 1.82%.Germany’s 10-year yield climbed five basis points to -0.31%.CommoditiesThe Bloomberg Commodity Index climbed 1.8%.West Texas Intermediate crude surged 4.4% to $60.35 a barrel.Gold futures rose 1.3% to $1,419 an ounce.\--With assistance from Adam Haigh, Sophie Caronello, Laura Curtis, Rita Nazareth and Colin Beresford.To contact the reporters on this story: Vildana Hajric in New York at vhajric1@bloomberg.net;Jeremy Herron in New York at jherron8@bloomberg.netTo contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Robert BrandFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Tech Pulls Stocks Higher on Eve of Powell Report: Markets Wrap
    Bloomberg11 days ago

    Tech Pulls Stocks Higher on Eve of Powell Report: Markets Wrap

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.U.S. stocks closed a whisker higher after treading water for most of the session as markets braced for an onslaught of central bank news this week. The dollar strengthened to its highest level since mid-June and Treasuries slipped.The S&P 500 Index perked up just before the close Tuesday, with gains in technology shares helping to offset a slump in materials and consumer staples. So-called FAANG shares -- including Amazon.com Inc. and Facebook Inc. -- led advancers in the equity benchmark.Trading may stay choppy ahead of key testimony this week from Federal Reserve Chair Jerome Powell as observers assess prospects for easing following conflicting signals on the global economy. Stock and bond investors are struggling to find fresh reasons to chase this year’s rallies, but an interest rate cut by the Fed this month is already priced and recent economic data has been mixed, making the path for future policy less clear.“Powell is likely to walk a fine line between the hawks and doves in his testimony -- giving a nod to the underlying strength in the domestic economy on the one hand, while also acknowledging the persistently subdued inflation backdrop and global uncertainties on the other,” said Candice Bangsund, vice president and portfolio manager at Fiera Capital Corp.The Stoxx Europe 600 Index closed lower after the world’s largest chemical company, BASF, slashed its 2019 earnings forecast, blaming global trade conflicts. Stocks reversed gains in Japan, fluctuated in South Korea and saw modest slides in Hong Kong and China. Italian bonds rose as the country took advantage of low borrowing costs to sell 50-year bonds. The Mexican peso slid after the country’s finance minister announced his resignation.Elsewhere, West Texas intermediate crude gained following a report that Russian output declined. Bitcoin extended Monday’s 11% jump. The pound weakened as economists predicted the U.K. economy likely shrank for the first time since 2012 in the second quarter.Hong Kong’s dollar dipped as the city’s leader Carrie Lam said a controversial bill that would allow extraditions to China was “dead,” but stopped short of saying she’d withdraw the legislation after weeks of protests.Here are some key events coming up:Powell testifies before Congress on monetary policy and the state of the U.S. economy on Wednesday (the House of Representatives) and Thursday (the Senate).Fed minutes are due on Wednesday, ECB minutes on Thursday.A key measure of U.S. inflation -- the core consumer price index, due Thursday -- is expected to have increased 0.2% in June from the prior month, while the broader CPI is forecast to remain unchanged.U.S. producer prices are due on Friday.Here are the main moves in markets:StocksThe S&P 500 Index gained 0.1% as of 4:01 p.m. New York time.The Stoxx Europe 600 Index sank 0.5% to the lowest in more than a week. The U.K.’s FTSE 100 Index decreased 0.2%.Germany’s DAX Index slid 0.9%, the biggest decrease in more than five weeks.The MSCI Emerging Market Index fell 0.4%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.2% to its highest in three weeks.The British pound fell 0.4% to $1.2464, the weakest in more than two years.The euro decreased 0.1% to $1.1207, the lowest in three weeks.The Japanese yen weakened 0.2% to 108.89 per dollar.The Mexican peso dropped 1.1% to 19.1273 per dollar, the biggest tumble in over five weeks.BondsThe yield on 10-year Treasuries rose one basis point to 2.06%, a three-week high.Germany’s 10-year yield increased one basis point to -0.35%, the highest in more than a week.Britain’s 10-year yield rose one basis point to 0.72%.CommoditiesWest Texas Intermediate crude gained 0.6% to $58.02 a barrel.Gold rose 0.1% to $1,396.76 an ounce.\--With assistance from Laura Curtis.To contact the reporter on this story: Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Andrew DunnFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • European Equities: A Lack of Stats Leaves Geopolitics and Monetary Policy in Focus
    FX Empire11 days ago

    European Equities: A Lack of Stats Leaves Geopolitics and Monetary Policy in Focus

    A lack of stats leaves the markets to focus on FED Chair Powell’s testimony to Congress tomorrow and geopolitical risk, which could test the majors.

  • U.S. Stocks Decline; Dollar, Treasuries Mixed: Markets Wrap
    Bloomberg12 days ago

    U.S. Stocks Decline; Dollar, Treasuries Mixed: Markets Wrap

    (Bloomberg) -- U.S. equities fell as investors took a cautious approach to a week full of central bank activity. Treasuries edged lower and gold retreated.The S&P 500 slipped for a second day after Friday’s blow-out jobs report altered market calculus for Federal Reserve rate cuts. Tech and health-care shares led decliners, with Apple Inc. falling 2.1% after a downgrade. U.S.-listed shares of BASF SE tumbled more than 5% after the German company cut its forecast. Shorter-term Treasuries fell and gold slipped fell for a third day, while the dollar edged higher versus major peers.The main focus for markets this week looks to be Fed Chairman Jerome Powell, who will testify in Congress just days after the latest payroll report signaled that the American economy remains on track. U.S. stocks hit a record last week and a bond rally took yields to multiyear lows amid expectations the Fed will lower interest rates by at least a quarter of a percentage point at its July meeting. Joe "JJ" Kinahan, the chief market strategist at TD Ameritrade, sees a high likelihood of a July cut.“If they don’t do something, it’s going to be mightily disappointing,” he said. “I think, September, you have high probabilities also -- but there may be a little bit of waiting to see what the data says going into September.”The Stoxx Europe 600 Index slipped, with Deutsche Bank AG surrendering earlier gains as traders weighed a plan to cut its workforce by one-fifth. The euro fell after German industrial-production data saw a slight pick-up in May. Greek bonds rose amid hope a new government elected over the weekend will prove to be market-friendly.Elsewhere, oil gained amid heightened geopolitical risks in the Middle East. Emerging-market shares were dragged down by the Asia sell-off. Turkey’s lira fell after President Recep Tayyip Erdogan’s shock decision to replace the country’s central bank governor, which has fueled concern the regulator could lower borrowing costs more than expected.Here are some key events coming up:U.K. Conservative Party members start voting Monday to choose Theresa May’s successor. Front-runner Boris Johnson and Jeremy Hunt will appear at events through the week, including a televised debate on July 9.Federal Reserve Chairman Jerome Powell testifies before Congress on monetary policy and the state of the U.S. economy on Wednesday (the House of Representatives) and Thursday (the Senate).Fed minutes are due on Wednesday, ECB minutes on Thursday. A key measure of U.S. inflation -- the core consumer price index, due Thursday -- is expected to have increased 0.2% in June from the prior month, while the broader CPI is forecast to remain unchanged. U.S. producer prices are due on Friday. Here are the main moves in markets:StocksThe S&P 500 Index decreased 0.5% as of 4 p.m. New York time.The Nasdaq 100 lost 0.7% and the Dow Jones Industrial Average fell 0.4%.The Stoxx Europe 600 Index declined 0.1%.Germany’s DAX Index dipped 0.2%.The MSCI Emerging Market Index fell 1.3%, the biggest fall in more than six weeks.CurrenciesThe Bloomberg Dollar Spot Index gained 0.1%.The euro fell 0.1% to $1.1218, the weakest in almost three weeks.The Japanese yen decreased 0.2% to 108.672 per dollar, the weakest in more than five weeks.The Turkish lira declined 1.9% to 5.7392 per dollar, the biggest decrease in two months.BondsThe yield on 10-year Treasuries rose more than one basis point to 2.05%.The two-year rate rose three basis points to 1.89%, while 30-year yields fell two basis points to 2.53%.Germany’s 10-year yield was flat at -0.366%.CommoditiesWest Texas Intermediate crude was flat near $57.50 a barrel.Gold futures slipped 0.4% to $1,394.80 an ounce.\--With assistance from Emily Barrett.To contact the reporters on this story: Laura Curtis in London at lcurtis7@bloomberg.net;Olivia Rinaldi in New York at orinaldi1@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Andrew DunnFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Asia Proves That Good News is Bad News For Risky Assets
    FX Empire12 days ago

    Asia Proves That Good News is Bad News For Risky Assets

    We’ve argued that the equity rally has been driven by liquidity, momentum and this concept of TINA – i.e. There Is No Alternative.

  • German Economic Data to Put the EUR in the Spotlight
    FX Empire12 days ago

    German Economic Data to Put the EUR in the Spotlight

    It could be a choppy day ahead for the majors, with economic data out of Germany and geopolitics in focus on the day.