^N225 - Nikkei 225
| Previous close | 23,424.81 |
| Open | 23,810.56 |
| Volume | 0 |
| Day's range | 23,775.73 - 24,050.04 |
| 52-week range | 18,948.58 - 24,050.04 |
| Avg. volume | 64,720 |
- Bloomberg
Stocks End Higher as Partial Trade Deal Clinched: Markets Wrap
(Bloomberg) -- U.S. stocks ended a tumultuous session higher with major benchmarks notching records as investors attempted to assess the contours of a partial deal reached between the U.S. and China.Stocks swung between gains and losses throughout the day, while Treasuries surged as neither side delivered enough details to calm investors who sent shares to records Thursday on reports fresh tariffs due Sunday have been averted.President Donald Trump confirmed as much Friday, but it remained unclear whether China agreed to enough agricultural purchases or if the U.S. had planned to roll back some existing tariffs.The S&P 500 eked out a gain, rising for the ninth week out of the last 10, after Trump signaled he’d cut in half the tariffs that took hold in September. The U.S. will maintain levies that began in the spring. The 10-year Treasury yield fell below 1.82%.“Both sides now seem to be negotiating in public,” Matt Maley, an equity strategist at Miller Tabak & Co., said. “The uncertainty makes it impossible to make concrete investment decisions. These negotiations have turned into a circus.”The dollar was steady against major peers after U.S. retail sales data fell short of estimates. West Texas crude and gold advanced.The fresh trade headlines overshadowed the U.K. election that puts the country on track to leave the European Union next month. The FTSE 100 index rose more than 1% and the pound surged.These are the main moves in markets:StocksThe S&P 500 Index rose 0.01% at 4 p.m. New York time.The Nasdaq 100 added 0.2%.The Stoxx Europe 600 Index advanced 1.1%.The U.K.‘s FTSE 100 Index rose 1.1%.The MSCI Asia Pacific Index gained 1.6%.CurrenciesThe Bloomberg Dollar Spot Index was flat.The British pound increased 1.3% to $1.3338.The euro dropped 0.1% at $1.1114.The Japanese yen was steady at 109.31 per dollar.BondsThe yield on 10-year Treasuries fell seven basis points to 1.82%.The two-year yield fell six basis points to 1.60%.Germany’s 10-year yield lost one basis point to -0.279%.Britain’s 10-year yield gained three basis points to 0.845%.CommoditiesWest Texas Intermediate crude advanced 1.3% to $59.97 a barrel.Gold futures rose 0.6% to $1,480.70 an ounce.\--With assistance from Cormac Mullen.To contact the reporters on this story: Luke Kawa in New York at lkawa@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Jeremy HerronFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- FX Empire
Asian Shares Soar Amid Trade Optimism
Japanese big manufacturer’s business mood sank to a near seven year low in the fourth quarter, a closely watched central bank survey showed, as the U.S.-China trade war and soft global demand weighed on the export-reliant economy.
- Bloomberg
U.S. Stocks Rise on Fresh Optimism Over China Deal: Markets Wrap
(Bloomberg) -- U.S. stocks rose to records on optimism that the Trump administration will clinch a deal with China on trade and avert fresh tariffs. The pound fell ahead of the first exit polls in the U.K. general election.The S&P 500 rallied following a Bloomberg report that American officials had reached a deal in principle that only needed Trump’s approval. Shortly after U.S. markets closed, news broke that the president had signed off on the agreement to avert tariffs set for Dec. 15.A breakthrough on trade would remove a major overhang for equity investors just a day after the Federal Reserve signaled it is no rush to raise interest rates as the economy shows steady improvement. Trade headlines whipsawed stocks all day, as investor optimism rose and fell with the latest negotiation-by-tweet.Thursday’s gain in American stocks pushed the MSCI All-Country index to its first record since January 2018. The spike in Treasury yields boosted financial stocks, lifting the S&P 500 Financial index past its closing high from May 2007.In Europe, the central bank said it would maintain bond buying and keep rates low until it gets near its inflation goal. The Swiss franc nudged higher after the central bank left rates unchanged. The pound fell as U.K. voters went to the polls.Elsewhere, Saudi Aramco shares jumped for a second day, pushing the oil giant’s value beyond the $2 trillion mark. Oil futures rose. The lira gained as the Turkish central bank delivered another interest-rate cut that exceeded forecasts.These are the main moves in markets:StocksThe S&P 500 Index rose 0.9% at 4 p.m. New York time.The Dow Jones Industrial Average jumped 0.8%.The Stoxx Europe 600 Index rose 0.3%.The MSCI All-World Index rose 0.8% to a record.The MSCI Asia Pacific Index rose 0.6%.CurrenciesThe Bloomberg Dollar Spot Index was flat.The euro was flat at $1.113.The British pound lost 0.2% to $1.3166.The Japanese yen fell 0.7% to 109.35 per dollar.BondsThe yield on 10-year Treasuries rose 11 basis points to 1.897%.The two-year Treasury rate added five basis points to 1.66%.Germany’s 10-year yield spiked to -0.27%.CommoditiesWest Texas Intermediate crude climbed 0.9% to $59.31 a barrel.Gold futures fell 0.1% to $1,474.20 an ounce.\--With assistance from Jeremy Herron and Sam Potter.To contact the reporters on this story: Claire Ballentine in New York at cballentine@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Sam PotterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- FX Empire
Asian Shares Boosted by Fed Signals; Trump to Meet with Top Advisors over Tariffs
U.S. President Donald Trump is expected to meet with top trade advisors on Thursday to discuss planned December 15 tariffs on some $160 billion in Chinese goods, three sources familiar with the plans said, according to Reuters, as markets braced for potential negative impacts.
- Bloomberg
Nikkei-Topping Chip Stocks Poised to Extend Gains in 2020
(Bloomberg) -- A dramatic turnaround in semiconductor stocks has been the hottest theme in Japan’s stock market this year, and it may just be the tip of the iceberg.Advantest Corp. is the Nikkei 225 Stock Average’s runaway winner for 2019, up almost 150% with a couple of weeks remaining. After languishing well into the summer, the stock took off in the second half, helped by expectations for 5G communications technology. A similar rebound was seen in chip equipment peers Tokyo Electron Ltd. and Screen Holdings Co., which are also in the Nikkei’s top 10 best performers.Tech gains have helped boost one of this year’s best-performing large funds focused on Japan. Fidelity’s Japan Growth Fund is up 27%, beating 96% of its peers and outpacing the Nikkei’s 255 17% advance.“Around mid-year, semiconductor-related stocks and electronic part makers’ earnings had bottomed and started to make a comeback,” said Takashi Maruyama, head of Japan equities for Fidelity International. “We had already incorporated them into our fund. Markets became concerned when semiconductor shares fell around June, but we maintained our position.”The chip equipment makers were all in the top 10 gainers again Thursday, along with silicon wafer maker Sumco Corp. A trade show taking place this week in Tokyo is just the latest tailwind.“Semicon Japan taking place right now seems to have re-energized semi names, as the recovery prospects for next year are firming up,” Amir Anvarzadeh, a market strategist at Asymmetric Advisors, said in a note. “Memory, which has been the missing piece, is showing good signs of bottoming out, led by data center growth but also promise of higher density LP-DDR DRAMs and NAND for 5G smartphones going into next year.”Chip stocks have been the leaders in the U.S. this year as well. Peers got a boost overnight as BofA said Apple Inc.’s expected 5G iPhone will be a positive catalyst for chipmaker Qualcomm Inc., a customer of Sumco, Advantest and Tokyo Electron.The World Semiconductor Trade Statistics predicts the chip market will rebound from a decline this year to 6% growth next year, to $433 billion, according to a report from CLSA Securities Japan. While global trade conflicts and the 2020 elections in the U.S. pose potential risks, the market outlook remains bright, the broker said.“Rollout of 5G services and the hyperscale data-center capital investment cycle point to considerably better demand conditions for memory in 2021,” CLSA analyst Yu Yoshida wrote in a report dated Monday. “We would regard any share-price weakness in 2020 due to political risk as an opportunity to buy for 2021.”To contact the reporters on this story: Kurt Schussler in Tokyo at kschussler1@bloomberg.net;Shoko Oda in Tokyo at soda13@bloomberg.netTo contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Teo Chian WeiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Bloomberg
Stocks Rise, Dollar Falls on ‘Accommodative’ Fed: Markets Wrap
(Bloomberg) -- U.S. stocks rose with Treasuries, while the dollar fell after the Federal Reserve left interest rates unchanged and its chairman signaled it would keep policy “somewhat accommodative.”The S&P 500 halted a two-day slide as investors viewed the last Fed decision of the year as dovish because the central bank signaled rate hikes are unlikely unless there is a meaningful change in the outlook for the economy. The 10-year Treasury rate fell below 1.8%.The Fed, in its first unanimous vote since May, said it will continue to monitor the implications of data for the economic outlook “including global developments and muted inflation pressures.”“It’s ‘steady as she goes’ from the Fed today,” said Jason Pride, chief investment officer of private wealth at Glenmede Trust. “This accommodative stance should provide a measure of support for risk assets heading into the new year.”Equity gains had been muted throughout the session as investors kept an eye out for trade headlines. The Dow Jones Industrial Average was little changed amid more trouble for Boeing Co.’s Max plane and Home Depot Inc.‘s weak forecast. Crude slipped after U.S. inventory data.With the world’s top two economies still wrangling over an interim deal, Thursday may bring news as Trump is expected to meet with his trade team, according to people familiar with the talks.Here are some other key events to watch:Brazil’s central bank also decides on interest rate.The next European Central Bank policy meeting is on Thursday.The U.K. holds a general election Thursday.And these are the main market moves:\--With assistance from Claire Ballentine.To contact the reporters on this story: Sarah Ponczek in New York at sponczek2@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- FX Empire
Asian Shares Mostly Higher as Investors Await Fed Policy Decisions; Tariffs Worries Continue
Perhaps capping stock market gains are comments from White House Economic advisor Larry Kudlow, who on Tuesday downplayed reports of a tariff delay, noting the Trump Administration could still move forward with new levies targeting Chinese goods.
- Bloomberg
Stocks Drop With Bonds as Trade Deadline Looms: Markets Wrap
(Bloomberg) -- U.S. stocks fell for a second day as investors pulled back ahead of the Federal Reserve rate decision, U.K. election and Sunday’s tariff deadline. Treasuries slipped.The S&P 500 Index fluctuated for most of the day before ending lower. Trade took center stage, with investors debating whether China and the Trump administration will reach a meaningful trade deal to avert fresh tariffs. Multiple reports indicated a delay was likely, before administration officials said the outcome depends on how talks progress. The two sides say a partial deal remains within reach, though the contours have not been made clear. Crude rose.“The trade talks and headlines are going to be very fluid this week,” said Ryan Nauman, market strategist at Informa Financial Intelligence’s Zephyr. “You’ve got a lot of stuff going on this week, just a lot of information that traders are having to contend with. But trade talks and headwinds are definitely driving risk-on or risk-off trades right now.”In other trade news, Canada, Mexico and the U.S. moved toward an agreement that appeared to have legislative support in each of the countries. Mexico’s peso was little changed.“Those three countries are highly dependent on each other so I don’t think there likely to be anything that is that far away from where we’re at,” said Jim Besaw, chief investment officer at GenTrust.Trade continued to dominate sentiment on equity markets, with the dispute between the world’s two largest economies taking much of the blame for a slowdown in global growth. The spat is overshadowing a spate of central bank meetings this week, including the Federal Reserve gathering Wednesday. House Democrats are expected to unveil impeachment charges later Tuesday against President Donald Trump.The pound rose ahead of a key political poll and just two days before a general election dominated by Brexit. The euro advanced while European bonds drifted lower after French and German economic data beat expectations.Here are some key events to watch this week:The Federal Reserve decides on interest rates on Wednesday, followed by a press briefing from Chairman Jerome Powell.The next European Central Bank policy decision is on Thursday.The U.K. holds a general election Thursday.These are some of the main moves in markets:\--With assistance from Sarah Ponczek.To contact the reporters on this story: Vildana Hajric in New York at vhajric1@bloomberg.net;Claire Ballentine in New York at cballentine@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- FX Empire
Asian Shares Lower as Surge in Chinese Consumer Inflation Rattles Investors
China’s consumer inflation climbed to nearly eight-year peaks in November as pork prices doubled, but factory-gate prices remained in the red, adding to uncertainty over whether the manufacturing sector is bottoming out as trade risks persist.
- Bloomberg
U.S. Stocks Decline, Bonds Mixed on Trade Jitters: Markets Wrap
(Bloomberg) -- U.S. stocks fell in thin trading as investors turned cautious ahead of a week full of potential catalysts, from central bank meetings to a looming tariff deadline. Treasury 10-year notes held modest gains.The S&P 500 ended at session lows in volumes below the 30-day average. Weak China export data added to concern, with investors awaiting news on whether Washington will go ahead with a planned Dec. 15 tariff hike. The Stoxx Europe 600 Index retreated. Stock indexes posted modest increases in Tokyo and Seoul, though gains mostly fizzled in Hong Kong and Shanghai.The pound edged higher as polls continued to show the U.K. Conservative Party on course to win a majority in Thursday’s election, which would likely mean Britain leaving the European Union by Jan. 31. Gold and the yen were also slightly higher.With time running out for the U.S. and China to reach a deal that would ward off an escalation in tariffs, markets will be watching closely for any signs of progress. White House economic adviser Larry Kudlow said Friday the two sides are haggling over the amount of American farm products Beijing is willing to purchase. Data showed China’s exports fell 1.1% in November, with those to the U.S. tumbling 23%, underscoring why the Asian nation may want to resolve the dispute.“There’s no upside risks on the horizon,” Katrina Ell, an economist at Moody’s Analytics, said on Bloomberg TV. “It is weighted to the downside and that big downside risk is coming from the trade war.”Also in focus for investors this week will be central banks, with policy meetings at the Federal Reserve and the European Central Bank that may offer clues on whether more monetary easing is in store in 2020.Elsewhere, oil slipped, trimming last week’s rally spurred by Saudi Arabia promising significant additional production cuts beyond what was agreed with fellow OPEC+ members.Here are some key events to watch this week:The Federal Reserve decides on interest rates on Wednesday, followed by a press briefing from Chairman Jerome Powell.China reports on inflation Tuesday, and data on credit growth is due at some point in the coming weekThe next European Central Bank policy decision is on Thursday.The U.K. holds a general election Thursday.These are some of the main moves in markets:What’s your 2020 vision? Terminal users are invited to join the Markets Live blog’s survey.\--With assistance from Vildana Hajric.To contact the reporter on this story: Sam Potter in London at spotter33@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Yakob PeterseilFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- FX Empire
Asian Shares Rise on Robust U.S. Jobs Data, China Worries Cap Gains
China’s exports in November shrank for the fourth consecutive month, underscoring persistent pressures on manufacturers from the Sino-U.S. trade war but growth in imports may be a sign that Beijing’s stimulus steps are helping to stoke demand. Top White House economic adviser Larry Kudlow said on Friday that a December 15 deadline is still in place to impose a new round of U.S. tariffs on some $156 billion of China’s remaining exports to the United States.
- Financial Times
Taiwan loses 3,000 chip engineers to ‘Made in China 2025’
China is ramping up recruitment of Taiwanese talent in semiconductors, attracting top executives and engineers alike to bolster an industry that the US trade war has shown to be a Chinese Achilles heel. The aggressive campaign has sparked concerns about a brain drain in Taiwan’s chip industry, which is struggling to compete with generous offers by cash-rich mainland companies. One man in his 50s left a longtime job at a leading Taiwanese semiconductor maker a year ago for a position on the mainland.
- FX Empire
Asia Pacific Weekly Stock Indexes: Australia Dips on Trade War Fears, Japan Boosted by New Stimulus Measures
Stocks in major Asian markets saw gains on the first trading day of December as Chinese factory activity presented a positive surprise in November.
- Bloomberg
Stocks Rally as Traders Cheer U.S. Economic Data: Markets Wrap
(Bloomberg) -- Stocks rallied around the globe and Treasuries fell as better-than-expected data bolstered confidence in the world’s largest economy.The S&P 500 Index extended its advance into a third day after reports showed payrolls jumped 266,000 -- the most since January -- as wages beat estimates while consumer sentiment increased. Energy, financial and industrial shares led gains in the equity gauge, which posted its biggest rally in five weeks. The dollar rose, and Treasury 10-year yields traded above 1.8%. Oil surged.Investors pushed up the value of risk assets on the assumption that the American economy isn’t close to signaling a recession -- a fear that’s been lurking amid a trade war. While negotiators are near phase one of a broader accord and “progress has been made,” they haven’t yet put anything in writing, said White House economic adviser Larry Kudlow. Strong economic reports may reduce the urgency for a deal, given that escalating levies have failed to significantly dent growth. They also validate Federal Reserve Chairman Jerome Powell’s view that rates can stay on hold after three cuts.“For the equity market, it provides some encouragement that the U.S. is certainly not heading for a hard landing,” said James McCann, senior global economist at Aberdeen Standard Investments. “As we head into next year, the prospect for earnings still remains pretty healthy based on a still well-supported consumer backdrop.”Read: Wall Street Scraps Recession Assumptions After Robust Jobs DataStocks got whipsawed this week on conflicting signs of progress in trade negotiations between the world’s two largest economies. China said Friday it’s in the process of waiving retaliatory tariffs on imports of U.S. pork and soy by domestic companies -- a procedural step that may also signal a broader trade agreement is drawing closer. President Donald Trump has threatened to impose tariffs on Chinese imports if an accord isn’t reached by Dec. 15, which Kudlow said could still happen.Elsewhere, oil climbed as Saudi Arabia surprised the market by promising significant additional production cuts beyond what was agreed with fellow OPEC+ members. The euro fell after data showed Germany’s industrial slump unexpectedly deepened in October.Some corporate highlights:Apple Inc. jumped to a record high.Big Lots Inc. soared on its bullish view for next year.Ulta Beauty Inc. surged after delivering what analysts called “better-than-feared” results.Ciena Corp. tumbled after UBS recommended selling the stock ahead of next week’s earnings.These are some of the main moves in markets:StocksThe S&P 500 climbed 0.9% to 3,145.90 at 4 p.m. New York time.The Stoxx Europe 600 Index increased 1.2%.The MSCI Asia Pacific Index rose 0.5%.CurrenciesThe Bloomberg Dollar Spot Index added 0.1%.The euro dipped 0.4% to $1.106.The Japanese yen appreciated 0.2% to 108.57 per dollar.BondsThe yield on 10-year Treasuries rose three basis points to 1.84%.Germany’s 10-year yield climbed one basis point to -0.29%.Britain’s 10-year yield fell less than one basis point to 0.772%.CommoditiesThe Bloomberg Commodity Index climbed 0.2%.West Texas Intermediate crude climbed to $59.20 a barrel.Gold declined 1.2% to $1,465.10 an ounce.\--With assistance from Cormac Mullen, Eddie van der Walt, Sam Potter 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.
- FX Empire
Asian Shares Firm Ahead of US NFP Report; Japan Household Spending Disappoints
The Wall Street Journal reported Thursday that Washington and Beijing are still in disagreement over the size of China’s agricultural purchases. Meanwhile, China has given little indication on how negotiations with the U.S. are progressing.
- Bloomberg
Stocks Advance on Fresh Hopes for U.S.-China Deal: Markets Wrap
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Stocks rose and bonds fell on speculation the U.S. and China will reach a deal that avoids tariffs due to take hold in 11 days.The S&P 500 Index halted a three-day slide after Bloomberg News reported negotiators are getting near an agreement on the amount of tariff relief in a phase-one accord between the world’s two largest economies. President Donald Trump said discussions with China are going very well, just a day after downplaying the urgency of a deal. Treasury 10-year yields climbed, following the biggest decline since August. The dollar dropped. Oil surged.Investors are watching for any signs of progress in talks between Washington and Beijing as worries increase that Trump may slap more tariffs on China this month. A flood of trade news has whipsawed global markets, with the U.S. also threatening levies on France after hitting steel from Brazil and Argentina. American equities reached record highs in November, driven in part by optimism that at least an initial trade deal was in the offing.“You wake up every single day and see that the number one thing that’s dictating markets is trade,” said Matt Miskin, co-chief investment strategist at John Hancock Investment Management. “If those tariffs are avoided, then the recent gains in the market will likely hold.”On corporate news:Expedia Group Inc. surged as Chief Executive Officer Mark Okerstrom and Chief Financial Officer Alan Pickerill resigned after clashing with the board on the online travel agency’s direction.Cloud software stocks fell as disappointing forecasts from Workday Inc. and Salesforce.com Inc. added to concern about slowing growth.Peloton Interactive Inc. slumped as a report said it lowered the price of its digital subscription app for workouts in an effort to appeal to more users.Elsewhere, oil rallied as Energy Information Administration data showed U.S. crude inventories fell more than expected. The British pound touched the highest against the euro since May 2017 as traders stepped up bets on a win for the Conservatives in next week’s election.Here are some key events coming up this week:Germany releases factory-order data for October on Thursday.Saudi Aramco’s initial public offering is scheduled to be priced on Thursday, with Riyadh looking to raise more than $25 billion.Friday brings the U.S. jobs report, where estimates are for non-farm payrolls to rise by 190,000 in November.These are the main moves in markets:StocksThe S&P 500 climbed 0.6% to 3,112.76 at 4 p.m. New York time.The Stoxx Europe 600 Index rose 1.2%.The MSCI Asia Pacific Index dipped 0.7%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%.The euro was little changed at $1.1077.The British pound climbed 0.8% to $1.3105.The Japanese yen weakened 0.2% to 108.85 per dollar.BondsThe yield on 10-year Treasuries rose five basis points to 1.77%.Germany’s 10-year yield climbed three basis points to -0.32%.Britain’s 10-year yield jumped seven basis points to 0.741%.CommoditiesWest Texas Intermediate crude surged to $58.43 a barrel.Gold fell 0.3% to $1,480.20 an ounce.\--With assistance from Adam Haigh, Todd White, Sam Potter and Robert Brand.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 Times
Wall Street banks bet on rebound in battered Hong Kong stocks
A number of leading Wall Street banks are advising clients to make heavy bets on Hong Kong stocks, urging them to look again at a market that has been hammered by months of political tumult. On Wednesday, the IMF predicted Hong Kong’s economy would contract 1.2 per cent this year and grow just 1 per cent in 2020 in comparison with a 3 per cent expansion in 2018. Companies listed in the index derive much of their revenue from mainland China, meaning they would benefit from a “phase one” trade deal between the Washington and Beijing.
- Bloomberg
Stocks Drop, Bonds Jump as Trump Dents Trade Hopes: Markets Wrap
(Bloomberg) -- Stocks dropped around the world and bonds rallied after President Donald Trump aimed his tariff weapon on economies from South America to Europe and China, denting hopes for a global recovery.The S&P 500 Index fell for a third day, though it pared some of its losses in afternoon trading. The morning brought a flood of trade headlines that rattled markets, with the Trump administration signaling the U.S. plans to move forward with tariffs on Chinese goods if no deal is reached before the mid-December deadline. The president had earlier indicated he’d be willing to wait another year before striking an agreement with China. He also threatened levies on France after hitting steel from Brazil and Argentina.Treasuries surged, driving yields down the most since August, as gold, the yen and the Swiss franc paced gains among haven assets. The cost to protect North American investment-grade debt against default jumped as trade-war induced volatility shook markets. Jefferies warned currency traders to buckle up before the tariff deadline, saying “put your helmet back on.”Read: JPMorgan Says Get Used to ‘Muddling’ Market at Risk of Flare-UpsThe flurry of trade news roiled global markets just as investors started dipping their toes into riskier waters. A rush to assets that usually outperform during times of economic growth pushed U.S. stocks to record highs last month. But renewed tariff tension and signs of profit deterioration could make traders again more cautious amid the longest bull market on record.“The narrative on trade has quickly been turned upside down as negative headlines on tariffs have ignited a risk-averse tone in the markets,” said Charlie Ripley, senior investment strategist for Allianz Investment Management. “Today’s headlines are a short reminder of the downside risks that still remain across the investing landscape.”Chinese state media said Tuesday the government would soon publish a list of “unreliable entities” that could lead to sanctions against American companies. Meantime, France said the European Union would retaliate if the U.S. follows through on a threat to hit about $2.4 billion of French products with levies.Read: Hedge Funds’ Distaste for Cyclical Shares Looks Smart This WeekIn afternoon trading, U.S. equities trimmed their declines amid a rally in defensive companies such as real estate and utilities. Despite Tuesday’s losses, the S&P 500 was still up 23% in 2019.“Regardless of trade tensions, it’s natural to see a bit of a dip after the huge gains we’ve seen this year,” said Mike Loewengart, vice president of investment strategy at E*Trade Financial Corp.Elsewhere, oil rose as traders focused on the upcoming OPEC+ meeting that could lead to deeper supply cuts by some of the biggest crude producers.Here are some key events coming up this week:Germany releases factory-order data for October on Thursday.Saudi Aramco’s initial public offering is scheduled to be priced on Thursday, with Riyadh looking to raise more than $25 billion.Friday brings the U.S. jobs report, where estimates are for non-farm payrolls to rise by 190,000 in November.These are the main moves in markets:StocksThe S&P 500 dipped 0.7% to 3,093.20 as of 4 p.m. New York time.The Stoxx Europe 600 Index decreased 0.6%.The MSCI Asia Pacific Index fell 0.3%.CurrenciesThe Bloomberg Dollar Spot Index decreased 0.1%.The euro was little changed at $1.108.The Japanese yen appreciated 0.3% to 108.64 per dollar.BondsThe yield on 10-year Treasuries slid 11 basis points to 1.71%.Germany’s 10-year yield sank seven basis points to -0.35%.Britain’s 10-year yield dipped seven basis points to 0.67%.CommoditiesThe Bloomberg Commodity Index advanced 0.3%.West Texas Intermediate crude climbed to $56.10 a barrel.Gold gained 1% to $1,484.40 an ounce.\--With assistance from Joanna Ossinger, Andreea Papuc, Todd White, Sam Potter, Yakob Peterseil, Sophie Caronello, Sarah Ponczek and Luke Kawa.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.
- FX Empire
Asian Shares Mostly Lower on Negative Trade Developments; Aussie Market Plunges More than 2%
The Australian share market suffered its worst day since mid-August on renewed fears over global trade uncertainty. The sell-off wiped on $50.8 billion in value from the market and was the largest single-day drop since a 187.8 point loss on August 15.
- Bloomberg
Stocks Fall on Trump’s Tariff Gambit, Factory Data: Markets Wrap
(Bloomberg) -- U.S. stocks dropped on concern over global trade risks and disappointing factory data. The dollar and bonds declined.The S&P 500 Index fell the most in almost eight weeks on concern the U.S. will slap fresh tariffs on China and after President Donald Trump reinstated levies on steel and aluminum from Argentina and Brazil. The risk-off mood spread to Europe, where shares had the biggest slump in two months. The greenback slid against most major peers, while Treasury 10-year yields jumped.The latest developments on trade overshadowed hope that the world’s two largest economies were close to signing the first part of a trade deal. Meantime, an unexpected decline in U.S. manufacturing showed the sector lacked momentum in an environment of corporate investment cutbacks, subdued global demand and a still-simmering trade war.“It’s all part of the same narrative, right?” Tom Porcelli, chief U.S. economist at RBC Capital Markets, told Bloomberg TV. “There’s a narrative problem in the manufacturing space and the narrative problem obviously stems from trade. Until you actually can sign this deal, I think that manufacturing will remain under pressure.”Read: A $25 Trillion Rally Was Built on GDP Growth No Better Than ThisThe American manufacturing miss countered signs of recovery in China and Europe. It also revived concern about the U.S. economy and could reignite bets on further Federal Reserve easing, according to Eimear Daly, a currency strategist at Macquarie Bank. Earlier Monday, Trump again called on the Fed to loosen monetary policy.Traders also monitored the latest on retail after Black Friday hit a record $7.4 billion in U.S. online sales. American shoppers are on track to spend an estimated $9.4 billion on Cyber Monday -- a record -- boosting an already robust holiday shopping season. Yet a gauge of retailers in the S&P 500 dropped on Monday, joining broader market losses.More on corporate news:Roku Inc. sank after Morgan Stanley cut its rating and warned that revenue and gross profit growth may “slow meaningfully” next year.Apache Corp. tumbled after the company’s update on an exploratory oil well off the coast of Suriname offered little indication as to whether it will be commercially viable.Biogen Inc. slumped after being downgraded at Robert W. Baird, which warned investors ahead of a company presentation at a medical meeting later this week.Elsewhere, oil rebounded from the biggest weekly loss since October on speculation OPEC+ could defy expectations by deepening production cuts.Here are some key events coming up this week:Saudi Aramco’s initial public offering is scheduled to be priced on Thursday.Friday brings the U.S. jobs report, where estimates are for non-farm payrolls to rise by 190,000 in November.These are the main moves in markets:StocksThe S&P 500 fell 0.9% to 3,113.87 at 4 p.m. New York time.The Stoxx Europe 600 Index sank 1.6%.The MSCI Asia Pacific Index jumped 0.7%.CurrenciesThe Bloomberg Dollar Spot Index slid 0.3%.The euro rose 0.6% to $1.1081.The Japanese yen added 0.5% to 108.97 per dollar.BondsThe yield on 10-year Treasuries rose four basis points to 1.82%.Germany’s 10-year yield jumped eight basis points to -0.28%.Britain’s 10-year yield rose climbed basis points to 0.739%.CommoditiesThe Bloomberg Commodity Index was little changed.West Texas Intermediate crude rose 1.4% to $55.96 a barrel.Gold decreased 0.3% to $1,468.60 an ounce.\--With assistance from Adam Haigh, Yakob Peterseil, Sam Potter and Sarah Ponczek.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.
- FX Empire
Asian Shares Rally as China’s Manufacturing Activity Expansion Offsets Worries Over Trade Deal
A private survey on Monday showed China’s manufacturing activity expanded more than expected in November. Chinese state media said Sunday that Beijing wants a rollback of tariffs in the phase one trade deal that the two economic powerhouses are aiming to reach.
- Financial Times
Billionaire Indonesian property tycoon Ciputra dies at 88
Indonesian real estate tycoon Ciputra, chairman and founder of the Ciputra Group, one of the country's largest property developers, died on November 27 at the age of 88. In a statement, the family said Ciputra was undergoing "treatment for his illness" when he passed away at a hospital in Singapore. Indonesian media said Ciputra had been undergoing routine dialysis treatment in recent months.
- Bloomberg
U.S. Stocks Drop From Record Highs; Crude Declines: Markets Wrap
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.U.S. stocks dropped from record highs in the wake of lower European and Asian equities, rounding out a lackluster finale to the third straight month of gains for global benchmarks. The dollar strengthened.The S&P 500, Nasdaq 100 and Dow Jones Industrial Average all finished lower as trading resumed on Wall Street after the Thanksgiving break. Shares of energy and consumer discretionary goods companies were the biggest decliners, with overall trading volume about 16% below the 30-day average. The Stoxx Europe 600 Index slumped, while Asian shares closed lower.Treasuries were mixed as they returned to trading post-holiday. The dollar posted a ninth straight session of gains, the longest winning streak since January 2016. U.S. equity markets closed at 1 p.m. New York time, while bond trading ended an hour later.”It looks like it will be a lazy day with the U.S. half day of trading,” said Didier Anthamatten, senior portfolio manager at Unigestion SA. “Very low liquidity and most of the traders digesting the turkey.”Investors are hungry for evidence of progress on a China-U.S. trade deal, with the next batch of American tariffs on Chinese goods due to begin Dec. 15 and additional tension building over Hong Kong. China’s foreign ministry warned again of unspecified retaliation for U.S. President Donald Trump’s signing of legislation that expresses support for protesters in Hong Kong.“The real issue is not the Hong Kong bill,” Macquarie Group’s Thierry Wizman told Bloomberg TV. “The real issue is whether or not if you do not see convergence on those negotiations by Dec. 15, do we get an increase, a scheduled increase, in those U.S. tariffs and does that derail the negotiations?”Elsewhere, West Texas-grade oil traded dropped below $57 a barrel amid signals OPEC and allied crude producers are averse to deepening output cuts when they convene next week. The won closed lower in normal trading hours after the Bank of Korea kept its policy rate unchanged, as expected.These are the main moves in markets:\--With assistance from Todd White.To contact the reporters on this story: Vildana Hajric in New York at vhajric1@bloomberg.net;Claire Ballentine in New York at cballentine@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Bloomberg
Stocks Slip With U.S. Futures on Fresh Trade Worry: Markets Wrap
(Bloomberg) -- Stocks slipped in Europe along with U.S. equity futures after President Donald Trump signed a bill backing Hong Kong protesters, raising concerns about the prospects for an interim trade deal between the world’s two largest economies. Gold edged up.The Stoxx Europe 600 Index tracked declines in much of Asia, with automaker shares the biggest losers. Contracts on the main U.S. benchmarks all traded slightly lower as China threatened to retaliate against Trump’s move, though Beijing stopped short of any immediate action. Hong Kong shares pared an initial retreat to post a modest drop alongside Japanese, Chinese and South Korean stocks.European sovereign bonds edged lower. The pound trimmed some of Wednesday’s gain against the dollar. Treasuries didn’t trade because of the Thanksgiving holiday; U.S. equities are also shut. With volumes light thanks to the U.S. break and little in the way of direct trade news, Trump’s signing of a bill increasing American scrutiny of Hong Kong was one of the few narratives for investors on Thursday. The development is a potential headwind to stocks at a time when a global benchmark of developed- and emerging-market equities remains just below its all-time record.“The bad news is, the trade war is still on,” Andy Kapyrin, director of research at RegentAtlantic Capital LLC, told Bloomberg TV. “I really don’t see substantial progress on trade with China,” and markets will perceive Trump’s signing of the bill negatively, he said.Elsewhere, oil fell for a second day after U.S. crude production rose to a record. A drop in Latin American currencies turned into a rout Wednesday amid political unrest in the region. Brazil’s real opened firmer on Thursday following the central bank’s decision to hold a spot auction and Chile’s central bank announced a $20 billion intervention package after the peso tumbled to a record low.Here are some key events coming up this week:Euro area inflation for October is due Friday.The Bank of Korea sets policy on Friday.These are the main moves in markets:StocksFutures on the S&P 500 Index declined 0.1% as of 4:23 p.m. New York time.The Stoxx Europe 600 Index fell 0.1%.The MSCI Asia Pacific Index decreased 0.2%.The MSCI Emerging Market Index dipped 0.2%.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The euro climbed 0.1% to $1.1009.The British pound dipped 0.1% to $1.291.The onshore yuan sank 0.2% to 7.0315 per dollar.The Japanese yen was little changed at 109.51 per dollar.BondsGermany’s 10-year yield rose one basis point to -0.36%.Britain’s 10-year yield gained less than one basis point to 0.673%.Japan’s 10-year yield climbed two basis points to -0.105%.CommoditiesWest Texas Intermediate crude climbed 0.2% to $58.24 a barrel.Iron ore fell 0.2% to $84.81 per metric ton.Gold gained 0.1% to $1,456.27 an ounce.\--With assistance from Fergal O'Brien and Adam Haigh.To contact the reporter on this story: Yakob Peterseil in London at ypeterseil@bloomberg.netTo contact the editor responsible for this story: Sam Potter at spotter33@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- FX Empire
Asian Shares Post Mild Reaction to Trump’s Signing of Bills Backing Hong Kong Protesters
Thursday’s selling pressure was mild when compared to previous breaks in the stock market in reaction to potentially negative news about a breakdown in talks between the United States and China. The news creates uncertainty, which usually encourages investors to lighten up on risky positions. However, it’s probably not a deal breaker.
