Global stocks uninspired as focus turns towards US jobs data

LONDON — Global stock markets traded in fairly narrow ranges Thursday as the attention in markets shifted towards upcoming U.S. jobs data following the publication of the minutes to the Federal Reserve’s last board meeting.

KEEPING SCORE: In Europe, the FTSE 100 index of leading British shares was steady around its all-time closing high at 7,188, while Germany’s DAX fell 0.2 percent to 11,564. The CAC-40 in France was 0.2 percent lower at 4,891. U.S. stocks were poised for modest losses at the open with Dow futures and the broader S&P 500 futures down 0.2 percent.

FED MINUTES: U.S. central bank officials think they may need to accelerate interest rate hikes if a faster-growing economy leads to lower than expected unemployment. For now they believe they can stick to gradual increases, according to minutes of the Fed’s December meeting. Officials also discussed the impact of Donald Trump’s proposed economic stimulus program and attributed surging stock prices, rising bond rates and the stronger dollar following the election to investor enthusiasm over the president elect’s plans.

JUST THE PRECURSOR: The minutes were just a taster for the likely big economic event of the week — Friday’s publication of the nonfarm payrolls report for December. Though the upcoming moves by the incoming Trump administration are likely to have an impact on Fed rate hike predictions, the backdrop is likely to remain that the U.S. economy is growing strongly with unemployment falling steadily. Later Thursday, traders will have the monthly non-manufacturing survey from the Institute for Supply Management to digest.

ANALYST TAKE: “Given the uncertainties that lie ahead though, I expect it will be another volatile year in which expectations for interest rates will change on a regular basis,” said Craig Erlam, senior market analyst at OANDA.

UPBEAT ASIA: Solid figures out of China and Hong Kong raised investor optimism about the outlook for their economies. Caixin’s monthly purchasing managers index, or PMI, for the services industry posted its biggest rise in activity for 17 months in December. The Nikkei composite PMI for Hong Kong, meanwhile, showed that activity expanded for the first time since February 2015.

ASIA’S DAY: Japan’s benchmark Nikkei 225 index fell 0.4 percent to close at 19,520.69 a day after hitting its highest level in 13 months as the yen’s strength hurt shares of some exporters. South Korea’s Kospi edged 0.2 percent lower to 2,041.95 but Hong Kong’s Hang Seng rose 1.5 percent to 22,456.69. The Shanghai Composite index in mainland China added 0.2 percent to 3,165.41. Australia’s S&P/ASX 200 climbed 0.3 percent to 5,753.30.

CURRENCIES: The euro clawed back some further ground against the dollar, trading 0.2 percent higher at $1.0508, while the dollar slid 0.7 percent at 116.37.

ENERGY: Benchmark U.S. crude was up 36 cents at $53.62 a barrel while Brent rose 41 cents to $56.87 a barrel in London. TVJ

source: business.inquirer.net

China stock markets among world’s worst in 2016

SHANGHAI, China — China is the world’s second-largest economy and has one of the fastest growth rates of any G20 nation, but its stock markets have been among the worst performing in the world this year.

Starting with a botched attempt to reduce volatility that instead triggered a spectacular meltdown, Chinese bourses have spent the year struggling against feckless policymakers, massive capital flight and a languishing currency.

The benchmark Shanghai Composite Index (SCI) struggled towards the finish line Thursday down 12.5 percent for the year, compared to falls of 0.6 percent by the Hang Seng Index in Hong Kong and 2.2 percent for Japan’s Nikkei 300. Both markets are trading Friday.

As of Thursday, it had the worst showing among the 40-plus countries tracked by Wall Street Journal’s Market Data Center, behind even debt-ridden Portugal.

It is a significantly worse performance than 2015’s wild ride, when the SCI surged by 60 percent in the first half before plunging by more than 40 percent in under three months. Even so, it finished the year with an overall gain of 9.4 percent.

Then authorities brought in a “circuit breaker” mechanism in January to automatically shut down trading if prices plunged. It went into effect twice in one week, kicking off a self-reinforcing selling panic that spread to global markets, and was scrapped after just four days.

“The Chinese market had a meltdown this year, and so far it has only half recovered from that,” Northeast Securities analyst Shen Zhengyang told AFP, adding the market was still in “slow and gradual restoration”.

The chairman of the China Securities Regulatory Commission was sacked over the debacle.

His replacement, Liu Shiyu, has kept a low profile, hurting market confidence and leaving investors seeking direction, said Oliver Rui, a professor at the China Europe International Business School (CEIBS).

“People don’t understand much about the regulator’s policy direction,” he said, adding that the lack of clarity partly explained the market’s weak performance.

The falling yuan — lowered seven percent by the central bank over the year in the face of a surging dollar — has also driven investors abroad in search of better performance.

“When the yuan falls, market capital runs off overseas to hedge the risks,” said Dickie Wong, Hong Kong-based research director for Kingston Securities, adding it also made foreign investors “less optimistic about mainland companies”.

Missed connection

Even the year’s few bright spots have failed to live up to expectations.

Earlier this month, China launched a long-delayed programme connecting its second exchange in Shenzhen — which has lost 14.8 percent so far this year — with the bourse in Hong Kong.

The Hong Kong-Shenzhen Stock Connect builds on a similar scheme with Shanghai and gives foreign investors access to many mainland tech shares.

But it has so far failed to live up to the hype, with Shenzhen’s shares more expensive than those in Hong Kong, making it unattractive to foreign investors, while the entry threshold for mainlanders to buy Hong Kong shares was set as high as half a million yuan ($72,000).

Other anticipated reforms, such as a new system for initial public offerings (IPOs), have all failed to materialise or were quietly shelved after January’s drama.

Currently, the Chinese government — rather than the market — decides which companies offer shares and when, and at what price.

As a result Chinese flotations are always underpriced, which “sends the wrong signals to the market”, according to Oliver Rui of CEIBS.

Authorities should “not intervene too much” but “are always afraid that the market will lose control”, he told AFP.

“But if you do not let go, then you will never know if the market can accept the new system or not. Mistakes are a necessary step.”

‘Least profitable’

Unlike most global exchanges where institutions hold sway, China’s stock markets are dominated by small investors, heightening volatility and short-termism.

Government-backed funds injected billions of dollars into China’s markets in 2015 in an effort to stop them bleeding out, and still play a major role, ignoring profit, loss and everything in between, and creating huge price distortions.

“In such an environment, it’s quite difficult for investors to apply whatever money-making strategies that they have learned over the years,” said Citic Securities analyst Zhang Qun.

He called China’s stock market “the least profitable” option in China or abroad.

Even so, brokers are mildly optimistic about next year — but hedge their bets with huge ranges for their 2017 year-end forecasts.

China Merchant Securities projects the SCI at anything from 2,900 — a six percent decline — to 3,800, which would represent a leap of 23 percent.

“With the government taking tighter controls over the property market and bonds also falling, not many choices are left,” said Kingston’s Dickie Wong. “Funds must go somewhere and stocks are ultimately one choice.” CBB

source: business.inquirer.net

Global stocks slide on looming Brexit risk

NEW YORK, United States — World stock markets extended losses Monday as fears heightened that Britain could vote to leave the European Union in next week’s referendum.

Tokyo’s main stocks index dived 3.5 percent to a two-month low point by Monday’s close, as worries over Britain’s EU membership vote on June 23 sparked a rally in the safe-haven yen currency, which in turn hammered shares in Japanese exporters.

Craig Erlam, senior market analyst at Oanda trading group, said “risk aversion” continued to drive markets ahead of “a number of key risk events”.

“The UK referendum next week is right at the top of this list given the destabilization effects that a vote to leave the EU could have on global markets,” he said in a note to investors.

US stocks joined the global retreat, falling for a third straight day and pushing the S&P down 0.8 percent. But shares in professional networking company LinkedIn shot up 46.6 percent on news of its $26.2 billion takeover by Microsoft.

Shares of US travel-oriented equities were especially weak, with American Airlines, Delta Air Lines and United Continental all losing at least 3.5 percent in the aftermath of Sunday’s deadly attack by a lone gunman at a gay nightclub in Orlando, Florida.

London’s FTSE 100 index lost 1.2 percent. In the eurozone, Frankfurt’s DAX 30 index and the CAC 40 in Paris were both about 1.8 percent lower. Banking stocks weighed in Milan, where the main index slid 2.9 percent to its lowest level since February.

In foreign exchange, the British pound hit two-month lows against both the euro and dollar.

The pound’s latest tumble against the dollar “could be the tip of the iceberg” if Britons opt to quit the EU, said Alex Holmes, of Capital Economics.

The European single currency meanwhile sank as low as 119 yen, the lowest level since February 2013.

Central banks on tap

Markets also are on edge as the US, Japanese and British central banks meet this week.

Few expect any move on interest rates from the US Federal Reserve and Bank of England, but observers are divided over whether the Bank of Japan will announce more stimulus.

“Chances of the Fed raising interest rates this month are nil at this point, with a July raise looking less and less likely,” Mark Vickery, of Zacks Investment Research, said in a note to clients.

For Oanda’s Erlam, the Brexit risk is also playing a role in the Fed’s timing.

“The Fed will meet this week and while the (May) jobs report may have given them a reason to put off raising interest rates again, the closing of the gap ahead of the UK referendum is likely the real reason behind the delay,” he said.

Hong Kong’s main stocks index tumbled 2.5 percent and Shanghai dived 3.2 percent, while Seoul sank 1.9 percent and Singapore 1.6 percent.

source: business.inquirer.net

World stocks rise again on stimulus hopes, yuan’s gain

HONG KONG — World stock markets were mostly higher Tuesday as a strengthening yuan and hopes for more central bank stimulus gave investors relief from the mauling that markets have suffered so far this year.

KEEPING SCORE: European stocks were higher in early trading. France’s CAC 40 climbed 0.4 percent to 4,131.18 and Britain’s FTSE 100 added 0.2 percent to 5,831.64. Germany’s DAX dipped 0.3 percent to 9,181.45. U.S. benchmarks were poised to open sharply higher after a long weekend. Dow futures rallied 1.5 percent to 16,148.00 and broader S&P 500 futures jumped 1.5 percent to 1,886.40.

STIMULUS HOPES: Investor sentiment remained positive that central banks would continue to ease monetary policy thanks to comments from the head of the European Central Bank. With the ECB set to discuss policy measures on March 10, Mario Draghi told the European Parliament on Monday that the bank has a range of instruments it can deploy if it decides more stimulus is needed. Earlier, a disappointing report on Japanese economic growth also raised hopes for more policy easing.

RENMINBI RELIEF: China’s strengthening currency also helped boost sentiment. The yuan hovered near its strongest level so far this year a day after the central bank guided the currency, also known as the renminbi, sharply higher. Previous weakness in the yuan triggered worries the Chinese economy was in worse shape than thought. Meanwhile, new yuan loans jumped 71 percent in January, the official Xinhua news agency reported Tuesday, suggesting solid demand in the world’s No. 2 economy.

ANALYST’S TAKE: “Since the start of January everything went south and we really needed some positive news,” said Jackson Wong, associate director at Huarong International Securities. “Factors that were affecting the markets negatively have turned positive now: the yen is weaker, the renminbi is stronger, global markets like the U.S. are stabilizing. All the negative catalysts from January are turning better.”

ASIA’S DAY: Japan’s Nikkei 225 added 0.2 percent to close at 16,054.43 after soaring 7.2 percent the day before, which was its biggest daily gain since September. South Korea’s Kospi rose 1.4 percent to 1,888.30 and Hong Kong’s Hang Seng advanced 1.1 percent to 19,122.08. The Shanghai Composite Index in mainland China surged 3.3 percent to 2,836.57 and Australia’s S&P/ASX 200 was up 1.4 percent to 4,910.00. Benchmarks in Taiwan and most of Southeast Asia also rose.

ENERGY: Benchmark U.S. crude rose $1.28, or 4.4 percent, to $30.72 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $3.23 to settle at $29.44 a barrel on Friday. Brent crude, a benchmark for international oils, added $1.38 to $34.77 a barrel in London.

CURRENCIES: The dollar eased to 114.06 yen from 114.54 yen in Monday’s trading. The euro edged up to $1.1174 from $1.1168. TVJ

source: business.inquirer.net

US stocks fall broadly a day after Nasdaq passes 5,000 mark

NEW YORK, United States — U.S. stocks fell from record highs on Tuesday and the Nasdaq dropped below 5,000 a day after passing that milestone for the first time since the dot-com era 15 years ago.

The losses were modest but broad, with eight industry sectors in the Standard and Poor’s 500 index falling. Higher oil prices helped oil drillers and other energy companies buck the trend. They eked out a 0.2 percent rise for the day.

With no major economic news and few earnings reports, investors were at pains to point to a catalyst for the stock slump other than jitters that sometime follow big gains.

“It’s only natural we would get a little flutter after a milestone like yesterday,” said Wells Fargo Funds’ Chief Equity Strategist John Manley, referring to the Nasdaq closing above 5,000. “It may very well go on for a few days.”

Dow Jones falls

The Dow Jones industrial average fell 85.26 points, or 0.5 percent, to 18,203.37. The Standard & Poor’s 500 declined 9.61 points, or 0.5 percent, to 2,107.78. The Nasdaq gave up 28.20 points, or 0.6 percent, to close at 4,979.90.

Ford Motor slumped after reporting U.S. sales from last month that disappointed investors. Ford sales fell 1.9 percent as dealers lacked the inventory to meet demand for the new F-150 pickup truck. Ford dropped 40 cents, or 2.4 percent, to $16.17.

Oil rose on reports that Saudi Arabia raised prices for Asian customers and fears of heightening tensions with Iran after Israeli Prime Minister Benjamin Netanyahu addressed Congress. Several oil drillers surged. Denbury Resources, an oil and gas producer, jumped 28 cents, or 3.4 percent, to $8.58.

With nearly all companies in the S&P 500 having reported their fourth-quarter results, earnings per share for companies in the S&P 500 index are expected to have risen a healthy 7.7 percent, according to S&P Capital IQ.

Drop in earnings

Liquor giant Brown-Forman reports earnings on Wednesday, followed by Costco Wholesale on Thursday. Staples, the nation’s biggest office supply chain, reports on Friday.

Financial analysts expect earnings to drop compared with the year-earlier periods for the next two quarters, but that is mostly because of a drag from energy companies as oil prices have fallen more than 50 percent since last June.

Anastasia Amoroso, global market strategist for J.P. Morgan Asset Management, said she wasn’t surprised by the pullback.

“We’re seeing a market that is fairly valued, earnings are behind us and no major catalysts are coming up,” she said. “It’s a market ready for a pause.”

European loses

The slump in the U.S. followed losses in European markets. France’s CAC 40 and Germany’s DAX each lost 1 percent. Britain’s FTSE 100 dropped 0.7 percent.

On Monday, the Nasdaq rose to just 40 points from its 5,048.62 peak reached March 10, 2000. The index has changed significantly since then. Gone is the heavy weighting of telecommunications stocks and big bets on Internet companies with little or no earnings.

Among other stocks in the news:

— Personal finance company Springleaf Holdings rose $12.19, or 32 percent, to $50.23 after it said it would buy Citigroup’s OneMain Financial for $4.25 billion. OneMain provides personal loans at more than 1,100 branches across 43 states.

—Best Buy gained 55 cents, or 1.4 percent, to $39.18 after the company said it would raise its dividend 21 percent and give shareholders an additional one-time payment. The nation’s biggest electronics chain also reported fourth-quarter earnings that were higher than financial analysts had expected.

Benchmark U.S. crude rose 93 cents to close at $50.52 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, rose $1.48 to close at $61.02 a barrel in London.

NYMEX

In other futures trading on the NYMEX:

— Wholesale gasoline rose 5.3 cents to close at $1.950 a gallon.

— Heating oil rose 5.3 cents to close at $1.940 a gallon.

— Natural gas rose 1.4 cents to close at $2.712 per 1,000 cubic feet.

In bond trading, the yield on the 10-year Treasury note rose to 2.12 percent from 2.08 percent on Monday.

In metals trading, gold fell $3.80 to $1,204.40 an ounce, silver fell two cents to $16.30 an ounce and copper lost four cents to close at $2.66 a pound.

source: business.inquirer.net

Dow in another record close even as other indexes slip

The Dow Jones industrial average notched its third record high close in a row Wednesday, even as other market indexes ended lower.

Trading was relatively subdued as investors reviewed the latest corporate earnings news. Utilities stocks were among the biggest decliners. Energy stocks rebounded as oil prices broke a five-day slide and climbed back above $50 a barrel.

Wall Street also kept an eye on Federal Reserve Chief Janet Yellen’s second appearance before Congress in two days. Her remarks didn’t generate any major market-moving news. A day earlier, Yellen suggested that the Fed is not in a hurry to raise interest rates.

“The market is just trying to figure out whether the next move is up or down,” said David Lebovitz, global market strategist at J.P. Morgan Asset Management.

The Dow ended up 15.38 points, or 0.1 percent, to 18,224.57. McDonald’s was the biggest gainer in the 30-company index, climbing 3.9 percent.

The Standard & Poor’s 500 index slipped 1.62 points, or 0.1 percent, to 2,113.86. The Nasdaq shed 1 point, or 0.02 percent, to 4,967.14. The three indexes are all up for the year.

The Dow and S&P 500 closed at record highs on Tuesday after investors were encouraged Yellen’s remarks on interest rates. Lower rates make borrowing easier and tend to be a plus for financial markets.

The Fed has kept its benchmark rate near zero since 2008. Most economists anticipate that a rate increase is not likely before June or even later this year.

A key factor in that decision will be inflation. That’s one reason investors will be focused on the release of the latest consumer price index on Thursday.

“That should provide a little bit of insight on what the Fed’s next move might be and when it may occur,” Lebovitz said.

The three indexes opened lower on Wednesday, then veered between small gains and losses through much of the day. In the last hour of trading, the Dow eked out a gain.

Hewlett-Packard and Boston Beer slumped early. Both reported disappointing quarterly results late Tuesday. Hewlett-Packard tumbled 9.9 percent, while the brewer of Samuel Adams beer sank 10.3 percent. Chesapeake Energy and Lumber Liquidators also declined after reporting weak earnings early Wednesday. Chesapeake fell 9.6 percent, while the hardwood floors retailer slid 26.4 percent.

Investors bid up shares in several companies whose latest quarterly earnings fared better.

TJX, the parent company of T.J. Maxx and Marshalls, rose 3.3 percent after its profit beat analysts’ expectations. The company also said would raise wages for its workers.

Benefitfocus vaulted 47.2 percent, while specialty contracting services company Dycom Industries surged 17 percent. Discount retailer Dollar Tree rose 2.2 percent.

In all, half of the 10 sectors in the S&P 500 moved lower. Utilities stocks fell 1.6 percent and are now down 4 percent this year. Consumer discretionary stocks notched the biggest gain. The sector is up 5.6 percent this year.

The price of oil rose after the Energy Department reported that diesel and gasoline inventories fell more than expected, indicating a pickup in demand. Benchmark U.S. crude rose $1.71 to close at $50.99 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, rose $2.97 to close at $61.63 in London.

In other futures trading on the NYMEX: Wholesale gasoline rose 9.9 cents to close at $1.719 a gallon, while heating oil rose 7.5 cents to close at $2.104 a gallon. Natural gas fell 0.8 cents to close at $2.894 per 1,000 cubic feet.

Gold rose $4.20 to $1,201.50 an ounce, silver rose 24 cents to $16.43 an ounce and copper rose two cents to $2.66 a pound.

U.S. government bond prices rose. The yield on the 10-year Treasury note slipped to 1.97 percent from 1.98 percent late Tuesday.

source: business.inquirer.net

Asian stocks mostly lower as oil hits new lows

HONG KONG – Asian markets mostly slipped Tuesday, following a sell-off in Europe and the United States, as oil prices plunged to more than five-year lows and data indicated Chinese manufacturing activity shrank in December.

The dollar and euro edged lower against the yen after losing pace Monday owing to the uncertainty caused by the weak crude, which has increased pressure on Russia’s economy, spooking investors.

Tokyo tumbled 1.80 percent, Hong Kong lost 0.65 percent, Sydney slipped 0.39 percent and Seoul was 0.62 percent lower, while Shanghai rose 0.55 percent.

In China, banking giant HSBC said its preliminary index of manufacturing activity came in at 49.5 this month, compared with 50 in November. Anything below 50 points to contraction and anything above shows growth.

The figures are the latest in a long line that show the world’s number two economy is slowing. However, Shanghai shares advanced — extending a recent bull run — on hopes the government will introduce new measures to spur growth.

Oil-linked firms are being hammered after crude prices plunged by about half from their June highs, weighed down by an oversupply on world markets, falling demand and OPEC’s decision to maintain high output levels.

Despite the benefits cheap oil brings to some, global stock markets have been dragged down by energy giants and analysts warn there could be further falls on the way.

On Tuesday in Asia, US benchmark West Texas Intermediate for January delivery fell 38 cents to $55.53 while Brent crude for January eased 48 cents to $60.58 — both to levels last seen in mid-2009.

‘More pain in store’

US shares tumbled, with the Dow off 0.58 percent, the S&P 500 falling 0.63 percent and the Nasdaq slumping 1.04 percent.

Earlier Monday, London’s FTSE 100 ended down 1.87 percent, while equity markets in France and Germany fell more than 2.5 percent.

“Oil prices continue to slide, and that is now the chief worry to Russia, which is essentially an oil-exporting economy,” Yoshihiro Okumura, general manager at Chibagin Asset Management, told Dow Jones Newswires.

“The creeping fear is that Russia may default, reminding investors of the prior Greek fiscal panic, and require a bailout. Beyond that, a ‘domino effect’ of worsening fiscal conditions at other oil-exporting nations may take hold.

“Oil prices look far from settled at the mid-$50 level, so more pain may yet be in store.”

Moscow was forced to ramp up interest rates early Tuesday, to 17 percent from 10.5 percent, after the ruble plunged to a fresh record-low against the dollar.

The slide came as the Russian central bank said weak oil prices could lead to a contraction of nearly five percent next year and as tensions with the United States over the Ukraine crisis increased.

The uncertainty pushed the yen up as traders looked for safer investments. The dollar was buying 117.75 yen early Tuesday against 117.81 yen in New York

The euro was at 146.48 yen from 146.50 yen, and $1.2441 from $1.2435.

The yen is considered a safe haven in times of turmoil.

Gold was at $1,198.07 an ounce compared with $1,210.54 late Monday.

source: business.inquirer.net

Asia markets mixed after Wall St. sell-off

HONG KONG–Asian markets were mixed Tuesday following another heavy sell-off on Wall Street, with Tokyo taking a thumping as traders returned from a long weekend to a much stronger yen.

With confidence in the state of the global economy knocked by a series of weak data, oil prices are struggling at multi-year lows with traders worried about a possible supply glut.

Tokyo tumbled 2.38 percent, or 364.04 points, to a two-month low of 14,936.51, with exporters hit by the yen’s advance. Shanghai lost 0.28 percent, or 6.53 points, to end at 2,359.48 and Hong Kong fell 0.41 percent, or 95.41 points to 23,047.97.

But Seoul ended 0.11 percent higher, adding 2.04 points to 1,929.25, and Sydney rallied 1.01 percent, or 51.9 points, to close at 5,207.4.

Global markets have been struggling of late as a string of weak data from Japan, China and the eurozone has fanned fears about the global economy, while the Federal Reserve also said it was concerned about the outlook.

And on Wall Street Monday the three main indexes were hard hit as investors fled.

The Dow sank 1.35 percent and the S&P 500 shed 1.65 percent–just weeks after the two had touched record highs. The Nasdaq lost 1.46 percent.

But Tuesday saw investors tentatively return to buying in Asia, picking up cheaper stocks.

The dollar also picked up slightly after tumbling below 107 yen in New York on Monday.

‘Dramatic reversal’

The greenback bought 107.24 yen Tuesday, up from 106.83 yen in New York Monday afternoon. However, that was not enough to support the Nikkei as it is still sharply down from 107.79 yen in Tokyo on Friday, before a three-day weekend there.

“Most of the Nikkei’s gains over the last several weeks have come on the back of the dollar’s rapid rise without much fundamental buying support behind it, so a dramatic reversal such as this is possible, if not likely, when the dollar falls back to earth,” Toshihiko Matsuno, senior strategist at SMBC Friend Securities, told Dow Jones Newswires.

The euro bought $1.2702 and 136.24 yen against $1.2753 and 136.25 yen.

Analysts said Hong Kong shares got some support from hopes of an end to a more than two-week stand-off between the government and pro-democracy protesters that has shut down parts of the city.

Police moved in for a second day Tuesday to clear barricades, opening up one of the main thoroughfares for the first time this month. However, demonstrators have refused to lift their blockade until the city’s Chief Executive CY Leung steps down and they are granted full universal suffrage by China.

World oil prices extended their losses after the OPEC cartel signaled that producers have no intention of cutting output, even with a supply glut.

US benchmark West Texas Intermediate for November delivery was down 34 cents at a two-year-low $85.40 in afternoon trade and Brent crude retreated 31 cents to $88.58, its lowest since mid-2010.

Both contracts are down by about a fifth from their 2014 highs touched in June.

Gold was at $1,233.25 an ounce against $1,227.19 late Monday.

In other markets:

— Mumbai retreated marginally by 0.13 percent or 34.74 points to end at 26,349.33 points.

Tata Motors fell 1.64 percent to 488.20 rupees, while Bharat Heavy Electricals gained 3.56 percent to 225.75 rupees.

— Bangkok added 0.29 percent, or 4.43 points, to 1,546.78.

Supermarket operator Big C Supercenter lost 3.93 percent to 220 baht, while Airports of Thailand rose 2.27 percent to 225 baht.

— Jakarta ended up 0.19 percent, or 9.53 points, at 4,922.58.

Telecoms firm Indosat gained 1.05 percent to 3,860 rupiah, while retailer Ramayana Lestari Sentosa fell 5.45 percent to 780 rupiah

— Kuala Lumpur ended flat at 1,796.38, falling just 0.82 points or 0.05 percent.

Petronas Gas shed 0.8 percent to 21.20 ringgit, while Nestle lost 0.8 percent to 66.50.

— Singapore fell 0.24 percent, or 7.75 points, to close at 3,194.40.

Casino operator Genting Singapore eased 0.91 percent to Sg$1.085, while property developer CapitaLand dipped 0.33 percent to Sg$3.02.

— Taipei rose 0.65 percent, or 57.0 points, to 8,768.39.

Taiwan Semiconductor Manufacturing Co. added 0.41 percent to Tw$121.0 while Hon Hai Precision Industry was 0.21 percent higher at Tw$96.0.

— Wellington fell 0.47 percent, or 24.16 points, to 5,145.89.

Chorus was down 1.32 percent at NZ$1.875 and Air New Zealand ended 2.99 percent off at NZ$1.785.

— Manila eased 0.32 percent, or 22.03 points, to 6,946.06.

source: business.inquirer.net

Asian stocks down on recovery, Ebola worries

SEOUL — Asian stocks fell Thursday amid worries about the strength of US and European recoveries and the first American case of Ebola.

Keeping Score: Japan’s Nikkei 225 index lost 1.7 percent to 15,815.45 points and South Korea’s Kospi fell 0.9 percent to 1,973.31. Australia’s S&P/ASX 200 declined 0.7 percent to 5,295.7. Stocks in Southeast Asia also lost ground. Markets in Hong Kong and China were closed for a public holiday.

Slow German Data: A survey showed German manufacturing unexpectedly contracted in September for the first time in 15 months, the latest sign Europe is being hurt by sanctions imposed on Russia over its role in Ukraine.

US Manufacturing: A closely watched monthly survey by the Institute for Supply Management came in below expectations, helping to drive a selloff on Wall Street.

Ebola: US airlines were among the hardest hit as investors fretted people would be discouraged from traveling after reports of the country’s first case of Ebola.

Analyst Take: “Confirmation of a case of Ebola in the US has joined a growing list of bad news stories with geo-political tensions in Ukraine and Hong Kong, and growth concerns around China and Europe sapping risk appetite,” said Niall King of CMC Markets in a commentary.

Wall Street: The Dow Jones industrial average index lost 1.4 percent to 16,804.71. The broader Standard & Poor’s 500 declined 1.3 percent to 1,946.16 and the Nasdaq composite fell 1.6 percent to 4,422.09.

European Central Bank Focus: Caution prevailed among investors ahead of a meeting of European Central Bank policymakers. Though no change in interest rates is anticipated, there will be great interest in what ECB President Mario Draghi says about possible monetary stimulus following recent weak economic news in Europe.

US Data: The US Labor Department is due to report the number of people who applied for unemployment benefits last week. Economists forecast that weekly applications rose a slight 5,000 to a seasonally adjusted 298,000. The Commerce Department will report August factory orders. Orders in July rose 10.5 percent in their biggest one-month gain since 1992.

Energy: Benchmark US oil added 17 cents to $90.90 per barrel in electronic trading in New York. The contract fell 43 cents to settle at $90.73 on Wednesday. The price of oil was pushed down by plentiful supplies and a rise in the U.S. dollar — in which oil sales are priced — against other currencies.

Currencies: The dollar fell to 108.65 yen from 109.07 yen. The euro rose to $1.266 from $1.262.

source: business.inquirer.net

US stocks rally after strong housing report

NEW YORK–US stocks Wednesday finished with solid gains as a strong housing report helped equities regain territory after losses earlier this week.

The Dow Jones Industrial Average jumped 154.19 points (0.90 percent) to 17,210.06.

The broad-based S&P 500 rose 15.53 (0.78 percent) to 1,998.30, while the tech-rich Nasdaq Composite Index advanced 46.53 (1.03 percent) to 4,555.22.

The Commerce Department reported that sales of new single-family houses surged 18 percent in August to an annual rate of 504,000, their fastest pace in more than six years.

The housing report “certainly helped this morning,” said Michael James, managing director of equity trading at Wedbush Securities.

“As has proven to be the case for the last 18 months, every pullback lasts a few days and people start buying stocks,” James said.

Apple fell 0.9 percent as it halted the update for its iOS software powering the iPhone after users complained of bugs, including one that disabled cellular service. Buyers have also complained of bends in the bodies of the new iPhone 6 and iPhone 6 Plus smartphones when carried in trouser pockets.

Home-goods retailer Bed Bath & Beyond shot up 7.4 percent as its full-year earnings forecast came in at $5.00-$5.08, compared with analyst expectations of $5.01. Comparable sales in the second quarter rose 3.4 percent.

Wal-Mart Stores gained 2.0 percent after it unveiled a venture to offer no-fee electronic checking accounts aimed at customers without traditional bank accounts. Green Dot, a provider of pre-paid debit cards and Wal-Mart’s partner in the service, shot up 24.4 percent.

Gilead Sciences gained 3.2 percent after announcing successful clinical trials of its tenofovir alafenamide treatment for HIV. The biotech company plans to submit regulatory applications for the medications in the US and European Union in the fourth quarter of 2014.

Other biotech companies, including Biogen (+4.2 percent) and Celgene (+3.3 percent), also rose.

Valeant Pharmaceuticals International bolted 6.9 percent higher as it said it expects third-quarter earnings and revenues to be above prior forecasts. The company also released a letter to Allergan offering to “take the temperature down” over its unsolicited offer to buy the Botox maker.

Allergan, which has fought the deal, rose 4.2 percent.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.57 percent from 2.54 percent Tuesday, while the 30-year increased to 3.28 percent from 3.25 percent. Bond prices and yields move inversely.

source: business.inquirer.net

Asian stocks sink on global economy fears

HONG KONG – Asian stock markets were pummeled Monday by the possibility of slowing growth in China and a further reduction in U.S. central bank stimulus.

Stocks sank as investors sought out havens such as the Japanese yen, which strengthened to a seven week high against the dollar, and gold, which was at its highest in more than two months.

Investors were awaiting a two-day meeting of the U.S. Federal Reserve starting Tuesday, where officials are expected to reduce the central bank’s monthly bond buying by another $10 billion to $65 billion. Recent signs of a sustained recovery in the world’s biggest economy will play a big role in the decision by Fed officials to scale back stimulus for a second time.

Emerging markets have been propped up for years by investors seeking higher returns using a tide of so-called “easy money” from the Fed and other central banks but now that the end for those policies looks to be near, some investors are fleeing stocks. The turmoil has slammed some places particularly hard, such as Argentina, where the peso dropped 16 percent against the dollar over two days last week.

“The growing turmoil in emerging markets is inflicting damage on risk assets across the board and no letup is expected in the near term,” said Mitul Kotecha, head of global markets research for Asia at Credit Agricole CIB, in a report.

The global sell-off was triggered by the preliminary results Thursday of a survey showing that China’s massive manufacturing industry would contract in January for the first time in six months, the latest sign that a painful slowdown in the world’s No. 2 economy is likely to continue.

“We’ve seen brief slowdowns in China before,” said Michael Every, head of financial markets research for Asia-Pacific at Rabobank. “The difference is we don’t expect to see rapid acceleration again this time, because they’re trying to clamp down on credit growth to prevent nonperforming loans going even higher than they are.”

Japan’s Nikkei 225 sank 2.3 percent to 15,023.08 as they dollar edged higher to 102.42 yen from 102.38 late Friday. The yen has strengthened significantly in the past few days, which is negative for export stocks.

Hong Kong’s Hang Seng lost 2 percent to 21,987.65 and Seoul’s Kospi dropped 1.3 percent to 1,915.27. In mainland China, the Shanghai Composite Index dropped 0.7 percent to 2,031.24. Benchmarks in Taiwan, Singapore, Philippines, Indonesia and New Zealand also slipped.

The Australian stock market was closed for a holiday.

In the U.S. on Friday, the Dow finished down 2 percent at 15,879 and the Standard & Poor’s 500 fell 2.1 percent to 1,790. The Nasdaq composite fell 2.2 percent to 4,128.

The euro strengthened to $1.3683 from $1.3676.

In energy markets, benchmark crude for March delivery was up 6 cents to $96.70 in electronic trading on the New York Mercantile Exchange. The contract fell 68 cents to close at $96.64 on Friday.

source: business.inquirer.net

US stocks tank ahead of earnings reports

NEW YORK—US stocks tumbled Monday ahead of a raft of corporate reports as earnings season gets into full swing this week.

The Dow Jones Industrial Average shed 179.11 points (1.09 percent) at 16,257.94.

The broad-market S&P 500 skidded 23.17 (1.26 percent) to 1,819.20 and the tech-rich Nasdaq lost 61.36 (1.47 percent) at 4,113.30.

Stocks opened modestly lower then traded near the flatline until midday, before steadily selling off all afternoon.

Traders were “likely playing their cards close to the vest before 4Q earnings season and the economic calendar kick into gear,” Charles Schwab & Co. said in a market note.

On Tuesday, before markets open, JPMorgan Chase, the biggest US bank, and Wells Fargo will report earnings and the government will release data on December retail sales covering the important holiday shopping season.

Yoga apparel retailer Lululemon plunged 16.6 percent after lowering its fourth-quarter revenue and earning guidance and highlighting it saw January sales and traffic trends “decelerate meaningfully.”

Fashion retailer Express sank 4.6 percent after lowering its fourth-quarter guidance and reporting weak January traffic to date.

General Motors fell 1.1 percent after signaling it was close to resuming dividends, according to media reports. Its Chevrolet brand won the top car and truck of the year awards at the Detroit auto show.

In merger and acquisition news, Beam, the maker of Jim Beam bourbon, agreed to be acquired by Japan’s Suntory Holdings for $83.50 a share in a $16 billion deal creating the spirit sector’s third-largest player.

Beam skyrocketed 24.6 percent to $83.42.

Google slipped 0.6 percent. After the market closed, the search giant announced it was buying Nest, a smart-home company that makes thermostats and smoke alarms, for $3.2 billion in cash. Shares were up 0.5 percent in after-hours trading.

Chinese search engine Qihoo 360 Technology rose 3.0 percent after a Stifel upgrade from “hold” to “buy,” saying “2014 is the year of significant search monetization for Qihoo, fueling strong revenue growth and potential upside surprise.”

Bond prices rose. The yield on the 10-year US Treasury slipped to 2.83 percent from 2.86 percent Friday, while the 30-year fell to 3.77 percent from 3.80 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks slip as sluggish start to 2014 drags on

NEW YORK—The stock market stumbled Wednesday as investors waited for the government’s jobs report later this week and the beginning of quarterly earnings releases from corporate America.

Traders put aside a positive report that showed private employers created more jobs in December than economists had expected. The market had a muted reaction to the minutes from the Federal Reserve’s mid-December policy meeting.

Wednesday’s declines extend what has been a muddled start to 2014. Both the Dow Jones industrial average and the Standard & Poor’s 500 index are down a little less than 1 percent after five days of trading.

The tough start should be taken in context of last year’s exceptional performance, when the S&P 500 surged almost 30 percent.

After bidding up companies’ stock prices to record levels last year, investors are ready to see if their bets are going to pay off. Big, publicly traded US companies will start reporting their quarterly financial results Thursday.

“The question is whether this strengthening economy is translating into stronger corporate earnings,” said Russ Koesterich, global chief investment strategist at the investment firm BlackRock.

Dow member and oil giant Chevron will report after the closing bell Thursday, as well as former Dow member and aluminum company Alcoa. Next week investors will have results from Goldman Sachs, JPMorgan Chase, General Electric and American Express.

“Earnings will determine what’s next for the stock market,” said Lawrence Creatura, a portfolio manager with Federated Investors.

Another theme on investors’ agendas is jobs.

A private survey released Wednesday showed US businesses added the most jobs in a year in December, powered by a big gain in construction work. Payroll processor ADP said companies added 238,000 jobs in December, better than the 200,000 economists predicted.

The ADP data sets the stage for Friday’s government jobs report. Investors expect the U.S. economy created 190,000 jobs last month and the unemployment rate remained steady at 7 percent.

The Dow lost 68.20 points, or 0.4 percent, to 16,462.74. The losses erased more than half of the 105-point gain the index had on Tuesday.

The S&P 500 fell 0.39 points, or less than 0.1 percent, to 1,837.49 and the Nasdaq composite rose 12.43 points, or 0.3 percent, to 4,165.61.

S&P Capital IQ’s Alec Young said he expects the stock market will “churn” at these levels into next week, once investors have earnings and Friday’s jobs report to analyze.

In company news:

Ford rose 16 cents, or 1 percent, to $15.54 after CEO Alan Mulally said he would not leave to run Microsoft. Mulally was considered a top candidate for the position, having led the turnaround for Ford turning the financial crisis.

Forest Labs jumped $10.54, or 18 percent, to $69.30 after the company said it would buy Aptalis, which specializes in treatments for gastrointestinal problems and cystic fibrosis, for $2.9 billion in cash.

Macy’s jumped in after-hours trading after the company said late Wednesday that it would lay off 2,500 workers as it restructures its business. The stock rose $3.21, or 6 percent, to $55.05.—Ken Sweet

source: business.inquirer.net

China shares down 0.23 percent in morning trade

SHANGHAI – Chinese stocks were down 0.23 percent in morning trade on Tuesday, the last trading day of the year, on worries over a share glut as China moves to resume initial public offerings, dealers said.

The benchmark Shanghai Composite Index slipped 4.73 points to 2,092.80.

China’s stock regulator has granted approvals to five companies for IPOs after a more-than-one-year suspension, state media reported.

source: business.inquirer.net