Tokyo stocks open lower on weak tech shares

TOKYO -- Tokyo stocks opened lower Wednesday, dragged down by technology shares that tracked an overnight decline of U.S. counterparts.

In the first 15 minutes of trading, the 225-issue Nikkei Stock Average fell 518.06 points, or 1.55 percent, from Tuesday to 32,958.52. The broader Topix index was down 26.29 points, or 1.12 percent, at 2,311.07.

On the top-tier Prime Market, decliners included securities house, insurance, and electric power and gas issues.

At 9 a.m., the dollar fetched 142.95-98 yen compared with 143.29-39 yen in New York and 142.71-73 yen in Tokyo at 5 p.m. Tuesday.

The euro was quoted at $1.1006-1010 and 157.33-42 yen against $1.0979-0989 and 157.40-50 yen in New York, and $1.0979-0980 and 156.69-73 yen in Tokyo late Tuesday afternoon.

Agence France-Presse

Asia extends stocks rally as dollar drops on Fed rate optimism

HONG KONG –– Asian stocks extended a global rally Thursday and the dollar sank after Federal Reserve boss Jerome Powell flagged a rate hike slowdown and China signaled a softer approach to fighting COVID.

A growing sense of hope that months of sharp monetary tightening around the world is finally reining inflation back from its decades-long highs sent equities surging in November, even as policymakers warned more work had to be done.

And in a much-anticipated speech Wednesday, Powell said the full effects of the Fed's belt-tightening had yet to be felt but that it "makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down".

He signaled the US central bank's December gathering would likely see officials lift borrowing costs by 50 basis points, having pushed them up by a bumper 75 points at the past four meetings.

However, Powell did say policy would need to remain tight "for some time" to restore price stability, echoing comments from other Fed officials who suggested there might not be any cuts until 2024.

Analysts said the reaction to Powell's remarks -- which had been expected to be his most dovish in some time -- highlighted a sense of relief among investors that a long-hoped-for pivot was on the cards.

All 3 main indexes on Wall Street surged, with the Nasdaq leading the way as rate-sensitive tech firms rocketed.

The gains extended November's rally and helped claw back more of the hefty losses suffered for much of 2022.

The dollar also suffered a sell-off, tanking more than 1 percent against the yen to levels not seen since August.

The greenback's losses come after it soared across the board this year as Fed monetary policy diverged more and more from other central banks.

CHINA COVID HOPE

Investors were "putting those nasty thoughts of a bear market to bed as the December Santa Rally springs alive", said Stephen Innes at SPI Asset Management.

"Indeed investors are reveling in the afterglow of moderating Fed signals. And with the Fed done with jumbo hikes, it's seemingly enough to mark the bottom in the bear market and could lead to a sustainable rally."

He added that bets on rates topping 5 percent were fading and the advance in markets could push into the new year, with another slowdown in November inflation potentially fueling a bull rally -- when a market rises 20 percent from its recent low. 

"Still," he warned, "inflation will need to play along."

In another sign of hope, data earlier showed that eurozone inflation eased for the first time in 17 months in November.

Hong Kong led the gains in Asia again, with tech giants including Alibaba and Tencent tracking massive gains in their US-listed stock, while Shanghai ended well up.

Those rallies were also helped by signs that China is edging towards a more pragmatic approach to fighting the coronavirus, having hammered the economy this year with its strict zero-COVID strategy of lockdowns and mass testing.

After widespread unrest against the measures -- and calls for more political freedoms -- authorities have announced moves aimed at loosening some restrictions.

On Wednesday, Vice Premier Sun Chunlan, who heads China's COVID campaign, told the National Health Commission that the fight was entering a new phase as omicron weakens and more people are vaccinated.

Bloomberg News also noted that she did not refer to "dynamic COVID-zero", the term used to explain Beijing's strategy. 

"It is clear that the authorities are setting the stage for COVID measures to be relaxed," said Justin Tang, at United First Partners. "Equity prices will see a boost as China joins the rest of the world in living with COVID."

Among other markets, Tokyo, Sydney and Taipei added more than one percent while Singapore, Seoul, Wellington, Mumbai and Bangkok were also in positive territory.

Key figures around 3:10 p.m. in Manila

Tokyo - Nikkei 225: UP 0.9 percent at 28,226.08 (close)

Hong Kong - Hang Seng Index: UP 1.3 percent at 18,841.88

Shanghai - Composite: UP 0.5 percent at 3,165.47 (close)

Dollar/yen: DOWN at 136.30 yen from 138.03 yen on Wednesday

Euro/dollar: UP at $1.0454 from $1.0408 on Wednesday

Pound/dollar: UP at $1.2114 from $1.2052

Euro/pound: DOWN at 86.30 pence from 86.34 pence

West Texas Intermediate: DOWN 0.5 percent at $80.15 per barrel

Brent North Sea crude: DOWN 0.5 percent at $86.50 per barrel

New York - Dow: UP 2.2 percent at 34,589.77 (close)

London - FTSE 100: UP 0.8 percent at 7,573.05 (close)

Agence France-Presse

Equity markets and oil bounce back after last week's tumble

HONG KONG - Stocks and oil rallied Monday on bargain-buying after last week's blow-out, with traders tracking a healthy Wall Street performance fuelled by comments from a top Federal Reserve official that the spread of the Delta variant could cause him to reconsider plans to taper monetary policy.

Fears about the Covid mutation have rattled world markets as it forces some governments to reimpose containment measures, while sentiment was jolted further last week by minutes from the Fed's July meeting indicating it could start withdrawing its vast financial support by year's end.

The colossal bond-buying program and record-low interest rates have been a key pillar of the global recovery for more than a year, and the prospect of the cash being withdrawn has stalled that advance.

However, Dallas Federal Reserve boss Bob Kaplan, who is considered a policy hawk, suggested he could rethink his view to taper soon in light of the Delta variant's spread, which is showing signs of hobbling economic growth.

"The thing that I am going to be watching very carefully over the next month, before the next (Fed) meeting, is (whether) it is having a more material impact on slowing demand and slowing GDP growth," he said.

"I'm going to keep an open mind on that, and if it is having a more negative effect that might cause me to adjust my views somewhat from ones that I've stated."

Observers said the general consensus is that even when the Fed finishes winding back support, it is unlikely to immediately start hiking interest rates.

"Markets react to interest-rate hikes much more than tapering and we expect a pause between tapering and the first hike, suggesting liftoff in 2023 and not before," said Esty Dwek of Natixis Investment Managers.

BITCOIN BACK ABOVE $50K

Focus is now on Fed chief Jerome Powell's speech to the Jackson Hole annual conference of central bankers and finance chiefs, with hopes for a clue about a taper timetable.

All three main indexes on Wall Street rallied Friday, and Asia picked up the baton at the start of the week.

Tokyo jumped 1.8 percent while Shanghai, Bangkok and Jakarta were all up more than one percent. Hong Kong, which sank nearly six percent last week, was also up with Sydney, Seoul, Wellington and Mumbai. Taipei jumped more than two percent.

London, Paris and Frankfurt opened sharply higher.

The positive start was mirrored in oil markets, with both main contracts enjoying big gains, having suffered heavy losses recently owing to concerns that the Delta spread would impact demand as countries restrict people's movements.

Crude also rallied, helped by a dip in the dollar caused by the Kaplan remarks, while the observers said concerns over demand could prompt OPEC and other major producers to reconsider plans to increase output each month.

Still, while the week has got off to a healthy start, investors remain cautious about Delta's effect on the recovery outlook, while China's ongoing regulatory clampdown is also keeping optimism in check. 

Bitcoin broke back above $50,000 for the first time since mid-May, boosted by bargain-buying and leading some to predict the cryptocurrency could now be on course to hit $100,000.

"We're seeing some very bullish signs here," Vijay Ayyar, head of Asia-Pacific with crypto exchange Luno in Singapore, said. The currency could "test all-time highs again", he added. Bitcoin hit a record of almost $65,000 in April before suffering a sharp sell-off over the following months.

Agence France-Presse 

Asian markets mostly up as vaccine, data add to recovery hopes

HONG KONG – Asian markets mostly edged up Wednesday but gains were tempered as investors took a breather following a recent run-up, though another round of healthy data provided cause for continued optimism for the global recovery.

President Joe Biden gave cause to cheer by saying all adults in the United States would be eligible for a vaccine by April 19, almost two weeks earlier than previously pledged, reinforcing hope that the world’s top economy will get back on its feet more quickly.

That came as California’s governor said he aims to fully reopen the most populous US state by the middle of June if the current pace of inoculations continues.

In a further sign the United States was bouncing back, officials said job openings had surged to a two-year high in February, well above the level expected by most analysts.

That followed last week’s forecast-busting employment report and data showing a strong pick-up in the manufacturing and key services sector.

The string of healthy data — along with Biden’s $1.9 trillion stimulus and $2.25 trillion infrastructure proposal — have helped world markets climb to record or multi-month highs.

Recent concerns that the recovery and expected spending splurge will fan inflation and force central banks to lift interest rates have eased for now, with benchmark 10-year US Treasury yields dipping.

The International Monetary Fund backed up the view of a strong rebound by hiking its 2021 growth forecast for the second time in three months, predicting a 6.0 percent expansion, from its 5.5 percent prior estimate.

Toshiba set to surge

“Early signs show the recovery is accelerating, suggesting a faster return to ‘normal’ than many had dared to hope a few months ago,” said JP Morgan Asset Management’s David Kelly.

“While this is very good news in general, it brings with it challenges for investors in making sure their portfolios are positioned for the very different financial landscape of a post-pandemic world.”

Wall Street was unable to maintain the momentum Tuesday, however, and all three main indexes retreated slightly.

But observers were confident the gains will continue.

“Central banks are continuing to keep interest rates so low so people are looking for some place to put their money where they can get a return,” Sarah Hunt of Alpine Woods Capital Investors told Bloomberg TV.

“I think that’s also why you have stocks priced somewhat for perfection.”

In early trade, Hong Kong dipped as it reopened after an extended holiday weekend, while Shanghai and Tokyo also dropped.

Analysts said buying was dampened by the Chinese central bank’s move to slow loan growth owing to concerns about the development of bubbles.

Elsewhere in Asia, Sydney, Singapore, Seoul, Taipei, Manila, Jakarta and Wellington were in positive territory.

Shares in Japanese giant Toshiba were set to soar Wednesday after it confirmed it had received a buyout offer from a British private equity firm that a report said could be worth $20 billion.

The Nikkei newspaper said CVC Capital Partners was considering a 30 percent premium over the industrial group’s current share price. A flood of buy offers that outweighed sell orders meant the stock could not be traded in early business.

Toshiba said it would “request detailed information and carefully discuss” the offer.

Key figures around 0245 GMT

Tokyo – Nikkei 225: FLAT at 29,685.77 (break)  

Hong Kong – Hang Seng Index: DOWN 0.5 percent at 28,790.62

Shanghai – Composite: DOWN 0.6 percent at 3,460.87

Euro/dollar: DOWN at $1.1869 from $1.1876 at 2100 GMT

Pound/dollar: DOWN at $1.3821 from $1.3823

Euro/pound: DOWN at 85.87 pence from 85.89 pence

Dollar/yen: UP at 109.80 yen from 109.73 yen

West Texas Intermediate: DOWN 0.2 percent at $59.24 per barrel

Brent North Sea crude: DOWN 0.1 percent at $62.65 per barrel

New York – Dow: DOWN 0.3 percent at 33,430.24 (close)

London – FTSE 100: UP 1.3 percent at 6,823.55 (close)

Agence France-Presse 

Technology stocks keep stumbling; Nasdaq down 8% in 3 days

NEW YORK (AP) — Big tech stocks are continuing their Icarus-like flight path, and more sharp declines for them are dragging Wall Street toward a third straight loss on Tuesday.

The S&P 500 was down 2.1% in midday trading, after dropping as much as 2.5% shortly after the U.S. market opened. Big names that were the main reasons for Wall Street’s rocket ride back to record heights were among the heaviest weights. Apple sank 4%, Microsoft pulled 3.7% lower and tech stocks across the index were down 2.9%.

The Dow Jones Industrial Average was down 492 points, or 1.7%, at 27,641, as of noon Eastern time. The Nasdaq composite, which is packed with tech stocks, dropped 2.8% and is down 8.8% since Wednesday’s close.

Tech stocks had been the darlings of Wall Street, even through the pandemic, on expectations that they can continue to deliver strong profit growth almost regardless of the economy and global health. Tech stocks in the S&P 500 are still up 25% for 2020 so far, and Amazon has rocketed nearly 73%, even when unemployment remains high and much of the economy is limping ahead.

Analysts say a flurry of activity for stock options of Big Tech companies goosed the gains even further recently. With certain kinds of options, investors can make huge profits on a stock, without having to pay for its full share price, as long as the stock’s price keeps rising. If enough of these kinds of stock options are getting sold, it can create a buying frenzy for the stock that accelerates the gains even more.

But all that activity can unwind quickly and send prices tumbling if momentum turns, which is what happened last week. Apple stock dropped 3.1% for just its second weekly loss in the last 14 weeks.

Critics have long been saying that the stock market — and big technology stocks in particular — had grown too expensive after prices leapfrogged so much, so quickly.

The trigger for last week’s turnaround may have been expectations that longer-term interest rates will rise, according to strategists at Morgan Stanley. Low rates often act like steroids for stocks, encouraging investors to pay higher prices for stocks relative to corporate profits, which can benefit high-growth stocks in particular.

The yield on the 10-year Treasury has returned to 0.67%. That’s down from 0.72% late Friday, but it’s notably higher than the 0.53% it was offering at the end of July.

Tesla has been one of the brightest examples of Big Tech’s furious movements, and it surged 74.1% in August alone. It slumped 15.1% Tuesday amid disappointment that it won’t be joining the S&P 500 anytime soon.

The company behind the S&P 500 announced on Friday the inclusion of several companies in the benchmark index, including Etsy. Some investors thought Tesla would be among them, which can create huge bouts of buying as index funds automatically fold the stock into their portfolios. Teradyne and Catalent will also join the S&P 500 on Sept. 21.

Tuesday was the first day of trading for Wall Street after Monday’s closure for Labor Day.

Beyond the tech stock slump, other worries are also hanging over the stock market, which had been setting record highs just last week.

Pessimism is rising that Democrats and Republicans in Washington will be able to find a deal to send more aid to unemployed workers and an economy still struggling amid the pandemic. Investors have been largely assuming that a deal would eventually pass, but recent talks between government leaders have yielded no progress.

Riki Ogawa at the Asia & Oceania Treasury Department at Mizuho Bank in Singapore warned that plenty of other uncertainties remained, such as President Donald Trump’s comments about “decoupling” the U.S. economy from China, as the presidential campaign heats up.

The relationship between the world’s two largest economies has been on edge for years, and all the uncertainty threatens to exacerbate the global economy’s already shaky standing.

“We appear to be short on clarity,” said Ogawa.

Energy stocks had some of Wall Street’s sharpest drops as the price of oil tumbled. Apache lost 9.8%, and Occidental Petroleum fell 8.9% after benchmark U.S. crude sank 7.5% to $36.79 per barrel. Brent crude, the international standard, lost 6.1% to $39.43.

But the losses were widespread across the market, with 86% of stocks in the S&P 500 lower.

Among the few gainers was General Motors. It rose 9.6% after it said it’s taking an ownership stake in electric-vehicle company Nikola. GM will also engineer and build Nikola’s Badger hydrogen fuel cell and electric pickup truck as part of the partnership.

Nikola surged 36.8%, on track for its best day since it doubled on June 8.

European stock markets sank, following modest gains in Asia.

France’s CAC 40 fell 1.6%, Germany’s DAX lost 1% and the FTSE 100 in London slipped 0.1%.

Japan’s Nikkei 225 added 0.8%, South Korea’s Kospi rose 0.7% and Hong Kong’s Hang Seng edged up by 0.1%. Stocks in Shanghai rose 0.7%.

___

AP Business Writer Yuri Kageyama contributed.

Associated Press

Asian markets mostly higher on hopes for coronavirus vaccine

Shares were mostly higher in Asia on Wednesday as investors were encouraged by news that an experimental COVID-19 vaccine under development by Moderna and the U.S. National Institutes of Health revved up people’s immune systems just as desired.

Tokyo’s Nikkei 225 advanced 1.6% to 22,945.50, while the Kospi in South Korea added 0.9% to 2,201.96. In Australia, the S&P/ASX 200 added 1.7% to 6,039.50. Hong Kong’s Hang Seng was nearly unchanged at 25,476.31, while the Shanghai Composite Index slipped 0.5% to 3,397.63. Shares were mixed in Southeast Asia and rose in Taiwan.

The Bank of Japan kept its ultra-easy monetary stance unchanged as it wrapped up a policy meeting. It forecast that the economy would improve later in the year, assuming there is no major “second wave” of outbreaks of the new coronavirus.

But the central back acknowledged very high uncertainties over the outlook for the world’s third largest economy. The bank’s growth forecast for the year was downgraded to minus 5.7%- minus 4.5% from the earlier forecast of minus 5%-minus 3%.

The report also raised the issue of financial stability, noting that the “vulnerability of the financial system could increase,” said Marcel Thieliant of Capital Economics.

Investors are awaiting April-June economic growth data for China, which is due later in the week.

The focus for now was on news that scientists soon will begin a 30,000-person study to see if the experimental vaccine developed by Moderna and the NIH is strong enough to protect against the coronavirus.

News about the vaccine came after the end of trading for U.S. markets, where after another day of unsettled trading the S&P 500 rose 1.3% to 3,197.52. The Dow Jones Industrial Average added 2.1% to 26,642.59, lifted by gains for UnitedHealth Group and Caterpillar, among others.

Upbeat earnings news is helpful, “But the cherry on top has to be the positive virus vaccine update as optimism on the vaccine is more than a show stopper. Its the ultimate recession stopper,” Stephen Innes of AxiCorp said in a commentary.

“The positive coverage on a potential Covid-19 vaccine represents a rotating carousel of positive news that is overwhelming rising virus cases in the U.S.,” he said.

On Wall Street, big tech-oriented stocks lagged behind, holding the Nasdaq composite to a more modest gain of 0.9% to 10,488.58.

The earnings reporting season has kicked off with three of the nation’s biggest banks painting a mixed picture of how badly the coronavirus pandemic is ripping through their businesses.

Like the broader market, financial stocks drifted between gains and losses for much of the day before turning higher in the afternoon. JPMorgan Chase, Wells Fargo and Citigroup said they collectively set aside nearly $27 billion during the second quarter to cover loans potentially going bad due to the recession.

The yield on the 10-year Treasury held at 0.63% after rallying back from a morning dip on Tuesday to 0.60%. It tends to move with investors’ expectations of the economy and inflation.

Benchmark U.S. crude oil rose 10 cents to $40.39 per barrel in electronic trading on the New York Mercantile Exchange. It gained 19 cents to settle at $40.29 per barrel on Tuesday. Brent oil, the international standard, picked up 13 cents to $43.03 per barrel. It rose 18 cents to $42.90 a barrel in London.

In currency dealings, the dollar bought 107.27 Japanese yen, up from 107.23 yen late Tuesday. The euro also was almost unchanged, rising to $1.1406 from $1.1401.

Associated Press

US stocks edge mostly lower after China virus cases spike

Stocks closed lower on Wall Street Thursday as investors turned cautious following a surge in cases of a new virus in China that threatens to crimp economic growth and hurt businesses worldwide.

The modest losses snapped a three-day streak of record highs for the S&P 500 and Nasdaq composite. The selling marked only the second day this month that the market has declined.

Investors largely set aside worries about the economic impact of the virus outbreak the past two weeks. Markets rallied this week partly due to reports that the number of new cases of the new virus in China had declined.

Hopes that the spread of the virus had peaked were dashed Thursday, when China reported a sharp rise in cases and deaths after the hardest-hit province of Hubei took a new approach to classifying and diagnosing the virus.

“We’re in a data-dearth period in the sense that we’re not really going to know fully the effects of the impact of that on Asian and Chinese growth, as well as global growth, for at least several weeks,” said Lisa Erickson, head of traditional investments at U.S. Bank Wealth Management. “You’re just going to see some back-and-forth movement (in the market) until that time.”

The S&P 500 index dropped 5.51 points, or 0.2%, to 3,373.94. The Dow Jones Industrial Average slid 128.11 points, or 0.4%, to 29,423.31. It was down as much as 205 points earlier.

The Nasdaq fell 13.99 points, or 0.1%, to 9,711.97. The Russell 2000 index of smaller company stocks rose 4.36 points, or 0.3%, to 1,693.74.

Markets in Europe and Asia finished mostly lower. The yield on the 10-year Treasury held steady at 1.62%.

The major U.S. indexes wobbled for much of the day as investors weighed company earnings reports and the latest news on the virus outbreak in China.

The change in how Hubei determines and reports cases of the new virus pushed the number of cases worldwide to more than 60,000.

The spike came after two days in which the number of new cases dropped, complicating efforts to understand the trajectory of the outbreak.


Businesses have already been hurting due to the outbreak and more of them are warning that the effects will linger through the year. Organizers of the world’s biggest mobile technology fair cancelled the event, set to take place in Spain, because of health and safety concerns over the outbreak.

Travel-related companies fell broadly Thursday, shedding some of their gains from earlier in the week. Airlines helped pull industrial sector stocks lower. United Airlines fell 1.5%.

MGM Resorts International, which gets about 20% of its revenue from the gambling haven of Macau, pulled its profit forecast for 2020. The stock lost 5.5%. Cruise line operator Carnival slid 2%.

Technology and health care stocks were among the biggest decliners, along with companies that rely on consumer spending. Cisco Systems fell 5.2%, Mylan slid 2.3% and Hanesbrands dropped 2.6%.

Household goods makers, utilities, real estate companies and communication services stocks notched gains.

Fashion company Ralph Lauren warned that the viral outbreak cut into fourth-quarter sales by an estimated $55 million to $70 million. The stock fell 0.6%.

Alaska Air Group bucked the trend, adding 1.5% after the airline said it will cooperate more closely with American Airlines on West Coast service. The airlines asked for government permission to expand revenue-sharing to cover international flights in Seattle and Los Angeles.

Benchmark crude oil rose 25 cents to settle at $51.42 a barrel. Brent crude oil, the international standard, gained 55 cents to close at $56.34 a barrel. Wholesale gasoline was unchanged at $1.58 per gallon. Heating oil was also unchanged at $1.68 per gallon. Natural gas fell 1 cent to $1.83 per 1,000 cubic feet.

Gold rose $7.70 to $1,575.10 per ounce, silver rose 12 cents to $17.60 per ounce and copper rose 1 cent to $2.62 per pound.
The dollar fell to 109.79 Japanese yen from 110.08 yen on Wednesday. The euro weakened to $1.0843 from $1.086.

source: business.inquirer.net

Asian markets gain as China closes down for Lunar New Year

BANGKOK — Shares were mostly higher in quiet trading on Friday in Asia as China began a week-long Lunar New Year festival that is being overshadowed by the outbreak of a new virus that has killed 25 people and sickened more than 800.

Japan’s Nikkei 225 index rose less than 0.1% to 23,811.54 and in Hong Kong the Hang Seng gained 0.2% to 27,949.64.


Australia’s S&P ASX/200 picked up 0.2% to 7,100.30 and the Sensex in India also rose 0.2%, to 41,473.97.

Markets were closed in Shanghai and the rest of mainland China, South Korea, Malaysia and Taiwan.

As authorities confirmed more cases of the new virus first reported in the central Chinese city of Wuhan, investors continued to monitor developments in the international effort to keep it from spreading further and potentially harming the global economy.

The World Health Organization decided Thursday against declaring the outbreak a global emergency for now.

Such a declaration could increase resources for battling the outbreak but also result in trade and travel restrictions and other economic damage.

Fears that the coronavirus could spread have weighed on global markets this week, driving up demand for U.S. government bonds and safe-play stocks.

Market “traders are weighing the anticipated China growth fallout against the backdrop of the current global growth recovery. While the calculus is not coming up roses, it’s far from a state of global market panic,” Stephen Innes of AxiCorp said in a commentary.

“Still, if risk aversion starts to spread beyond China’s borders and starts to affect more than the usual suspect’s luxury, travel, and tourism, then we will likely see a more significant dive in the broader global indices,” he said.

Major U.S. stock indexes closed mostly higher Thursday, as gains in technology and industrial companies offset declines elsewhere in the market.


The S&P 500 notched a small gain for the second straight day, climbing 0.1% to 3,325.54, while a modest pickup nudged the Nasdaq composite to an all-time high of 9,402.48, up 0.2%.

The Dow Jones Industrial Average edged 0.1% lower to 29,160.09, its third straight day of losses as the benchmark was weighed down by a steep drop in shares of Travelers Cos.

The Russell 2000 index of smaller company stocks rose less than 0.1%, to 1,685.01.

Traders also had their eye on a mixed batch of company earnings reports, including encouraging quarterly results from American Airlines and Citrix Systems, and disappointing report cards from Travelers and Raymond James Financial.

“Today was driven a bit by earnings, but also by the coronavirus fears,” said J.J. Kinahan, chief strategist with TD Ameritrade. “Asian markets had a really tough night and that was our lead-in, that put a bit of extra pressure on the market coming in.”
Excluding the Nasdaq, the major U.S. stock indexes are on track to end the week with a loss.

Bond prices rose, pulling the yield on the 10-year Treasury lower to 1.73% from 1.77% late Wednesday.

Benchmark crude oil gained 14 cents to $55.73 per barrel in electronic trading on the New York Mercantile Exchange. It fell $1.15 to settle at $55.59 a barrel on Thursday. Brent crude oil, the international standard, picked up 18 cents to $62.22 per barrel. It dropped $1.17 to close at $62.04 a barrel overnight.

Gold fell back, losing $4.30 to $1,561.10. Silver shed 3 cents to $17.80 per ounce and copper fell 4 cents to $2.73 per pound.
The dollar rose to 109.52 Japanese yen from 109.49 yen on Thursday. The euro weakened to $1.1053 from $1.1056.

source: business.inquirer.net

US stocks set another record, the champagne’s still corked

NEW YORK  – U.S. stocks are back at a record. Don’t feel excited? Neither does Wall Street.

After a shaky few months, the stock market has pushed through worries about President Donald Trump’s trade wars, weakening corporate profits and the slowing global economy to set another all-time high. The S&P 500 closed Monday at 3,039.42, eclipsing the previous record set on July 26.


The resurgence belies how much caution still runs through markets, however. The strongest performers in recent months have been companies that pay big dividends and are more likely to hold up during downturns. Investors, meanwhile, remain hesitant to plow their money into stocks.

“We’ve slowly crept up to these all-time highs, but there’s still a lot of uncertainty,” said Emily Roland, co-chief investment strategist at John Hancock Investment Management. “We’re open to the idea that there could be a reacceleration in global economic growth, but we haven’t seen confirmation yet.”

Some glimmers of increased optimism have shone through the past couple of days, such as improved performance for smaller companies and tech stocks, but plenty of apprehension is still apparent in the catalysts for the S&P 500’s return to a record high:

— Defense has been the best offense.

Of the 11 sectors that make up the S&P 500, the ones seen as the stodgiest have been the best recently. Since July 26, utilities have jumped 6.3%. Profits for these kinds of companies are generally steadier than for the rest of the market, but also slower growing. That’s why they don’t typically do better than the overall market when times are good.

But their relatively high dividends look more alluring now that the Federal Reserve has cut interest rates twice since August, in hopes of protecting the economy. The only other sector in the S&P 500 to rise more than 1.4% is another high-dividend sector, real-estate, which is up 5.6%.

— Stocks THAT RISE WITH A STRONG ECONOMY are scuffling.

If investors were feeling gung ho, they’d likely be piling into areas of the market closely tied to the strength of the economy, which are known as “cyclical” stocks. They are not.

Energy stocks have been the worst performers in the S&P 500 since July 26, down 5%, for example. And tech stocks lagged the S&P 500 from late July until last week, after surging ahead of the rest of the market in the early part of this year.


The struggles tie into all the uncertainty that still exists about how much trade wars will hurt the economy, said Willie Delwiche, investment strategist at Baird. That would hurt cyclical stocks more than defensive stocks.

— Low interest rates DRIVE the market as much as anything else.

In addition to utilities and real-estate investment trusts, homebuilders have been among the market’s best performers recently. Lennar, PulteGroup and D.R. Horton are all up more than 16% in the last three months as lower mortgage rates have drummed up more business for them. The average 30-year fixed mortgage has a rate of 3.75%, down from 4.51% at the start of the year, according to Freddie Mac.

— Euphoria is still lacking.

Investors are still cautious, and they’re not chasing after the rising stock market. In four of the seven weeks through Oct. 16, they pulled more money out of U.S. stock funds and ETFs than they put in, according to the latest estimates from the Investment Company Institute.

Before that, investors yanked a net $101 billion through the year’s first eight months and instead poured money into the safety of bond funds.

To a contrarian, this is actually an encouraging sign. It means stocks could push even higher if investors do decide to get more aggressive with their portfolios. Recent performance suggests they might need a confidence-booster, such as a U.S.-China trade deal.

“We’re not seeing an excessive amount of optimism out there,” said John Hancock Investment Management’s Roland. “That’s one reason the market could still have some legs here. We’re open to that, but we’re just waiting for some confirmation that the backdrop can support earnings growth going forward.” /gsg

source: business.inquirer.net

Asian shares mixed amid uncertainties on Brexit, China trade

TOKYO –  Asian shares were mixed Monday amid uncertainties about Britain’s exit from the European Union and the ongoing trade conflict between the U.S. and China

Japan’s benchmark Nikkei 225 gained nearly 0.3% in early trading to 22,548.07. South Korea’s Kospi picked up 0.2% to 2,065.68, while Hong Kong’s Hang Seng added 0.2% to 26,778.99. The S&P/ASX 200 in Australia lost 0.1% to 6,640.40, while the Shanghai Composite slipped 0.1% to 2,934.30.

Shares fell in Taiwan and were mixed in Southeast Asia.

British Prime Minister Boris Johnson is trying to win over rebellious lawmakers in time to meet the Oct. 31 Brexit deadline for the UK’s exit from the 28-nation European Union.

A vote over the weekend ended with an amendment that delays the proposed deal, leaving the situation uncertain. And EU officials have not yet responded to Johnson’s reluctant request for an extension of the month’s end deadline.

“The can is not kicked far down the road with UK Prime Minister Boris Johnson expected to seek a new ‘meaningful vote’ on his deal as soon as Monday with the countdown to the Brexit deadline,” Jingyi Pan of IG said in a commentary.


Meanwhile, Japan reported that its exports fell 5.2% from a year earlier in September while imports slipped 1.5%. The resulting deficit of 123 billion yen ($1.1 billion) reflected weak exports to China, South Korea and other Asian countries, customs data showed.

The mixed performance to start the week is a continuation of the wobbles that ended last week, when the S&P 500 index logged its second straight weekly gain even though stock indexes ended lower on Friday.

Technology companies led the slide, which erased the major U.S. indexes’ gains from the day before. Communication services, industrials and health care stocks also fell, outweighing gains in real estate companies, banks and elsewhere in the market.

Investors are focusing on company earnings reports, searching for a clearer picture on the impact that the trade war between the U.S. and China is having on corporate profits and the broader economy.

The S&P 500 index fell 0.4% to 2,986.20. The index is just 1.3% below its all-time high set in late July.

The Dow Jones Industrial Average dropped 1% to 26,770.20 and the Nasdaq lost 0.8%, to 8,089.54. The Russell 2000 index of smaller stocks gave up 0.4% to 1,535.48.

Uncertainty over the standoff between Beijing and Washington has been roiling markets. Negotiators reached a truce last week that kept the conflict over trade and technology from escalating further, but both sides still have many issues to work out before reaching a substantive deal.

ENERGY: Benchmark crude oil dipped 10 cents to $53.68 a barrel in electronic trading on the New York Mercantile Exchange. It fell 15 cents to $53.78 a barrel Friday. Brent crude oil, the international standard, dropped 20 cents to $59.22 a barrel.

CURRENCIES: The dollar rose to 108.50 Japanese yen from 108.38 yen on Friday. The euro slipped to $1.1158 from $1.1174./gsg

source: business.inquirer.net

Stocks climb as markets cap turbulent quarter with calm end

NEW YORK – U.S. stocks climbed on Monday and gave one last nudge to ensure the S&P 500 emerged from yet another tumultuous quarter with a modest gain.

As has been the case throughout the quarter, movements in President Donald Trump’s trade war with China helped drive the market on Monday. Investors found encouragement after China said that its top trade negotiator will lead talks with the United States that are expected to take place next week. The Trump administration also calmed some worries that it may limit U.S. investment in Chinese companies.

The developments helped push technology stocks higher in particular. Those companies often move along with news about trade because of how reliant they are on China as both a customer and a supplier. The S&P 500 climbed 14.95 points, or

0.5%, to 2,976.74.

The Dow Jones Industrial Average rose 96.58, or 0.4%, to 26,916.83, and the Nasdaq composite added 59.71, or 0.8%, to 7,999.34.

The moves left the S&P 500 with a 1.2% gain for the quarter. While that was its smallest quarterly gain this year, the index had been on track for a much worse performance just a month ago.


Trump shocked markets in August when he said he’d raise tariffs on Chinese goods, and the announcement sent stocks and bond yields reeling. The S&P 500 dropped more than 6% in the weeks following July 26, when it set its last record. But stocks began climbing again in September as both sides made conciliatory moves to ease tensions.

Yields, meanwhile, remained lower for the quarter after the Federal Reserve cut short-term rates twice. They were the first rate cuts for the Fed since the financial crisis was swamping the economy in 2008. Across the Atlantic, the European Central Bank was likewise working to keep rates low in hopes of shoring up a slowing global economy.

The yield on the 10-year Treasury dipped to 1.65% from 1.67% late Friday. At the end of the last quarter, it was at 2%.

Like the S&P 500, the Dow also ended the quarter with a gain of 1.2%. The technology-heavy Nasdaq was a touch lower, with a loss of 0.1%.

Small companies took on more damage, as they typically do when investors are worried about the threat of a recession. The Russell 2000 lost 2.8% during the quarter.

Don’t expect the tumult to end with the close of the quarter.

Aside from the U.S.-China talks, the next three months have plenty of events on the schedule to keep markets on edge. Beyond the United Kingdom’s pending exit from the European Union, investors are also waiting to see whether Germany will enter a recession and how the new incoming head of the European Central Bank performs.

Closer to home, the impeachment inquiry into Trump could create even more uncertainty. That puts more pressure on the consumer, the bulwark of the U.S. economy recently, particularly when businesses have become reluctant to spend due to the trade war.

“The consumer’s been enough to keep the economy moving, but things like consumer confidence seem to be plateauing,” said Emily Roland, co-chief investment strategist at John Hancock Investment Management.

In the next few weeks, companies are scheduled to tell investors how much profit they made during the third quarter. Expectations are generally low again, with analysts forecasting a drop of nearly 4% from a year ago. The results, plus what CEOs say about their spending and revenue forecasts, should give a better picture of the economy’s potential direction.

“We need that earnings engine to kick in to drive markets higher,” Roland said.

Last year, the S&P 500 slumped 14% in the fourth quarter for its worst performance in seven years when fear spiked that the Federal Reserve’s plans to keep raising interest rates and a slowing global economy would knock the United States into a recession.

This time around, the Federal Reserve has shifted gears, and many investors expect the central bank to cut rates at least one more time this year. That could help support markets, even with all the potential flashpoints on the calendar.

Benchmark U.S. crude fell $1.84 to settle at $54.07 per barrel Monday. Brent crude, the international standard, fell $1.13 to $60.78 a barrel.

Natural gas dropped 7 cents to $2.33 per 1,000 cubic feet, heating oil lost 4 cents to $1.91 per gallon and wholesale gasoline fell 5 cents to $1.60 per gallon.


Gold fell $33.40 to $1,465.70 per ounce, silver fell 65 cents to $16.90 per ounce and copper fell 2 cents to $2.56 per pound.

Stock markets around the world were mixed during the quarter, as European growth remained stubbornly weak and Hong Kong saw increasingly violent political protests. In Europe, France’s CAC 40 finished with a 2.5% gain for the quarter. Germany’s DAX rose 0.2%, and the FTSE 100 lost 0.2%.

In Asia, Japan’s Nikkei 225 index rose 2.3% for the quarter, while South Korea’s Kospi fell 3.2% and the Hang Seng in Hong Kong lost 8.6%.

The dollar rose to 108.07 Japanese yen from 107.81 yen on Friday. The euro weakened to $1.0902 from $1.0941. /gsg

source: business.inquirer.net

Asian stocks decline as traders mull Trump inquiry

BEIJING  — Asian stocks fell Friday as traders weighed data showing slower U.S. economic growth and also the possible impact of an impeachment inquiry of President Donald Trump.

The congressional inquiry into Trump is throwing more volatility into a market that already was nervous over U.S.-Chinese trade tension.

“The impeachment of Trump will now become a drawn-out saga that feels like annoying supermarket music,” Jeffrey Halley of Oanda said in a report.

Also Thursday, the Commerce Department reported the U.S. economy grew at a modest 2% in the second quarter, sharply lower than the past year’s 3%-plus growth rates.

The Shanghai Composite Index advanced 0.2% to 2,933.47 on the last day of trading before Chinese markets close for a weeklong holiday.

Tokyo’s Nikkei 225 lost 1.4% to 21,747.82 as a long-dreaded Oct. 1 hike in Japan’s sales tax to 10% from the current 8% loomed. The Hang Seng in Hong Kong shed 0.3% to 25,982.54 and Seoul’s Kospi dropped 1.2% to 2,048.86.

Sydney’s S&P-ASX 200 gained 0.4% to 6,703.70. Markets in Taiwan, New Zealand and Southeast Asia retreated.

Traders were encouraged by a Chinese Commerce Ministry announcement that importers had agreed to buy U.S. soybeans as the two sides make conciliatory gestures ahead of trade talks. That followed an earlier decision to list punitive tariffs on soybeans, the biggest Chinese import from the United States.

Plans to go ahead with negotiations next month have helped to ease market jitters but there has been no sign of progress toward resolving the bruising tariff war over trade and technology.

On Wall Street, the Standard & Poor’s 500 index fell 0.2% to 2,977.62 and the Dow Jones Industrial Average slid 0.3% to 26,891.12. The Nasdaq dropped 0.6% to 8,030.66.

While many analysts say the Trump probe isn’t likely to affect the market significantly, it does add a degree of uncertainty and could complicate the White House’s efforts to resolve trade disputes with China and other nations.

ENERGY: Benchmark U.S. crude lost 29 cents to $56.12 per barrel in electronic trading on the New York Mercantile Exchange. The contract gave up 8 cents to $56.41 on Thursday. Brent crude, used to price international oils, fell 56 cents to $61.18 per barrel in London. It retreated 31 cents the previous session to $61.74.

CURRENCY: The dollar declined to 107.72 yen from Thursday’s 107.83 yen. The euro rose to $1.0925 from $1.0920./gsg

source: business.inquirer.net

Asian stocks lower ahead of Trump-Xi meeting at G-20 summit

BEIJING – Major Asian stock markets declined Tuesday as traders looked ahead to a meeting between the American and Chinese presidents amid hopes for renewed trade talks.

Benchmarks in Tokyo, Shanghai and Hong Kong declined. Seoul and Sydney were little-changed.

Investors were encouraged by the announcement that top U.S. and Chinese negotiators, Trade Representative Robert Lighthizer and Vice Premier Liu He, talked Monday by phone. No details were released.

Traders looked ahead to a planned meeting between Presidents Donald Trump and Xi Jinping at this week’s Group of 20 meeting of major economies in Japan.

Forecasters expect the leaders to reassure financial markets by agreeing to revive trade talks without a timeline or committing to any details.

The conflict over Beijing’s technology ambitions and trade surplus was weighed on global trade and fed fears it will depress global growth.

Tensions have worsened after Washington tightened sanctions on Chinese tech giant Huawei.

“Both presidents have a very low bar of merely agreeing to resume trade talks, without having to iron out any of the sticking points at the G20,” said Chang Wei Liang of Mizuho Bank in a report.

The realities of achieving a settlement “will probably be relegated to the backseat as the ‘feel good’ factor of the G20 displaces caution,” Chang said.

The Shanghai Composite Index lost 1.1% to 2,974.69 and Tokyo’s Nikkei 225 shed 0.2% to 21,241.28. Hong Kong’s Hang Seng retreated 0.9% to 28,268.14.

Seoul’s Kospi added one point to 2,128.00 while Sydney’s S&P-ASX 200 gained three points to 6,667.40. Taiwan also declined while markets in Southeast Asia and New Zealand advanced.

On Wall Street, smaller company stocks had their worst day since May, helping to erase some of last week’s gains after the benchmark Standard & Poor’s 500 index closed at an all-time high.

The S&P 500 index slipped 0.2% to 2,945.35. The Dow Jones Industrial Average rose less than 0.1% to 26,727.54. The Nasdaq composite dropped 0.3% to 8,005.70.

The Russell 2000 index of smaller companies slid 1.3% to 1,530.08, its biggest single-day loss since May 31.

Investors have been reassured by statements from the Federal Reserve this month that suggest the central bank is prepared to cut interest rates in response to a slowing global economy. Even so, traders remain concerned that corporate profits might suffer should the kind of economic slowdown that would prompt the Fed to cut rates take hold.

The U.S.-Chinese standoff was triggered by complaints Beijing steals or pressures companies to hand over technology.

Lighthizer and Liu wrapped up their latest round of talks in May with no date to meet again. China laid out conditions for a settlement in early June, saying it must be “balanced,” reflecting complaints Washington is pushing for a one-sided deal and to retain punitive tariffs on Chinese goods.

ENERGY: Benchmark U.S. crude fell 50 cents to $57.40 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 47 cents on Monday to close at $57.90. Brent crude, used to price international oils, lost 51 cents to $63.67 per barrel in London. It shed 27 cents the previous session to $64.18.

CURRENCY: The dollar declined to 107.05 yen from Monday’s 107.29 yen. The euro edged up to $1.1403 from $1.1400. /gsg

source: business.inquirer.net

Asian shares mostly higher as investors look ahead to Fed

TOKYO – Asian shares were mostly higher Monday amid a wait-and-see attitude about the direction of interest rates and the trade dispute between the U.S. and China.

Japan’s benchmark Nikkei 225 gained 0.3% to 21,170.63 in morning trading.

Australia’s S&P/ASX 200 lost 0.3% to 6,535.50, while South Korea’s Kospi edged up nearly 0.2% to 2,099.26.

Hong Kong’s Hang Seng gained 1.2% to 27,447.42, while the Shanghai Composite was up 0.2% at 2,888.58.

On Wall Street, stocks ended a choppy week of trading with modest losses.

The S&P 500 index fell 4.66 points, or 0.2%, to 2,886.98 Friday and ended the week with a slim gain of 0.5%.

The Dow Jones Industrial Average dropped 17.16 points, or 0.1%, to 26,089.61.

The Nasdaq composite slid 40.47 points, or 0.5%, to 7,796.66.

The Russell 2000 index of small company stocks dropped 13.30 points, or 0.9%, to 1,522.50.

Earlier this month, Federal Reserve Chair Jerome Powell set off a market rally after he signaled that the central bank is willing to cut interest rates to help stabilize the economy if the trade war between Washington and Beijing starts to slow economic growth.

The Fed holds its next meeting of policyholders this week, but no action on rates is expected.

Economists expect Fed officials to wait until the second week of July to indicate whether they intend to cut rates, after seeing the next government report on the jobs market and other economic data.

Market watchers are also closely watching the results of the G-20 summit in late June, where President Donald Trump and Chinese President Xi Jinping could meet and try to negotiate a deal on trade.

“Sentiments around the ability to achieve a positive turn in U.S.-China trade negotiations, should the Trump-Xi meeting materialize at the sidelines of the G-20, remain tentative,” says Vishnu Varathan of Mizuho Bank in Singapore.

“And the G-20 itself is merely a stage to kick the can down the road and a long, long way off a complete retraction of global trade tensions.”

ENERGY:

Benchmark crude oil added 15 cents to $52.66 a barrel. It rose 0.4% to settle at $52.51 a barrel Friday. Brent crude oil, the international standard, added 29 cents to $62.30 a barrel.

CURRENCIES:

The dollar rose to 108.57 Japanese yen from 108.23 yen on Friday. The euro weakened to $1.1222 from $1.1263. /gsg

source: business.inquirer.net

Asian shares mixed on jitters over Hong Kong protests

SINGAPORE – Asian stocks were mixed on Thursday as protesters in Hong Kong vowed to keep opposing a proposed extradition bill they fear would whittle down the Chinese territory’s legal autonomy.

The protests threaten to shake confidence in the hub for many regional and international businesses and investors.

Hong Kong’s Hang Seng gave up 0.5% to 27,163.46, extending its losses after closing down 1.7% on Wednesday.

The Shanghai Composite index added 0.1% to 2,912.47 while South Korea’s Kospi lost 0.8% to 2,092.11.

Japan’s Nikkei 225 index lost 0.8% to 20,958.25.

Australia’s S&P ASX 200 picked up 0.1% to 6,550.10 after the release of better-than-expected jobs data.

Shares fell in Taiwan and throughout Southeast Asia.

On Wednesday, thousands of protesters clashed with police and were confronted with rounds of tear gas as they demonstrated on the streets of Hong Kong.

At least 72 people were brought to hospitals, with two in serious condition, the Hong Kong Hospital Authority said.

They obstructed the flow of traffic and delayed a debate on a bill that would allow criminal suspects in Hong Kong to be sent for trial in mainland China.

“The Hong Kong crisis could continue to escalate in the coming days and should weigh on risk appetite. Trade deal updates could fall to the second page of papers, but eventually we could see Chinese politics blend together,” Edward Moya of OANDA said in a market commentary.

President Donald Trump has said he expects to meet Chinese leader Xi Jinping at the Group of 20 summit in Osaka later this month.

But he said he’s prepared to expand existing tariffs if a deal with Beijing falls through. Representatives from both countries have had 11 rounds of trade talks but have yet to ink an agreement.

Wall Street suffered its second straight loss on Wednesday as bank and technology companies slid. Investors were worried that a trade dispute between the world’s two largest economies would drag on for longer than expected.

The S&P 500 index eased 0.2% to 2,879.84 and the Dow Jones Industrial Average also fell 0.2% to 26,004.83. The tech-heavy Nasdaq composite dropped 0.4% to 7,792.72. The Russell 2000 index of smaller company stocks edged up less than 0.1% to 1,519.79.

ENERGY: Benchmark U.S. crude lost 9 cents to $51.05 per barrel in electronic trading on the New York Mercantile Exchange. It shed $2.13 to $51.14 per barrel on Wednesday. Brent crude oil, the international standard, fell 7 cents to $59.90 per barrel. The contract lost $2.32 to $59.97 per barrel in the previous session.

CURRENCIES: The dollar slipped to 108.32 Japanese yen from 108.50 yen late Wednesday. The euro rose to $1.1293 from $1.1288. /gg

source: business.inquirer.net

Asian shares rise as Trump plans to meet Chinese leader

TOKYO  — Asian shares were mostly higher Tuesday as investor jitters over trade eased after U.S. President Donald Trump suspended plans to impose tariffs on Mexican imports and said he expects to meet with the Chinese leader.

Japan’s benchmark Nikkei 225 rose 0.4% in morning trading to 21,208.09.

Australia’s S&P/ASX 200 added 1.3% to 6,528.30.

South Korea’s Kospi gained 0.3% to 2,105.37. Hong Kong’s Hang Seng stood at 27,820.63, up nearly 0.9%, while the Shanghai Composite edged up 1.9% at 2,905.44.

On Wall Street, shares continued their winning streak for a fifth day on Monday.

That follows the strongest week for stocks since November in what has been a marked turnaround for the market after escalating trade tensions fueled a turbulent skid in May.


During an interview with CNBC, Trump said he expects to meet with Chinese President Xi Jinping at the Group of 20 summit in Japan later this month.

That may have given investors some cause for optimism in the dispute between Washington and Beijing.

The S&P 500 index gained 13.39 points, or 0.5%, to 2,886.73.

The benchmark index rose 4.4% last week, its best weekly performance of 2019. It’s now about 2% below its record set on April 30.

The Dow Jones Industrial Average rose 78.74 points, or 0.3%, to 26,062.68.

The Nasdaq composite climbed 81.07 points, or 1.1%, to 7,823.17. The Russel 2000 index of smaller companies gained 9.17 points, or 0.6%, to 1,523.56.

ENERGY: Benchmark U.S. crude rose 31 cents to $53.57 a barrel. It slid 1.4% to $53.26 a barrel on Monday. Brent crude oil, the international standard, was up 19 cents at $62.48 a barrel.

CURRENCIES:  The dollar was unchanged at 108.60 yen. The euro rose to $1.1315 from $1.1307. /gg

source: newsinfo.inquirer.net

Asia shares retreat on fears China-US trade row might spread

TOKYO – Asian shares were mostly lower on Friday as worries that the trade standoff between the U.S. and China might expand put investors in a selling mood.

Japan’s benchmark Nikkei 225 fell 0.2% to finish at 21,117.22.


Australia’s S&P/ASX 200 lost 0.6% at 6,456.00. South Korea’s Kospi dropped 0.8% to 2,043.43.

Hong Kong’s Hang Seng edged 0.4% higher to 27,361.48, while the Shanghai Composite inched up 0.1% to 2,855.67.

“Finally, markets appear to be starting to price in the effect of an extended U.S.-China trade war on global growth,” Jeffrey Halley, senior market analyst at Oanda, said in a commentary.

Stocks ended sharply lower on Wall Street on Thursday in a broad sell-off that left the benchmark S&P 500 index on track for its third straight weekly loss and had the Dow Jones Industrial Average down more than 400 points until late afternoon.

Traders sought safety in the bond market, driving bond prices higher, which pulled the yield on the 10-year Treasury to 2.31%, the lowest level in more than a year.

It was at 2.33% by midday Friday in Asia.

The stock market has been gyrating since Washington and Beijing escalated their dispute over trade earlier this month. Now, the two sides have broken off negotiations and appear set for a long standoff.

Investors are concerned that a prolonged trade war could stunt economic growth and hurt corporate profits.

Overnight, President Donald Trump reiterated his complaints that China has “taken advantage” of the United States, with no hint of any progress in resolving the conflict over technology and Beijing’s industrial policies.

The S&P 500 index fell 1.2% to 2,822.24.

The index was down 2.5% before the selling eased. The Dow lost 1.1% to 25,490.47.

The Nasdaq composite dropped 1.6% to 7,628.28. The Russell 200 index of small company stocks gave up 2% to 1,501.38.

The U.S. and China concluded their 11th round of trade talks earlier this month with no agreement.

Instead, the U.S. moved to increase tariffs on Chinese goods, prompting China to reciprocate.

The trade dispute escalated further after the U.S. proposed restrictions on technology sales to China, though it has temporarily backed off.

China is looking for ways to retaliate and has reached out for support from Russia and its neighbors in Asia.

Both the U.S. and China have made overtures about continuing trade talks, but none are scheduled.

That uncertainty has many traders nervous about how and when the trade dispute will be resolved.

ENERGY: Benchmark U.S. crude rose 61 cents to $58.53 a barrel. It plunged 5.7% to settle at $57.91 a barrel on Thursday. Brent crude, the international standard, added 75 cents to $68.51 per barrel.

CURRENCIES: The dollar fell to 109.54 yen from 110.08 yen Thursday. The euro strengthened to $1.1196 from $1.1135. /gg

source: business.inquirer.net

Your Uber has arrived, on Wall Street

SAN FRANCISCO — Uber’s next stop is the stock market, where it hopes to pick up more investors willing to bet on a ride-hailing market brimming with potential and conspicuously lacking in profits.

The world’s largest ride-hailing service reached a major milestone Thursday when Uber priced its long-awaited initial public offering at $45 price per share to set the stage for its stock to begin trading Friday morning.


The IPO came in at the lower end of Uber’s targeted price range of $44 to $50 per share. The caution may have been driven by escalating doubts about the ability of ride-hailing services to make money since Uber’s main rival, Lyft, went public six weeks ago.

Even at the tamped-down price, Uber now has a market value of $82 billion — five times more than Lyft’s.

No matter how Uber’s stock swings Friday, the IPO has to be considered a triumph for the company most closely associated with an industry that has changed the way millions of people get around. That while also transforming the way millions of more people earn a living in the gig economy.

“We’re going to be measuring success in three to five to 10 years, not in one day,” said CEO Dara Khosrowshahi in an interview with CNBC on the steps of the New York Stock Exchange less than two hours before the opening bell.

Uber’s IPO raised another $8.1 billion as the company it tries to fend off Lyft in the US and help cover the cost of giving rides to passengers at unprofitable prices. The San Francisco company already has lost about $9 billion since its inception and acknowledges it could still be years before it turns a profit.


That sobering reality is one reason that Uber fell well short of reaching the $120 billion market value that many observers believed its IPO might attain.

Another factor working against Uber is the cold shoulder investors have been giving Lyft’s stock after an initial run-up. Lyft’s shares closed Thursday 23% below its April IPO price of $72.

Uber “clearly learned from its ‘little brother’ Lyft, and the experience it has gone through,” Wedbush Securities analysts Ygal Arounian and Daniel Ives wrote late Thursday.

The jitters about an intensifying U.S. trade war with China also have roiled the stock market this week.

Despite all that, Uber’s IPO is the biggest since Chinese e-commerce giant Alibaba Group debuted with a value of $167.6 billion in 2014.

“For the market to give you the value, you’ve either got to have a lot of profits or potential for huge growth,” said Sam Abuelsamid, principal analyst at Navigant Research.

Uber boasts growth galore. Its revenue last year surged 42% to $11.3 billion while its cars completed 5.2 billion trips around the world either giving rides to 91 million passengers or delivering food.

Uber might be even more popular if not for a series of revelations about unsavory behavior that sullied its image and resulted in the ouster of its co-founder, Travis Kalanick, as CEO nearly two years ago.

The self-inflicted wounds included complaints about rampant internal sexual harassment , accusations that it stole self-driving car technology , and a cover-up of a computer break-in that stole personal information about its

passengers. What’s more, some Uber drivers have been accused of assaulting passengers, and one of its self-driving test vehicles struck and killed a pedestrian in Arizona last year while a backup driver was behind the wheel.

Uber hired Khosrowshahi as CEO to replace Kalanick and clean up the mess, something that analysts say has been able to do to some extent, although Lyft seized upon the scandals to gain market share.

Kalanick remains on Uber’s board, although he isn’t expected to be on the podium to help ring the opening bell at the New York Stock Exchange to herald the company’s debut Friday. Instead, he will be left standing on the sidelines while the spotlight shines on other Uber executives, although Kalanick can still savor his newfound wealth. At $45 per share, his stake in Uber will be worth $5.3 billion. Hundreds, if not thousands, of other Uber employees are expected to become millionaires in the IPO.

Meanwhile, scores of Uber drivers say they have been mistreated by the company as they work long hours and wear out their cars picking up passengers as they struggle to make ends meet. On Wednesday, some of them participated in strikes across the United States to highlight their unhappiness ahead of Uber’s IPO but barely caused a ripple. A similar strike was organized ahead of Lyft’s IPO to the same effect.

In its latest attempt to make amends, Uber disclosed Thursday that it reached a settlement with tens of thousands of drivers who alleged they had been improperly classified as contractors. The company said the settlement covering most of the 60,000 drivers making claims will cost $146 million to $170 million.


Now, Uber will focus on winning over Wall Street.

Uber may be able to avoid Lyft’s post-IPO stock decline because it has a different story to tell than just the potential for growth in ride-hailing, says Alejandro Ortiz, principal analyst with SharesPost. Uber, he said, has plans to be more than a ride-hailing company by being all things transportation to users of its app, offering deliveries, scooters, bicycles and links to other modes of transportation including public mass transit systems.

“Whether or not that pitch will work kind of remains to be seen. It’s nearly impossible to tell now,” he said. “Obviously the risk to the company now is they have a lot more shareholders that they have to convince.” /ee

source: technology.inquirer.net

World shares extend losses ahead of US economic growth data

BANGKOK – Shares edged lower in Europe on Friday following a lackluster day in Asia ahead of the release of U.S. economic growth data later in the day.

Benchmarks fell Friday in Paris, London, Tokyo and Shanghai but rose in Hong Kong and Sydney.


Economists have been upgrading their estimates, with many forecasting that GDP expanded at an annual rate of close to 3% in the first three months of the year. That would be up a full percentage point from previous estimates.

Germany’s DAX was nearly unchanged early Friday at 12,280.80 while the CAC40 in Paris lost 2.33 points to 5,555.34.

Britain’s FTSE 100 fell 0.3% to 7,411.37.

Wall Street looked set for a weak open, with the future contract for the Dow down 0.1% and that for the S&P 500 also off 0.1%.

In Asian trading, concern that China may temper its economic stimulus pulled benchmarks lower for a second straight day.

The Shanghai Composite index fell 1.2% to 3,086.40 while Japan’s Nikkei 225 index slipped 0.2% to 22,258.73.

South Korea’s Kospi declined 0.5% to 2,179.31. Australia’s S&P ASX 200 edged 0.1% higher to 6,385.60, while the Hang Seng in Hong Kong added 0.2% to 29,605.01.

India’s Sensex jumped 0.9% to 39,066.97.

Shares fell in Taiwan, Singapore, Malaysia and Thailand but rose in Jakarta.

China-U.S. trade talks are again on the agenda, for next week in Beijing, with further talks in Washington slated for May 8.

President Donald Trump has said his Chinese counterpart, Xi Jinping, might be visiting the White House soon, but the timing remained unclear. Progress on a deal resolving a conflict over Beijing’s technology policies that has involved billions of dollars in tariffs being imposed on each other’s products would reassure investors who have been rattled by the uncertainty.

In the U.S., earnings reporting season is about a third of the way in, and investors are searching for clues about whether profit growth can accelerate later this year following a weak first quarter.

Analysts are forecasting a drop of 2.8% in earnings for S&P 500 companies this time around, not as bad as the 4% decline they were expecting a few weeks ago.

ENERGY: Benchmark U.S. crude gave up $1.07 to $64.14 per barrel in electronic trading on the New York Mercantile Exchange. It lost 68 cents to $65.21 per barrel on Thursday. Brent crude, the international standard, plunged $1.20 to $72.43 per barrel.

CURRENCIES: The dollar was trading at 111.74 Japanese yen, up from 111.63 yen on Thursday. The euro rose to $1.1141 from $1.1333.  /gsg

source: business.inquirer.net

Asian shares fall as Fed minutes show data may tweak stance

SINGAPORE (AP) – Asian markets were mostly lower on Thursday after the U.S. Federal Reserve released minutes of its meeting in March.

While most officials believed the central bank would leave interest rates unchanged for the rest of the year, several said their views could shift with incoming data.


Hong Kong’s Hang Seng gave up 0.6% to 29,929.66 and the Shanghai Composite index fell 0.8% to 3,215.79.

The Kospi in South Korea was flat at 2,224.44. Australia’s S&P ASX 200 slid 0.4% to 6,198.70.

Japan’s benchmark Nikkei 225 bucked the regional trend, adding 0.1% to 21,711.38. Shares fell in Taiwan, Thailand and Indonesia but rose in Singapore.

The Federal Open Market Committee released minutes from a meeting in March on Wednesday.

There were no major surprises. It showed that most officials believed that the central bank would leave its key policy rate unchanged for the rest of the year.

This was in line with the outcome of the March 19-20 meeting, where the Fed trimmed its 2019 rate hikes outlook from two to none.

In the minutes, several Fed officials also said that they may feel differently, depending on the data that surfaces.

Weaker growth and lower inflation expectations could prompt the Fed to cut rates, while stronger growth and rising inflation expectations could warrant a rate hike.

An indication of flexibility caused Asian markets to open in a “slightly soft mood,” said Selena Ling, chief economist at OCBC Bank.


“The FOMC minutes suggested that rates could head in either direction from here, but members generally favor being patient for the remainder of the year,” she added in an interview.

China reported inflation figures in March on Thursday that met market expectations. The country’s producer price index rose 0.4% in March from a year ago, according to National Bureau of Statistics.

This was up from February’s 0.1% increase. Its consumer price index picked up 2.3% in March from a year earlier, as compared to a 1.5% gain in the previous month.

Over on Wall Street, strong gains by technology companies and small-company stocks lifted indexes, while utilities lagged.

The broad S&P 500 index climbed 0.3% to 2,888.21. The Dow Jones Industrial Average was less than 0.1% higher at 26,157.16 and the Nasdaq composite jumped 0.7% to 7,964.24. The Russell 2000 index of smaller-company stocks rebounded 1.4% to 1,581.55.

ENERGY: Benchmark U.S. crude dropped 32 cents to $64.29 per barrel. It added 63 cents to settle at $64.61 per barrel on Wednesday. Brent crude shed 28 cents to $71.45 per barrel. The contract gained $1.12 to $71.73 per barrel in London.

CURRENCIES: The dollar strengthened to 111.11 yen from 111 yen late Wednesday. The euro rose to $1.1276 from $1.1273. /gsg

source: business.inquirer.net