Yahoo Finance Markets Mixed As Trump/Kim Summit Begins, Metrobank Plunges 20%, US Economy Healthy
Asian Markets Mostly Higher As The Trump/Kim Summit Begins
Asian equity indices were mostly higher in Wednesday trading as traders eye the Trump/Kim Summit in Vietnam. This is the second time the two leaders have met in the last year and hopes are high they will further improve relations between the US and North Korea. On the table is economic relief in the form of reduced sanctions and international aid provided isolated North Korea will denuclearize. Trump says North Korea will see an era of economic boom if Kim agrees to denuclearization. He says there is awesome potential and North Korea could prosper as Vietnam has prospered over the past twenty years.
The Japanese Nikkei led the market with a gain of 0.50%. The Nikkei’s move was underpinned by strength in Fast Retailing, Japan’s largest convenience retailer, which advanced 2.67% in the session. The Shanghai Composite posted the next largest advance, about 0.40%. The Australian ASX and Korean Kospi both gained a little more than 0.35%, the Kospi supported by a 5.31% increase in shares of Hyundai Motors. Hyundai Motors rejected a plan for cash-call presented by activist investors. The Hang Seng Index was the only to fall in Wednesday trading posting a loss of -0.05%.
Metrobank Leads EU Markets Lower
Shares of UK-based Metrobank fell nearly -20% in early Wednesday trading and led the entire market lower. The bank has let slip it may issue a 350 million pound cash-call to investors. The UK FTSE led the indices posting a loss near -0.70% in midday trading.
Household goods were the weakest sector in the EU session. The reason is Beiersdorf reported weaker than expected earnings and cut its profit outlook. Air France-KLM was also sharply lower in early Wednesday trading. The Dutch Government says it will be seeking a larger stake in the company. investors fear this spells slower decision-making on key issues.
The German DAX was down about -0.40%, the French CAC about -0.12%, on mixed EU economic data. Readings on Business and Consumer Sentiment where as expected or slightly better than expected. The data suggests the economic downturn which began last fall has begun to stabilize.
The US Economy Is Still Healthy
US futures are looking at a negative open in early Wednesday trading despite a vote of confidence from Fed Chief Jerome Powell. Powell says the US economy is still healthy despite a slow-down of growth. He says there are risks to the economy in the form of trade relations and Brexit but thinks that, once the hurdles are crossed, global activity will reaccelerate. The major indices were all looking at a loss between -0.25% and -0.30%.
In earnings news, this week is important for the retail sector. Yesterday shares of Home Depot plunged on weaker than expected results. Today competitor Lowes reported mixed results with favorable outlook and sent shares up by 5.0% in pre-market action. Discount/Close-out retailer TJ Maxx also reported before the bell. The company beat estimates for top and bottom line results, increased the dividend, issued favorable guidance, and sent shares up 2.5%. L-Brands is scheduled to report after the close of today’s session.
This article was originally posted on FX Empire
