|Day's range||28,066.13 - 28,470.10|
|52-week range||24,540.63 - 30,280.12|
The global equity markets were mostly lower ahead of the opening bell as investors digested tensions between Iran and the US. There are two Fed member speeches today that stand to move the markets, depending on the message conveyed.
The early sentiment in Asia indicates that sellers have gained the upper hand. It’s not a bearish tone, per se, but rather one being dictated by long liquidation by those investors who want to avoid the pain of another steep sell-off, and aggressive short-sellers betting on the worst outcome.
US equities are set for a modestly higher open while global equities are mixed to start the new week. The focus for equity traders will be on a meeting between Trump and Xi that takes place later this week.
The new worry is a potential escalation of the tensions between the United States and Iran. This could limit gains today by encouraging investors to lighten up their long positions.
US equities closed at a record high on Thursday as the series of dovish turns by central banks continued to drive the rally in global markets. The US benchmark S&P 500 finished 0.9 per cent higher at 2,954.18, besting the previous peak on April 30 by about 8 points. Jim Tierney, chief investment officer of AllianceBernstein’s concentrated US growth equities fund, said the S&P 500 record reflected the Fed’s dovish tilt ahead of the G20 meeting where the US and Chinese president will discuss a trade deal.
After presenting a plethora of data and projections, Fed Chair Jerome Powell held a press conference. It was at this press conference that he opened the door to the possibility of a rate cut as soon as July. He said, “Many participants now see the case for somewhat more accommodative policy has strengthened.”
US stocks and government bonds climbed on Wednesday after the Federal Reserve adopted a more dovish stance on interest rates, a day after a signal of more potential stimulus from the European Central Bank sparked one of the strongest global rallies of the year. The Fed left rates unchanged following its two-day policy meeting but now forecasts a rate cut in 2020, saying it would monitor incoming data and “act as appropriate to sustain the expansion”. Candice Bangsund, vice-president and portfolio manager at Fiera Capital, said the Fed “placated the doves” by adopting an increasingly cautious stance amid trade tensions and ahead of next week’s planned meeting between President Donald Trump and his Chinese counterpart, Xi Jinping.
“The news on the talks in Osaka is a short term positive for asset markets, but we believe any talks will change little unless either side makes some meaningful concessions, which we do not view as likely at this time,” Pang added. While there is only a 20% chance of a rate cut in June, traders want to hear the Fed is leaning to its first cut in 10 years in July. If this isn’t stated clearly then the markets could weaken.
his Chinese counterpart Xi Jinping at the G20 summit later this month reignited hopes that trade talks could get back on track. Mr Trump said on Twitter on Tuesday that he had a “very good” phone conversation with Mr Xi and that their respective teams would begin talks ahead of the meeting in Osaka. Up until Mr Trump’s comments, the White House had not confirmed whether the two leaders would meet separately from the group setting.
European stocks rebounded Tuesday following a speech from European Central Bank President Mario Draghi, which suggested that the ECB will provide more stimulus if inflation does not pick up.
Global shares rose Tuesday after the president of the European Central Bank said it was ready to cut interest rates and provide stimulus if the economy needed it. Traders also focused on upcoming rate decisions by the U.S. Federal Reserve and the British and Japanese central banks this week.
Australian shares are moving higher on Tuesday after the Reserve Bank of Australia (RBA) said further easing was likely. However, investors are largely targeting defensive sectors ahead of the two-day Fed meeting.
Global markets are mixed as geopolitical tensions mounts, Trump prepares to hike tariffs, and the FOMC meeting comes into sharp focus.
Wall Street drifted higher following cautious trade across global markets, as investors kept their sights on a string of central bank meetings coming later this week. Brent crude came off a two-session rally after an attack on two oil tankers near the Straits of Hormuz stoked worries about potential supply disruption.
Ping An Insurance's OneConnect financial technology unit is leaning toward picking New York over Hong Kong for its initial public offering (IPO) in the hope of achieving a higher valuation, three people with direct knowledge of the matter said. Ping An Insurance Group Co of China Ltd, China's biggest insurer by market value, had been planning a Hong Kong IPO of the unit since the beginning of the year in a deal that could raise up to $1 billion. The insurer is now seeking to list OneConnect in New York as early as in September, said one of the people, who were not authorised to speak to media and so declined to be identified.
China’s growth worries haunted global markets today but the tremors were strongest closer to the mainland, in Hong Kong.
Global markets are moving lower with chip stocks and tech in the lead. Weaker than expected data in China weighs on sentiment.
In afternoon trading the index fell 0.7 per cent, adding to Wednesday and Thursday’s declines after the city was rocked by mass political demonstrations against a proposed bill that could see some criminal suspects extradited to mainland China for trial.
European stocks traded lower Friday as tensions heightened between the U.S. and Iran following attacks on two oil tankers in the Gulf of Oman on Thursday.
Global equities rebound, snapping a two-day losing streak as the June rally resumes its upward trajectory.
Hong Kong’s Hang Seng Index opened lower today and fell sharply in early trade in response to the political situation in the city. As life started getting back to normal in Hong Kong, the bulls returned and the index maintained upward momentum. The Hang Seng closed almost flat at the end of the session.
Tokyo stocks closed lower on Thursday, taking a negative lead from Wall Street amid lingering worries over the US-China trade war, while concerns over Hong Kong protests also weighed on the market. "Japanese stocks fell, carrying over the negative tone in US stocks," Okasan Online Securities said in a note. "The yen strengthened against the dollar and the losses of Hong Kong shares weighed on the market," it said.
European stocks were expected to open lower again Thursday as U.K. lawmakers signaled the country is still open to leaving the European Union without a deal in place, a move which is bound to unnerve investors.
Hong Kong's Hang Seng index fell 0.64%, as of its final hour of trading. The benchmark index had closed 1.73% lower on Wednesday, amid violent protests over a controversial extradition bill.
The three main U.S. stock indexes closed slightly in the red on Wednesday. Energy stocks were worst-performing sector, dragged down by slumping oil prices, while utilities rose as uncertainties drove investors to safer corners.