|Day's range||25,940.44 - 26,210.63|
|52-week range||24,540.63 - 30,280.12|
China’s renminbi weakened to a new 11-year low on Friday while stock markets in Asia were in a holding pattern awaiting further pointers from a meeting of global central bankers. The onshore renminbi, ...
Traders are blaming a number of factors on the weakness including concerns over U.S.-China trade relations, a potential global recession and political unrest in Hong Kong. Some say weak manufacturing activity in Japan helped turn the intraday trend lower.
The major European stock markets are trading higher at the mid-session and Asian shares finished mixed as investors await the release of the minutes from the U.S. Federal Reserve’s July monetary policy meeting. Additionally, there are reports that President Trump may be weighing measures to boost the U.S. economy. Perhaps keeping a lid on the markets are lingering concerns over U.S.-China relations after Trump “reiterated on Tuesday that he was not prepared to make a trade deal with China amid the current standoff, with Chinese communications giant Huawei still firmly in Washington’s cross hairs,” according to CNBC.
The Nasdaq Composite shed 0.7 per cent. In Europe, the Stoxx Europe 600 reversed earlier gains to fall 0.7 per cent. Government bonds rallied, sending yields lower. The Federal Reserve is also due on Wednesday to release minutes from its most recent policy meeting.
Basically, the move by the Bit’s another way for companies to get cheaper money, which should be a positive for the economy and China’s stock market. In theory, the MLF rate could follow U.S. rates, which means if the Fed cuts rates, MLF rates will follow lower.
Hong Kong-listed WH Group could see its shares rally. Here's what investors should know about the world's largest pork producer.
Buyers are responding to a recovery in U.S. Treasury yields, which may be serving as a sign that talk of a U.S. recession may have been overblown.
Wall Street recovered some of its lost ground on Friday, but the gains were not enough to prevent US equities from posting their third consecutive weekly decline, underlining investor fears about the precariousness of the global economy. The S&P 500 advanced 1.4 per cent in a broad based rally with industrials, financials and tech leading the way with gains of about 1.9 per cent each. The Nasdaq Composite rose 1.7 per cent. That followed gains in European and Asian markets.
Some investors may have been lulled into believing that recession is imminent and guaranteed, but that’s not the case with this inversion indicator. Research shows the stock market could rally for 15 months after the inversion, and recession may not start until 22 months after the first signal is flashed.
Hong Kong’s stock market rout has lopped about $15bn off the net worth of its 10 richest tycoons, as clashes between police and protesters that have weighed on asset prices show little sign of letting up. Li Ka-shing, Hong Kong’s richest man, has racked up paper losses of more than $3bn since the end of July, according to Financial Times calculations based on Bloomberg data tracking the billionaires’ disclosed positions in listed companies. , head of Henderson Land, and Lee Man-tat, chairman of the parent company of sauce maker Lee Kum Kee, have seen their fortunes drop almost one-tenth in August.
Hong Kong’s tumbling equity market is stoking fears for the economy, as well as the stability of the capital markets.
A sharp rally in government bonds set fresh records on Thursday, with the yield on 30-year US government bonds falling below 2 per cent for the first time as investors sought safety amid growing fears over the global economy and renewed trade tensions. Traders have dumped riskier assets such as stocks and crude oil and moved into perceived haven assets including bonds, driven by a growing list of interconnected fears including trade tensions between the US and China and slowing global growth.
Early Thursday, the yield on the 30-year Treasury bond dropped to a record low in the morning of Asian trading hours, breaking the 2% level for the first time, according to Reuters.
Weak economic data from Germany and China renewed investor jitters over the health of the global economy, sending US and European stocks lower and reigniting a rally in government bonds as a closely watched part of the US yield curve inverted for the first time in more than a decade. Wall Street was sharply lower, with the S&P 500 down 2.9 per cent in a broad-based decline to 2840.60 — the lowest close in more than two months — with energy and financial stocks the biggest laggards. The Nasdaq Composite and Dow Jones Industrial Average both shed 3 per cent.
US stocks and China’s currency rallied sharply on Tuesday after Washington announced a delay to some additional tariffs on Chinese imports, allaying concerns over a trade row that many investors feared would tip the US into recession. The S&P 500 snapped a two-day losing streak and clawed back heavy losses from the prior day following the announcement from the Trump administration, while perceived haven assets such as US Treasuries, gold and the Japanese yen sold off. Chinese and Hong Kong equities followed the US benchmark higher with the Hang Seng up as much as 1.7 per cent at one point in morning trade and China’s CSI 300 adding as much as 1.4 per cent.
The benchmark Hang Seng index has dropped 9 per cent in August, taking it into the red for 2019 amid a sell-off in both Hong Kong-focused stocks and those at risk from broader unrest. Hong Kong is the only one among 24 developed stock markets tracked by Bloomberg now in negative territory for the year. Five years ago the Hong Kong and broader Chinese economy were “a lot more healthy”, cautioned an investment director at one global asset manager.
Although Hong Kong’s airport reopened on Tuesday after it was shut down on Monday due to protestors staging a sit-in at the airport, one economist still described the situation in Hong Kong as “very disconcerting.”
Stocks reversed gains after Hong Kong International airport announced it has cancelled all departures for the remainder of the day, according to multiple media reports.
The S&P 500 fell 0.7 per cent, paring some of its losses after having been down more than 1 per cent at its low for the day. The Nasdaq Composite fell 1 per cent on weakness in technology shares. The Dow Jones Industrial Average slipped 0.3 per cent.
The People’s Bank of China fixed its midpoint for the yuan at 7.0136 against the dollar on Friday – the second time this week the benchmark was set weaker than 7. China’s consumer price index in July rose 2.8% on-year – its fastest year on-year pace since February 2018, according to data from the National Bureau of Statistics.
The major U.S. stock indexes are expected to open the cash market higher, based on the pre-market futures trade. Investors are shifting toward “risk-on” sentiment because of a stable yuan and firming U.S. Treasury yields. These two markets will influence prices all session.
Many Chinese investors are piling into products that provide a hedge against a stock market collapse, convinced now that the Sino-U.S. trade war will drag on and, if anything, intensify. The dramatic shattering of a month-long truce between Beijing and Washington this month has dashed hopes of a trade deal, and these investors are bracing for more bad news, such as further sanctions on Chinese companies, pressure on ratings agencies to downgrade China’s credit rating and even moves to drive up the price of oil. Wee May Ling, a Singapore-based investment manager at Janus Henderson Investors, said sentiment changed swiftly this week as China's currency fell and Chinese firms stopped purchases of U.S. farm products.
“The decision by (Chinese President) Xi Jinping to allow the (Yuan) to dip a little bit is the Chinese equivalent of a tweet,” Daniel Russel, former assistant secretary of state for East Asian and Pacific Affairs said.