Asian stocks broadly higher as investors look to key US, China policy events

Stocks in Asia were mostly higher on Monday following a report suggesting further turmoil for the markets in 2019. The mainland Chinese markets were mixed by the end of their trading day after the country reported lower than expected economic datalast Friday. The Shanghai composite rose 0.16 percent to close at around 2,597.97 while the Shenzhen composite declined by 0.309 percent to end the trading day at about 1,323.31. One investor told CNBC’s “Squawk Box” on Monday that the bargain hunting f


Stocks in Asia were mostly higher on Monday following a report suggesting further turmoil for the markets in 2019. The mainland Chinese markets were mixed by the end of their trading day after the country reported lower than expected economic datalast Friday. The Shanghai composite rose 0.16 percent to close at around 2,597.97 while the Shenzhen composite declined by 0.309 percent to end the trading day at about 1,323.31. One investor told CNBC’s “Squawk Box” on Monday that the bargain hunting f
Asian stocks broadly higher as investors look to key US, China policy events Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: eustance huang
Keywords: news, cnbc, companies, chinese, shares, investors, broadly, higher, key, close, bank, day, losses, look, stocks, events, asian, trading, banks, markets, china, policy


Asian stocks broadly higher as investors look to key US, China policy events

Stocks in Asia were mostly higher on Monday following a report suggesting further turmoil for the markets in 2019.

Investors were setting their sights on key policy meetings in the coming week — ahead of the U.S. Federal Reserve’s upcoming interest rate meeting and as China on Tuesday marks the 40th anniversary of the country’s reforms under former leader Deng Xiaoping.

President Xi Jinping is expected to deliver a major speech on Monday. It comes as Beijing’s trade war with Washington spurs government advisors and think tanks to urge for urgent reforms in Asia’s largest economy.

The mainland Chinese markets were mixed by the end of their trading day after the country reported lower than expected economic datalast Friday. The Shanghai composite rose 0.16 percent to close at around 2,597.97 while the Shenzhen composite declined by 0.309 percent to end the trading day at about 1,323.31.

One investor told CNBC’s “Squawk Box” on Monday that the bargain hunting for Chinese shares has already started.

“Over the next few months, if there were to be any more weakness in the Chinese market, we think that there will be more investors coming in to buy,” said Khiem Do, head of Greater China investments at Barings. “The Chinese markets are actually quite cheap.”

Meanwhile, Hong Kong’s Hang Seng index was slightly higher in its final hour of trade.

In Japan, the Nikkei 225 rose 0.62 percent to close at 21,506.88 while the Topix index saw gains of 0.13 percent to finish the trading day at 1,594.20. Shares of conglomerate Softbank recovered from earlier losses during the session to gain 0.52 percent ahead of the anticipated public listing of its mobile unit on Dec. 19.

South Korea’s Kospi closed fractionally higher at 2,071.09.

Australia’s ASX 200 saw gains of 1 percent to close at 5,658.3, with almost all sectors in positive territory.

The heavily-weighted financial subindex, however, slipped 0.11 percent, with shares of Australia’s so-called Big Four banks mostly seeing losses. Australia and New Zealand Banking Group dropped 1.57 percent, Westpac shed 0.92 percent and National Australia Bank slipped 0.59 percent. Commonwealth Bank of Australia, on the other hand, recovered from earlier losses to rise 0.65 percent.

“The ‘Santa Rally’ which had been hoped for has proven to be frustratingly elusive; and now markets are quite happy, if not desperate, for at least a dovish line to be thrown by the FOMC (and other global central banks),” said Mizuho Bank in a note on Monday, in reference to the U.S. central bank’s upcoming Federal Open Market Committee meeting on Dec. 18 and 19.


Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: eustance huang
Keywords: news, cnbc, companies, chinese, shares, investors, broadly, higher, key, close, bank, day, losses, look, stocks, events, asian, trading, banks, markets, china, policy


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Bank of England could include climate change impact in UK stress tests next year

The Bank of England (BOE) is making plans to include the impact of climate change in U.K. bank stress tests, the Financial Times reported Monday. The stress tests largely look at a bank’s capital buffers in times of severe financial stress but also include a separate “exploratory scenario” every two years. In 2017, the first exploratory scenario looked at the competition from financial technology but could concentrate on climate change in 2019, the FT said. And so the question is whether (climat


The Bank of England (BOE) is making plans to include the impact of climate change in U.K. bank stress tests, the Financial Times reported Monday. The stress tests largely look at a bank’s capital buffers in times of severe financial stress but also include a separate “exploratory scenario” every two years. In 2017, the first exploratory scenario looked at the competition from financial technology but could concentrate on climate change in 2019, the FT said. And so the question is whether (climat
Bank of England could include climate change impact in UK stress tests next year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: anmar frangoul, alexandros maragos, moment, getty images
Keywords: news, cnbc, companies, impact, include, bank, change, scenario, exploratory, tests, uk, times, financial, climate, england, ft, stress


Bank of England could include climate change impact in UK stress tests next year

The Bank of England (BOE) is making plans to include the impact of climate change in U.K. bank stress tests, the Financial Times reported Monday.

The stress tests largely look at a bank’s capital buffers in times of severe financial stress but also include a separate “exploratory scenario” every two years.

In 2017, the first exploratory scenario looked at the competition from financial technology but could concentrate on climate change in 2019, the FT said.

“From the first one we learnt a lot about how the banks managed or didn’t manage these types of issues,” BOE Governor Mark Carney told the FT in an interview.

“And it was quite instructive. And so the question is whether (climate change) is the next one, or the one after.”

Read the full story from the Financial Times here.


Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: anmar frangoul, alexandros maragos, moment, getty images
Keywords: news, cnbc, companies, impact, include, bank, change, scenario, exploratory, tests, uk, times, financial, climate, england, ft, stress


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Qatar reportedly considering increasing its stake in Deutsche Bank

Qatar is considering increasing its stake in Deutsche Bank, newspaper Handelsblatt reported on Sunday. The Qatari royal family already holds a 6.1 percent stake in Deutsche Bank, according to Deutsche Bank’s website. “We will invest in a large financial institution in Germany. This, and the fact that Christian Sewing, CEO of Deutsche Bank, was the only top manager of a German group to take part in the Doha Forum over the weekend clearly point to Deutsche Bank, the paper said. A spokesman for Deu


Qatar is considering increasing its stake in Deutsche Bank, newspaper Handelsblatt reported on Sunday. The Qatari royal family already holds a 6.1 percent stake in Deutsche Bank, according to Deutsche Bank’s website. “We will invest in a large financial institution in Germany. This, and the fact that Christian Sewing, CEO of Deutsche Bank, was the only top manager of a German group to take part in the Doha Forum over the weekend clearly point to Deutsche Bank, the paper said. A spokesman for Deu
Qatar reportedly considering increasing its stake in Deutsche Bank Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: martin leissl, bloomberg, getty images
Keywords: news, cnbc, companies, considering, qatar, increasing, institution, forum, doha, bank, deutsche, ceo, financial, handelsblatt, stake, reportedly


Qatar reportedly considering increasing its stake in Deutsche Bank

Qatar is considering increasing its stake in Deutsche Bank, newspaper Handelsblatt reported on Sunday.

The Qatari royal family already holds a 6.1 percent stake in Deutsche Bank, according to Deutsche Bank’s website. Qatar controls over 9 percent, once derivative positions are take into consideration, Handelsblatt said.

“We will invest in a large financial institution in Germany. This was discussed in the margins of the Doha Forum and will be announced shortly,” Yousuf Mohamed Al-Jaida, CEO of the state-owned Qatar Financial Center, told Handelsblatt.

Al-Jaida did not want to name the company, but he confirmed that it was an institution in which Qatar was already involved, Handelsblatt reported.

This, and the fact that Christian Sewing, CEO of Deutsche Bank, was the only top manager of a German group to take part in the Doha Forum over the weekend clearly point to Deutsche Bank, the paper said.

A spokesman for Deutsche Bank declined to comment.


Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: martin leissl, bloomberg, getty images
Keywords: news, cnbc, companies, considering, qatar, increasing, institution, forum, doha, bank, deutsche, ceo, financial, handelsblatt, stake, reportedly


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ECB caught between economic risks and QE exit

“We expect the ECB to announce at its meeting next Thursday an end to net-purchases under the APP programme,” said Natixis’ Dirk Schumacher in a note. On Thursday, the ECB also will publish its newest staff projections for economic growth and inflation for the next three years. “The ECB may also state explicitly that full reinvestment will continue until well after the first rate. Given the fragility of the European banking system, another instrument which almost seemed somewhat forgotten, makes


“We expect the ECB to announce at its meeting next Thursday an end to net-purchases under the APP programme,” said Natixis’ Dirk Schumacher in a note. On Thursday, the ECB also will publish its newest staff projections for economic growth and inflation for the next three years. “The ECB may also state explicitly that full reinvestment will continue until well after the first rate. Given the fragility of the European banking system, another instrument which almost seemed somewhat forgotten, makes
ECB caught between economic risks and QE exit Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: annette weisbach, francois lenoir
Keywords: news, cnbc, companies, inflation, bank, economic, refinancing, risks, reinvestment, long, exit, program, ecb, policy, caught, qe, italian, reinvestments


ECB caught between economic risks and QE exit

The European Central Bank President Mario Draghi has to tread a fine line once again as he gives his latest update on euro area monetary policy on Thursday.

While steering the bank out of its QE (quantitative easing) program and stressing interest rates and reinvestments going forward, Draghi is faced with an economy that may be slowing and a dreary inflation outlook.

“We expect the ECB to announce at its meeting next Thursday an end to net-purchases under the APP programme,” said Natixis’ Dirk Schumacher in a note. “While there has been a clear weakening in the economic environment, the ECB will argue that the reinvestment of the stock of bond holdings will ensure a continuing accommodative policy stance justifying an end of the program,” he added.

On Thursday, the ECB also will publish its newest staff projections for economic growth and inflation for the next three years. While it is expected that the central bank will lower its outlook for growth for the next two years, the numbers are also expected to remain just punchy enough to underline the case to exit their purchase program.

Another big topic for Thursday will be the design of the ECB’s reinvestments.

“The ECB will likely maintain its guidance that it will fully reinvest the proceeds and thus keep its bond holdings constant ‘for an extended period of time’ and ‘for as long as necessary’ to put inflation on track towards its target,” said Florian Hense, Economist with Berenberg.

“The ECB may also state explicitly that full reinvestment will continue until well after the first rate. We expect full reinvestments to run until at least late 2020,” he added in a note.

Given the fragility of the European banking system, another instrument which almost seemed somewhat forgotten, makes it back on the agenda: TLTROs or Targeted long term refinancing operations.

“This week, the ECB will probably reiterate that a discussion on another round of TLTRO is still premature,” Hense said. “It will also not want to appear giving a helping hand to Italian banks at a time when the Italian government debates its 2019 budget with the EU.”

Italy remains a headache for the ECB. For now, the debt markets have more or less kept their cool over the standoff between Rome and Brussels but give the current market volatility and the huge refinancing needs of the country this could change in 2019.


Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: annette weisbach, francois lenoir
Keywords: news, cnbc, companies, inflation, bank, economic, refinancing, risks, reinvestment, long, exit, program, ecb, policy, caught, qe, italian, reinvestments


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Euro slips as ECB’s Draghi lowers growth forecast for Europe

The euro currency has slipped in value after the European Central Bank (ECB) trimmed its growth forecasts for this year and next. The ECB’s three-year, 2.6 trillion-euro ($3tn) bond buying program is ending this month, and the central bank has claimed it is still on track to raise rates after the summer of next year. Delivering his prepared remarks to reporters in Frankfurt, ECB President Mario Draghi said 2018 growth in the euro area was expected to be 1.9 percent rather than the 2.0 percent fo


The euro currency has slipped in value after the European Central Bank (ECB) trimmed its growth forecasts for this year and next. The ECB’s three-year, 2.6 trillion-euro ($3tn) bond buying program is ending this month, and the central bank has claimed it is still on track to raise rates after the summer of next year. Delivering his prepared remarks to reporters in Frankfurt, ECB President Mario Draghi said 2018 growth in the euro area was expected to be 1.9 percent rather than the 2.0 percent fo
Euro slips as ECB’s Draghi lowers growth forecast for Europe Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: david reid, jasper juinen, bloomberg, getty images
Keywords: news, cnbc, companies, ecb, growth, europe, ecbs, draghi, forecasts, lowers, central, trimmed, currency, euro, forecast, slips, bank


Euro slips as ECB's Draghi lowers growth forecast for Europe

The euro currency has slipped in value after the European Central Bank (ECB) trimmed its growth forecasts for this year and next.

The ECB’s three-year, 2.6 trillion-euro ($3tn) bond buying program is ending this month, and the central bank has claimed it is still on track to raise rates after the summer of next year.

Delivering his prepared remarks to reporters in Frankfurt, ECB President Mario Draghi said 2018 growth in the euro area was expected to be 1.9 percent rather than the 2.0 percent forecast in September.

“The risks surrounding the euro area growth outlook can still be assessed as broadly balanced. However, the balance of risk is moving to the downside owing to the persistence of uncertainties related to geopolitical factors, the threat of protectionism, vulnerabilities in emerging markets and financial market volatility,” Draghi said.

The 2019 GDP (gross domestic product) figure was also trimmed back to 1.7 percent from an earlier forecast of 1.8 percent.

The euro/dollar currency pair was at $1.1375 as Draghi begin speaking and fell to $1.1340 following the data release. On the day, the currency was lower by around 0.25 percent versus the dollar.

For inflation forecasts, Draghi announced that a slight upward revision in his staff projection for 2018 to 1.8 percent, has been offset by a corresponding fall next year.


Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: david reid, jasper juinen, bloomberg, getty images
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ECB’s Draghi speaks after central bank says its stimulus program to end

European Central Bank President Mario Draghi is speaking at the institution’s headquarters in Frankfurt following its latest monetary policy decision. The bank announced a formal end to its massive quantitative easing program and held interest rates steady on Thursday, as was expected. Analysts will likely look out for comments from Draghi on the ECB’s outlook for economic growth and inflation, as well as details on the central bank’s reinvestment plans for maturing bonds. Traders will also be l


European Central Bank President Mario Draghi is speaking at the institution’s headquarters in Frankfurt following its latest monetary policy decision. The bank announced a formal end to its massive quantitative easing program and held interest rates steady on Thursday, as was expected. Analysts will likely look out for comments from Draghi on the ECB’s outlook for economic growth and inflation, as well as details on the central bank’s reinvestment plans for maturing bonds. Traders will also be l
ECB’s Draghi speaks after central bank says its stimulus program to end Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-13
Keywords: news, cnbc, companies, zone, stimulus, ecbs, interest, end, draghi, details, program, following, european, central, institutions, plans, speaks, bank


ECB's Draghi speaks after central bank says its stimulus program to end

European Central Bank President Mario Draghi is speaking at the institution’s headquarters in Frankfurt following its latest monetary policy decision.

The bank announced a formal end to its massive quantitative easing program and held interest rates steady on Thursday, as was expected.

Analysts will likely look out for comments from Draghi on the ECB’s outlook for economic growth and inflation, as well as details on the central bank’s reinvestment plans for maturing bonds. Traders will also be listening out for any details on the institution’s eventual tightening of interest rates.

Other points of focus for investors include political uncertainty in the euro zone. Friction between Italy and the European Union over Rome’s 2019 fiscal plans have weighed on sentiment, while France’s government faces a no-confidence vote Thursday following the so-called “yellow vest” protests.


Company: cnbc, Activity: cnbc, Date: 2018-12-13
Keywords: news, cnbc, companies, zone, stimulus, ecbs, interest, end, draghi, details, program, following, european, central, institutions, plans, speaks, bank


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Sudden departure of India’s central bank chief raises questions

The sudden departure of India’s central bank governor Urjit Patel on Monday has raised a number of questions about the Reserve Bank of India’s ongoing struggles. Patel was reportedly criticized by the government for the central bank’s relentless push to clean up India’s banking sector. Patel’s resignation comes less than three years after his predecessor Raghuram Rajan was not confirmed for a second term as central bank governor in 2016, likely due to growing tensions between him and India’s gov


The sudden departure of India’s central bank governor Urjit Patel on Monday has raised a number of questions about the Reserve Bank of India’s ongoing struggles. Patel was reportedly criticized by the government for the central bank’s relentless push to clean up India’s banking sector. Patel’s resignation comes less than three years after his predecessor Raghuram Rajan was not confirmed for a second term as central bank governor in 2016, likely due to growing tensions between him and India’s gov
Sudden departure of India’s central bank chief raises questions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: seema mody, dhiraj singh, bloomberg, getty images
Keywords: news, cnbc, companies, sudden, raises, questions, indias, modi, senior, chief, rbi, policy, say, investors, departure, bank, central, india


Sudden departure of India's central bank chief raises questions

The sudden departure of India’s central bank governor Urjit Patel on Monday has raised a number of questions about the Reserve Bank of India’s ongoing struggles.

The primary focus for investors is whether Patel resigned due to growing pressure from India’s government to lower rates and conduct looser monetary policy as the countdown to next year’s general election kicks off. Patel was reportedly criticized by the government for the central bank’s relentless push to clean up India’s banking sector.

“Investors’ concerns over the independence of the RBI are now higher than ever, but it is unlikely that the government will name another figure with a reputation for independence to lead the Bank,” said Sasha Riser-Kositsky, a senior analyst at Eurasia Group.

Patel’s resignation comes less than three years after his predecessor Raghuram Rajan was not confirmed for a second term as central bank governor in 2016, likely due to growing tensions between him and India’s government.

“Investor confidence will be roiled due to this (losing two independently minded central bank governors within one term is not a great image for foreign investors),” said Akhil Bery, a senior research associate in McLarty Associates’ India & South Asia practice.

Experts say the timing of Patel’s departure from his post as central bank governor comes at a challenging time for two reasons.

India’s government lead by Prime Minister Narendra Modi is facing reelection next year. One factor that helped Modi in 2014 was the backing of investors who supported his pro-business policies. However analysts say Patel’s departure could have an impact on Modi’s image.

On Tuesday, results from four state elections in India will shed light on whether Modi is losing support from his base ahead of the national election in April 2019.

At same time, India is trying to attract new investors and companies while also fending off competition from China. Analysts say any uncertainty in India’s governance of monetary policy could be a setback.

Alyssa Ayres, a senior fellow at the Council on Foreign Relations and author of “Our Time Has Come: How India is Making Its Place in the World,” told CNBC over email: “The widely-discussed allegation that the Modi government is pushing for greater authority over the RBI and diminishing its traditional independence is further cause for concern. The Indian economy has done well with an RBI that functions independently and through its own economic, not political, decisions. It should be allowed to continue without political interference.”

The next monetary policy meeting in India is set for Friday.


Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: seema mody, dhiraj singh, bloomberg, getty images
Keywords: news, cnbc, companies, sudden, raises, questions, indias, modi, senior, chief, rbi, policy, say, investors, departure, bank, central, india


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Peer-to-peer lender Zopa to seek more funding in 2019 as it opens its own bank

U.K. peer-to-peer lender Zopa plans on raising more money in 2019 as it looks to open up its own bank, its boss told CNBC. The financial technology start-up recently obtained a banking license from Britain’s financial regulator, on the back of a £60 million ($76.5 million) funding round it closed last month. “We will be looking to raise additional capital in 2019,” Zopa Chief Executive Jaidev Janardana told CNBC in an exclusive interview. Zopa’s banking license is currently at a “mobilization” p


U.K. peer-to-peer lender Zopa plans on raising more money in 2019 as it looks to open up its own bank, its boss told CNBC. The financial technology start-up recently obtained a banking license from Britain’s financial regulator, on the back of a £60 million ($76.5 million) funding round it closed last month. “We will be looking to raise additional capital in 2019,” Zopa Chief Executive Jaidev Janardana told CNBC in an exclusive interview. Zopa’s banking license is currently at a “mobilization” p
Peer-to-peer lender Zopa to seek more funding in 2019 as it opens its own bank Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: ryan browne
Keywords: news, cnbc, companies, lender, raise, opens, funding, told, seek, zopa, license, capital, peertopeer, launch, financial, banking, 2019, bank, firm


Peer-to-peer lender Zopa to seek more funding in 2019 as it opens its own bank

U.K. peer-to-peer lender Zopa plans on raising more money in 2019 as it looks to open up its own bank, its boss told CNBC.

The financial technology start-up recently obtained a banking license from Britain’s financial regulator, on the back of a £60 million ($76.5 million) funding round it closed last month.

“We will be looking to raise additional capital in 2019,” Zopa Chief Executive Jaidev Janardana told CNBC in an exclusive interview. “The focus of that (will be) to raise the regulatory capital to fund the growth of (our) balance sheet.”

Zopa’s chief said the firm would seek the additional investment from the private markets, and that it would look into how to go about raising the extra capital “early next year.” He didn’t comment further on how Zopa intended to raise the funds or how much it would seek to raise.

The company is considered to be one of the world’s first peer-to-peer lenders, having launched in 2005, ahead of U.S. rival LendingClub’s 2007 launch and domestic enterprise-focused competitor Funding Circle’s 2010 launch. Peer-to-peer lending is a method of financing where borrowers are connected with investors through an online platform.

The fintech firm is looking to launch a fixed-term savings product, a credit card and a money management app after the U.K.’s Financial Conduct Authority granted it permission to operate a bank.

Zopa’s banking license is currently at a “mobilization” phase, the firm said on Tuesday, with restrictions placed on it by the FCA. It will need to meet a set of conditions laid out by the watchdog before it is granted a full banking license.


Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: ryan browne
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Dow turns negative, drops 200 points as bank shares fall

News of Meng’s arrest broke last week and is reportedly related to possible violations of U.S. sanctions. The arrest is seen as a potential deterrent to the U.S. and China reaching a permanent deal on trade. Huawei is one of the largest tech companies in China and is seen as symbol of pride by the Chinese government. On Dec. 1, President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce on the countries’ trade spat. He added that additional tariffs will be placed on Chinese


News of Meng’s arrest broke last week and is reportedly related to possible violations of U.S. sanctions. The arrest is seen as a potential deterrent to the U.S. and China reaching a permanent deal on trade. Huawei is one of the largest tech companies in China and is seen as symbol of pride by the Chinese government. On Dec. 1, President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce on the countries’ trade spat. He added that additional tariffs will be placed on Chinese
Dow turns negative, drops 200 points as bank shares fall Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-09  Authors: fred imbert, getty images
Keywords: news, cnbc, companies, chinese, negative, points, shares, week, truce, trade, dow, bank, stocks, turns, deal, fall, reached, tariffs, drops, yield, trump, 200


Dow turns negative, drops 200 points as bank shares fall

News of Meng’s arrest broke last week and is reportedly related to possible violations of U.S. sanctions. The arrest is seen as a potential deterrent to the U.S. and China reaching a permanent deal on trade. Huawei is one of the largest tech companies in China and is seen as symbol of pride by the Chinese government. Meng is scheduled to appear at a bail hearing in Canada later on Monday.

Monday’s moves come after a volatile week for investors. The Dow, S&P 500 and Nasdaq Composite all posted their worst weekly performances since March last week, falling more than 4 percent each, as worries and confusion about the ongoing U.S.-China trade war and fears of an economic slowdown gripped Wall Street.

“The volatility continues,” said Mark Newton, managing member at Newton Advisors, in a note to clients. “Stocks reversed the prior week’s rally violently over the last few days, and now have reached the bottom of the recent trading consolidation that’s been in place for the past few months.”

“Seeing a larger breakdown in the indices at this point would confirm that stocks have definitely started a larger correction that should eventually lead to a bear market,” he said.

On Dec. 1, President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce on the countries’ trade spat. Both leaders agreed not to slap additional tariffs on billions of dollars worth of goods from their countries. It was not immediately clear, however, when the truce started as administration officials disagreed on the matter. Trump later said on Twitter the cease-fire began on Saturday, when he and Xi struck the deal.

The mixed messages did not stop there, however. National Economic Council Director Larry Kudlow told CNBC on Friday that Trump would extend the 90-day grace period if progress in the negotiations was made but a permanent deal could not be reached. Later that day, trade advisor Peter Navarro told CNN that Trump would “simply raise” tariffs on Chinese goods if a permanent deal was not struck after the 90 days.

U.S. Trade Representative Robert Lighthizer warned on Sunday he considers March 1 — when the truce is scheduled to end — as “a hard deadline.” He added that additional tariffs will be placed on Chinese goods if a deal is not reached by then.

Meanwhile, the 3-year Treasury note yield broke above its 5-year counterpart last week. This “yield-curve inversion” stoked fears that a recession could be on its way. Still, many traders believe the inversion won’t be official until the 2-year yield rises above the 10-year yield, which has not happened yet.

Strategists at MRB Partners think investors might be overreacting to the moves in Treasury yields. “Markets are now discounting greater weakness than we expect next year,” they said in a note. “Our neutral stance on equities and underweight on fixed income corresponds with our expectation that stocks will outperform bonds in the year ahead, albeit in choppy fashion.”

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Company: cnbc, Activity: cnbc, Date: 2018-12-09  Authors: fred imbert, getty images
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‘Short the S&P 500’ and two other top 2019 ideas, according to Bank of America technician

“Going back long term, the dollar versus the S&P as a ratio has a few significant bottoms that end up leading to a period where the dollar severely outperformed the S&P 500,” Ciana said on CNBC’s “Futures Now” on Thursday. For example, in 2000, the ratio found a bottom before the dot-com bust sent equities tumbling and the dollar soaring. It was a similar setup in 2008 and 2014-15, said Ciana, BofA’s chief global fixed income technical strategist. “What ends up happening in these time frames is


“Going back long term, the dollar versus the S&P as a ratio has a few significant bottoms that end up leading to a period where the dollar severely outperformed the S&P 500,” Ciana said on CNBC’s “Futures Now” on Thursday. For example, in 2000, the ratio found a bottom before the dot-com bust sent equities tumbling and the dollar soaring. It was a similar setup in 2008 and 2014-15, said Ciana, BofA’s chief global fixed income technical strategist. “What ends up happening in these time frames is
‘Short the S&P 500’ and two other top 2019 ideas, according to Bank of America technician Cached Page below :
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Keywords: news, cnbc, companies, underperforms, versus, tumbling, ratio, america, bank, technician, according, dollar, sp, 500, ends, ciana, ideas, short, thursdayfor, 2019


'Short the S&P 500' and two other top 2019 ideas, according to Bank of America technician

“Going back long term, the dollar versus the S&P as a ratio has a few significant bottoms that end up leading to a period where the dollar severely outperformed the S&P 500,” Ciana said on CNBC’s “Futures Now” on Thursday.

For example, in 2000, the ratio found a bottom before the dot-com bust sent equities tumbling and the dollar soaring. It was a similar setup in 2008 and 2014-15, said Ciana, BofA’s chief global fixed income technical strategist.

“Now we’re having another one right in here,” he added. “What ends up happening in these time frames is the dollar ends up outperforming while the S&P 500 of course underperforms. That means, buy dollar, sell stocks.”


Company: cnbc, Activity: cnbc, Date: 2018-12-09  Authors: keris lahiff, spencer platt, getty images, tnwa photography, source, david a grogan
Keywords: news, cnbc, companies, underperforms, versus, tumbling, ratio, america, bank, technician, according, dollar, sp, 500, ends, ciana, ideas, short, thursdayfor, 2019


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