Dollar holds advantage for now, traders still wary about global growth risks

During Asian trading the dollar briefly extended gains and the yen fell as Japanese stocks erased early losses to trade higher and as U.S. Treasury yields rose slightly. Against a basket of six major currencies, the dollar index edged higher to 98.218. Since hitting a three-week low on Aug. 9, the dollar index has recovered, rising around 1%. The dollar was little changed at 106.18 yen in Asian trading after rising 0.2% on Thursday. The dollar rose 0.3% to 0.9787 Swiss franc, on course for a 0.6


During Asian trading the dollar briefly extended gains and the yen fell as Japanese stocks erased early losses to trade higher and as U.S. Treasury yields rose slightly. Against a basket of six major currencies, the dollar index edged higher to 98.218. Since hitting a three-week low on Aug. 9, the dollar index has recovered, rising around 1%. The dollar was little changed at 106.18 yen in Asian trading after rising 0.2% on Thursday. The dollar rose 0.3% to 0.9787 Swiss franc, on course for a 0.6
Dollar holds advantage for now, traders still wary about global growth risks Cached Page below :
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Dollar holds advantage for now, traders still wary about global growth risks

The U.S. dollar has regained some strength in recent weeks.

The dollar held onto gains on Friday after a surge in U.S. retail sales eased concerns about the world’s top economy, but traders cautioned against reading too much into one piece of data given the growing risks to the outlook.

The greenback was on course for a weekly gain against safe-haven currencies such as the Japanese yen and the Swiss franc, pointing to some respite for frayed nerves after fears of recession and protests in Hong Kong rattled financial markets.

During Asian trading the dollar briefly extended gains and the yen fell as Japanese stocks erased early losses to trade higher and as U.S. Treasury yields rose slightly. The move quickly faded, however, partly reflecting thin treading due to the summer holiday season.

Against a basket of six major currencies, the dollar index edged higher to 98.218. Since hitting a three-week low on Aug. 9, the dollar index has recovered, rising around 1%.

Data showing American consumers continued to splurge in July came as a relief to investors after the U.S. bond market sounded alarms of a recession.

Yet, the fragile calm in markets is unlikely to last, traders said.

This week’s inversion in the U.S. Treasury yield curve, which has historically preceded several past U.S. recessions, has stoked fresh worries about the economic impact of the Sino-U.S. trade war.

China on Thursday vowed to counter the latest U.S. tariffs on $300 billion of Chinese goods, but U.S. President Donald Trump said any pact would have to be on America’s terms, suggesting a resolution to the trade war remains elusive.

Trump, who is seeking re-election in 2020 and had made the economy and his tough stance on China a key part of his 2016 campaign for the White House, said any agreement must meet U.S. demands.

More protests are also expected in Hong Kong over the weekend, which could become a new geopolitical flash point and further complicate the U.S.-China trade war.

Ten weeks of clashes between police and pro-democracy protesters, angered by a perceived erosion of freedoms, have plunged the Asian financial hub into its worst crisis since it came under Chinese rule from Britain in 1997.

“The most important point is there are more signs of a global economic slowdown,” said Tsutomu Soma, general manager of fixed income business solutions at SBI Securities in Tokyo.

“Rates will continue to fall, and investors will pull back from risk, which means money will leave emerging markets and go to Treasuries, the Swiss franc, gold, and the yen.”

The dollar was little changed at 106.18 yen in Asian trading after rising 0.2% on Thursday.

For the week, the greenback was up 0.5% against the Japanese currency, its biggest gain since the week ended July 26.

The dollar rose 0.3% to 0.9787 Swiss franc, on course for a 0.6% weekly gain.

A day after inverting, the U.S. yield curve steepened a little. Curve inversion, which occurs when long-term yields dip below short-term yields.

Sterling was marginally higher, on course for its first weekly gain since mid-July, as positive data on retail sales and consumer pries showed the British economy is in better shape than some investors had feared.

The pound traded at $1.2088, close to a one-week high of $1.2150.

However, sterling bears are still on the ascendancy given the risk that Prime Minister Boris Johnson will take Britain out of the European Union without transitional trade agreements, potentially causing short-term economic turmoil.


Company: cnbc, Activity: cnbc, Date: 2019-08-16
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Asia stocks mixed as investors watch US Treasury yields

Stocks in Asia were mixed on Friday as investors watched yields on longer duration U.S. Treasurys as well as for developments on the U.S.-China trade front. US bonds watchInvestors watched for movements in the bond market, particularly in U.S. Treasurys. The yield on the 30-year Treasury bond declined to a record low on Thursday, while the yield on the benchmark 10-year Treasury note touched a three-year low. The yield on the 30-year Treasury bond was last at 2.0078%, while the rate on the 10-ye


Stocks in Asia were mixed on Friday as investors watched yields on longer duration U.S. Treasurys as well as for developments on the U.S.-China trade front. US bonds watchInvestors watched for movements in the bond market, particularly in U.S. Treasurys. The yield on the 30-year Treasury bond declined to a record low on Thursday, while the yield on the benchmark 10-year Treasury note touched a three-year low. The yield on the 30-year Treasury bond was last at 2.0078%, while the rate on the 10-ye
Asia stocks mixed as investors watch US Treasury yields Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: eustance huang
Keywords: news, cnbc, companies, investors, indicator, dollar, treasury, asia, trade, watch, watched, china, bond, yields, market, stocks, mixed, recession, yuan


Asia stocks mixed as investors watch US Treasury yields

Stocks in Asia were mixed on Friday as investors watched yields on longer duration U.S. Treasurys as well as for developments on the U.S.-China trade front. Mainland Chinese stocks advanced on the day, with the Shanghai composite up 0.29% to 2,823.82 and the Shenzhen component gaining 0.57% to 9,060.92. The Shenzhen composite rose 0.554% to 1,525.48. Hong Kong’s Hang Seng index added 0.85%, as of its final hour of trading. Hong Kong-listed shares of Ping An Insurance Group jumped 2.52% after the company announced its strongest first half profit growth in a over a decade on Thursday. In Japan, the Nikkei 225 recovered from an earlier slip to finish its trading day fractionally higher at 20,418.81, while the Topix index closed 0.1% higher at 1,485.29. Meanwhile, South Korea’s Kospi slipped 0.58% to close at 1,927.17 following its return from a holiday. Shares of chipmaker SK Hynix fell 0.65% and LG Chem shed 1.08%. Australia’s S&P/ASX 200 ended its trading day just below the flatline at 6,405.50. Overall, the MSCI Asia ex-Japan index added 0.38%.

US bonds watch

Investors watched for movements in the bond market, particularly in U.S. Treasurys. The yield on the 30-year Treasury bond declined to a record low on Thursday, while the yield on the benchmark 10-year Treasury note touched a three-year low. The yield on the 30-year Treasury bond was last at 2.0078%, while the rate on the 10-year Treasury note was at 1.5521%. The historic drop in long-term U.S. bond yields came after the interest rates on the closely watched 10-year and 2-year Treasurys inverted — an bond market phenomenon that has historically been a reliable indicator of economic recessions. “I think it’s one indicator and obviously market practitioners do look at this … as an important leading indicator of potential recession but I think what’s perhaps what’s been slightly overdone by some market commentators is that recession is imminent and guaranteed, which we … absolutely do not agree with.” Roger Bacon, head of Asia Pacific investments at Citi Private Bank, told CNBC’s “Street Signs” on Friday. “I think it’s too early to conclude that it’s an automatic indicator that (a) recession is definitely happening and that a recession is imminent,” he said.

US-China trade

Meanwhile, investors also monitored developments on the U.S.-China trade front. A spokesperson from China’s foreign ministry said Thursday that Beijing hopes the “U.S. side will meet China half-way ” on trade issues. That statement came after China said earlier that the U.S. tariffs “seriously violated” a consensus reached by the two countries’ presidents at the G-20 summit in June. For its part, U.S. Commerce Secretary Wilbur Ross told CNBC Wednesday that a recent delay in upcoming tariffs was “not a quid pro quo ” in trade negotiations with Beijing. “The language used by both parties oozes of continued defensiveness and antagonism,” Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, wrote in a Thursday note. “As long as this remains the case, investors will be nervous making it difficult for currencies and equities to rally,” Lien said.

Chinese yuan watch

On Friday, the People’s Bank of China set the official midpoint reference for the yuan at 7.0312 per dollar, weaker than expectations of 7.0306 against the greenback in a Reuters estimate. “The 7 (yuan per dollar) level, having been breached, they can now take it down as the trade war worsens.” David Roche, president and global strategist at Independent Strategy, told CNBC’s “Squawk Box” on Friday. “I expect the trade war to worsen and I expect the yuan to be at 7.35, 7.40 within a year,” Roche said. The onshore yuan was last at 7.0424 against the greenback, while its offshore counterpart traded at 7.0524 per dollar. The yuan has been closely watched since it depreciated past the 7 per dollar mark recently, leading the U.S. Treasury Department to designate China as a currency manipulator.

Asia-Pacific Market Indexes Chart

Currencies and oil


Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: eustance huang
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China fixes its daily yuan midpoint at 7.0268 — weaker than expected

China’s official midpoint reference for the yuan was set at 7.0268 per the U.S. dollar on Thursday — stronger than Wednesday’s fixing, but it was weaker than what analysts had forecast. It was the sixth consecutive session where the People’s Bank of China (PBOC) fixed the midpoint at a level weaker than the psychologically important 7-yuan-per-dollar mark. The onshore yuan last traded at 7.0250. The PBOC lets the currency’s spot rate trade with a range of 2% above or below the day’s official mid


China’s official midpoint reference for the yuan was set at 7.0268 per the U.S. dollar on Thursday — stronger than Wednesday’s fixing, but it was weaker than what analysts had forecast. It was the sixth consecutive session where the People’s Bank of China (PBOC) fixed the midpoint at a level weaker than the psychologically important 7-yuan-per-dollar mark. The onshore yuan last traded at 7.0250. The PBOC lets the currency’s spot rate trade with a range of 2% above or below the day’s official mid
China fixes its daily yuan midpoint at 7.0268 — weaker than expected Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: weizhen tan
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China fixes its daily yuan midpoint at 7.0268 — weaker than expected

A Chinese bank employee counts 100-yuan notes and US dollar bills at a bank counter in Nantong in China’s eastern Jiangsu province on August 6, 2019.

China’s official midpoint reference for the yuan was set at 7.0268 per the U.S. dollar on Thursday — stronger than Wednesday’s fixing, but it was weaker than what analysts had forecast.

Analysts were predicting the midpoint to be set at 7.0236 per dollar, according to Reuters estimates.

It was the sixth consecutive session where the People’s Bank of China (PBOC) fixed the midpoint at a level weaker than the psychologically important 7-yuan-per-dollar mark.

The onshore yuan last traded at 7.0250. On Thursday morning around 9.24 a.m. HK/SIN, the offshore yuan traded at 7.0518 against the dollar, weakening again after the yuan rebounded overnight on Tuesday — with U.S. President Donald Trump backing off on China tariffs.

The yuan depreciated past 7 per dollar last week for the first time since the global financial crisis of 2008, which prompted the U.S. Treasury Department to designate China as a currency manipulator.

Trump has repeatedly complained that a cheaper yuan will give China a trade advantage as it makes Chinese exports more attractive in international markets.

The PBOC lets the currency’s spot rate trade with a range of 2% above or below the day’s official midpoint fix and this is known as the onshore yuan. The less restrictive exchange rate used outside mainland China is known as the offshore yuan.

Investors usually look at the difference between the onshore and offshore exchange rates to determine if the Chinese central bank is manipulating the yuan.


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: weizhen tan
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Yen up as markets dismiss Trump’s trade concession, Chinese data disappoints

The yen rose on Wednesday as weaker-than-expected Chinese economic data reinforced the view that resolving the trade war was a long way off even if U.S. President Donald Trump had delayed some additional tariffs. The onshore yuan rose against the dollar, taking its cue from a stronger fixing. The dollar fell 0.41% to 106.31 yen in Asia. The Australian dollar slipped 0.6% to 72.10 yen, while the New Zealand dollar fell 0.5% to 71.77 yen. Against the offshore yuan, the dollar rose 0.5% to 7.0405 y


The yen rose on Wednesday as weaker-than-expected Chinese economic data reinforced the view that resolving the trade war was a long way off even if U.S. President Donald Trump had delayed some additional tariffs. The onshore yuan rose against the dollar, taking its cue from a stronger fixing. The dollar fell 0.41% to 106.31 yen in Asia. The Australian dollar slipped 0.6% to 72.10 yen, while the New Zealand dollar fell 0.5% to 71.77 yen. Against the offshore yuan, the dollar rose 0.5% to 7.0405 y
Yen up as markets dismiss Trump’s trade concession, Chinese data disappoints Cached Page below :
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Yen up as markets dismiss Trump's trade concession, Chinese data disappoints

The yen rose on Wednesday as weaker-than-expected Chinese economic data reinforced the view that resolving the trade war was a long way off even if U.S. President Donald Trump had delayed some additional tariffs.

The offshore yuan remained lower against the dollar after China’s closely watched industrial output rose in July at the slowest pace in more than 17 years. The onshore yuan rose against the dollar, taking its cue from a stronger fixing.

News the United States would delay some tariffs supported Asian stocks, but optimism in the currency market quickly faded on broader concerns there are no quick solutions to the trade row, which economists say is dragging on China’s economy and threatening global growth.

Increasingly violent clashes between protesters and police in Hong Kong, worries about Britain’s exit from the European Union, and Middle East tensions mean risk aversion could quickly flare up again and roil major currencies.

“If we think only about the United States and China, there could be more room for dollar gains and yen losses, but this does not mean trade frictions have been resolved,” said Tohru Sasaki, head of Japan markets research at JP Morgan Securities in Tokyo.

“There are still a lot of geopolitical risks, such as Hong Kong, Brexit, and the Iranian situation. I don’t expect significant (risk-on) moves.”

The dollar fell 0.41% to 106.31 yen in Asia.

The Australian dollar slipped 0.6% to 72.10 yen, while the New Zealand dollar fell 0.5% to 71.77 yen.

Against the offshore yuan, the dollar rose 0.5% to 7.0405 yuan. However, in the onshore market, the yuan opened at 7.0240 per dollar, stronger than its previous close at 7.0558.

On Tuesday, U.S. President Donald Trump backed off of his Sept. 1 deadline for 10% tariffs on remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting their impact on U.S. holiday sales.

Still, trade negotiations between the United States and China have progressed in fits and starts, so many investors and analysts have scaled back expectations for a resolution in the near term.

China’s industrial output rose 4.8% in July from a year earlier, which was below the median estimate for a 5.8% year-on-year increase and marked the slowest growth since February 2002, data showed on Wednesday.

Retail sales and fixed-asset investment in July also grew less than forecast, highlighting concerns the trade war is damaging the health of the world’s second-largest economy.

The dollar index, measuring the greenback against a basket of six currencies, was little changed at 97.755 after jumping 0.4% on Tuesday.

Hong Kong’s airport resumed operations on Wednesday, rescheduling hundreds of flights that had been disrupted this week as protesters clashed with riot police in a deepening crisis in the Chinese-controlled city.

Ten weeks of increasingly violent clashes between police and pro-democracy protesters, angered by a perceived erosion of freedoms, have plunged the Asian financial hub into its worst crisis since it came under Chinese rule from Britain in 1997.

The euro was unchanged at $1.1152, but fell 0.43% to 118.76 yen.

European data on consumer prices and GDP is due from Europe later on Wednesday and could shape the near-term direction of the common currency.

Sterling was little changed at $1.2065, but remained within striking distance of $1.2015, the lowest level since January 2017.

Britain will release consumer price data later on Wednesday, but uncertainty about how Britain will exit the European Union has clouded the outlook for the Bank of England’s monetary policy.


Company: cnbc, Activity: cnbc, Date: 2019-08-14
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China fixes its daily yuan midpoint at 7.0312 — stronger than expected

China’s central bank set the official midpoint reference for the yuan at 7.0312 per dollar on Wednesday — stronger than Tuesday’s fixing, and stronger than what analysts had predicted. The onshore yuan last traded at 7.0558 in Tuesday’s session, and on Wednesday morning around 10.00 a.m. HK/SIN was at 7.0236. The offshore yuan traded at 7.0397 against the dollar, slightly weaker than Tuesday’s close but stronger than the end of last week, when it hovered around the 7.09 level. The PBOC lets the


China’s central bank set the official midpoint reference for the yuan at 7.0312 per dollar on Wednesday — stronger than Tuesday’s fixing, and stronger than what analysts had predicted. The onshore yuan last traded at 7.0558 in Tuesday’s session, and on Wednesday morning around 10.00 a.m. HK/SIN was at 7.0236. The offshore yuan traded at 7.0397 against the dollar, slightly weaker than Tuesday’s close but stronger than the end of last week, when it hovered around the 7.09 level. The PBOC lets the
China fixes its daily yuan midpoint at 7.0312 — stronger than expected Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: weizhen tan huileng tan, weizhen tan, huileng tan
Keywords: news, cnbc, companies, yuan, offshore, dollar, bank, fixes, stronger, expected, daily, weaker, china, 70312, tuesdays, midpoint, onshore


China fixes its daily yuan midpoint at 7.0312 — stronger than expected

China’s central bank set the official midpoint reference for the yuan at 7.0312 per dollar on Wednesday — stronger than Tuesday’s fixing, and stronger than what analysts had predicted.

It was, still, the fifth consecutive session where the People’s Bank of China (PBOC) fixed the midpoint at a level weaker than the psychologically important 7-yuan-per-dollar mark.

Analysts were predicting the midpoint to be set at 7.0502 per dollar, according to Reuters estimates. The onshore yuan last traded at 7.0558 in Tuesday’s session, and on Wednesday morning around 10.00 a.m. HK/SIN was at 7.0236. The offshore yuan traded at 7.0397 against the dollar, slightly weaker than Tuesday’s close but stronger than the end of last week, when it hovered around the 7.09 level.

The yuan depreciated past 7 per dollar last week for the first time since the global financial crisis of 2008, which prompted the U.S. Treasury Department to designate China as a currency manipulator.

A weaker currency makes a country’s exports more attractive in international markets and U.S. President Donald Trump has complained that a cheaper yuan will give China a trade advantage.

The PBOC lets the currency’s spot rate trade with a range of 2% above or below the day’s official midpoint fix and this is known as the onshore yuan. The less restrictive exchange rate used outside mainland China is known as the offshore yuan.

Investors usually look at the difference between the onshore and offshore exchange rates to determine if the Chinese central bank is manipulating the yuan.

According to David Dollar, a Brookings Institution senior fellow, China is not manipulating its currency.

“Given the tariffs that the U.S. has imposed on China, it’s natural for the Chinese currency to depreciate. Most emerging market currencies are depreciating against the dollar if you look at the last half year or so,” he told CNBC on Wednesday.

Due to slowing growth and investment in China, the yuan could even continue to gradually weaken up to 7.2 against the dollar, said Max Lin, emerging markets Asia strategist at NatWest Markets.

Despite that, the possibility of investors moving their money out of China due to the weakening yuan is limited, he said.

“I don’t expect any capital flight concerns to actually occur, just because I think any kind of weakness from here on out would be very gradual. If there are signs of panic dollar buying onshore, I think at that point, the central bank of China would definitely step in to stabilize the yuan,” he told CNBC on “Squawk Box.”

— CNBC’s Saheli Roy Choudhury contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: weizhen tan huileng tan, weizhen tan, huileng tan
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The yield curve just inverted – Jim Cramer and three other experts weigh in

The spread between the U.S. 10-year note and 2-year note inverted, a signal investors take as a recession indicator. Jim Cramer, host of CNBC’s “Mad Money,” says the U.S. economy is in a good spot to withstand some of the headwinds facing the global economy. “Our economy is uniquely not as sensitive because these are not exporters that need to have a dollar weaker. “If you look at the data even prior to 1980, typically you see the equity market go up about 4% in the 12 months post the yield curv


The spread between the U.S. 10-year note and 2-year note inverted, a signal investors take as a recession indicator. Jim Cramer, host of CNBC’s “Mad Money,” says the U.S. economy is in a good spot to withstand some of the headwinds facing the global economy. “Our economy is uniquely not as sensitive because these are not exporters that need to have a dollar weaker. “If you look at the data even prior to 1980, typically you see the equity market go up about 4% in the 12 months post the yield curv
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Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: keris lahiff, michael affigne
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The yield curve just inverted – Jim Cramer and three other experts weigh in

The bond market just did something it hasn’t done since 2007.

The spread between the U.S. 10-year note and 2-year note inverted, a signal investors take as a recession indicator.

Four experts break down what comes next.

Jim Cramer, host of CNBC’s “Mad Money,” says the U.S. economy is in a good spot to withstand some of the headwinds facing the global economy.

“Our economy is uniquely not as sensitive because these are not exporters that need to have a dollar weaker. Remember our dollar is just getting stronger – an extraordinary rally in the dollar. I don’t want to see it but I struggle to reach a conclusion that this is all bad given the fact that Germany has had these rates for some time and their market is not doing that badly even though they have an export economy. Their DAX in real terms is up even though they’re exporting the Mercedez-Benz, the Volkswagen and BMW right to China. And those sales are very weak as we see the numbers from China so it’s not the end of the world.”

Erin Browne, managing director at Pimco, sees greater chances of a rotation coming to markets in the short term rather than a more severe downturn.

“If you look at the data even prior to 1980, typically you see the equity market go up about 4% in the 12 months post the yield curve inversion. That said, what you do see under the surface is a rotation out of the cyclicals and into the more defensive stocks and remember yield curve inversion – first for it to be a sizeable signal, it needs to be inverted for about three months. After that three-month inversion, you typically see within one to two years on average the economy turn and go into a recession but it doesn’t necessarily mean that a recession is imminent.”

Andy Brenner, director at National Alliance Securities, says weakening global economies signaled the inversion.

“What we saw overnight is the German economy came out with a negative GDP print, the global economies continue to be in turmoil and continue to be weakening and it wasn’t a surprise to me the 2s/10s got inverted by 2 basis points overnight and got to about 2 basis points now. I don’t see a recession on the rise in the U.S. but nonetheless that’s where we’re going and we think rates are going to go lower from here.”

Ian Lyngen, head of U.S. rates strategy at BMO Capital, says this time looks different than the last.

“I’m certainly worried about a recession, I’m worried about a recession in 2020. I think what makes this particular event different than inversions we’ve seen in the past is [Fed Chair Jerome] Powell has already cut once. Typically, we don’t see an inversion until after the point at which the market says the Fed needs to cut but they haven’t yet.”

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: keris lahiff, michael affigne
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One California police officer killed, two injured in Riverside gun battle

China fixes its yuan midpoint at 7.0326 per dollar, stronger than…Analysts were predicting the midpoint to be set at 7.0421 per dollar after the yuan last traded at 7.0578 in Monday’s session, according to Reuters estimates. China Economyread more


China fixes its yuan midpoint at 7.0326 per dollar, stronger than…Analysts were predicting the midpoint to be set at 7.0421 per dollar after the yuan last traded at 7.0578 in Monday’s session, according to Reuters estimates. China Economyread more
One California police officer killed, two injured in Riverside gun battle Cached Page below :
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One California police officer killed, two injured in Riverside gun battle

China fixes its yuan midpoint at 7.0326 per dollar, stronger than…

Analysts were predicting the midpoint to be set at 7.0421 per dollar after the yuan last traded at 7.0578 in Monday’s session, according to Reuters estimates.

China Economy

read more


Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: joanna tan
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China fixes yuan midpoint at 7.0211 on Monday — weaker than 7 for three consecutive sessions

The People’s Bank of China set the official midpoint reference for the yuan at 7.0211 per dollar on Monday — weaker than Friday’s session, but stronger than what market watchers predicted. This is the third consecutive session where the central bank set the midpoint at a level weaker than the psychologically important 7-yuan-per-dollar level. A weaker currency makes a country’s exports cheaper and the Trump administration has consistently complained that a cheaper yuan will give China a trade ad


The People’s Bank of China set the official midpoint reference for the yuan at 7.0211 per dollar on Monday — weaker than Friday’s session, but stronger than what market watchers predicted. This is the third consecutive session where the central bank set the midpoint at a level weaker than the psychologically important 7-yuan-per-dollar level. A weaker currency makes a country’s exports cheaper and the Trump administration has consistently complained that a cheaper yuan will give China a trade ad
China fixes yuan midpoint at 7.0211 on Monday — weaker than 7 for three consecutive sessions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: saheli roy choudhury
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China fixes yuan midpoint at 7.0211 on Monday — weaker than 7 for three consecutive sessions

The People’s Bank of China set the official midpoint reference for the yuan at 7.0211 per dollar on Monday — weaker than Friday’s session, but stronger than what market watchers predicted.

This is the third consecutive session where the central bank set the midpoint at a level weaker than the psychologically important 7-yuan-per-dollar level.

Analysts were expecting the PBOC to set the midpoint at 7.0331 per dollar, according to Reuters estimates.

Investors have been monitoring the dollar/yuan exchange rate closely following an escalation in trade tensions between Beijing and Washington.

The yuan depreciated past 7 per dollar on Monday last week for the first time since the global financial crisis in 2008, which prompted the U.S. Treasury Department to designate China as a currency manipulator. A weaker currency makes a country’s exports cheaper and the Trump administration has consistently complained that a cheaper yuan will give China a trade advantage.

The PBOC allows the local currency to fluctuate against the greenback within a narrow band of 2% from each day’s midpoint. This is known as the onshore yuan, whereas the less restrictive exchange rate used outside mainland China is known as the offshore yuan.

Onshore yuan was near flat at 7.0613 per dollar while the offshore yuan traded around 7.0887 on Monday at 11.24 a.m. HK/SIN.


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, china, currency, trade, weaker, session, set, midpoint, rate, yuan, consecutive, dollar, sessions, 70211, fixes


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Dollar flat, sterling, euro tick up with market in August lull

The U.S. dollar index was roughly flat on Monday and sterling and the euro saw a modest rise as the foreign exchange market fell into an August lull, a traditionally quiet trading period with many investors and traders on vacation. The British pound was 0.37% higher to trade at $1.208, with the euro up 0.17% against the dollar at $1.1219. The dollar index was 0.1% lower at 97.390, having fallen earlier on expectations that a prolonged U.S.-China trade war would have a negative impact on American


The U.S. dollar index was roughly flat on Monday and sterling and the euro saw a modest rise as the foreign exchange market fell into an August lull, a traditionally quiet trading period with many investors and traders on vacation. The British pound was 0.37% higher to trade at $1.208, with the euro up 0.17% against the dollar at $1.1219. The dollar index was 0.1% lower at 97.390, having fallen earlier on expectations that a prolonged U.S.-China trade war would have a negative impact on American
Dollar flat, sterling, euro tick up with market in August lull Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12
Keywords: news, cnbc, companies, yen, markets, market, lull, dollar, stronger, tick, uschina, war, trade, flat, sterling, euro


Dollar flat, sterling, euro tick up with market in August lull

The U.S. dollar index was roughly flat on Monday and sterling and the euro saw a modest rise as the foreign exchange market fell into an August lull, a traditionally quiet trading period with many investors and traders on vacation.

The British pound was 0.37% higher to trade at $1.208, with the euro up 0.17% against the dollar at $1.1219.

“It has been a pretty quiet day overall. We have had sterling and euro bubbling up. I don’t think there’s any particular super-positive news behind that. But, markets held substantial shorts in both currencies,” said Gregory Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York.

The currency market is “heading into the deepest part of the holiday period. People are taking the shorts off and it puts upward pressure on both currencies. It’s probably the biggest story in FX for today.”

The dollar index was 0.1% lower at 97.390, having fallen earlier on expectations that a prolonged U.S.-China trade war would have a negative impact on American economic growth.

The Japanese yen rose to its highest against the dollar since March 2018 – barring a flash crash in January this year – as investors ramped up bets that the safe-haven currency could gain more if the trade conflict is prolonged. It was last 0.38% stronger against the dollar at 105.26.

“The stronger yen was at or near 2019 highs against its U.S. counterpart on prospects of a long drawn-out U.S.-China trade war. The longer the trade war drags on, the more likely it would weigh (on) the global outlook and crimp the world economy, a negative for market morale,” said Joe Manimbo, senior market analyst at Western Union Business Solutions.

Goldman Sachs analysts on Sunday said they no longer expected Washington and Beijing to come to a trade agreement before the 2020 presidential election. They lowered their forecast for fourth-quarter U.S. growth and said the chances a protracted trade war would lead to recession were rising.

This week, market attention will be on Chinese retail sales and industrial output for July, due out on Wednesday, to gauge the trade war’s impact on domestic activity.

Investors will also be focused on the U.S. Federal Reserve’s annual symposium at Jackson Hole, Wyoming, later this month, seeking greater clarity on the future path of interest rates. Markets are expecting two to three additional rate cuts from the Fed by the end of the year.


Company: cnbc, Activity: cnbc, Date: 2019-08-12
Keywords: news, cnbc, companies, yen, markets, market, lull, dollar, stronger, tick, uschina, war, trade, flat, sterling, euro


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Wall Street analysts worry these stocks are caught in the deepening US-China trade war

Wall Street analysts are scrambling to asses the damage in the latest fallout in the trade war between the U.S. and China. CNBC did a deep dive through the most recent Wall Street research to see what stocks analysts fear will be most hurt by the latest tariff. They include names such as Dollar Tree, Abercrombie & Fitch, Rio Tinto, O’Reilly Automotive, Michaels Companies, Advanced Micro Devices, & Nvidia. This week, Dollar Tree was the subject of a downgrade by Deutsche Bank analysts. Here’s wha


Wall Street analysts are scrambling to asses the damage in the latest fallout in the trade war between the U.S. and China. CNBC did a deep dive through the most recent Wall Street research to see what stocks analysts fear will be most hurt by the latest tariff. They include names such as Dollar Tree, Abercrombie & Fitch, Rio Tinto, O’Reilly Automotive, Michaels Companies, Advanced Micro Devices, & Nvidia. This week, Dollar Tree was the subject of a downgrade by Deutsche Bank analysts. Here’s wha
Wall Street analysts worry these stocks are caught in the deepening US-China trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-11  Authors: michael bloom
Keywords: news, cnbc, companies, deepening, worry, trade, retailer, war, tree, wall, tariff, caught, stocks, analysts, uschina, street, weeks, start, dollar, times


Wall Street analysts worry these stocks are caught in the deepening US-China trade war

Wall Street analysts are scrambling to asses the damage in the latest fallout in the trade war between the U.S. and China.

President Donald Trump recently announced that a new 10% tariff would go into effect on $300 billion worth of Chinese goods beginning September 1.

The S&P 500 is down around 2% since then and analysts fear the ratcheting up of trade tensions along with the new tariff will lead to trouble for a wide range of stocks they cover.

CNBC did a deep dive through the most recent Wall Street research to see what stocks analysts fear will be most hurt by the latest tariff. They include names such as Dollar Tree, Abercrombie & Fitch, Rio Tinto, O’Reilly Automotive, Michaels Companies, Advanced Micro Devices, & Nvidia.

Retail is widely believed to be one of the sectors most impacted because the latest round of tariffs target clothing and other consumer goods according to many analysts.

This week, Dollar Tree was the subject of a downgrade by Deutsche Bank analysts. The firm said that while it liked the discount retailer, it couldn’t ignore the looming tariff threat.

“We still view [Dollar Tree] as a high quality retailer with a well regarded management team … However, we can’t ignore choppy execution at Family Dollar, and our refreshed tariff math … shows material downside risk to estimates, with [Dollar Tree] among the most vulnerable companies in our coverage,” they said.

The new tariff couldn’t come at a worse time for multinational semiconductor companies like Advanced Micro Devices & Nvidia.

“Supplier shipment times already in the critical window,” Mizuho analysts said.

“The sudden announcement does not leave much time for suppliers to build inventories or pull-in as shipment times are 2-4 weeks and the tariff start is 4 weeks away. … We believe normal sea shipping times are 2 weeks from China to the West coast to 4 weeks to the East coast NY ports,” the analysts said.

“Unless the U.S administration gives a waiver to shipments already enroute before the Sep-1st start date or where orders have been placed, theoretically we could see tariff impact on many of the shipments start sooner.”

Recently, analysts at Credit Suisse attended an investor day for auto parts retailer O’Reilly Automotive. While the brokerage said it came away impressed from the meetings, it admitted it still couldn’t recommend the stock.

“The near to medium term story includes a challenging recipe of using price increases to offset tariffs and SG&A cost pressures, but with added uncertainty now on elasticity and how the consumer will respond to the next rounds of price increases. That, combined with consensus 2020 estimates that embed improving operating margins, and the stock’s premium valuation, keeps us on the sidelines,” they said in their note to clients.

Here’s what else analysts are saying about stocks caught in the U.S.-China trade war:


Company: cnbc, Activity: cnbc, Date: 2019-08-11  Authors: michael bloom
Keywords: news, cnbc, companies, deepening, worry, trade, retailer, war, tree, wall, tariff, caught, stocks, analysts, uschina, street, weeks, start, dollar, times


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