Stocks in Asia mixed as investors await ECB interest rate decision; Apple suppliers mostly jump

Shares in Asia were mixed on Wednesday as investors awaited the European central bank’s interest rate decision later in the week. Mainland Chinese shares were lower on the day, with the Shenzhen component declining 0.935% to about 1,671.54 and the Shenzhen composite down 1.12% to 9,853.72. Meanwhile, Hong Kong’s Hang Seng index rose 1.51%, as of its final hour of trading. Elsewhere in Japan, the Nikkei 225 rose 0.96% to close at 21,597.76 while the Topix index gained 1.65% on the day to 1,583.66


Shares in Asia were mixed on Wednesday as investors awaited the European central bank’s interest rate decision later in the week. Mainland Chinese shares were lower on the day, with the Shenzhen component declining 0.935% to about 1,671.54 and the Shenzhen composite down 1.12% to 9,853.72. Meanwhile, Hong Kong’s Hang Seng index rose 1.51%, as of its final hour of trading. Elsewhere in Japan, the Nikkei 225 rose 0.96% to close at 21,597.76 while the Topix index gained 1.65% on the day to 1,583.66
Stocks in Asia mixed as investors await ECB interest rate decision; Apple suppliers mostly jump Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: eustance huang
Keywords: news, cnbc, companies, stocks, decision, tariffs, shares, rose, asia, index, ecb, shenzhen, investors, rate, day, south, china, mixed, suppliers, interest, jump, await, composite


Stocks in Asia mixed as investors await ECB interest rate decision; Apple suppliers mostly jump

Shares in Asia were mixed on Wednesday as investors awaited the European central bank’s interest rate decision later in the week.

Mainland Chinese shares were lower on the day, with the Shenzhen component declining 0.935% to about 1,671.54 and the Shenzhen composite down 1.12% to 9,853.72. The Shanghai composite slipped 0.41% to around 3,008.81. Meanwhile, Hong Kong’s Hang Seng index rose 1.51%, as of its final hour of trading.

Elsewhere in Japan, the Nikkei 225 rose 0.96% to close at 21,597.76 while the Topix index gained 1.65% on the day to 1,583.66. South Korea’s Kospi closed 0.84% higher at 2,049.20. Over in Australia, the S&P/ASX 200 advanced 0.36% to end its trading day at 6,638.00.

Overall, the MSCI Asia ex-Japan index rose 0.64%.

On the trade front, China’s Ministry of Finance announced that 16 American products will be exempted from additional tariffs. On Tuesday, the South China Morning Post reported that China has offered to increase U.S. agricultural purchases in exchange for a delay in tariffs and easing of a supply ban against telecommunications giant Huawei Technologies.


Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: eustance huang
Keywords: news, cnbc, companies, stocks, decision, tariffs, shares, rose, asia, index, ecb, shenzhen, investors, rate, day, south, china, mixed, suppliers, interest, jump, await, composite


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Stocks are poised to hit another record this week, yet investor mood has darkened

The S&P 500 index finished Friday at 2,978 after nudging about 1% above the top of the whippy August trading range. The S&P 500 is just 1.5% from a new record. Yet the view and the mood are a bit different now than at those previous times the market stood on this particular perch. As noted here last week, investor sentiment toward stocks grew more sharply pessimistic in August than would be suggested by a mere 6% pullback in the S&P 500 from a record high. Of those six times — including in early


The S&P 500 index finished Friday at 2,978 after nudging about 1% above the top of the whippy August trading range. The S&P 500 is just 1.5% from a new record. Yet the view and the mood are a bit different now than at those previous times the market stood on this particular perch. As noted here last week, investor sentiment toward stocks grew more sharply pessimistic in August than would be suggested by a mere 6% pullback in the S&P 500 from a record high. Of those six times — including in early
Stocks are poised to hit another record this week, yet investor mood has darkened Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-09  Authors: michael santoli
Keywords: news, cnbc, companies, mood, hit, times, yields, weeks, poised, investor, darkened, stocks, record, index, 500, week, market, economic, yield


Stocks are poised to hit another record this week, yet investor mood has darkened

We’ve been here before, and not too long ago. The S&P 500 index finished Friday at 2,978 after nudging about 1% above the top of the whippy August trading range. On July 31, the index closed at 2,980; four weeks before that, at 2,973. The S&P 500 is just 1.5% from a new record. Yet the view and the mood are a bit different now than at those previous times the market stood on this particular perch. In July, the 10-year Treasury yield sat near 2%, and the Wall Street consensus was pretty sure the Federal Reserve’s move toward a rate-cutting stance would be enough to nurse the markets to a trade deal with China and bridge the stock market across a lull in earnings growth. Since then, the 10-year Treasury has rushed down to 1.59% after a plunge to 1.44% several days ago, and investors’ confidence has been shaken in the durability of the economic expansion. Extremely low bond yields are both a gift and a curse, cutting borrowing costs and bolstering relative equity valuations on the positive side while signaling acute risks to economic performance as a negative. The market’s course from here will be steered by which aspect of the yield collapse seems more relevant at the moment.

Bull case

The bullish case is, we’ve had a late-summer recession panic that’s overshot the economic evidence, and likewise bonds have become stretched by the global grab for scarce yield and exacerbated by technical hedging activity. As noted here last week, investor sentiment toward stocks grew more sharply pessimistic in August than would be suggested by a mere 6% pullback in the S&P 500 from a record high. Last week’s market bounce was the unwind of a portion of this skepticism: The worst-hit sectors of the market, mostly cyclical stocks tied to the economic pace, popped the most. Stocks appear marginally less expensive based on projected corporate profits now than they did with the S&P at the same level on July 31.

S&P 500 P/E – Next 12 Months

Source: FactSet The chart also shows the market at roughly at the same forward multiple as a year ago, which preceded a nasty market peak and severe fourth-quarter. Only when comparing this valuation with prevailing bond yields do equities appear to have a fatter valuation cushion. This chart of the “equity risk premium” from Morgan Stanley shows the earnings yield on stocks — the inverse of the P/E — is well above average compared with bond yields, favoring equities slightly. Source: Morgan Stanley In other words, stocks are not cheap on their own, but this is in large part because of generous valuations assigned to secular-growth names and reputedly “defensive” stocks. And compared with bonds (which, granted, most equity investors view as egregiously expensive now), stocks in aggregate look reasonably attractive, especially given robust demand for corporate debt, whose value is also linked to economic prospects.

Recession or not?

All paths of analysis arrive at a similar spot: If U.S. bonds are where they are because of global central-bank policies and overseas economic challenges and not because the countdown clock to a U.S. recession is clicking louder, then stocks should do better. If not, then not. Noting last week’s ISM manufacturing index sliding to a contraction reading, Goldman Sachs strategists point out that six of the previous 11 times the ISM fell below 50 since the early 1970s, a recession did not soon follow. Of those six times — including in early 2016 — the S&P 500 averaged healthy gains six (+6%) and 12 months (+22%) later. Lately, the economic data have not been clearly consistent with a prerecession slide, but it’s hard to see them improving enough very soon to banish the end-of-cycle alert status entirely. Bespoke Investment Group notes that the U.S. Citi Economic Surprise Index — which tracks how reported data come in relative to forecasts — has just turned positive after 140 straight days below zero — the longest such losing streak since (yes, again) 2016. The firm notes that following previous moves back above zero after a long time below, S&P returns have been solidly positive, on average, over the ensuing six months. Source: Bespoke Investment Group The market action itself is ambiguous, with its message resting largely in the eye of the beholder. The S&P 500’s broad uptrend remained intact through the August shakeout. Yet the tape has been either appropriately selective or precariously uneven, depending on how it’s viewed.

Weak internals


Company: cnbc, Activity: cnbc, Date: 2019-09-09  Authors: michael santoli
Keywords: news, cnbc, companies, mood, hit, times, yields, weeks, poised, investor, darkened, stocks, record, index, 500, week, market, economic, yield


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Asia markets higher as Chinese exports unexpectedly decline

Asia markets rose on Monday as investors reacted to a series of recent data releases in major economies including the United States and China. Mainland Chinese stocks were higher on the day, with the Shanghai composite adding 0.84% to about 3,024.74 and Shenzhen component up 1.82% to 10,001.93. Hong Kong’s Hang Seng index, was largely flat as of its final hour of trading, following another weekend of protests in the embattled city. In South Korea, the Kospi added 0.52% to finish its trading day


Asia markets rose on Monday as investors reacted to a series of recent data releases in major economies including the United States and China. Mainland Chinese stocks were higher on the day, with the Shanghai composite adding 0.84% to about 3,024.74 and Shenzhen component up 1.82% to 10,001.93. Hong Kong’s Hang Seng index, was largely flat as of its final hour of trading, following another weekend of protests in the embattled city. In South Korea, the Kospi added 0.52% to finish its trading day
Asia markets higher as Chinese exports unexpectedly decline Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-09  Authors: eustance huang
Keywords: news, cnbc, companies, following, unexpectedly, exports, rose, asia, trading, shenzhen, shares, markets, largely, index, decline, flat, higher, chinese, day


Asia markets higher as Chinese exports unexpectedly decline

Asia markets rose on Monday as investors reacted to a series of recent data releases in major economies including the United States and China.

Mainland Chinese stocks were higher on the day, with the Shanghai composite adding 0.84% to about 3,024.74 and Shenzhen component up 1.82% to 10,001.93. The Shenzhen composite also surged 1.913% to approximately 1,689.21.

Hong Kong’s Hang Seng index, was largely flat as of its final hour of trading, following another weekend of protests in the embattled city.

In Japan, the Nikkei 225 rose 0.56% to close at 21,318.42 while the Topix index added 0.91% on the day to 1,551.11. Shares of Japanese automaker Nissan slipped 0.22% following reports that company Chief Executive Hiroto Saikawa has expressed his desire to resign, following an admission last week to being improperly compensated.

Japan’s economy grew an annualized 1.3% in the April to June quarter, according to revised data from the Cabinet Office on Monday. That was lower than the initial estimate of a 1.8% expansion, but matched market expectations.

In South Korea, the Kospi added 0.52% to finish its trading day at 2,019.55, with shares of chipmaker SK Hynix jumping 2.93%. Australia’s S&P/ASX 200 closed largely flat at 6,648.00.

Overall, the MSCI Asia ex-Japan index traded 0.27% higher.


Company: cnbc, Activity: cnbc, Date: 2019-09-09  Authors: eustance huang
Keywords: news, cnbc, companies, following, unexpectedly, exports, rose, asia, trading, shenzhen, shares, markets, largely, index, decline, flat, higher, chinese, day


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JP Morgan has created an index to track the effect of Trump’s tweets on financial markets: ‘Volfefe index’

In fact, the president’s market-moving tweets ballooned in August as he hammered China on trade and went after the Federal Reserve on interest rates. In an attempt to quantify the impact of Trump’s tweets on the bond market, J.P. Morgan devised a “Volfefe Index” to analyze how the president’s tweets are influencing volatility in U.S. interest rates. J.P. Morgan found that the index, named after Trump’s infamous and still mysterious “covfefe” tweet, explains a measurable fraction of the moves in


In fact, the president’s market-moving tweets ballooned in August as he hammered China on trade and went after the Federal Reserve on interest rates. In an attempt to quantify the impact of Trump’s tweets on the bond market, J.P. Morgan devised a “Volfefe Index” to analyze how the president’s tweets are influencing volatility in U.S. interest rates. J.P. Morgan found that the index, named after Trump’s infamous and still mysterious “covfefe” tweet, explains a measurable fraction of the moves in
JP Morgan has created an index to track the effect of Trump’s tweets on financial markets: ‘Volfefe index’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-08  Authors: emma newburger
Keywords: news, cnbc, companies, index, tweets, volfefe, effect, morgan, volatility, reserve, marketmoving, trade, trump, trumps, financial, presidents, markets, track


JP Morgan has created an index to track the effect of Trump's tweets on financial markets: 'Volfefe index'

President Donald Trump speaks as he receives a status report on Hurricane Dorian in the Oval Office of the White House in Washington, September 4, 2019.

Donald Trump is tweeting more and it’s affecting the bond market.

In fact, the president’s market-moving tweets ballooned in August as he hammered China on trade and went after the Federal Reserve on interest rates.

In an attempt to quantify the impact of Trump’s tweets on the bond market, J.P. Morgan devised a “Volfefe Index” to analyze how the president’s tweets are influencing volatility in U.S. interest rates.

J.P. Morgan found that the index, named after Trump’s infamous and still mysterious “covfefe” tweet, explains a measurable fraction of the moves in implied rate volatility for 2-year and 5-year Treasurys.

“This makes rough sense as much of the president’s tweets have been focused on the Federal Reserve, and as trade tensions are broadly seen as, first and foremost, impactful on near-term economic performance and, likewise, the Fed’s reaction to such developments,” wrote the authors of the J.P. Morgan report.

Trump’s market-moving messages most often address trade and monetary policy, with key words including “China,” “billion” and “products.” These tweets are increasingly less likely to receive favorable responses, such as likes or retweets, from the president’s followers.


Company: cnbc, Activity: cnbc, Date: 2019-09-08  Authors: emma newburger
Keywords: news, cnbc, companies, index, tweets, volfefe, effect, morgan, volatility, reserve, marketmoving, trade, trump, trumps, financial, presidents, markets, track


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Hong Kong stocks soar 4% following reports that extradition bill could be formally withdrawn

The Hang Seng index in Hong Kong soared 4% during Wednesday afternoon trade following reports that a controversial extradition bill is set to be withdrawn. Hong Kong Chief Executive Carrie Lam is set to announce on Wednesday the formal withdrawal of the extradition bill that sparked protests in the city that have lasted for months, Reuters reported, citing the South China Morning Post and other local media outlets. Shares of companies that have come under the spotlight amid the turmoil in Hong K


The Hang Seng index in Hong Kong soared 4% during Wednesday afternoon trade following reports that a controversial extradition bill is set to be withdrawn. Hong Kong Chief Executive Carrie Lam is set to announce on Wednesday the formal withdrawal of the extradition bill that sparked protests in the city that have lasted for months, Reuters reported, citing the South China Morning Post and other local media outlets. Shares of companies that have come under the spotlight amid the turmoil in Hong K
Hong Kong stocks soar 4% following reports that extradition bill could be formally withdrawn Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: eustance huang
Keywords: news, cnbc, companies, services, formally, reports, shenzhen, soar, hong, showed, kong, extradition, index, rising, following, south, set, saw, stocks, withdrawn, bill


Hong Kong stocks soar 4% following reports that extradition bill could be formally withdrawn

The Hang Seng index in Hong Kong soared 4% during Wednesday afternoon trade following reports that a controversial extradition bill is set to be withdrawn.

Hong Kong Chief Executive Carrie Lam is set to announce on Wednesday the formal withdrawal of the extradition bill that sparked protests in the city that have lasted for months, Reuters reported, citing the South China Morning Post and other local media outlets.

Shares of companies that have come under the spotlight amid the turmoil in Hong Kong also skyrocketed.

Railway operator MTR, which has been hit by disruptions in its operations and damage to its infrastructure, jumped 6.74%. Embattled airliner Cathay Pacific also saw its shares surge 7.82%, with the firm’s CEO stepping down in mid-August amid heavy political pressure from Beijing after one of its pilots was found to have taken part in the ongoing protests in Hong Kong.

Mainland Chinese stocks saw gains on the day, with the Shanghai composite rising 0.93% to about 2,957.41 while the the Shenzhen component added 0.69% to 9,700.32. The Shenzhen composite also advanced 0.667% to approximately 1,636.40.

The Caixin/Markit Services Purchasing Managers’ Index came in at 52.1 in August, its highest since May. The 50-mark in PMI readings separates growth and contraction. Official data for August released over the weekend showed services sector activity picking up for the first time in five months in August.

In Japan, the Nikkei 225 gained 0.12% to close at 20,649.14 while the Topix index shed 0.26% to end its trading day at 1,506.81. The Kospi in South Korea closed 1.16% higher at 1,988.53.

The S&P/ASX 200 in Australia closed 0.31% lower at 6,553.00. Data released Wednesday showed Australia’s economy rising as expected during the second quarter. Gross domestic product rose 0.5% quarter-on-quarter on a seasonally adjusted basis, and grew 1.4% year-on-year. Both figures came in in line with expectations from their respective Reuters polls.

Overall, the MSCI Asia ex-Japan index was about 1.5% higher.


Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: eustance huang
Keywords: news, cnbc, companies, services, formally, reports, shenzhen, soar, hong, showed, kong, extradition, index, rising, following, south, set, saw, stocks, withdrawn, bill


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Dow futures jump more than 200 points

U.S. stock index futures were higher Wednesday morning. ET, Dow futures rose 204 points, indicating a positive open of more than 203 points. The Caixin/Markit Services Purchasing Managers’ Index (PMI) came in at 52.1 in August — its highest reading since May. It marked the latest escalation in a long-running trade war between the world’s two largest economies. It prompted the new prime minister to announce he would immediately push for a snap election.


U.S. stock index futures were higher Wednesday morning. ET, Dow futures rose 204 points, indicating a positive open of more than 203 points. The Caixin/Markit Services Purchasing Managers’ Index (PMI) came in at 52.1 in August — its highest reading since May. It marked the latest escalation in a long-running trade war between the world’s two largest economies. It prompted the new prime minister to announce he would immediately push for a snap election.
Dow futures jump more than 200 points Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: sam meredith
Keywords: news, cnbc, companies, services, dow, trade, 200, minister, growth, prime, index, worlds, points, pmi, jump, futures


Dow futures jump more than 200 points

U.S. stock index futures were higher Wednesday morning.

At around 03:00 a.m. ET, Dow futures rose 204 points, indicating a positive open of more than 203 points. Futures on the S&P and Nasdaq were both higher.

The moves in pre-market trade come after a report showed growth in China’s services sector had expanded at its fastest rate in three months in August, despite broader economic headwinds.

The Caixin/Markit Services Purchasing Managers’ Index (PMI) came in at 52.1 in August — its highest reading since May. The 50-mark in PMI readings separates growth and contraction.

At the start of the month, the U.S. and China imposed new tariffs on one another’s goods. It marked the latest escalation in a long-running trade war between the world’s two largest economies.

Meanwhile, in Europe, a cross-party alliance of rebel lawmakers defeated British Prime Minister Boris Johnson in parliament on Tuesday, moving to prevent him from taking the country out of the European Union without a formal agreement on October 31.

It prompted the new prime minister to announce he would immediately push for a snap election.

Sterling has since pared some of its recent losses against the U.S. dollar. The U.K. currency edged up 0.2% to climb above $1.21 Wednesday morning, after falling to its lowest level since October 2016 in the previous session.


Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: sam meredith
Keywords: news, cnbc, companies, services, dow, trade, 200, minister, growth, prime, index, worlds, points, pmi, jump, futures


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If you invested $1,000 in eBay 10 years ago, here’s how much you’d have now

Online shopping and auction website eBay turns 24 this week, and for early investors in the company, they also have reason to celebrate the company’s anniversary. If you invested in eBay 10 years ago that decision would have paid off: According to CNBC calculations, a $1,000 investment in 2009 would be worth more than $4,500 as of Sept. 3, 2019, a total return of 350%. CNBC: EBay Inc. stock as of Sept. 3, 2019. When eBay announced in 2018 that it would be going with PayPal competitor Adyen to pr


Online shopping and auction website eBay turns 24 this week, and for early investors in the company, they also have reason to celebrate the company’s anniversary. If you invested in eBay 10 years ago that decision would have paid off: According to CNBC calculations, a $1,000 investment in 2009 would be worth more than $4,500 as of Sept. 3, 2019, a total return of 350%. CNBC: EBay Inc. stock as of Sept. 3, 2019. When eBay announced in 2018 that it would be going with PayPal competitor Adyen to pr
If you invested $1,000 in eBay 10 years ago, here’s how much you’d have now Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-03  Authors: anna hecht
Keywords: news, cnbc, companies, ebay, according, sept, stock, auction, index, invested, heres, online, ebays, youd, ago, 1000, paypal


If you invested $1,000 in eBay 10 years ago, here's how much you'd have now

Online shopping and auction website eBay turns 24 this week, and for early investors in the company, they also have reason to celebrate the company’s anniversary.

If you invested in eBay 10 years ago that decision would have paid off: According to CNBC calculations, a $1,000 investment in 2009 would be worth more than $4,500 as of Sept. 3, 2019, a total return of 350%. In the same time frame, by comparison, the S&P 500 was up nearly 260%. EBay’s current share price is hovering around $40.

CNBC: EBay Inc. stock as of Sept. 3, 2019.

When eBay first launched in 1995, it was solely an auction site where sellers could list items and interested buyers could bid on them. Today, the massive online marketplace still offers the auction feature but has strayed far from its original format. Instead of relying on an auction-only model, 89% of eBay’s sales are made via the site’s “Buy It Now” function, which provides users with a similar experience to buying from Amazon or any other online retailer.

In 2002, eBay acquired PayPal for $1.5 billion. The two companies separated in 2015 but agreed to continue working closely until 2020. The spinoff stemmed from eBay’s need to keep up with competitors, such as Amazon, and broaden its payment options for users. For PayPal, a separation meant freedom to pursue future opportunities elsewhere, especially since PayPal was growing faster than eBay prior to the breakup.

Since separating, PayPal’s stock has jumped more than 180%, whereas eBay’s stock has only risen by around 43%, according to CNBC calculations made on Sept. 3, 2019. In the four years since the split, the two companies are still very much impacting one another.

When eBay announced in 2018 that it would be going with PayPal competitor Adyen to process payments, PayPal’s shares plummeted 10%. And in January 2019, PayPal CFO John Rainey told CNBC that lingering ties to eBay still put pressure on business as PayPal continues to handle a portion of eBay’s purchasing volumes.

Looking forward, eBay plans to open warehouses across the country for a cheaper, more efficient way for eBay merchants to ship products starting in 2020, the company announced in July.

However, eBay CEO Devin Wenig says he’s not “trying to win a fast shipping war,” according to Reuters. “Our 182 million consumers shop on eBay because of the value and uniqueness of our inventory. We’re not the one-hour delivery guys. We’re never going to be that, but consumer expectations are changing.”

If you are thinking about getting into investing, experts often advise starting with index funds, which hold every stock in an index, such as the S&P 500. Seasoned investor Warren Buffett agrees that it’s a smart idea to start with index funds, in part because they fluctuate with the market, making them less risky than individually selected stocks.

Here’s a snapshot of how the markets look now.

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Company: cnbc, Activity: cnbc, Date: 2019-09-03  Authors: anna hecht
Keywords: news, cnbc, companies, ebay, according, sept, stock, auction, index, invested, heres, online, ebays, youd, ago, 1000, paypal


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Asia stocks mixed as new US-China tariffs go into effect

Stocks in Asia were mixed on Monday as the latest round of U.S. and China tariffs kicked into effect over the weekend, while investors digested better-than-expected Chinese manufacturing data. Mainland Chinese shares jumped on the day, as the Shanghai composite added 1.31% to around 2,924.11 and the Shenzhen component was up 2.18% to 9,569.47. Over in Hong Kong, however, the Hang Seng index slipped 0.64%, as of its final hour of trading. Elsewhere, the Nikkei 225 in Japan shed 0.41% to close at


Stocks in Asia were mixed on Monday as the latest round of U.S. and China tariffs kicked into effect over the weekend, while investors digested better-than-expected Chinese manufacturing data. Mainland Chinese shares jumped on the day, as the Shanghai composite added 1.31% to around 2,924.11 and the Shenzhen component was up 2.18% to 9,569.47. Over in Hong Kong, however, the Hang Seng index slipped 0.64%, as of its final hour of trading. Elsewhere, the Nikkei 225 in Japan shed 0.41% to close at
Asia stocks mixed as new US-China tariffs go into effect Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-02  Authors: eustance huang
Keywords: news, cnbc, companies, trading, stocks, tariffs, uschina, effect, round, weekend, asia, statement, day, slipped, index, shenzhen, shares, mixed, infrastructure


Asia stocks mixed as new US-China tariffs go into effect

Stocks in Asia were mixed on Monday as the latest round of U.S. and China tariffs kicked into effect over the weekend, while investors digested better-than-expected Chinese manufacturing data.

Mainland Chinese shares jumped on the day, as the Shanghai composite added 1.31% to around 2,924.11 and the Shenzhen component was up 2.18% to 9,569.47. The Shenzhen composite also gained 2.259% to approximately 1,614.92.

The technology sector also got a boost from a Sunday statement about the importance of investing in the high-tech space, as the Chinext index soared 3.04% to about 1,944.42.

China’s State Council had announced more measures to support its economy on Sunday. In the statement, originally posted in Mandarin, it said that it attached “great importance” to the development of sectors such as infrastructure, high-tech, and the transformation of traditional industries.

Over in Hong Kong, however, the Hang Seng index slipped 0.64%, as of its final hour of trading. Tensions worsened in the beleaguered city, with another round of fresh protests that occurred over the weekend. Shares of railway operator MTR plunged more than 3%, with infrastructure at multiple stations being damaged in the past few days.

Elsewhere, the Nikkei 225 in Japan shed 0.41% to close at 20,620.19, while the Topix index also fell 0.44% to finish its trading day at 1,505.21. Over in South Korea, the Kospi ended its trading day in Seoul fractionally higher at 1,969.19. Australia’s S&P/ASX 200 slipped 0.38% to close at 6,579.40.

Overall, the MSCI Asia ex-Japan index fell 0.32%.


Company: cnbc, Activity: cnbc, Date: 2019-09-02  Authors: eustance huang
Keywords: news, cnbc, companies, trading, stocks, tariffs, uschina, effect, round, weekend, asia, statement, day, slipped, index, shenzhen, shares, mixed, infrastructure


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Here’s a list of recession signals that are flashing red

Drew Angerer | Getty ImagesWhether or not the U.S. is going into a recession is on the minds of Americans everywhere. Data is coming at investors from every angle with so-called recession indicators flashing signs of an economic slowdown brought on by slower growth abroad and the U.S.-China trade war. Here are some major recession indicators that are flashing red. The bond market phenomenon is historically a trusty signal of an eventual recession: It has preceded the seven last recessions. Goldm


Drew Angerer | Getty ImagesWhether or not the U.S. is going into a recession is on the minds of Americans everywhere. Data is coming at investors from every angle with so-called recession indicators flashing signs of an economic slowdown brought on by slower growth abroad and the U.S.-China trade war. Here are some major recession indicators that are flashing red. The bond market phenomenon is historically a trusty signal of an eventual recession: It has preceded the seven last recessions. Goldm
Here’s a list of recession signals that are flashing red Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-02  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, growth, signals, heres, red, according, war, flashing, list, trade, yield, recession, index, economy, bonds, economic


Here's a list of recession signals that are flashing red

Traders and financial professionals work on the floor of the New York Stock Exchange. Drew Angerer | Getty Images

Whether or not the U.S. is going into a recession is on the minds of Americans everywhere. Google searches show recession fears have spiked exponentially since the end of July, when the Federal Reserve cut interest rates for the first time since the financial crisis. Data is coming at investors from every angle with so-called recession indicators flashing signs of an economic slowdown brought on by slower growth abroad and the U.S.-China trade war. A slowing global economy is pressuring central banks abroad to lower borrowing rates at unprecedented levels and a tit-for-tat tariff war between Washington and Beijing is weighing on business sentiment. Assessing these indicators is not easy, and many economists, money managers and analysts disagree about how healthy or unhealthy the U.S. economy really is and whether its long expansion can continue. Here are some major recession indicators that are flashing red.

Bond market

Perhaps the most talked about recession indicator is the inverted yield curve. Amid falling interest rates in the broader U.S. bond market, the yield on the benchmark 10-year Treasury note has fallen below the 2-year yield several times since Aug. 14. In a healthy market, long-term bonds carry a higher interest rate than short-term bonds. When short-term bonds deliver a higher yield, it’s a called an inversion of the yield curve. The bond market phenomenon is historically a trusty signal of an eventual recession: It has preceded the seven last recessions. A recession occurs about 22 months after an inversion on average, according to Credit Suisse.

GDP

Gross domestic product in the U.S. is slowing. The economy expanded by 2% in the second quarter, the Commerce Department said in its second reading of GDP on Thursday. Two percent is the lowest growth rate since the fourth quarter of 2018 and down from 3% growth in the first three months of this year.

Corporate profits

Earnings growth estimates have come down drastically this year. Last December, analysts estimated S&P 500 earnings growth for the year would be around 7.6%, according to FactSet. That number is now around 2.3%. Goldman Sachs and Citigroup strategists last month reduced 2019 and 2020 earnings estimates for the S&P 500, citing a sluggish economy, trade war threats and potential currency devaluations.

Manufacturing contraction

U.S. manufacturer growth slowed to the lowest level in almost 10 years in August. The U.S. manufacturing PMI (purchasing managers’ index) was 49.9 in August, down from 50.4 in July. The reading is below the neutral 50.0 threshold for the first time since September 2009, according to IHS Markit. Any reading below 50 signals a contraction. In July, Federal Reserve members expressed concerns about weak sectors of the economy like manufacturing. They said the U.S.-China trade war, coinciding with global growth worries, continues “to weigh on business confidence and firms’ capital expenditure plans,” according to minutes from the Fed’s July meeting.

The Cass Freight Index

The economic outlook from Freight’s perspective is looking grim. The Cass Shipments Index fell 5.9% in July, following a 5.3% decline in June and a 6% drop in May. “We repeat our message from last two months: the shipments index has gone from ‘warning of a potential slowdown’ to ‘signaling an economic contraction,'” the July report said. “Although the initial Q2 ’19 GDP was positive, it was not as positive upon dissection, and we see a growing risk that GDP will go negative by year’s end.”

Copper

Copper, informally known as Dr. Copper for its Ph.D. in economics, is known as a barometer of economic health because of its use in homebuilding and commercial construction. The commodity is down over 13% in the last half year. The breakdown in copper in August was “by far the most important development” and “markets were clearly too optimistic given the multiple risks in the macro backdrop,” said the Seven Report’s Tom Essaye.

Gold

Gold prices have soared more than 20% since May when the U.S. and China escalated their tariff fight. Similar to government bonds, gold is known as a safe haven trade in times of economic uncertainty.

Global Economic Policy Uncertainty Index

The Economic Policy Uncertainty Index, an index designed to measure policy-related worries around the world, hit its all-time highest level, 342, in June. The EPU Index tracks the amount of times newspaper articles use buzzwords related to economic and political uncertainty. Additionally, it measures the number of tax laws set to expire and the spectrum of disagreement among economists: The more dissent, the higher the index goes. The index simmered in July to a level of 280 on hopes the a trade deal between the U.S. and China will be resolved.

Business spending


Company: cnbc, Activity: cnbc, Date: 2019-09-02  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, growth, signals, heres, red, according, war, flashing, list, trade, yield, recession, index, economy, bonds, economic


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Asia stocks mixed amid positive signals from Beijing on US-China trade

Stocks in Asia were mixed on Friday as Beijing hinted that it will not retaliate against the latest round of tariffs from Washington for now. In Japan, the Nikkei 225 rose 1.19% to close at 20,704.37 as shares of index heavyweight and robot maker Fanuc surged 2.73%. The Topix index also added 1.46% to end its trading day at 1,511.86. The Shanghai composite was down 0.16% to about 2,886.24 and the Shenzhen component shedding 0.35% to 9,365.68. The Shenzhen composite fell 0.744% to approximately 1


Stocks in Asia were mixed on Friday as Beijing hinted that it will not retaliate against the latest round of tariffs from Washington for now. In Japan, the Nikkei 225 rose 1.19% to close at 20,704.37 as shares of index heavyweight and robot maker Fanuc surged 2.73%. The Topix index also added 1.46% to end its trading day at 1,511.86. The Shanghai composite was down 0.16% to about 2,886.24 and the Shenzhen component shedding 0.35% to 9,365.68. The Shenzhen composite fell 0.744% to approximately 1
Asia stocks mixed amid positive signals from Beijing on US-China trade Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-30  Authors: eustance huang
Keywords: news, cnbc, companies, trade, uschina, asia, signals, stocks, amid, beijing, index, shenzhen, shares, higher, composite, close, positive, day, mixed, trading, korea, rate


Asia stocks mixed amid positive signals from Beijing on US-China trade

Stocks in Asia were mixed on Friday as Beijing hinted that it will not retaliate against the latest round of tariffs from Washington for now.

In Japan, the Nikkei 225 rose 1.19% to close at 20,704.37 as shares of index heavyweight and robot maker Fanuc surged 2.73%. The Topix index also added 1.46% to end its trading day at 1,511.86.

Similar gains were seen in South Korea, where the Kospi finished the session 1.78% higher at 1,967.79 as chipmaker SK Hynix saw its stock soar 5.59%.

The Bank of Korea left its benchmark interest rate unchanged on Friday, a decision that was in line with expectations of analysts surveyed by Reuters. The central bank had cut its base rate for the first time in three years in July.

Australia’s S&P/ASX 200 jumped 1.49% to close at 6,604.20.

Mainland Chinese shares, on the other hand, slipped on the day. The Shanghai composite was down 0.16% to about 2,886.24 and the Shenzhen component shedding 0.35% to 9,365.68. The Shenzhen composite fell 0.744% to approximately 1,579.25.

Hong Kong’s Hang Seng index was fractionally higher, as of its final hour of trading, with the city remaining in a state of turmoil as planned protests for the weekend were cancelled and pro-democracy activist Joshua Wong was arrested.

Overall, the MSCI Asia ex-Japan index gained 0.95%.


Company: cnbc, Activity: cnbc, Date: 2019-08-30  Authors: eustance huang
Keywords: news, cnbc, companies, trade, uschina, asia, signals, stocks, amid, beijing, index, shenzhen, shares, higher, composite, close, positive, day, mixed, trading, korea, rate


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