European markets slip amid fears of global growth slowdown; UK retailer Asos down 36%

In terms of stocks, retail was down the most, by more than 1 percent. UK retail stocks are making heavy losses on Monday, with Asos down 34 percent, Next down 8 percent, Marks & Spencer down 4.6 percent Boohoo shares down 19.4 percent. On Monday, Asos cut its annual sales growth and profit margin forecasts, becoming the latest British retailer to highlight very poor November trading. On Friday, China reported weaker-than-expected retail sales data, growing at its weakest pace since November 2003


In terms of stocks, retail was down the most, by more than 1 percent. UK retail stocks are making heavy losses on Monday, with Asos down 34 percent, Next down 8 percent, Marks & Spencer down 4.6 percent Boohoo shares down 19.4 percent. On Monday, Asos cut its annual sales growth and profit margin forecasts, becoming the latest British retailer to highlight very poor November trading. On Friday, China reported weaker-than-expected retail sales data, growing at its weakest pace since November 2003
European markets slip amid fears of global growth slowdown; UK retailer Asos down 36% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: spriha srivastava
Keywords: news, cnbc, companies, concerns, global, slowdown, week, sales, uk, fears, near, margin, slip, growth, stocks, european, asos, retail, markets, retailer, turmoil


European markets slip amid fears of global growth slowdown; UK retailer Asos down 36%

In terms of stocks, retail was down the most, by more than 1 percent. UK retail stocks are making heavy losses on Monday, with Asos down 34 percent, Next down 8 percent, Marks & Spencer down 4.6 percent Boohoo shares down 19.4 percent.

On Monday, Asos cut its annual sales growth and profit margin forecasts, becoming the latest British retailer to highlight very poor November trading. ASOS lowered its sales growth forecast for the 2018-19 year to 15 percent from 20-25 percent previously and cut its earnings before interest and tax (EBIT) margin target for the year to around 2 percent from 4 percent.

Meanwhile, basic resources found itself at the top of the best performing stocks, up 0.8 percent.

Market focus is largely attuned to concerns surrounding cooling global growth after soft economic data from China and Europe in the last week added further concerns. On Friday, China reported weaker-than-expected retail sales data, growing at its weakest pace since November 2003.

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

The Bank of International Settlements (BIS), an umbrella group for the world’s central banks, said on Sunday that recent market tensions are a sign of more turmoil to come. It warned that a normalization of monetary policy is likely to trigger a flurry of sharp sell-offs in the near future.

Meanwhile, sterling hovered near its 20-month low touched last week, concerns that Britain was headed for a chaotic exit from the European Union increased.

Britain has just over 100 days to leave the bloc on March 29 and chances of a no-deal or a chaotic Brexit deal have gone up after strong oppositions to Prime Minister Theresa May’s draft deal.


Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: spriha srivastava
Keywords: news, cnbc, companies, concerns, global, slowdown, week, sales, uk, fears, near, margin, slip, growth, stocks, european, asos, retail, markets, retailer, turmoil


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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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Brent crude dips on global economy worries, US oil prices steady

Brent crude prices slipped on Monday amid concerns over demand in the wake of weaker growth in major economies, while U.S. oil markets held steady after U.S. drilling activity fell to its lowest level in about two months. International Brent crude oil futures were at $60.16 per barrel at 0248 GMT, down 12 cents, or 0.2 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $51.33 per barrel, up 13 cents, or 0.3 percent. But oil prices were supported after Genera


Brent crude prices slipped on Monday amid concerns over demand in the wake of weaker growth in major economies, while U.S. oil markets held steady after U.S. drilling activity fell to its lowest level in about two months. International Brent crude oil futures were at $60.16 per barrel at 0248 GMT, down 12 cents, or 0.2 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $51.33 per barrel, up 13 cents, or 0.3 percent. But oil prices were supported after Genera
Brent crude dips on global economy worries, US oil prices steady Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: getty images
Keywords: news, cnbc, companies, global, output, week, brent, crude, oil, meeting, futures, saudi, rigs, economy, steady, markets, worries, dips, prices


Brent crude dips on global economy worries, US oil prices steady

Brent crude prices slipped on Monday amid concerns over demand in the wake of weaker growth in major economies, while U.S. oil markets held steady after U.S. drilling activity fell to its lowest level in about two months.

International Brent crude oil futures were at $60.16 per barrel at 0248 GMT, down 12 cents, or 0.2 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $51.33 per barrel, up 13 cents, or 0.3 percent.

Chinese oil refinery throughput in November fell from October, suggesting an easing in oil demand, while the country’s industrial output rose the least in nearly three years as the economy continued to lose momentum.

French business activity plunged unexpectedly into contraction this month, retreating at the fastest pace in over four years, while Germany’s private sector expansion slowed to a four-year low in December.

But oil prices were supported after General Electric Co’s Baker Hughes energy services firm said on Friday that U.S. drillers cut four oil rigs in the week to Dec. 14, pulling the total count to the lowest since mid-October at 873.

“This, when combined with (expectations) Saudi Arabia is … to cut exports to the United States to draw down inventory builds (there) should provide a short-term base despite global slowdown fears, which continue to resonate,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

However, the current U.S. rig count, which serves as an early indicator of future output, is higher than a year ago when 747 rigs were active.

The Organisation of the Petroleum Exporting Countries and its Russia-led allies have agreed to curb output from January, in a move to be reviewed at a meeting in April. Saudi Arabia is OPEC’s de facto leader.

“The potential for a significant movement in the U.S. dollar clearly has an impact on oil pricing with the Fed meeting (this week). We’re looking outside the oil markets for its next major move,” said Michael McCarthy, chief markets strategist at CMC markets.

The U.S. Federal Open Market Committee (FOMC) is set to start a two-day meeting on Tuesday.


Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: getty images
Keywords: news, cnbc, companies, global, output, week, brent, crude, oil, meeting, futures, saudi, rigs, economy, steady, markets, worries, dips, prices


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Dollar index near 19-month high on safe-haven bid amid global growth worries

Weaker-than-expected economic data from China and Europe and fears of a possible U.S. government shutdown spooked investors away from stocks toward the greenback and yen. The dollar index, which gauges its value versus six major peers, was little changed at 97.44, below the 19-month high of 97.71 it hit on Friday. The Federal Reserve is set to raise interest rates by 25 basis points at its two-day meeting that opens Tuesday. However, interest rate futures used to gauge the probability of further


Weaker-than-expected economic data from China and Europe and fears of a possible U.S. government shutdown spooked investors away from stocks toward the greenback and yen. The dollar index, which gauges its value versus six major peers, was little changed at 97.44, below the 19-month high of 97.71 it hit on Friday. The Federal Reserve is set to raise interest rates by 25 basis points at its two-day meeting that opens Tuesday. However, interest rate futures used to gauge the probability of further
Dollar index near 19-month high on safe-haven bid amid global growth worries Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-17
Keywords: news, cnbc, companies, global, high, dollar, rate, bid, likely, near, trade, markets, economic, amid, safehaven, rates, index, data, fed, growth, worries, interest


Dollar index near 19-month high on safe-haven bid amid global growth worries

The dollar held near a 19-month high on Monday, bolstered by safe-haven buying as heightened concerns of a global economic slowdown reduced appetites for riskier assets such as stocks and Asian currencies.

Weaker-than-expected economic data from China and Europe and fears of a possible U.S. government shutdown spooked investors away from stocks toward the greenback and yen.

“The dollar is clearly showing it is attractive during times of market stress,” said Ray Attrill, head of currency strategy at NAB in Sydney.

The dollar index, which gauges its value versus six major peers, was little changed at 97.44, below the 19-month high of 97.71 it hit on Friday.

The Australian dollar, whose fortunes are closely tied to China’s economy, was marginally lower at $0.7174. It lost 0.3 percent of its value last week as data showed Chinese November retail sales grew at the weakest pace since 2003 and industrial output rose the least in nearly three years, underlining risks to the economy.

The offshore Chinese yuan was flat at 6.8974.

Apart from fears of a global economic slowdown, markets are also focusing on the likely trajectory of U.S. monetary policy.

The Federal Reserve is set to raise interest rates by 25 basis points at its two-day meeting that opens Tuesday.

The central bank has lifted rates eight times since December 2015 in a bid to restore policy to more normal settings after having slashed borrowing costs to near zero to combat the financial crisis a decade ago.

With the hike largely factored in by the market, larger moves in the dollar will be guided by the Fed’s forward guidance.

According to their projections in September, the median view among the Fed’s policymakers was for three rate hikes in 2019. However, interest rate futures used to gauge the probability of further hikes are pricing in only one hike in 2019.

“Any content that speaks to the difference between market pricing of one interest rate rise in 2019 versus previous Fed indications of three rises is very likely to move markets,” Michael McCarthy, Sydney-based chief markets strategist at CMC Markets, said in a note.

Traders believe that higher U.S. borrowing costs will likely hurt U.S. growth momentum and ultimately force the Fed to pause its monetary tightening path.

Recent comments by Fed officials have also been read as dovish by some analysts. Last month, Fed Chairman Jerome Powell said rates were near the range of policymakers’ estimates of “neutral” – the level at which they neither stimulate nor impede the economy.

“The Fed will most likely move from an auto-pilot mode to being data dependent,” said Attrill.

The dollar gained 0.1 percent over the yen in Asian trade to trade at 113.48. Interest rate differentials between the U.S. and Japan make the dollar a more attractive bet than the yen, according to some analysts.

The Bank of Japan has a meeting on Dec. 19-20, at which policy is expected to remain highly accommodative as inflation remains well below the its target.

The euro was also little changed at $1.1310, having lost 0.6 percent last week after weaker-than-expected data out of France and Germany suggested that economic activity in Europe remains weak.

Sterling remained under pressure in Asian trade, down 0.02 percent at $1.2582. British trade minister Liam Fox said on Sunday talks with the European Union to secure “assurances” for parliament on Prime Minister Theresa May’s Brexit deal will take time, with a decision expected in the new year.


Company: cnbc, Activity: cnbc, Date: 2018-12-17
Keywords: news, cnbc, companies, global, high, dollar, rate, bid, likely, near, trade, markets, economic, amid, safehaven, rates, index, data, fed, growth, worries, interest


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America’s neglected growth factor: Net exports to China, Europe and Japan

Markets, however, would be unlikely to greet with enthusiasm such a repeat performance. That is quite obvious from a gross public debt of $22 trillion (107 percent of GDP), and counting, and a public sector budget deficit currently estimated at about 6 percent of GDP. How, under those circumstances, can anybody expect that the financial markets could digest such a huge public sector borrowing requirement without causing considerable damage to asset prices? Goods trade alone is considerably worse


Markets, however, would be unlikely to greet with enthusiasm such a repeat performance. That is quite obvious from a gross public debt of $22 trillion (107 percent of GDP), and counting, and a public sector budget deficit currently estimated at about 6 percent of GDP. How, under those circumstances, can anybody expect that the financial markets could digest such a huge public sector borrowing requirement without causing considerable damage to asset prices? Goods trade alone is considerably worse
America’s neglected growth factor: Net exports to China, Europe and Japan Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: dr michael ivanovitch, frederic j brown, afp, getty images
Keywords: news, cnbc, companies, net, trade, fiscal, japan, china, factor, growth, neglected, americas, europe, sector, markets, deficit, months, goods, federal, exports, economic, public


America's neglected growth factor: Net exports to China, Europe and Japan

Of course, in case of need, the Fed, as a lender of last resort, can always relapse into mindless quantitative easing routines — but that would again be a desperate measure of a seemingly never-ending crisis management. Markets, however, would be unlikely to greet with enthusiasm such a repeat performance.

The fiscal policy lever is even more impaired. That is quite obvious from a gross public debt of $22 trillion (107 percent of GDP), and counting, and a public sector budget deficit currently estimated at about 6 percent of GDP.

The latest data, released last Thursday, are pointing to a worsening trend of public finances. In the course of November, federal spending shot up 18 percent from the year earlier while revenues fell 1 percent — in spite of relatively strong economic activity. For the first two months of the present fiscal year, the federal budget deficit soared 51 percent from the same period of 2017, and was running at a mind-boggling annual rate of $1.8 trillion.

How, under those circumstances, can anybody expect that the financial markets could digest such a huge public sector borrowing requirement without causing considerable damage to asset prices?

There are no easy solutions to that predicament, but a rapidly improving U.S. trade balance could go a long way toward preventing a major economic slowdown and providing some support to stretched market valuations.

Here are a few numbers to show where the U.S. stands on that now.

This year, the deficit on American foreign trade in goods and services is expected to take out of the economy more than $550 billion, or 2.7 percent of GDP.

Goods trade alone is considerably worse. In the first 10 months of this year, the U.S. ran a $623 billion trade deficit with China, Europe and Japan. That amount represents 84 percent of the total gap on American international goods transactions.


Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: dr michael ivanovitch, frederic j brown, afp, getty images
Keywords: news, cnbc, companies, net, trade, fiscal, japan, china, factor, growth, neglected, americas, europe, sector, markets, deficit, months, goods, federal, exports, economic, public


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Goodbye to bidding wars: Some of the hottest housing markets are falling the hardest

“For the past three months, sales have fallen year over year in all six counties and, in the last two months, across most major price categories including above $1 million.” With home prices already overheated in many major markets, higher rates broke the bank for most buyers. Housing inventory in the large metropolitan markets Redfin tracks was up 5 percent in November annually, the largest supply boost in three years. Of course all real estate is local, and some markets are filling with listin


“For the past three months, sales have fallen year over year in all six counties and, in the last two months, across most major price categories including above $1 million.” With home prices already overheated in many major markets, higher rates broke the bank for most buyers. Housing inventory in the large metropolitan markets Redfin tracks was up 5 percent in November annually, the largest supply boost in three years. Of course all real estate is local, and some markets are filling with listin
Goodbye to bidding wars: Some of the hottest housing markets are falling the hardest Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: diana olick, mike kane, bloomberg, getty images
Keywords: news, cnbc, companies, seeing, mortgage, sales, real, bidding, according, markets, goodbye, hardest, months, prices, supply, falling, hottest, inventory, housing, wars


Goodbye to bidding wars: Some of the hottest housing markets are falling the hardest

SOURCE: REDFIN

“Rising prices and mortgage rates have priced out some potential buyers while causing others to conclude that waiting to buy could pay off, especially as listings rise,” said Andrew LePage, a CoreLogic analyst. “For the past three months, sales have fallen year over year in all six counties and, in the last two months, across most major price categories including above $1 million.”

Mortgage rates rose sharply in September, and by October, the average rate on the 30-year fixed was more than a full percentage point higher than a year ago. With home prices already overheated in many major markets, higher rates broke the bank for most buyers.

Rates fell back again in November, but were still higher than a year ago. The drop did little to boost sales. Mortgage applications to buy a newly built home actually fell 11 percent year-over-year in November, according to the Mortgage Bankers Association, despite the rate relief.

And after one of the worst housing shortages in memory, supply is slowly starting to rise. Housing inventory in the large metropolitan markets Redfin tracks was up 5 percent in November annually, the largest supply boost in three years. Of course all real estate is local, and some markets are filling with listings faster than others.

Inventory jumped in formerly hot markets like San Jose (+123 percent), Seattle (+96.5 percent) and Oakland (+60 percent) but other markets are still seeing drops, like Philadelphia (-24 percent and New Orleans (-19 percent).

In Las Vegas, which was the epicenter of the housing crash and the subprime mortgage crisis, sales and prices were raging last year and last spring, but supply is now spiking and sales have ground to a halt. The inventory in November was up 54 percent from a year ago and sales were down 12 percent, according to the Greater Las Vegas Association of Realtors.

“Even though our local home prices have been appreciating at the fastest rate in the country through much of this year, prices have been fairly flat for the past few months,” said GLVAR president Chris Bishop, an area real estate agent. “I wouldn’t be surprised to see that trend continue as we head into the holidays and what is traditionally the slowest time of year for home sales.”

In Denver, another market that was incredibly competitive last year due to very short supply and high demand, inventory in November jumped nearly 47 percent annually, according to the Denver Metro Association of Realtors. Sales fell 12 percent. The high end is seeing the biggest shift.

“The power switched to buyers when negotiating on homes priced over $1 million, with 7.22 months of inventory,” wrote Jill Schafer, chair of the DMAR Market Trends Committee.

Even in Dallas, where demand is still quite strong due to a healthy local economy, inventory is up over 15 percent, and 14 percent of listings saw price reductions in October, according to Realtor.com.

“I am seeing an increasing number of price reductions in homes over $500,000, as our inflated market has simmered, but not plummeted,” said Laura Barnett, a real estate agent with RE/MAX DFW Associates. “Not too many bidding wars, unless the home is priced well below market.”

WATCH: How to win a bidding war when buying a home


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: diana olick, mike kane, bloomberg, getty images
Keywords: news, cnbc, companies, seeing, mortgage, sales, real, bidding, according, markets, goodbye, hardest, months, prices, supply, falling, hottest, inventory, housing, wars


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Markets are underestimating the long-term impact of Trump’s fight with China

This much is clear as 2018 screeches toward a close:President Trump’s foreign policy has shredded the status quo on a range of issues, from global trade and transatlantic relations to Iran and North Korea. Global markets have underestimated the stakes, largely responding to momentary events — Trump tariff tweets and tentative trade truces. They should instead be banking in the generational nature of this drama, and its potential impact on debt, currency, tech and equity markets of all sorts. Whe


This much is clear as 2018 screeches toward a close:President Trump’s foreign policy has shredded the status quo on a range of issues, from global trade and transatlantic relations to Iran and North Korea. Global markets have underestimated the stakes, largely responding to momentary events — Trump tariff tweets and tentative trade truces. They should instead be banking in the generational nature of this drama, and its potential impact on debt, currency, tech and equity markets of all sorts. Whe
Markets are underestimating the long-term impact of Trump’s fight with China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: fred kempe, mandel ngan, nicolas asfouri, afp, getty images, ben nelms, bloomberg, valery sharifulin, tass
Keywords: news, cnbc, companies, global, tech, tough, sides, trump, trumps, longterm, underestimating, markets, xi, impact, trade, events, fight, president, china


Markets are underestimating the long-term impact of Trump's fight with China

This much is clear as 2018 screeches toward a close:

President Trump’s foreign policy has shredded the status quo on a range of issues, from global trade and transatlantic relations to Iran and North Korea.

Yet it is the Trump administration’s tough turn on China, captured dramatically by Vice President Mike Pence’s landmark speech at the Hudson Institute in October, that will have the most lasting global consequence, altering the terms of the epochal contest of our times.

Global markets have underestimated the stakes, largely responding to momentary events — Trump tariff tweets and tentative trade truces.

They should instead be banking in the generational nature of this drama, and its potential impact on debt, currency, tech and equity markets of all sorts.

And on global peace and prosperity.

It isn’t that individual events lack importance. Whether or not President Trump and President Xi can reach a trade deal that will satisfy both sides by their deadline of March 1 will be a signal of whether the two sides can negotiate modi vivendi on tough matters.

However, the recent arrest in Canada of Huawei CFO Meng Wanzhou may be the more important indicator in the accelerating tech arms race.


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: fred kempe, mandel ngan, nicolas asfouri, afp, getty images, ben nelms, bloomberg, valery sharifulin, tass
Keywords: news, cnbc, companies, global, tech, tough, sides, trump, trumps, longterm, underestimating, markets, xi, impact, trade, events, fight, president, china


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Asia markets close higher, Greater China shares lead gains

Asian stocks closed higher on Thursday, with shares in Greater China leading gains after the positive momentum seen on Wall Street overnight. Greater China markets initially opened mixed, but staged a comeback to lead the rest of Asia. The Shanghai composite ended the trading session at 1.23 percent higher at 2,634.0491 points, while the Shenzhen composite closed 1.106 percent higher at 1,360.9222 points. In Japan, the Nikkei 225 rose 0.99 percent to close at 21,816.19 points and the Topix index


Asian stocks closed higher on Thursday, with shares in Greater China leading gains after the positive momentum seen on Wall Street overnight. Greater China markets initially opened mixed, but staged a comeback to lead the rest of Asia. The Shanghai composite ended the trading session at 1.23 percent higher at 2,634.0491 points, while the Shenzhen composite closed 1.106 percent higher at 1,360.9222 points. In Japan, the Nikkei 225 rose 0.99 percent to close at 21,816.19 points and the Topix index
Asia markets close higher, Greater China shares lead gains Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: yen nee lee
Keywords: news, cnbc, companies, stocks, lead, gains, ended, higher, china, shares, session, asia, index, markets, greater, points, trading, close


Asia markets close higher, Greater China shares lead gains

Asian stocks closed higher on Thursday, with shares in Greater China leading gains after the positive momentum seen on Wall Street overnight.

“Calm has finally returned to markets,” analysts at Mizuho Bank wrote in a note. Trading in markets globally was volatile at the start of the week, but stabilized after news reports in recent days indicated an easing in tensions between the U.S. and China.

Greater China markets initially opened mixed, but staged a comeback to lead the rest of Asia. The Shanghai composite ended the trading session at 1.23 percent higher at 2,634.0491 points, while the Shenzhen composite closed 1.106 percent higher at 1,360.9222 points. Hong Kong’s Hang Seng Index gained 1.18 percent to end at 26,495.67 points.

In Japan, the Nikkei 225 rose 0.99 percent to close at 21,816.19 points and the Topix index ended 0.62 percent higher at 1,616.65 points. Over in South Korea, the Kospi inched up 0.62 percent to 2,095.55 points at the close.

Australian stocks, meanwhile, saw relatively modest gains. The ASX 200 index ended the session at 5,661.6 points — up 0.14 percent.

There were big moves in the Australia market. Shares of Hutchison Telecommunications plunged 21.43 percent at the close, while TPG Telecom fell by 16.67 percent. The two companies announced plans to merge in August this year, but the Australian Competition and Consumer Commission on Thursday released a statement expressing concerns about the proposal.


Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: yen nee lee
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European markets edge higher; banks rally ahead of ECB meeting; Metro tumbles 8%

At a much-anticipated meeting on Thursday, the ECB is poised to bring an end to its crisis-era bond-buying program after nearly four years. European lenders have generally been critical of the central bank’s QE program, arguing it has a negative impact on their net interest income. Deutsche Bank, Unicredit and Intesa Sanpaolo were all trading more than 3 percent higher on the prospect of the ECB ending its contentious stimulus program. It comes after Exane BNP Paribas raised its stock recommenda


At a much-anticipated meeting on Thursday, the ECB is poised to bring an end to its crisis-era bond-buying program after nearly four years. European lenders have generally been critical of the central bank’s QE program, arguing it has a negative impact on their net interest income. Deutsche Bank, Unicredit and Intesa Sanpaolo were all trading more than 3 percent higher on the prospect of the ECB ending its contentious stimulus program. It comes after Exane BNP Paribas raised its stock recommenda
European markets edge higher; banks rally ahead of ECB meeting; Metro tumbles 8% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: sam meredith
Keywords: news, cnbc, companies, rally, end, qe, central, tumbles, higher, edge, banks, shares, index, metro, program, markets, ecb, morning, meeting, european, stock


European markets edge higher; banks rally ahead of ECB meeting; Metro tumbles 8%

Europe’s banking index was the top performer in early morning deals, up more than 1.4 percent with market participants widely expecting the European Central Bank (ECB) to announce the end of quantitative easing (QE) later in the session.

At a much-anticipated meeting on Thursday, the ECB is poised to bring an end to its crisis-era bond-buying program after nearly four years. European lenders have generally been critical of the central bank’s QE program, arguing it has a negative impact on their net interest income. Deutsche Bank, Unicredit and Intesa Sanpaolo were all trading more than 3 percent higher on the prospect of the ECB ending its contentious stimulus program.

Looking at individual stocks, Britain’s Antofagasta surged toward the top of the European benchmark shortly after opening bell. It comes after Exane BNP Paribas raised its stock recommendation to “outperform” Thursday morning, prompting shares of the London-listed stock to rise 3 percent.

Meanwhile, Germany’s Metro slumped to the bottom of the index after the company reported persistently challenging business conditions in Russia. Shares of the wholesale tumbled more than 8 percent on the news.


Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: sam meredith
Keywords: news, cnbc, companies, rally, end, qe, central, tumbles, higher, edge, banks, shares, index, metro, program, markets, ecb, morning, meeting, european, stock


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With Fed expected to slow rate hikes, markets raise stakes for Europe’s next move

After spending 2.6 trillion euros, the ECB is expected to end the plan and perhaps clarify when it might begin to raise its still-negative interest rates. It is on track to raise rates starting in the second half of next year. The ECB meeting comes a week ahead of the Federal Reserve’s December meeting, where it is expected to raise interest rates one-quarter point. ECB President Mario Draghi speaks at 8:30 a.m. “Draghi is pinning his hopes on their labor market,” Chandler said.


After spending 2.6 trillion euros, the ECB is expected to end the plan and perhaps clarify when it might begin to raise its still-negative interest rates. It is on track to raise rates starting in the second half of next year. The ECB meeting comes a week ahead of the Federal Reserve’s December meeting, where it is expected to raise interest rates one-quarter point. ECB President Mario Draghi speaks at 8:30 a.m. “Draghi is pinning his hopes on their labor market,” Chandler said.
With Fed expected to slow rate hikes, markets raise stakes for Europe’s next move Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-12  Authors: patti domm, jasper juinen, bloomberg, getty images
Keywords: news, cnbc, companies, raise, expected, say, rates, rate, stakes, markets, hikes, europes, ecb, chandler, market, yield, president, slow, fed


With Fed expected to slow rate hikes, markets raise stakes for Europe's next move

The Fed looks set to shift into a lower gear when it comes to rate hiking, and now markets want to make sure Europe’s central bankers aren’t going to drive too fast as they approach the off ramp for their own easy money program.

The European Central Bank meets Thursday and is expected to declare the official end of its quantitative easing program, launched in March 2015 to save the economy from deflationary forces and the residual effects of the European debt crisis.

After spending 2.6 trillion euros, the ECB is expected to end the plan and perhaps clarify when it might begin to raise its still-negative interest rates. It is on track to raise rates starting in the second half of next year.

The ECB meeting comes a week ahead of the Federal Reserve’s December meeting, where it is expected to raise interest rates one-quarter point. But the future expectations for the Fed have changed dramatically in the last several weeks, with economists no longer expecting an automatic quarter-point hike in March given market turbulence and signs of slower growth.

Futures markets have priced in less than one hike for next year, after next week’s widely expected hike.

The Fed has forecast three hikes for 2019, but Fed watchers say it could reduce its forecast based on recent dovish comments from Fed officials and a more tempered view of the economy for next year.

“It’s one of the most extreme sentiment shifts I’ve seen with no data to support it. It’s just that the equity market has gone down. I think the Fed wants to say we’re going to be more data dependent and they certainly don’t want to rule out March,” said Jens Nordvig, CEO of Exante Data.

That shift in Fed expectations raises the stakes for the ECB, which has to downgrade its own view of the economy but not so much to raise doubts about its exit from QE.

It also comes at a difficult time for Europe, as Italy struggles with its budget, and France’s president strained his own budget by upping payouts to pensioners and low income workers, in an effort to end violent ‘yellow vest’ protests. Compounding Europe’s problems too is the awkward and unclear path the United Kingdom will take to leave the European Union.

“There are a lot of moving parts,” said Marc Chandler, chief market strategist at Bannockburn Global Forex. Chandler said the ECB will also lower its inflation forecast.

“Every time the ECB met this year, the euro has fallen, except in September, and that’s probably because at every meeting, the economy’s been weakening,” said Chandler. He said the market is looking for clarity on when the ECB plans to raise rates and how it plans to handle its balance sheet as debt rolls off. One option would be to extend the maturities of some debt, like Italy or France, he added.

ECB President Mario Draghi speaks at 8:30 a.m. ET, following the ECB statement at 7:45 a.m. ET.

“Draghi is going to say monetary policy needs to remain very accommodative,” said Chandler, adding the ECB president may also say risks remain balanced because of labor market strength.

“Draghi is pinning his hopes on their labor market,” Chandler said.

Europe’s low yields have made U.S. yields more attractive to some investors, and the spread between the German 10-year bund and the U.S. 10-year yield is the widest in decades. The German bund yield Wednesday was about 0.28 to the U.S. yield of 2.91 percent.


Company: cnbc, Activity: cnbc, Date: 2018-12-12  Authors: patti domm, jasper juinen, bloomberg, getty images
Keywords: news, cnbc, companies, raise, expected, say, rates, rate, stakes, markets, hikes, europes, ecb, chandler, market, yield, president, slow, fed


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