Dow falls 170 points, snaps 3-day winning streak

The major indexes fell to their session lows in the final minutes of the trading session as Treasury yields declined as well. Netflix shares pulled back 3.4%. Bank shares such as Citigroup, Bank of America and J.P. Morgan Chase all traded lower as Treasury yields pulled back. The benchmark 10-year yield fell about 5 basis points on Tuesday, or 0.05 percentage points, to 1.54%. Equities rose sharply on Monday — with the Dow rallying nearly 250 points — as bond yields paused their recent and sizab


The major indexes fell to their session lows in the final minutes of the trading session as Treasury yields declined as well. Netflix shares pulled back 3.4%. Bank shares such as Citigroup, Bank of America and J.P. Morgan Chase all traded lower as Treasury yields pulled back. The benchmark 10-year yield fell about 5 basis points on Tuesday, or 0.05 percentage points, to 1.54%. Equities rose sharply on Monday — with the Dow rallying nearly 250 points — as bond yields paused their recent and sizab
Dow falls 170 points, snaps 3-day winning streak Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: fred imbert
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Dow falls 170 points, snaps 3-day winning streak

The Dow Jones Industrial Average fell for the first time in four sessions on Tuesday, paring some of the strong gains from the previous session as recession fears lingered.

The 30-stock index closed 173.35 points lower, or 0.7%, at 25,962.44. The S&P 500 pulled back 0.8% to end the day at 2,900.51. The Nasdaq Composite slid 0.7% to 7,948.56. The major indexes fell to their session lows in the final minutes of the trading session as Treasury yields declined as well.

Home Depot helped keep losses in check. Shares of the home improvement retailer rose 4.4% on better-than-expected earnings. However, Home Depot warned tariffs could hit consumer spending and cut its full-year revenue outlook.

Still, the Dow has recovered a large chunk of its 800-point drop from Wednesday while the S&P 500 and Nasdaq have also regained some of their losses from that day.

“When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started,” said Brian Nick, chief investment strategist at Nuveen, noting the market is back where it was a year ago. “We haven’t gone much of anywhere because the economy is moving ahead, but the trade war is setting up these intermittent potholes and the global economy keeps slowing in the background.”

Chip stocks, which are sensitive to trade news, contributed to Tuesday’s decline. Micron Technology and Advanced Micro Devices dipped 1.7% and 2.4%, respectively. Netflix shares pulled back 3.4%.

Bank shares such as Citigroup, Bank of America and J.P. Morgan Chase all traded lower as Treasury yields pulled back. The benchmark 10-year yield fell about 5 basis points on Tuesday, or 0.05 percentage points, to 1.54%.

“I think yields moving down, just kind of got them going. For the past two weeks whenever yields move down, stocks move down,” said Art Cashin, director of NYSE floor operations at UBS.

Equities rose sharply on Monday — with the Dow rallying nearly 250 points — as bond yields paused their recent and sizable decline, temporarily easing ongoing recession fears.

The White House stepped in the ongoing debate over whether the U.S. economy will soon enter into recession mode, highlighting the strength in the U.S. economy.


Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: fred imbert
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Gold slips 1% as equities, US Treasury yields rise

Gold shed 1% on Monday as a recovery in share markets and rising U.S. Treasury yields reduced some of the metal’s safe-haven appeal, prompting investors to book profits. “However, gold is holding above the $1,500 level and key support level around $1,480 – $1,485 area. But with bond yields moving up a notch, there isn’t much room for gold buyers.” Benchmark U.S. Treasury yields gained on Monday, moving further away from record lows after the closely-watched U.S. yield curve between two- and 10-y


Gold shed 1% on Monday as a recovery in share markets and rising U.S. Treasury yields reduced some of the metal’s safe-haven appeal, prompting investors to book profits. “However, gold is holding above the $1,500 level and key support level around $1,480 – $1,485 area. But with bond yields moving up a notch, there isn’t much room for gold buyers.” Benchmark U.S. Treasury yields gained on Monday, moving further away from record lows after the closely-watched U.S. yield curve between two- and 10-y
Gold slips 1% as equities, US Treasury yields rise Cached Page below :
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Gold slips 1% as equities, US Treasury yields rise

Gold shed 1% on Monday as a recovery in share markets and rising U.S. Treasury yields reduced some of the metal’s safe-haven appeal, prompting investors to book profits.

Spot gold was down 1.06% at $1,497.85 per ounce. U.S. gold futures slipped 1% to $1,508.1.

“The rally in bond markets seems to have paused at least for now and we’ve seen some additional gains in stocks over the weekend, so a bit of a more optimistic start to the week is helping to attract profit taking in gold,” Saxo Bank commodity strategist Ole Hansen said.

“However, gold is holding above the $1,500 level and key support level around $1,480 – $1,485 area. But with bond yields moving up a notch, there isn’t much room for gold buyers.”

Benchmark U.S. Treasury yields gained on Monday, moving further away from record lows after the closely-watched U.S. yield curve between two- and 10-year bonds inverted for the first time since 2007 on Wednesday.

Equity markets around the world rose, with European markets rising for the second session, as investors cheered signs of moves by Germany and China to counter slowing growth.

Over the weekend, U.S. President Donald Trump and top White House officials dismissed concerns that economic growth may be faltering, saying they saw little risk of recession. Trump also said he was “not ready to make a (trade) deal yet” with China.

Markets are awaiting the U.S. Federal Reserve’s Jackson Hole symposium this week for greater clarity on the future path of interest rates. Traders saw an 83.7% chance of a 25 basis-point cut in September.

“Given the policy uncertainties that may or may not unfold later in the week from Jackson Hole symposium, gold could consolidate with a downward bias before eventually resuming its upward momentum,” Stephen Innes, managing partner, VM Markets said in a note.

Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.

However, the dollar index was up 0.1%, hovering near a two-week high hit in the previous session.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.1% to 843.41 tonnes on Friday from Thursday.

Hedge funds and money managers trimmed their bullish stance in COMEX gold and cut net long positions in silver contracts in the week to Aug. 13, the U.S.

Commodity Futures Trading Commission (CFTC) said on Friday.

Elsewhere, silver dipped 1% to $16.91 per ounce.

Platinum fell 0.4% to $840.75 an ounce, while palladium gained 0.5% to $1,455.16.


Company: cnbc, Activity: cnbc, Date: 2019-08-19
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US Treasury yields climb as recession fears ease

The yield on the 30-year Treasury bond, which hit new all-time lows last week, was also higher at 2.078%. On Saturday, China’s central bank unveiled a key interest rate reform to help drive borrowing costs lower for companies. U.S. central bank officials cut interest rates in July and indicated at the time that they’d be open to future easing if warranted. To be sure, investors see about a 74% chance of a quarter-point rate cut next month. A spell of weaker-than-expected data, agitation in U.S.-


The yield on the 30-year Treasury bond, which hit new all-time lows last week, was also higher at 2.078%. On Saturday, China’s central bank unveiled a key interest rate reform to help drive borrowing costs lower for companies. U.S. central bank officials cut interest rates in July and indicated at the time that they’d be open to future easing if warranted. To be sure, investors see about a 74% chance of a quarter-point rate cut next month. A spell of weaker-than-expected data, agitation in U.S.-
US Treasury yields climb as recession fears ease Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: thomas franck
Keywords: news, cnbc, companies, ease, climb, yields, yield, investors, rate, points, central, fears, recession, week, cut, interest, treasury


US Treasury yields climb as recession fears ease

U.S. government debt yields climbed on Monday as a more positive market and economic outlook goaded investors back into riskier assets.

The yield on the benchmark 10-year Treasury note rose 6 basis points to 1.6% while the rate on Treasurys maturing in two years rose 4 basis points to 1.519%. The yield on the 30-year Treasury bond, which hit new all-time lows last week, was also higher at 2.078%.

The spread between the 2-year Treasury yield and that of the 10-year inverted in intraday trading on Wednesday for the first time in over a decade, a sign many consider a reliable recession indicator. That portion of the yield curve steepened on Monday and was last seen positive at 8 basis points.

Market focus is largely attuned to global central banks, as hopes of more stimulus from major economies such as China and Germany soothed investors’ concerns about a global economic downturn.

The Commerce Department was preparing to extend the length of a license that has allowed Huawei to continue business with the U.S. companies to service existing customers despite the White House’s concerns over national security, according to report from the Wall Street Journal and Reuters.

Huawei’s business in the U.S. is one of the most contentious points in the ongoing trade war with China.

On Saturday, China’s central bank unveiled a key interest rate reform to help drive borrowing costs lower for companies.

Meanwhile, market participants are likely to closely monitor the Federal Reserve’s Jackson Hole symposium this week in order to get greater clarity on the future path of interest rates. U.S. central bank officials cut interest rates in July and indicated at the time that they’d be open to future easing if warranted.

To be sure, investors see about a 74% chance of a quarter-point rate cut next month.

A spell of weaker-than-expected data, agitation in U.S.-China trade relations and elevated recession fears sent Treasury yields tumbling to multiyear lows last week. For his part, however, President Donald Trump said Sunday he doesn’t see a recession on the horizon in the U.S. after a volatile week for markets.

“I don’t think we’re having a recession,” Trump told reporters. “We’re doing tremendously well. Our consumers are rich. I gave a tremendous tax cut and they’re loaded up with money.”


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: thomas franck
Keywords: news, cnbc, companies, ease, climb, yields, yield, investors, rate, points, central, fears, recession, week, cut, interest, treasury


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US Treasury yields climb as recession fears ease

The yield on the 30-year Treasury bond, which hit new all-time lows last week, was also higher at 2.078%. On Saturday, China’s central bank unveiled a key interest rate reform to help drive borrowing costs lower for companies. U.S. central bank officials cut interest rates in July and indicated at the time that they’d be open to future easing if warranted. To be sure, investors see about a 74% chance of a quarter-point rate cut next month. A spell of weaker-than-expected data, agitation in U.S.-


The yield on the 30-year Treasury bond, which hit new all-time lows last week, was also higher at 2.078%. On Saturday, China’s central bank unveiled a key interest rate reform to help drive borrowing costs lower for companies. U.S. central bank officials cut interest rates in July and indicated at the time that they’d be open to future easing if warranted. To be sure, investors see about a 74% chance of a quarter-point rate cut next month. A spell of weaker-than-expected data, agitation in U.S.-
US Treasury yields climb as recession fears ease Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: thomas franck
Keywords: news, cnbc, companies, ease, climb, yields, yield, investors, rate, points, central, fears, recession, week, cut, interest, treasury


US Treasury yields climb as recession fears ease

U.S. government debt yields climbed on Monday as a more positive market and economic outlook goaded investors back into riskier assets.

The yield on the benchmark 10-year Treasury note rose 6 basis points to 1.6% while the rate on Treasurys maturing in two years rose 4 basis points to 1.519%. The yield on the 30-year Treasury bond, which hit new all-time lows last week, was also higher at 2.078%.

The spread between the 2-year Treasury yield and that of the 10-year inverted in intraday trading on Wednesday for the first time in over a decade, a sign many consider a reliable recession indicator. That portion of the yield curve steepened on Monday and was last seen positive at 8 basis points.

Market focus is largely attuned to global central banks, as hopes of more stimulus from major economies such as China and Germany soothed investors’ concerns about a global economic downturn.

The Commerce Department was preparing to extend the length of a license that has allowed Huawei to continue business with the U.S. companies to service existing customers despite the White House’s concerns over national security, according to report from the Wall Street Journal and Reuters.

Huawei’s business in the U.S. is one of the most contentious points in the ongoing trade war with China.

On Saturday, China’s central bank unveiled a key interest rate reform to help drive borrowing costs lower for companies.

Meanwhile, market participants are likely to closely monitor the Federal Reserve’s Jackson Hole symposium this week in order to get greater clarity on the future path of interest rates. U.S. central bank officials cut interest rates in July and indicated at the time that they’d be open to future easing if warranted.

To be sure, investors see about a 74% chance of a quarter-point rate cut next month.

A spell of weaker-than-expected data, agitation in U.S.-China trade relations and elevated recession fears sent Treasury yields tumbling to multiyear lows last week. For his part, however, President Donald Trump said Sunday he doesn’t see a recession on the horizon in the U.S. after a volatile week for markets.

“I don’t think we’re having a recession,” Trump told reporters. “We’re doing tremendously well. Our consumers are rich. I gave a tremendous tax cut and they’re loaded up with money.”


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: thomas franck
Keywords: news, cnbc, companies, ease, climb, yields, yield, investors, rate, points, central, fears, recession, week, cut, interest, treasury


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How bonds work, why they matter, and how to include them in your portfolio

But when traders are worried about an economic slowdown or recession, many of them sell stocks to buy safer assets like Treasury bonds. For example, a company might issue bonds to fund an expensive project, while the U.S. government issues Treasury bonds to help finance federal spending activities. U.S. Treasury bonds are considered among the safest investments available because the federal government has never defaulted on its debt. Sometimes referred to as the coupon rate, this is based on the


But when traders are worried about an economic slowdown or recession, many of them sell stocks to buy safer assets like Treasury bonds. For example, a company might issue bonds to fund an expensive project, while the U.S. government issues Treasury bonds to help finance federal spending activities. U.S. Treasury bonds are considered among the safest investments available because the federal government has never defaulted on its debt. Sometimes referred to as the coupon rate, this is based on the
How bonds work, why they matter, and how to include them in your portfolio Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: anna-louise jackson
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How bonds work, why they matter, and how to include them in your portfolio

Bonds, which historically offer lower returns along with lower risk, may sometimes seem like the boring counterpart to stocks, but these assets can play a valuable role — both in your portfolio and in terms of providing clues about the economy. You may have heard about bond yields in the news recently because the so-called yield curve, a closely watched and historically accurate predictor of recessions, is flashing a warning sign. The curve measures the difference in interest rates for two bonds with different maturity dates and shows what traders expect for U.S. economic growth in the near-term. Normally, the yield on longer-term Treasurys is higher than that of shorter-term Treasurys, because investors demand a higher return in exchange for surrendering their money for a longer period of time. But when traders are worried about an economic slowdown or recession, many of them sell stocks to buy safer assets like Treasury bonds. Once the yield on longer-term Treasurys ends up lower than the yield on shorter-term Treasurys, the yield curve inverts — and can trigger even more concerns about the economy. After the yield curve inverted this week, the stock market had its worst day of 2019 so far.

How bonds work

When you invest in bonds, you loan money, either to governments or corporations, with the expectation of being repaid by a specific date in the future. In the meantime, you’ll receive periodic interest payments — which is why bonds are referred to as a type of fixed-income security. Instead of buying a stake in a company, as you do with stocks, investing in bonds means you’re taking on part of that company’s debt obligation. For example, a company might issue bonds to fund an expensive project, while the U.S. government issues Treasury bonds to help finance federal spending activities. U.S. Treasury bonds are considered among the safest investments available because the federal government has never defaulted on its debt. Corporate bonds can be riskier, especially because a company could default on its debt. So-called junk bonds have higher risks and returns because analysts think there’s a greater likelihood of default. But many people prefer investing in bond funds managed by pros who choose a variety of bonds with some common element (such as corporate or Treasury bonds). This helps to balance out the risk of default from any one specific bond. To understand bonds, you’ll need to know a few basic terms: Yield. This is the return you’ll earn by buying a bond. Sometimes referred to as the coupon rate, this is based on the bond’s price and annual interest payment.

This is the return you’ll earn by buying a bond. Sometimes referred to as the coupon rate, this is based on the bond’s price and annual interest payment. Price. This is the amount you’ll pay for the bond.

This is the amount you’ll pay for the bond. Maturity date. This is the date when the original sum loaned will be repaid in full. When a bond’s price increases, its yield falls. When a lot of people are eager to buy bonds, that will push the price higher and the yields lower. The yield on 30-year Treasurys, for example, fell below 2% for the first time ever, while yields on other duration bonds hit multiyear lows.

How to mix bonds into your portfolio


Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: anna-louise jackson
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Treasury yields climb away from record lows

How the Chinese yuan is likely to perform in three trade war… The trade war between the U.S. and China is turning into a brewing currency war, say analysts. Bank of America Merrill Lynch Global Research predicts what might happen to the…Asia FXread more


How the Chinese yuan is likely to perform in three trade war… The trade war between the U.S. and China is turning into a brewing currency war, say analysts. Bank of America Merrill Lynch Global Research predicts what might happen to the…Asia FXread more
Treasury yields climb away from record lows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: sam meredith
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Treasury yields climb away from record lows

How the Chinese yuan is likely to perform in three trade war…

The trade war between the U.S. and China is turning into a brewing currency war, say analysts. Bank of America Merrill Lynch Global Research predicts what might happen to the…

Asia FX

read more


Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: sam meredith
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Europe stocks higher as calm returns to markets following Treasury yield inversion; FTSE fails to open

European markets moved higher on Friday morning as investors monitor Treasury yields for clues on a possible recession. The pan-European Stoxx 600 was up by 0.7% shortly after the opening bell, with every sector moving higher. London’s FTSE 100 index failed to open at the start of the European trading on Friday.The London Stock Exchange (LSE) has said it is currently investigating a potential trading services issue, according to Reuters.


European markets moved higher on Friday morning as investors monitor Treasury yields for clues on a possible recession. The pan-European Stoxx 600 was up by 0.7% shortly after the opening bell, with every sector moving higher. London’s FTSE 100 index failed to open at the start of the European trading on Friday.The London Stock Exchange (LSE) has said it is currently investigating a potential trading services issue, according to Reuters.
Europe stocks higher as calm returns to markets following Treasury yield inversion; FTSE fails to open Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: silvia amaro, chloe taylor
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Europe stocks higher as calm returns to markets following Treasury yield inversion; FTSE fails to open

European markets moved higher on Friday morning as investors monitor Treasury yields for clues on a possible recession.

The pan-European Stoxx 600 was up by 0.7% shortly after the opening bell, with every sector moving higher.

London’s FTSE 100 index failed to open at the start of the European trading on Friday.The London Stock Exchange (LSE) has said it is currently investigating a potential trading services issue, according to Reuters.


Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: silvia amaro, chloe taylor
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Oil rises as US retail sales ease recession fears

Crude oil prices rose on Friday following two days of declines, buoyed after data showing an increase in retail sales in the U.S. helped dampen concerns about a recession in the world’s biggest economy. U.S. crude was up 65 cents, or 1.2%, at $55.12 a barrel, having dropped 1.4% the previous session and 3.3% on Wednesday. An inverted Treasury yield curve is historically a reliable predictor of looming recessions. In July, OPEC+ agreed to extend oil output cuts until March 2020 to prop up prices.


Crude oil prices rose on Friday following two days of declines, buoyed after data showing an increase in retail sales in the U.S. helped dampen concerns about a recession in the world’s biggest economy. U.S. crude was up 65 cents, or 1.2%, at $55.12 a barrel, having dropped 1.4% the previous session and 3.3% on Wednesday. An inverted Treasury yield curve is historically a reliable predictor of looming recessions. In July, OPEC+ agreed to extend oil output cuts until March 2020 to prop up prices.
Oil rises as US retail sales ease recession fears Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16
Keywords: news, cnbc, companies, output, economic, oil, cuts, treasury, fears, sales, data, crude, opec, weakening, ease, rises, yield, recession, retail


Oil rises as US retail sales ease recession fears

Crude oil prices rose on Friday following two days of declines, buoyed after data showing an increase in retail sales in the U.S. helped dampen concerns about a recession in the world’s biggest economy.

Brent crude was up 52 cents, or 0.9%, at $58.75 a barrel at 0352 GMT, after falling 2.1% on Thursday and 3% the previous day.

U.S. crude was up 65 cents, or 1.2%, at $55.12 a barrel, having dropped 1.4% the previous session and 3.3% on Wednesday.

U.S. retail sales rose 0.7% in July as consumers bought a range of goods even as they cut back on motor vehicle purchases, according to data that came a day after a key part of the U.S. Treasury yield curve inverted for the first time since June 2007 prompting a sell-off in stocks and crude oil.

An inverted Treasury yield curve is historically a reliable predictor of looming recessions.

“The rebound has a corrective look about it on thin volumes, rather than a beachhead for an impending rebound,” said Jeffrey Halley, senior market analyst at OANDA. “Overall, U.S. data continues to be a bright spot in a dark economic universe.”

Gains are likely to be capped after a week of data releases including a surprise drop in industrial output growth in China to a more than 17-year low, along with a fall in exports that sent Germany’s economy into reverse in the second quarter.

“The broader story around global economic growth has been a weak one, or a weakening one and expectations (are for) further weakening,” Phin Ziebell, senior economist at National Australia Bank, said by phone.

The price of Brent is still up nearly 10% this year thanks to supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, a group known as OPEC+. In July, OPEC+ agreed to extend oil output cuts until March 2020 to prop up prices.

“At what point will further output cuts be needed at the back end of this year from OPEC and Russia to keep things going the way they are?” Zeibell said, given the broader economic outlook.

A Saudi official on Aug. 8 indicated more steps may be coming, saying “Saudi Arabia is committed to do whatever it takes to keep the market balanced next year.”

But the efforts of OPEC+ have been outweighed by worries about the global economy amid the U.S.-China trade dispute and uncertainty over Brexit, as well as rising U.S. stockpiles of crude and higher output of U.S. shale oil.


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
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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. 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
Keywords: news, cnbc, companies, investors, indicator, dollar, treasury, asia, trade, watch, watched, china, bond, yields, market, stocks, mixed, recession, yuan


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Ray Dalio says he wouldn’t rule out China weaponizing its massive US Treasury holdings

Hedge fund titan Ray Dalio said he wouldn’t rule out China using its Treasury holdings to gain an upper hand against the U.S. in the trade war — a view that contrasts with many other observers. “We have a debtor-creditor relationship, not just a trade relationship. And (that) can be a dangerous thing,” Dalio, founder of the world’s largest hedge fund Bridgewater Associates, told CNBC’s “Managing Asia” in Singapore. When repeatedly pressed on whether Beijing could weaponize its ownership of U.S.


Hedge fund titan Ray Dalio said he wouldn’t rule out China using its Treasury holdings to gain an upper hand against the U.S. in the trade war — a view that contrasts with many other observers. “We have a debtor-creditor relationship, not just a trade relationship. And (that) can be a dangerous thing,” Dalio, founder of the world’s largest hedge fund Bridgewater Associates, told CNBC’s “Managing Asia” in Singapore. When repeatedly pressed on whether Beijing could weaponize its ownership of U.S.
Ray Dalio says he wouldn’t rule out China weaponizing its massive US Treasury holdings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: yen nee lee
Keywords: news, cnbc, companies, worlds, treasurys, trade, treasury, rule, holdings, weaponizing, china, dalio, ray, largest, relationship, massive, wouldnt


Ray Dalio says he wouldn't rule out China weaponizing its massive US Treasury holdings

Ray Dalio, founder of investment firm Bridgewater Associates, speaking at the WEF in Davos, Switzerland on Jan. 22, 2019.

Hedge fund titan Ray Dalio said he wouldn’t rule out China using its Treasury holdings to gain an upper hand against the U.S. in the trade war — a view that contrasts with many other observers.

“We have a debtor-creditor relationship, not just a trade relationship. And (that) can be a dangerous thing,” Dalio, founder of the world’s largest hedge fund Bridgewater Associates, told CNBC’s “Managing Asia” in Singapore.

When repeatedly pressed on whether Beijing could weaponize its ownership of U.S. Treasurys, Dalio responded: “I wouldn’t rule it out.”

Analysts and investors have said that amid escalating trade conflict between the world’s two largest economies, China could resort to the so-called nuclear option to hurt the U.S.: Selling its large Treasury holdings. But many dismissed that suggestion, saying such a move will harm China too.

China was the largest foreign holder of U.S. Treasurys until June, when it was surpassed by Japan. According to data by the U.S. Treasury department, China held $1.11 trillion of U.S. debt in June.


Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: yen nee lee
Keywords: news, cnbc, companies, worlds, treasurys, trade, treasury, rule, holdings, weaponizing, china, dalio, ray, largest, relationship, massive, wouldnt


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