Asian Markets Buoyed By Easing Trade Tensions
Asian market was mostly higher despite a bombshell allegation against Nissan Chairperson Carlos Ghosn. Ghosn has been accused of violating major Japanese financial laws that may have a material impact on his ability to lead Nissan. The Nissan board issued a statement that Ghosn and another board member had been under-reporting compensation for many years. The news, released after the close of the Asian session, sent shares of Nissan down more than 12%.
In political news, US President Donald Trump may be ready to make a deal with China although results of the APEC meeting are not promising. Jonathan Fenby of TS Lombard said in an interview that Trump is showing signs of a readiness to deal. His hesitancy to lift tariffs to 25% shows caution that may result in positive developments at the G-20 meeting next month. Meanwhile, at the APEC meeting, US and Chinese differences prevented the group from forming an accord for the first time ever.
Brexit Hopes Lift UK, Nissan Drags On Market
EU indices were flat to up at midday as Brexit hopes to provide support and the Nissan news weighs on the indices. On the Brexit front UK Prime Minister, Theresa May is doing her best to ram through whatever kind of deal she can. She says a change of government would only prolong the affair while those within her own government are leaving their posts or criticizing the deal as bad for the UK people.
The UK FTSE 100 led advancing indices at mid-day with a gain new 0.65%. The German DAX and French CAC were both holding flat with gains near 0.0%. The pound was able to gain versus the dollar but the move was small in early Monday trading, only about 0.25% Regardless, the move extends a bounce from the support that began in the previous week and indicates the 1.2700-1.3200 trading range may dominate the GBP/USD in the near-term.
US Market Flat Despite Trade Optimism
The US equity market was indicated to open with a small loss in early Monday pre-opening trading. The SPX was indicated lower by 0.25% while the tech-heavy NASDAQ Composite led with a decline near 0.45%. Shares of Apple are primarily to blame, a report orders of iPhones had been cut led shares of that stock down by 1.0%.
The tech-sector was further weighed down by reports South Korean authorities had massive amounts of evidence three manufacturers including Samsung and Micron were committing antitrust violations. On the earnings front, Agilent and Intuit are expected to report after the bell. A miss from either of those companies could spark further bloodshed in the tech sector.
There was no economic data today but there are some important reads on housing and leading indicators due out later this week. The market will be closed on Thursday, November 22nd, for the Thanksgiving Holiday. Expect to see light trading volume in the US all week.
This article was originally posted on FX Empire
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