|Day's Range||21,213.43 - 21,358.72|
|52 Week Range||18,948.58 - 24,448.07|
Japan's Nikkei rallied hard to end near six-week highs on Wednesday on news that the United States and China will revive talks on trade, while expectations the U.S. Federal Reserve will cut rates this year supported sentiment. U.S. President Donald Trump said he would meet with Chinese President Xi Jinping at the G20 summit later this month, and said talks between the two countries would restart after a recent lull.
(Bloomberg) -- U.S. and European stock futures were little changed, while Treasury yields ticked up, ahead of a Federal Reserve meeting where investors anticipate policy makers will signal a readiness to lower interest rates. Stocks rose in Asia, following a rally on Wall Street, in the wake of President Donald Trump tweeting that he will sit down with Chinese President Xi Jinping at the G-20 summit next week -- a meeting that had been a question mark as trade tensions deepened. Hong Kong’s shares led the region, advancing more than 2%, with other benchmarks seeing more modest gains. Ten-year Treasury yields nudged away from a 1-handle, and are now at 2.07%. Japan’s yields, however, slid deeper into negative territory, hitting a three-year low.Next up is the Federal Reserve, which is widely expected to strike a more dovish tone when it concludes a two-day meeting Wednesday. Meanwhile, German 10-year yields tumbled further below zero as ECB President Mario Draghi said officials are ready with stimulus if needed, adding to expectations for easier global conditions. That helped bring the stockpile of negative-yielding bonds globally to a record $12.5 trillion.Trump said Tuesday that he had a “very good” phone conversation with Xi. The two leaders will hold an “extended meeting” at the G-20 summit on June 28-29 in Osaka and “our respective teams will begin talks prior to our meeting,” Trump said on Twitter.“At this stage, we are not getting as optimistic as maybe the stock market is about the headlines overnight,” Laura Fitzsimmons, executive director for rates and FX sales at JPMorgan Chase & Co., told Bloomberg TV in Sydney about the developments on trade. “Stock markets can run for a little bit longer but as we get closer to the event itself the risk of disappointment will again appear.”Elsewhere, oil held Tuesday’s gains after OPEC and its allies moved closer to a meeting to extend supply cuts. The Turkish lira fell on a report the Trump administration is weighing new sanctions on the country over its purchases of the Russian S-400 missile-defense system.Here are some key events coming up:The Fed, Bank of Japan and Bank of England all set monetary policy, along with central banks in Norway, Brazil, Taiwan and Indonesia.The Fed’s two-day meeting ends Wednesday with a decision and press conference. Officials are expected to debate a rate cut to shelter the U.S. economy, in part, from the fallout caused by escalating trade disputes.Final May CPI data for Britain are due on Wednesday.U.K. retail sales are set for release on Thursday.These are the main moves in markets:StocksThe MSCI Asia Pacific Index rose 1.8% as of 3:22 p.m. in Tokyo.Futures on the S&P 500 Index were little changed. The underlying gauge rose 1% Tuesday.Euro Stoxx 50 futures were little changed. CurrenciesThe yen rose 0.2% to 108.29 per dollar.The offshore yuan fell 0.1% to 6.9067 per dollar.The Bloomberg Dollar Spot Index was flat.The euro was at $1.1193, little changed.BondsThe yield on 10-year Treasuries ticked up 1 basis point, to 2.07%.Australia’s 10-year yield fell two basis points to 1.35%.CommoditiesWest Texas Intermediate added 0.5% to $54.17 a barrel.Gold was at $1,343.86 an ounce, down 0.2%.\--With assistance from Juliette Saly.To contact the reporter on this story: Adam Haigh in Sydney at email@example.comTo contact the editors responsible for this story: Christopher Anstey at firstname.lastname@example.org, Cormac MullenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Japan's Nikkei surged to four-week highs on Wednesday morning on news that the United States and China will rekindle talks on trade, while ongoing expectations that the U.S. Federal Reserve will cut rates this year supported sentiment. U.S. President Donald Trump said he would meet with Chinese President Xi Jinping at the G20 summit later this month, and said talks between the two countries would restart after a recent lull.
Reuters had reported last week that Nissan was considering having Renault executives as members of nomination, audit and compensation committees, after the French firm expressed discontent with Nissan's envisioned governance reform. Nissan is proposing an additional board committee possibly named "strategy committee", the Nikkei said https://asia.nikkei.com/Business/Nissan-s-Ghosn-crisis/Nissan-offers-seats-to-Renault-s-top-2-in-new-governance-plan. The 20-year-old partnership was plunged into a crisis earlier this month, as the French automaker's demand for a greater say in Nissan's new governance system drew rare public censure by the Japanese firm.
Reuters reported last week that Nissan was considering having Renault executives as members of nomination, audit and compensation committees, after the French automaker expressed discontent with Nissan's envisioned governance reform. Nissan is proposing an additional board committee possibly named "strategy committee", the Nikkei said https://asia.nikkei.com/Business/Nissan-s-Ghosn-crisis/Nissan-offers-seats-to-Renault-s-top-2-in-new-governance-plan. The 20-year-old partnership has been strained since former leader Carlos Ghosn was arrested for suspected financial misconduct in November.
(Bloomberg) -- U.S. stocks approached all-time highs on optimism that President Donald Trump will de-escalate his trade war with China, adding to gains sparked by the ECB’s signal it is ready to cut interest rates if warranted. Treasuries and oil rallied.The S&P 500 trimmed a rally that topped 1.4% at its height as markets digested news that the Trump administration explored demoting Federal Reserve Chairman Jerome Powell in February. Stocks had jumped within 1% of its all-time high after Trump tweeted earlier that he will meet with Chinese President Xi Jinping at the Group of 20 summit next week. Trade tensions have weighed on stocks since Trump escalated his trade war in early May.“Up until now, the markets have been quite skeptical that a Trump, Xi meeting would happen,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle. “This pivot to an attempt to get a deal done is certainly a lot of what’s driving the market.”European Central Bank President Mario Draghi said that officials are ready with stimulus if needed, adding to expectations for easier monetary policies. Central banks in Australia, Russia, India and Chile have recently loosened policy. The Reserve Bank of Australia said Tuesday that further easing is more likely than not.The Fed is widely expected to strike a more dovish tone with its decision at the end of it’s two-day meeting Wednesday. The yield on the benchmark 10-year Treasury approached 2% before the notes pared gains. German 10-year yields tumbled further below zero. Oil surged to its biggest gain in five months as OPEC and its allies moved closer to a meeting to extend supply cuts while the Draghi’s comments raised hopes for increased demand.Elsewhere, the yen briefly weakened after a magnitude 6.8 earthquake struck off the northwest coast of Japan, triggering a tsunami advisory. Bitcoin dropped after a four-day surge.Here are some key events coming up:The Fed, Bank of Japan and Bank of England all set monetary policy, along with central banks in Norway, Brazil, Taiwan and Indonesia.The Fed’s two-day meeting ends Wednesday with a decision and press conference. Officials are expected to debate a rate cut to shelter the U.S. economy, in part, from the fallout caused by escalating trade disputes.Final May CPI data for Britain are due on Wednesday. U.K. retail sales are set for release on Thursday. These are the main moves in markets: StocksThe S&P 500 Index rose 1% as of 4:02 p.m. New York time, while the Nasdaq Composite Index gained 1.4% and the Dow Jones Industrial Average increased 1.4%.The Stoxx Europe 600 jumped 1.7%, the biggest increase since January.The MSCI Emerging Market Index rose 1.5%.The MSCI Asia Pacific Index gained 0.6%, the first increase in five trading sessions. CurrenciesThe Bloomberg Dollar Spot Index fell less than 0.1%, the first drop in three days.The euro eased 0.2% to $1.1196, while the yen strengthened 0.1% to 108.42 per dollar.The British pound rose 0.2% to $1.2560.The MSCI Emerging Markets Currency Index rose 0.5%, the first increase in five trading sessions.BondsThe yield on 10-year Treasuries dropped 4 basis points to 2.06%.Germany’s 10-year yield fell 8 basis points to negative 0.32%. CommoditiesWest Texas Intermediate surged 4.1% to $54.08 a barrel.Gold rose 0.5% to $1,346 an ounce, the first increase in three days.The Bloomberg Commodity Index rose 0.6%.To contact the reporters on this story: Sarah Ponczek in New York at email@example.com;Vildana Hajric in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeremy Herron at email@example.com, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Facebook, Beyond Meat and Cisco were early risers Tuesday, as stocks bolted higher and the Dow Jones Industrial Average added to its strong June advance.
Global equities move higher as the FOMC meeting gets underway, the committee is expected to alter the statement but traders are cautioned not to expect too much.
CME Group futures suggest a 20% chance of a June rate cut, with the balances of bets suggesting the Fed will reduce its key target rate in July. Global sentiment, however, remains tempered as investors react to a U.S. decision to move 1,000 troops into the Gulf region to counter "credible" threats from Iran. Global oil prices slip for a third session as traders prefer to focus on weakening demand metrics and record U.S. production rates over regional military tensions and OPEC output cuts.
The euro took a beating and German bond yields hit a fresh record low on Tuesday in reaction to European Central Bank President Mario Draghi's comments indicating a possibility of new rate cuts or asset purchases. Draghi said the ECB would need to ease policy again, if inflation did not head back to its targets, and that there was still "considerable headroom" to do so. German government bond yields, the benchmark for Europe, fell to -0.30% for the first time ever and the euro slumped to a two-week low versus the dollar, while European stocks shook off early weaknesses to trade 0.9% higher.
Stocks continued to fluctuate on Friday, as investors awaited this week’s Wednesday’s Fed Rate Decision release. The S&P; 500 index reached the new local high on Tuesday and then it came back below the 2,900 mark. So was it a downward reversal or just correction before another leg up?
European shares rallied and the euro took a sharp hit on Tuesday in a knee-jerk reaction to European Central Bank President Mario Draghi's comments indicating a possibility of new rate cuts or asset purchases. The euro fell 0.24% to 1.1191 as of 0845 GMT after Draghi said the ECB will need to ease policy again, if inflation doesn't head back to its targets, and that there was still "considerable headroom" to do it.
Japan's Nikkei dropped to a 1-1/2-week low in choppy trade on Tuesday but most investors stayed on the sidelines ahead of a U.S. central bank policy decision later in the week. Expectations that the Federal Reserve will start cutting interest rates has helped global markets recover from heavy selling sparked by intensifying global trade disputes. While the Fed is unlikely to cut rates at its two-day meeting, ending on Thursday, its concluding statement will be analysed for clues on possible near-term moves to ease, analysts said.
(Bloomberg) -- Europe’s equity benchmark has been moving within a tight range over the past five sessions. Trade wars, geopolitical instability and poor global macro data are spurring concerns, yet there’s been no big sell-off. It seems that investors are counting on the Fed to save the day tomorrow with a rate cut.European stocks tend to react positively to a first U.S. rate cut in a cycle, as they have typically risen by 2% in the month that follows, according to Goldman Sachs strategists. It’s not a given though, as it occurred only two-thirds of the time. On the other hand, the euro rose in 77% of the cases, Goldman says.Traders seem to have already priced in at least one cut before the end of the year, even if economists are still debating the timing. The implied probability of a 25 basis point cut has moved to almost 100% today.The resilience of the market is likely built on rate-cut expectations, JPMorgan strategists write, which makes it vulnerable to a sell-off if the Fed this week doesn’t give a strong indication of a rate cut. The central bank needs to show it’s ahead of the curve, especially with the upcoming G-20 meeting (June 28-29) and the very low likelihood of positive trade talks between the U.S and China, they say.Meanwhile, the economy has been sending more warnings signals. The U.S. jobs market is showing signs of fatigue, U.S. macro surprises have come down, and remain negative in Europe. Yesterday’s Fed Empire manufacturing index had a record fall, hitting its lowest level since 2016.This month, the Morgan Stanley Business Conditions Index plummeted to its lowest level since 2008, a bad omen for the ISM manufacturing index and thus the S&P 500, Morgan Stanley says. Should the historical relationship hold, this would mean the S&P could drop 8% from current levels. And that would have a ripple effect on European stocks.The business index is also indicative of future revisions to earnings, as it’s driven by analyst surveys. The trend seems to have started already if you look at the Citigroup’s Earnings Revision Index, with expectations for companies’ results dropping in a similar fashion to the second half of last year.The Fed’s reaction to the deteriorating outlook will be closely watched on Wednesday, and the big question remains over what it can do to support the market. Failure to act could send stocks into a perfect storm.In the meantime, Euro Stoxx 50 futures are trading down 0.2% ahead of the open.SECTORS IN FOCUS TODAY:Watch oil companies after softer U.S. economic numbers hit the oil price as crude traders continue to balance out supply assurances and demand concerns. It appears OPEC is having trouble agreeing when it will meet next. Iran faces yet more criticism from U.S. politicians following its threat about breaching enriched uranium caps and President Trump decided to send more troops to the Middle East.Watch the pound and U.K. stocks as Boris Johnson remains the frontrunner but outsider Rory Stewart appears to have made waves. Separately, a Bloomberg survey shows economists expect a stagnant U.K. economy in the second quarter.COMMENT:“After the strong rebound since the start of the month, we think risks remain symmetric near term given a potential disappointment from the Fed and the ongoing uncertainty on US/China trade tensions,” Goldman Strategists write in a note. “We prefer to position via options near term as the risk of larger equity drawdowns remains elevated. Our options strategists prefer S&P 500 collars given the low level of skew.”COMPANY NEWS AND M&A:Airbus Jumps Ahead With New Jet in Paris While Boeing FloundersAmerican Air Mulls Ordering Up to 50 of Airbus’s New A321XLR JetInfineon Says Shares Placed at EU13.70, Gross Proceeds EU1.55bScania CEO Says Margin Will Increase in Coming Quarters: DIEU28 May Car Registrations Rise 0.1% Y/y to 1.401m UnitsSwedbank’s Estonian Unit Replaces CEO, CFO After Internal ProbeAgeas Got More Claims Than Expected in Fortis Settlement: FDShort Sellers Circle Blue Prism After 2,200% Rally Since IPOHutchison Chi-Med Is Said to Delay Launch of Hong Kong ListingTieto to Acquire Evry for NOK35.48/Share in Cash, Share DealItaly’s UBI Mandates KPMG to Find Single Insurance Partner: SoleCGG Wins Multi-Year Processing Contract From AdnocNordex Gets 300 MW Order From Engie UnitDassault Systemes Lead Investor in EU65m BioSerenity FinancingDeoleo Reaches Agreement to Refinance EU553M Debt: ConfidencialAmbu Cuts FY Outlook and Lowers Mid-Term Targets After ReviewVapiano Sees 2019 Net Sales Missing Estimates, Slower ExpansionNOTES FROM THE SELL SIDE:BBVA and CaixaBank are the stand-out names in a Spanish banking sector contending with lower-for-longer Euribor rates and muted domestic loan growth, RBC analysts write in a note. CaixaBank, BBVA both at outperform; Santander also outperform with Sabadell and Bankinter at sector perform and Bankia at underperform.Citi cut Evraz to sell at Citi. Broker cut the former top pick and CEEMEA focus list member as Ebitda and free cash flow are “sharply declining.” European hotel operators with headroom on their balance sheets are likely to focus on making acquisitions given slowing organic growth in the industry, Citi says in a note. Broker has buy rating on Accor due to exposure to Europe and France, the only regions showing RevPAR growth; sell on IHG given heavy U.S. exposure, and neutral on Whitbread but as single brand operator is likely to be of interest to a private equity buyer.TECHNICAL OUTLOOK for Stoxx 600 index:Resistance at 382 (50-DMA); 385.7 (61.8% Fibo)Support at 374.5 (61.8% Fibo); 368.2 (200-DMA)RSI: 51.2TECHNICAL OUTLOOK for Euro Stoxx 50 index:Resistance at 3,408 (50-DMA); 3,514 (May high)Support at 3,309 (50% Fibo); 3,266 (200-DMA)RSI: 52MAIN RESEARCH AND RATING CHANGES:UPGRADES:Accor Upgraded to Outperform at Bernstein; PT Set to 44 EurosDanone upgraded to outperform at DavyTokmanni Group upgraded to buy at Handelsbanken; PT 9.30 EurosDOWNGRADES:Avesoro Resources downgraded to hold at BerenbergBauer cut to hold at Kepler Cheuvreux; Price Target 22 EurosDerwent London cut to underweight at Barclays; PT 30 PoundsEvraz downgraded to sell at CitiEvraz Cut to Hold at VTB Capital; Price Target 6.70 PoundsHomeserve cut to equal-weight at Barclays; PT 13.20 PoundsInterContinental Hotels cut to underweight at BarclaysLufthansa downgraded to hold at HSBC; PT 16.50 EurosLufthansa Downgraded to Hold at SocGen; PT 17 EurosINITIATIONS:STMicroelectronics rated new buy at SocGen; PT 23.60 EurosVeolia rated new outperform at MainFirst; PT 24.70 EurosMARKETS:MSCI Asia Pacific down 0.4%, Nikkei 225 down 0.9% S&P 500 up 0.1%, Dow up 0.1%, Nasdaq up 0.6%Euro up 0.16% at $1.1236Dollar Index down 0.15% at 97.41Yen up 0.24% at 108.28Brent little changed at $60.9/bbl, WTI down 0.1% to $51.9/bblLME 3m Copper little changed at $5843.5/MTGold spot up 0.4% at $1345.5/ozUS 10Yr yield down 2bps at 2.07% ECONOMIC DATA (All times CET):8:45am: (IT) Bloomberg June Italy Economic Survey9am: (SP) 1Q Labour Costs YoY, prior 0.9%9:30am: (UK) Bloomberg June United Kingdom Economic Survey11am: (EC) April Trade Balance SA, est. 17b, prior 17.9b11am: (EC) April Trade Balance NSA, prior 22.5b11am: (EC) May CPI Core YoY, est. 0.8%, prior 0.8%11am: (EC) May CPI MoM, est. 0.2%, prior 0.7%11am: (EC) May CPI YoY, est. 1.2%11am: (GE) June ZEW Survey Current Situation, est. 6.1, prior 8.211am: (GE) June ZEW Survey Expectations, est. -5.6, prior -2.111am: (EC) June ZEW Survey Expectations, prior -1.6To contact the reporter on this story: Michael Msika in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Blaise Robinson at email@example.com, Jon MenonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Australian shares are moving higher on Tuesday after the Reserve Bank of Australia (RBA) said further easing was likely. However, investors are largely targeting defensive sectors ahead of the two-day Fed meeting.
Asian markets mostly gained in muted early trading Tuesday, as investors awaited key central bank meetings later this week.
Japan's Nikkei edged lower in choppy trade on Tuesday but most investors stayed on the sidelines ahead of a U.S. central bank policy decision later in the week. Expectations that the Federal Reserve will start cutting interest rates has helped global markets recover from heavy selling sparked by intensifying global trade disputes. While the Fed Reserve is unlikely to cut rates at its meeting on Wednesday, its statement will be analysed for clues on possible near-term easing moves, analysts said.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.U.S. equities gained, led by FANG shares, while European stocks pared losses following a mixed session in Asia as a big week for central-bank policy gets underway. Crude oil slumped for the first time in three days.Facebook, Apple, Netflix and Google parent Alphabet led the Nasdaq Composite higher, while the Stoxx Europe 600 Index closed little changed. Deutsche Bank boosted lenders on reports that it’s considering creating a “non-core unit” to wind down legacy assets as part of a broader overhaul. Japanese and Australian shares declined, while equities in Hong Kong rose after the government suspended a controversial extradition bill.The dollar briefly weakened after a Federal Reserve survey of factories in New York State plunged in June by the most on record, before climbing back from the day’s lows. Treasuries pared a drop on the news, but they stayed mostly lower alongside European bonds as investors looked ahead to a week in which the Fed, the Bank of Japan and the Bank of England all set monetary policy.“We’ll find out Wednesday if the market is right about how dovish it is when it comes to monetary policy,” said Arthur Hogan, chief market strategist at National Securities Corp. “So what we’re looking for is affirmation of where the market is already, and anything that fails to affirm that probably is a negative toward the S&P 500.”Investors will be scrutinizing the Fed’s decision and messaging on Wednesday for signals on the chances of rates cuts ahead. Meanwhile, U.S. Commerce Secretary Wilbur Ross reiterated that the prospect of a major trade deal is unlikely to emerge from a possible meeting between President Donald Trump and Chinese President Xi Jinping at the Group of 20 summit in Osaka this month.“We know that the Fed doesn’t like to surprise people and the idea at this point of them digging in their heels and saying ’absolutely no cuts,’ I think is very unlikely,” Josh Kutin, head of asset allocation for Columbia Threadneedle, said in an interview at Bloomberg’s New York headquarters. “Will it be the full number that’s priced in right now? I think that’s unlikely as well. I think somewhere between is pretty fair.”Elsewhere, oil futures fell as Saudi Arabia expressed hope that OPEC and its allies will agree to extend production cuts into the second half. Bitcoin jumped as much as 11%, heading toward its highest close in more than a year.Here are some key events coming up:Federal Reserve, the Bank of Japan and the Bank of England all set monetary policy, along with central banks in Norway, Brazil, Taiwan and Indonesia.The Fed meeting begins Tuesday with a decision and press conference the next day. Officials are expected to debate a rate cut to shelter the U.S. economy, in part, from the fallout caused by escalating trade disputes.In the U.K. Tuesday there will be a second ballot on the leadership contest to choose Theresa May’s successor as leader of the country’s ruling party.Final May CPI data for the euro zone are due Tuesday.These are the main moves in markets:StocksThe S&P 500 Index rose 0.1% as of 4:03 p.m. New York time, while the Nasdaq Composite Index gained 0.6% and the Dow Jones Industrial Average increased 0.1%.The Stoxx Europe 600 eased less than 0.1%. The MSCI Emerging Market Index dropped 0.4%.The MSCI Asia Pacific Index fell 0.4%, the fourth consecutive decline. CurrenciesThe Bloomberg Dollar Spot Index rose less than 0.1%.The euro rose less than 0.1% to $1.1218, while the yen was little changed at 108.57 per dollar.The British pound fell 0.4% to $1.2542.The MSCI Emerging Markets Currency Index fell 0.1%, the fourth consecutive decline.BondsThe yield on 10-year Treasuries rose less than 1 basis point to 2.09%.Germany’s 10-year yield rose 1 basis point to negative 0.25%. CommoditiesWest Texas Intermediate fell 1.2% to $51.87 a barrel, the first drop in three trading sessions.Gold dropped 0.2% to $1,339 an ounce.The Bloomberg Commodity Index fell less than 0.1%, the first drop in third days. \--With assistance from Yakob Peterseil.To contact the reporters on this story: Vildana Hajric in New York at firstname.lastname@example.org;Colin Beresford in New York at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
US Secretary of State Mike Pompeo said on June 16 that President Donald Trump could raise the issue of anti-extradition bill protests in Hong Kong during his meeting with Chinese President Xi Jinping. The move will certainly anger China, as it considers the issue a sovereign matter.
Share markets couldn't add to recent gains and government bond yields inched fractionally higher on Monday, as investors hunkered down for what is shaping up to be a crucial week for global monetary policy. It could also restart the quantitative easing programme it wound down at the end of last year.
In late January 2016, the lights were on well past midnight on the seventh floor of the Bank of Japan's headquarters. It was almost three years into central bank Governor Haruhiko Kuroda's audacious campaign to jolt Japan out of nearly two decades of deflation – and things were not going well. The small band of bureaucrats was trying to persuade the bank's nine-member board, which sets monetary policy, to approve a radical step: negative interest rates.
Global stocks edge cautiously higher heading into this week's Fed rate meeting, with investors betting on possible support from major central banks around the world. Rate traders aren't expecting a Fed move this week, but July futures suggest a 66.6% chance of a cut as inflation slows and the global economy weakens. Global oil prices slip as the dollar gains and U.S. officials say they'll keep the Gulf region safe for vessels following a series of attacks that the Pentagon has said were directed by Iran.
Asian shares were mostly higher Monday amid a wait-and-see attitude about the direction of interest rates and the trade dispute between the U.S. and China.