^N225 - Nikkei 225
| Previous Close | 20,405.70 |
| Open | 20,323.97 |
| Volume | 0 |
| Day's Range | 20,300.35 - 20,465.71 |
| 52 Week Range | 18,948.58 - 24,448.07 |
| Avg. Volume | 61,087 |
- Bloomberg
Stocks Rise, Treasuries Fall on Stimulus Bets: Markets Wrap
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.U.S. stocks rose for a second day as investors got a reprieve from trade posturing and speculation mounted that European officials will bolster stimulus if growth in the region continues to sputter. Treasuries nudged lower, lifting yields from multiyear lows.The S&P 500 jumped more than 1%, notching its 13th straight session with an intraday move of that magnitude as August volatility persisted. The index lost 1% in the five days for a third straight drop. Bulls got ammunition when on a report Germany would engage in deficit spending in the event of a recession. A day earlier, a European Central Bank official said monetary stimulus would be greater than investors anticipated. Germany’s Dax surged and the region’s bonds retreated.In the U.S., chipmakers paced Friday’s advance after Nvidia Corp.’s after quarterly sales and profit beat estimates. Banks also rose as the yield curve steepened, with two-year rates slipping and 10-years turning higher. Deere & Co. rebounded even after cutting guidance, blaming in part the trade war for undermining sales. In Asia, shares in Hong Kong rallied, Chinese stocks edged higher and Korean equities fell.The prospect for strong European stimulus bolstered confidence that the U.S. economy would be spared some of the ill-effects of the slowdown in that region. Investors remained on edge over trade after a week of back-and-forth headlines delivered wild swings in the equity and bond markets. With traders gunning for more rate cuts from the Federal Reserve, chair Jerome Powell may give a hint of his thinking when he speaks Aug. 23 at the annual central bankers retreat in Jackson Hole, Wyoming.“The Fed, in order to keep this expansion going, needs to provide additional accommodation,” Tiffany Wilding, U.S. economist at Pacific Investment Management Co., told Bloomberg TV. “Whether they are able to arrest the downturn -- there is some question around that. Ultimately we think that they will be able to.”Here are the main moves in markets:StocksThe S&P 500 Index gained 1.45% as of 4 p.m. New York time.The Dow Jones Industrial Average rose 1.2%.The Stoxx Europe 600 Index rose 1.2%.The Shanghai Composite Index climbed 0.3%.The MSCI Emerging Market Index increased 0.7%, trimming the week’s loss to 1.1%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.1%, pushing its weekly advance to 0.5%.The euro fell 0.1% to $1.1092.The British pound jumped 0.5% to $1.2146.The onshore yuan dipped 0.1% to 7.04 per dollar.The Japanese yen declined 0.2% to 106.34 per dollar.BondsThe yield on 10-year Treasuries rose two basis points to 1.5454%.The yield on two-year Treasuries fell one basis point to 1.48%.Germany’s 10-year yield rose three one basis points to -0.685%.Britain’s 10-year yield climbed six basis points to 0.466%.CommoditiesWest Texas Intermediate crude rose 0.6% to $54.76 a barrel.Iron ore climbed 0.3% to $86.75 per metric ton.Gold futures decreased 0.6% to $1,522.60 an ounce.\--With assistance from Nancy Moran, Adam Haigh and Yakob Peterseil.To contact the reporters on this story: Jeremy Herron in New York at jherron8@bloomberg.net;Sarah Ponczek in New York at sponczek2@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, ;Christopher Anstey at canstey@bloomberg.net, Namitha JagadeeshFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- FX Empire
Asia Markets Mixed; Focus Remains on Treasury Yields
Some investors may have been lulled into believing that recession is imminent and guaranteed, but that’s not the case with this inversion indicator. Research shows the stock market could rally for 15 months after the inversion, and recession may not start until 22 months after the first signal is flashed.
- Reuters
Japanese shares edge up as Hong Kong, China markets stabilise
Japanese shares edged up Friday after markets in China and Hong Kong found some stability amid ongoing unrest in Hong Kong, but the gains were limited by nagging fears of a global economic slowdown. The Nikkei index gained 0.06% on Friday to 20,418.81. "The rise by equities in Hong Kong and Shanghai amid a suggestion by U.S. President (Donald) Trump to China's president that they discuss issues, including the situation in Hong Kong, has supported the market," said Yutaka Miura, senior technical analyst at Mizuho Securities.
- Reuters
SoftBank's Fortress emerges as white knight for hotel chain Unizo with $1.3 billion bid
Japanese hotel chain Unizo Holdings said it received a friendly buyout offer worth up to $1.3 billion from a SoftBank Group investment firm, a deal that will help it fend off a rare hostile takeover bid from travel agency H.I.S. Co. U.S.-based Fortress Investment Group will launch a tender offer from next week for all of Unizo's shares at 4,000 yen apiece ($37.68), the companies said in separate statements, trumping the 3,100 yen that H.I.S. has offered. Unizo has publicly opposed the H.I.S. bid, saying it lacked synergy and undervalued the hotel chain.
- Reuters
UPDATE 2-SoftBank-owned Fortress to make rival bid for Japan's Unizo -Nikkei
Fortress Investment Group, a U.S. investment firm owned by SoftBank Group, will offer to buy Japanese hotel operator Unizo Holdings, launching a counter bid against travel agency H.I.S. Co, the Nikkei reported. Fortress will a launch tender offer as soon as the start of next week for all the shares in Unizo at a price higher than H.I.S.'s offer of 3,100 yen per share, the Nikkei said on Friday. Unizo, which opposes H.I.S.'s bid, has sought help from Fortress as a 'white knight', the Japanese daily said, without citing sources.
- Reuters
Global Markets: Dollar firms, stocks soar on ECB rate cut expectations
U.S. and European stocks surged on Friday on expectations the European Central Bank will cut interest rates but the dollar pared gains against the euro after a report said the German government was prepared to take on new debt to lift the economy. The dollar hit a two-week high against the euro as expectations of ECB stimulus weighed on the single currency and bullish data showing a jump in U.S. homebuilding permits to a seven-month high also helped lift the greenback. Borrowing costs had plumbed new lows throughout the week as investors unnerved by the prospect of European recession piled into safer assets.
- Bloomberg
Stocks Rise, Treasuries Surge in Volatile Day: Markets Wrap
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.U.S. stocks finished the day higher after getting whipsawed throughout the session as Treasury yields plummeted to levels unseen in years amid concerns about the prospect of a global recession.The S&P 500 swung more than 1% from its high to low for a 12th straight day in volume more than a third above its 30-day average before finally ending the day up. Treasuries also suffered whiplash. The 10-year Treasury yield slid below 1.5% for the first time in three years, while the 30-year dropped under 2% for the first time. Trade headlines set investors on edge, though volatility has gripped markets for most of August since Donald Trump escalated his spat with China.Walmart’s strong results and retail sales that topped estimates did give bulls ammunition. But big declines weighed on indexes as Tapestry Inc. tumbled more than 20% on poor sales and General Electric sank more than 10% on accusations of financial fraud. Cisco Systems fell the most in two years after blaming a slowing global economy for a weak outlook.The trade war still hung over markets, with discordant headlines sending risk assets on a wild ride throughout the day. Stocks sold off after China said it would retaliate against fresh tariffs before bouncing back after official comments struck a more conciliatory tone. President Donald Trump added to concern by saying any deal with China must be “on our terms.”“We’re getting a lot of mixed signals on the trade war. There are messages from both the U.S. and China, sometimes they’re tougher messages and sometimes they’re less tough messages. It’s hard to sort out,” said Janet Johnston, portfolio manager at TrimTabs Asset Management.European assets took a jolt when a top official at the European Central Bank said stimulus measures would exceed investor expectations next month, according to a Dow Jones report. The common currency turned lower against the the dollar and stocks erased losses before finishing lower.The morning volatility continued a bout of turmoil sparked two weeks ago when Trump escalated his trade war with China. The uncertainty the rising tensions caused and growing signs of a slowing global economy inverted a key version of the U.S. Treasury yield curve for the first time in 12 years, exacerbating the flight from risk assets.“It’s a tough week with markets as volatile as they are,” said John Roe, the head of multi-asset funds at Legal & General. “Fundamentals are playing a central role but it’s not helped by trade war politics. Markets seemed calmer today after Trump’s more positive tone yesterday, but now China’s upping the rhetoric and it’s becoming a case of he said-Xi said.”Here are the main moves in markets:StocksThe S&P 500 Index rose 0.3% at 4 p.m. New York time.The Dow Jones Industrial Average rose 0.5%.The Nasdaq 100 was little changed.The Stoxx Europe 600 Index dropped 0.3%.The MSCI Asia Pacific Index declined 0.7%.CurrenciesThe Bloomberg Dollar Spot Index was steady.The euro fell 0.2% to $1.1112.The British pound gained 0.4% to $1.2110.The Japanese yen fell 0.1% to 106.00 per dollar.BondsThe yield on 10-year Treasuries decreased seven basis points to 1.51%.The two-year yield fell 10 basis points to 1.48%.Germany’s 10-year yield dipped six basis points to -0.713%.CommoditiesGold futures rose 0.4% at $1,533.20 an ounce.West Texas Intermediate crude declined 1.1% to $54.64 a barrel.\--With assistance from Adam Haigh, Joanna Ossinger, Ksenia Galouchko, Laura Curtis and Jeremy Herron.To contact the reporter on this story: Sarah Ponczek in New York at sponczek2@bloomberg.netTo contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Todd White, Randall JensenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Reuters
GLOBAL MARKETS-Global stocks hurt by China's trade threats, falling bond yields
China's threat to impose counter-measures in retaliation for the latest U.S. tariffs knocked stocks sprawling on Thursday, checking earlier attempt to recover from a rout sparked by fears of a world recession. Wall Street futures erased earlier losses and were trading in positive territory, but the relentless drop in global bond yields raised fears the world economy was hurtling towards recession and weighed on global equities. Expectations the U.S. Federal Reserve and other central banks would respond robustly to the recession warning helped world stocks to steady earlier.
- Reuters
GLOBAL MARKETS-China's trade threats deal fresh blow to world stocks
China's threat to impose counter-measures in retaliation for the latest U.S. tariffs knocked stocks sprawling on Thursday, checking earlier attempt to recover from a rout sparked by fears of a world recession. Wall Street futures signalled another weak open for U.S. stocks, which fell 3% on Wednesday after long-dated bond yields dropped, raising fears the U.S. economy was hurtling towards recession and dragging world stocks with it. Expectations the U.S. Federal Reserve and other central banks would respond robustly to the recession warning helped world stocks to steady earlier.
- Reuters
GLOBAL MARKETS-Stocks steady after rout, pinning hopes on central banks
World shares held at 2-1/2-month lows on Thursday and Wall Street was set for a firmer open as investors bet the U.S. Federal Reserve and other central banks would respond strongly to recession warnings emanating from bond markets. European shares opened higher and futures flagged a 0.5% rise on Wall Street, where all three indexes fell 3% on Wednesday after an inversion of U.S. government bond yields sparked fears that the world's biggest economy would hurtle towards recession, dragging the rest of the globe with it. Yields on 10-year Treasury bonds dropped below shorter two-year rates for the first time in 12 years, when the same the yield curve inversion presaged the 2008 recession.
- Bloomberg
Bargain Hunters Drive Up Trading Volume in Japanese Stocks
(Bloomberg) -- A declining equity market isn’t usually taken positively by investors but traders of Japanese stocks see recent strong volumes as a sign of support.Over the past month, trading value rose on each day the Topix index lost more than 1%, except for once on Aug. 5. The benchmark stock gauge recorded a gain of over 1% only once during the same period, and volume fell.“Bargain hunters are coming into the market whenever the Nikkei 225 breaks below the 20,500 mark,” said Makoto Hattori, an executive officer at Marusan Securities Co. in Tokyo. “Levels near 20,100, where the price-to-book ratio becomes 1, is considered rock bottom.”The Topix declined 1% Thursday, pushing its loss to 5.2% for the month so far. The Nikkei 225 dropped 1.2% to close at 20,405.65. The total daily value of transactions on the first section of the Tokyo Stock Exchange has averaged over 2.3 trillion yen ($21.8 billion) in August, up from 1.9 trillion over the previous two months.The pick-up in trading is particularly notable given the Obon festival in Japan this week and the typical summer holiday season in other major markets.The surge in volumes amid sliding stock prices is “symbolic” as it represents a new reality for Japanese equities, according to Hiroshi Matsumoto, head of Japan investment at Pictet Asset Management Ltd. “A lot of retail investors are wanting to buy especially, but only when there’s a dip in prices.”To contact the reporters on this story: Min Jeong Lee in Tokyo at mlee754@bloomberg.net;Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.netTo contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Kurt Schussler, Naoto HosodaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Reuters
Global Markets: Stocks waver, dollar recovers on renewed growth worries
The dollar recovered from early weakness but a gauge of world equity performance edged lower on Thursday as concerns about global growth offset investor optimism over a surge in U.S. retail sales last month and strong Walmart earnings. Gold prices, which have climbed almost 20% since late May on uncertainty driven by the U.S.-Sino trade spat and global growth concerns, rose after China threatened to retaliate against the latest U.S. tariffs, renewing investor unease about the row. The yield on 30-year U.S. government debt fell to a record low below 2% and benchmark 10-year Treasury notes dropped to a three-year trough, beaten down by the U.S.-Chinese trade tensions and economic growth concerns.
- FX Empire
Aussie Employment Numbers Impress Ahead of a Busy Day of Stats
As fears of a global recession rise, today’s stats could add to the doom and gloom. The UK and U.S retail sales figures will be the key drivers
ReutersGLOBAL MARKETS-Asian stocks cheer Trump's delay of some China tariffs
Asian stocks joined a global equities surge on Wednesday, after Washington delayed tariffs on some Chinese imports and gave much-needed relief for markets gripped by political and economic turmoil. The tariff news largely offset a raft of disappointing China data for July, although the safe-haven yen enjoyed a lift amid the deepening gloom in the world's second-biggest economy.
- Reuters
GLOBAL MARKETS-Asian stocks bounce in relief as Trump delays China tariffs
Asian stocks joined a global equities surge on Wednesday, after Washington delayed tariffs on some Chinese imports and gave much-needed relief for markets gripped by political and economic turmoil. The tariff news largely offset a raft of disappointing China data for July. The yen rose on the news about weak China's industrial production and other data.
- FX Empire
China Stats Disappoint ahead of German GDP and UK Inflation Figures
It’s all eyes on Germany’s GDP numbers and UK inflation figures. A greater than forecasted contraction in the Germany economy will test the EUR…
- Reuters
Global Markets: Stocks, oil plunge on growing signs of global slowdown
Equity markets tanked and oil prices fell sharply on Wednesday after a closely watched bond indicator pointed to the growing risk of a U.S. recession that was heightened by data showing Germany's economy in contraction and China's worsening. Yields on two-year U.S. Treasury notes rose above the 10-year yield for the first time since 2007, a metric known as an inversion that is widely seen as a classic recession signal. U.S. stocks fell almost 3% and major equity indices in Europe closed down 2% or near that while crude prices slumped almost 5% at one point.
- Financial Times
Indonesia and India seek Olympic glory with rival bids
Indonesian officials can almost see it now: in 2032, the world’s best athletes will converge on the archipelago for the first Olympics in south-east Asia, giving the country the ideal opportunity to showcase itself as an economic powerhouse. After successfully hosting the 2018 Asian Games, President Joko “Jokowi” Widodo revealed Indonesia’s intention to stage the biggest international sporting event. The most formidable rival might be India, which has expressed its determination to bid and could make a strong case.
- FX Empire
Asian Markets Weaken as Chinese Military Assembles Near Hong Kong Border
Although Hong Kong’s airport reopened on Tuesday after it was shut down on Monday due to protestors staging a sit-in at the airport, one economist still described the situation in Hong Kong as “very disconcerting.”
