Global stocks mostly fall on oil price slump

NEW YORK, United States — Global stocks mostly tumbled on Wednesday, with the energy sector taking a beating as worries about excess supply and ineffectual Opec policy hit oil prices.

Crude prices slid further after diving more than two percent on Tuesday on increasing fears that moves by Opec won’t be sufficient to prevent another supply glut due in part to rising shale output in the United States.

“Cheap oil is taking its toll on the global equity markets,” noted analyst Ipek Ozkardeskaya at trading firm London Capital Group.

Equity markets fell in Frankfurt, London, Paris and Tokyo. Leading US indices were mostly down, with the Dow and S&P 500 bruised by the oil rout, but the Nasdaq finished higher.

Aside from the drag of petroleum equities, whose profits are directly hit by lower commodity prices, the pullback in oil prices is a source of unease for the broader market because of worries that inadequate demand signifies slowing economic activity.

“The last two trading sessions have been a reminder of late 2015 and the beginning of 2016, when the collapse in the oil price sparked fears about global growth,” said analyst David Madden at CMC Markets.

“Investors are worried a depressed oil price could bring about a period of prolonged low inflation, which would have negative implications for growth.”

Worries about Opec

US oil prices ended at their lowest level since August on growing worries that Middle Eastern members of the Organization of the Petroleum Exporting Countries “will not be able to cooperate and work together,” said John Kilduff of Again Capital.

The pullback comes amid rising tensions between Opec kingpin Saudi Arabia and fellow members Iran and Qatar.

Contributing to the weakness was a mixed US petroleum supply report that showed lower overall commercial inventories, but higher US production and “lackluster” gasoline demand, said Kilduff.

Greg Priddy, an analyst at risk consultancy Eurasia Group, said the cartel is also stuck in a difficult cycle in which higher prices create incentives for producers in the US and other markets to raise production, putting renewed pressure on prices.

Petroleum-linked equities fell across global bourses, with France’s Total, Japan’s Inpex and US company Chevron all lower.

The London and Frankfurt stock markets ended the day down 0.3 percent, while Paris shed 0.4 percent in value.

But the tech-rich Nasdaq was a standout, finishing up a solid 0.7 percent after pharmaceutical and biotech shares advanced on expectations that President Donald Trump’s moves to crack down on runaway drug prices will not be as aggressive as feared.

Shanghai also bucked the trend to end up 0.5 percent after the US-based MSCI finally approved Chinese mainland-listed stocks, or A-shares, for inclusion in its emerging markets index. CBB

source: business.inquirer.net

Dollar retreats as Trump takes over; most global stocks fall

NEW YORK—The dollar retreated Monday, with warnings of wild volatility ahead, as Donald Trump began his presidency by attacking global trade deals and promising to put America first.

Most large global equity markets also fell amid uncertainty over the new US leader’s plans. Wall Street, London, Frankfurt, Paris and Tokyo all closed lower.

“America first, markets second,” said LCG analyst Jasper Lawler of the day’s sentiment on trading floors.

“Attempts to break out into new highs for the year have been temporarily shelved after Donald Trump opted for a protectionist, anti-establishment inauguration address,” his note to clients added.

In foreign exchange, the euro jumped to $1.0763 from $1.0697 on Friday.

‘Apocalyptic tone’

“The greenback … seems to have been shaken both by the apocalyptic tone set by Trump at his inauguration, and the global protests that greeted the former Apprentice host’s ascension to the highest office in the land,” said Spreadex analyst Connor Campbell.

Trump followed up an inauguration speech seen as angry and protectionist by making his first official act the withdrawal from the 12-nation Trans-Pacific Partnership. Trump also said he would renegotiate the North America Free Trade Agreement, threaten to impose border taxes, and his chief spokesman said the new president would not hesitate to confront China over the South China Sea.

READ: Trump torpedoes Pacific trade pact

Investors greeted Trump’s surprise election win in the hopes he would win pro-growth measures such as public works spending, lower taxes and regulatory reforms. Trump confirmed on Monday he plans to pursue those priorities, but markets have been worried the tough talk will lead to a trade war.

Doubts about his spending promises also took their toll on the US currency.

“Sellers swiftly exploited the lack of clarity in the (inauguration) speech regarding the proposed fiscal stimulus measures,” said Lukman Otunuga, an analyst at FXTM, predicting more trouble ahead for the greenback.

“The growing threat of Donald Trump’s proposed fiscal stimulus failing to keep up with market expectations may ensure dollar weakness becomes a recurrent theme in the short term,” he said.

The US unit was down more than four percent on the yen from the highs touched late in December. It was also well down against the euro and even against the pound despite concerns about Britain’s exit from the European Union.

“I suspect we’re entering extremely volatile times for the dollar,” Stephen Innes, senior trader at OANDA, said in a note.

Trump last week said the greenback was too strong against China’s yuan and claimed this was “killing” the US economy.

Key figures at 2200 GMT

New York – Dow: DOWN 0.1 percent at 19,799.85 (close)

New York – S&P 500: DOWN 0.3 percent at 2,265.20 (close)

New York – Nasdaq: DOWN less than 0.1 percent at 5,552.94 (close)

London – FTSE 100: DOWN 0.7 percent at 7,151.18 points (close)

Frankfurt – DAX 30: DOWN 0.7 percent at 11,545.75 (close)

Paris – CAC 40: DOWN 0.6 percent at 4,821.41 (close)

EURO STOXX 50: DOWN 0.9 percent at 3,271.41 (close)

Tokyo – Nikkei 225: DOWN 1.3 percent at 18,891.03 (close)

Shanghai – Composite: UP 0.4 percent at 3,136.77 (close)

Hong Kong – Hang Seng: UP 0.1 percent at 22,898.52 (close)

Euro/dollar: UP at $1.0763 from $1.0697

Pound/dollar: UP at $1.2524 from $1.2365

Dollar/yen: DOWN at 112.73 yen from 114.58 yen

Oil – West Texas Intermediate: DOWN 47 cents at $52.75 per barrel

Oil – Brent North Sea: DOWN 26 cents at $55.23 per barrel

source: business.inquirer.net

Global stocks higher after stronger China trade, Nasdaq gain

BEIJING — Global share prices were mostly higher Thursday after China reported unexpectedly strong trade and Wall Street’s Nasdaq index hit a record-high close.

KEEPING SCORE: In early trading, France’s CAC-40 was flat at 4,457.75 points and London’s FTSE 100 advanced 0.5 percent to 6,884.70. Germany’s DAX slipped 0.1 percent to 10,744.41. On Wednesday, the CAC 40 and DAX each rose 0.6 percent while the FTSE 100 gained 0.3 percent. On Wall Street, the future for the Dow Jones industrial average rose 0.1 percent and that for the Standard & Poor’s 500 advanced 0.2 percent.

CHINA TRADE: Imports rose in August for the first time since late 2014, while a contraction in exports narrowed in a positive sign for global economic growth. Imports expanded by an unexpectedly strong 1.5 percent, up from July’s 12.5 percent plunge. Exports fell 2.8 percent but that also was better than forecast and an improvement over the previous month’s 4.4 percent contraction. The improvement was a positive sign for Chinese leaders who are trying to protect millions of trade-supported jobs. The import gain suggested lackluster Chinese domestic demand might be firming up.

ECB WATCH: Investors were looking ahead to the European Central Bank’s policy meeting for signs of when it might raise euro zone interest rates. Forecasters expected no change following the ECB’s comment in its July review that it needed to closely watch the impact of Britain’s vote to leave the 28-nation trading bloc. Inflation is well below the bank’s target, with consumer prices barely changed this year.

ANALYST’S TAKE: “Global equities have been climbing to a 12-month high recently, and are showing signs of fatigue,” said Bernard Aw of IG in a report. “Corporate earnings challenges aside, market participants will need a fresh catalyst for stocks to resume its bullish trajectory,” he said. “This could come in the form of more stimulus from the ECB or BOJ, or a stronger consensus on the delay in US rate hike for the rest of the year. However, the ECB is unlikely to come bearing stimulus gifts tonight when the council sets the policy decision, beyond getting another 6-month extension to the QE program.”

ASIA’S DAY: Japan’s Nikkei 225 index fell 0.3 percent to 16,958.77 and Sydney’s S&P-ASX 200 fell 0.7 percent to 5,385.80. The Hang Seng index in Hong Kong gained 0.8 percent to 23,919.34 points and the Shanghai Composite Index rose 0.1 percent to 3,095.95. Seoul’s Kospi added 0.1 percent to 2,063.73, while India’s Sensex rose 0.3 percent to 29,006.18. Taiwan and New Zealand rose while other benchmarks in Southeast Asia declined.

ENERGY: Benchmark U.S. crude rose 92 cents to $46.42 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 67 cents on Wednesday to close at $45.50. Brent crude, used to price international oils, rose 82 cents to $48.80 in London. It added 72 cents on Wednesday to close at $47.98.

CURRENCIES: The dollar edged down to 101.55 yen from Wednesday’s 101.71 yen. The euro rose to $1.1271 from $1.1241. TVJ

source: business.inquirer.net

Stocks up on hope of UK stimulus, eurozone Brexit resilience

LONDON — Stock markets turned higher on Friday after surveys suggested the eurozone economy is proving resilient to the uncertainty surrounding Britain’s Brexit vote. A big drop in business activity in the U.K. raised expectations of more central bank stimulus there.

KEEPING SCORE: Britain’s FTSE 100 rose 0.4 percent to 6,728 and Germany’s DAX was up 0.1 percent to 10,163. France’s CAC 40 gained 0.3 percent to 4,388. U.S. futures indicate a positive opening on Wall Street. Dow and S&P futures were both up 0.2 percent.

BREXIT IMPACT: A survey of services and manufacturing in the 19-country eurozone declined only modestly in July, suggesting the currency bloc has not suffered much damage so far from Britain’s vote to leave the European Union. The contrary was found in an equivalent survey of business activity in Britain, which indicated the country’s economy was shrinking at its fastest pace since early 2009.

ANALYSTS’ VIEW: Edoardo Campanella, economist at UniCredit, said that while the Brexit vote may yet affect the eurozone with some time lag, Friday’s report is “consistent with our view that most of the economic damages will be concentrated in the U.K.”

Britain’s survey, on the other hand, was “truly horrible,” according to Howard Archer, economist at IHS Global Insight. It “boosts the case for the Bank of England to come up with a substantial package of measures at its Aug. 4 meeting.”

ASIA’S DAY: Earlier, Japan’s Nikkei 225 fell 1.1 percent to 16,627.25 after the Bank of Japan governor, Haruhiko Kuroda, was cited ruling out direct cash injections to the economy. Hong Kong’s Hang Seng index shed 0.2 percent to 21,964.27. China’s Shanghai Composite Index lost 0.9 percent at 3,012.82. Australia’s S&P ASX 200 slipped 0.3 percent to 5,498.20. South Korea’s KOSPI edged down 0.1 percent at 2,010.34. Southeast Asian markets were down.

OIL: U.S. crude shed 6 cents to $44.69 in New York. On Thursday, it sank $1. Brent crude, the global benchmark, rose 4 cents to $46.24, after falling 97 cents on Thursday.

CURRENCIES: The pound plunged against the dollar on the prospect of more stimulus from the Bank of England. It was down 1 percent at $1.3104, from $1.3280 the previous day. The dollar rose to 106.08 yen from 105.76 and the euro fell to $1.1017 from $1.1027. TVJ

source: business.inquirer.net

Global stocks surge as investors welcome Fed assurance

MANILA, Philippines — Global stocks surged Wednesday as investors welcomed the latest signal from the U.S. Federal Reserve that it will move slowly to raise interest rates. Japan’s Nikkei 225 bucked the trend and closed lower.

KEEPING SCORE: Britain’s FTSE 100 rose 1.4 percent in early trading to 6,193.27. Germany’s DAX climbed 1.4 percent to 10,024.07, while France’s CAC 40 gained 1.4 percent to 4,429.74. U.S. futures augured a positive opening on Wall Street, with Dow futures up 0.5 percent to 17,628 and S&P futures rising 0.5 percent to 2,057.

ASIA’S DAY: Tokyo’s Nikkei 225 lost 1.3 percent, closing at 16,878.96, on the continuing strong yen and the trade ministry’s announcement of a 6.2 percent month-on-month drop in industrial production in February. Hong Kong’s Hang Seng index climbed 2.2 percent to 20,803.39. China’s Shanghai Composite surged 2.8 percent to 3,000.65, while South Korea’s KOSPI rose 0.4 percent to 2,002.14. Australia’s S&P ASX 200 was up 0.1 percent at 5,010.30. Southeast Asian markets also rose.

ASIA’S ECONOMY: Softer growth prospects for China and a weak recovery in major industrial economies are expected to push down economic growth in developing Asia to 5.7 percent in 2016 and 2017, below previous projections, according to an Asian Development Bank report released Wednesday. The region’s economy grew 5.9 percent in 2015. The Asian Development Outlook 2016 said China’s economic growth is seen moderating to 6.5 percent this year from 6.9 percent last year and to 6.3 percent next year. Slower exports, a falling labor supply and supply-side reforms are reshaping the world’s second-largest economy toward more domestic consumption and a further reduction in excess industrial capacity, it said.

THE QUOTE: “September is now the only date the markets are pricing with a better than 50 percent probability of a (U.S.) rate hike,” said IG market analyst Angus Nicholson. “A weaker U.S. dollar not only benefits the dollar-denominated price of many commodities, which are a key export for most emerging markets, but it also lowers the burden of U.S. dollar-denominated debt in a range of emerging markets.”

ENERGY: Benchmark U.S. crude gained 71 cents, rising to $39.00 a barrel in electronic trading on the New York Mercantile Exchange. The contract shed $1.11, or 2.8 percent, to $38.28 a barrel on Tuesday. Brent crude, used to price international oils, was up 60 cents at $40.45 a barrel in London.

CURRENCIES: The dollar declined to 112.23 yen from 112.77 yen. The euro rose to $1.1315 from $1.1287. TVJ

source: business.inquirer.net

Global stocks decline ahead of Fed meeting

BEIJING — Global stocks declined Wednesday as investors awaited this week’s U.S. Federal Reserve meeting, expecting possible insights into the state of global growth and future Fed moves.

KEEPING SCORE: In early trading, Britain’s FTSE 100 fell 0.6 percent to 6,136.50, France’s CAC-40 fell 0.5 percent to 4,482.50 and Germany’s DAX shed 0.4 percent to 9,945.74. On Monday, the DAX rose 1.4 percent and the CAC-40 and FTSE both added 0.4 percent. On Wall Street, futures for the Dow Jones industrial average and Standard & Poor’s 500 index both declined 0.4 percent.

ASIA’S DAY: Tokyo’s Nikkei 225 lost 0.7 percent to 17,117.07 and Hong Kong’s Hang Seng declined 0.7 percent to 20,288.77. Sydney’s S&P ASX 200 fell 1.4 percent to 5,111.40 and India’s Sensex retreated 0.9 percent to 24,580.54. Seoul’s Kospi was off 0.1 percent at 1,969.97 and Taiwan, Singapore, Bangkok and Jakarta also fell. The Shanghai Composite Index gained 0.2 percent to 2,864.37 and New Zealand also rose.

WATCHING THE FED: The Federal Reserve’s Federal Open Market Committee meets Tuesday and Wednesday. Investors don’t expect a rate hike but are watching for indications of possible future Fed moves. In December the Fed raised interest rates for the first time in almost a decade, but it left them unchanged in January.

ANALYST’S TAKE: “The most anticipated item on the U.S. economic calendar this week is the FOMC meeting, even though policy will almost certainly be left on hold. With no change in rates, the focus will be entirely on forward guidance,” said Jim O’Sullivan of High-Frequency Economics in a report.

JAPAN CENTRAL BANK: The Bank of Japan left its monetary policy unchanged Tuesday but downgraded its assessment of conditions in the world’s third-largest economy, citing risks from weaker growth in China and other emerging economies and volatility in financial markets, among other factors.

CURRENCY: The dollar slipped to 112.99 from 113.79 yen. The euro edged up to $1.1108 from Monday’s $1.1105.

ENERGY: Benchmark U.S. crude shed 82 cents to $36.36 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.32 on Monday to close at $37.18. Brent crude, used to price international oils, lost 84 cents to $38.69 per barrel in London. On Monday, the contract declined 86 cents to $39.53. TVJ

source: business.inquirer.net