Money ClipsOur pragmatic assessment of global economic and financial market developments and how this affects our most pressing investment goals.
Asian stocks advanced Tuesday as investor focus returned to the US-China trade arena, while Treasury yields steadied after Monday’s gains. Earlier, the S&P 500 Index rose for a fifth straight session, though closed below the highs of the day. President Donald Trump threatened to raise tariffs on China again if President Xi Jinping doesn’t meet with him at the Group of 20 summit at month-end.
Asian stocks were mostly lower Tuesday after a technology rout sank Nasdaq shares overnight. Treasuries came off their highs after yields dived on growing conviction the Federal Reserve will cut interest rates. The Nasdaq 100 Index tumbled more than 2% Monday as the FAANG cohort of tech companies was said to potentially face antitrust probes. 2-year US yields earlier dropped to their lowest since 2017 a Fed official said the central bank may need to cut rates soon amid the trade war.
Asian stocks were little changed in earlier trading Wednesday as traders await the next page in the US-China trade war and any fresh narratives on the Fed, which releases minutes from its last policy meeting today. Earlier, US stocks closed higher after the US decided to grant limited relief for consumers and carriers that do business with Huawei Technologies Co. Safe havens such as Treasuries and the yen were flat.
Asian stocks traded modestly higher and US equity futures pointed to a gain on expectation Beijing might add economic stimulus after data showed China’s economy lost steam in April. The yuan was little changed and the dollar ticked higher. Trading volumes remained lackluster, signaling little conviction in the gains, with investors still reeling from the breakdown in trade negotiations in the past week. The Australian dollar was the biggest loser among the world’s largest currencies after poorer-than-expected Chinese economic data.
Stocks in Asia were mixed Tuesday as investors look to a deluge of earnings for reasons to carry an equity rally further. Oil cemented a rally after the White House said it will scrap waivers that allow the purchase of some Iranian crude. The dollar was steady.. Traders will look to a week full of corporate earnings releases, in particular from the technology sector. Investors will also turn their focus to the US economy, with first quarter gross domestic product data due on Friday.
Asian stocks traded mixed after US shares showed little direction the first quarter reporting period that begins in Friday with results from JPMorgan Chase & Co. and Wells Fargo & Co. The 10yr Treasury yield remained below 2.50% and the dollar steadied. The pound held losses as UK PM Theresa May accepted the EU’s offer to push the Brexit deadline out 6 months.
Japanese shares and American equity futures edged up alongside Treasury yields following remarks out of both the US and China that progress is being made in trade talks. Asian trading volumes were muted, with China and Hong Kong shut for a holiday. Investors will now turn to the latest read on the US economy later tonight with details on the labor market and clues on future Fed rate hikes.
Stocks in Asia climbed with US equity futures and Treasuries slipped as evidence of a pick-up in China’s manufacturing eased concerns about the global economic slowdown. Japanese and Chinese shares saw gains of about 2% and equities rose in Hong Kong, Sydney and Seoul, building on the biggest quarterly rally for Asian equities since 2012. US-China trade talks will resume when Vice Premier Liu He leads a delegation to Washington later this week.
Most Asian stocks dipped Wednesday as investors adopted a cautious stance ahead of the Fed’s policy decision later today and further news on US-China trade talks, where negotiators remain at odds. Treasury yields held near recent lows amid expectations of a dovish tone from the Fed.