U.S. equities gained along with the U.S. dollar, as investors threw Trump’s impeachment drama to the winds and focused on the progress made in trade discussions with Japan and the rising possibility of a trade deal between the U.S. and China after the world’s most populated country announced it would buy soybeans and pork from U.S. farms earlier this week.
U.S. equities gained along with the U.S. dollar, as investors threw Trump’s impeachment drama to the winds and focused on the progress made in trade discussions with Japan and the rising possibility of a trade deal between the U.S. and China after the world’s most populated country announced it would buy soybeans and pork from U.S. farms earlier this week.
U.S. President Donald Trump said that there is a ‘good chance’ of reaching an agreement, following China’s commitment to purchase big amounts of U.S. farm products. But Donald Trump remains the major risk to the conclusion of any agreement. A tweet would suffice to shatter the market sentiment, again.
Now, it is unsure how the ongoing impeachment inquiry would impact Trump’s mood in October trade negotiations, but we believe that he may concentrate his efforts in sealing a much-desired trade deal with China to divert the market’s attention from his impeachment inquiry and get the stock markets racing higher. He may see a market rally as the best way to brush off the impeachment talks and to regain Americans’ appreciation into the 2020 presidential election year.
Nippon carmakers gain, Hong Kong stocks lag into the crucial Oct. 1 ‘celebration’
Japanese equities traded in the green, as Nippon automakers gained on news that the U.S. duties on Japanese industrials would ease or end. Investors bought Toyota (+1.02%), Mazda (+2.54%), Subaru (+1.93%), Honda (+1.01%) and Mitsubishi (+1.01%) shares, while Nissan (+0.21%) and Suzuki (+0.18%) lagged in the morning trading session in Tokyo. The Japanese yen eased against the U.S. dollar, giving a brighter smile to Japanese exporters.
Gold tumbled more than $30 an ounce since yesterday to $1503. The U.S. 10-year yield settled near the 1.70% mark.
Hang Seng (+0.29%) recorded timid gains; Shanghai Composite (-0.73%) remained offered as the trade optimism was overshadowed by a rising anxiety regarding the situation in Hong Kong as China Communist Party prepares to celebrate its 70th anniversary on Oct.1. Investors could further trim their exposure to Hong Kong stocks, as Oct.1 celebrations are expected to fuel the anti-China protests in the city’s streets and further weigh on the business sentiment.
U.S. futures edge lower before GDP data, DoJ announces parallel investigation on Facebook (NASDAQ:FB)
In what could be a fragile recovery, the S&P 500 and the Dow Jones advanced 0.62% and 0.61% respectively on Wednesday. Nasdaq gained 1.05%.
U.S. tech stocks led gains in New York on Wednesday; as Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) bounced higher on improved sentiment.
Meanwhile, the U.S. Department of Justice (DoJ) threw a parallel investigation on Facebook (NASDAQ:FB), on top of a Federal Trade Commission (FTC) probe already underway. Earlier this year, the FTC and the DoJ began a wide antitrust investigation on U.S.’ four tech giants to examine whether they acted in a way to harm competition in the tech industry. According to an agreement, the FTC would concentrate on Facebook and Amazon (NASDAQ:AMZN), while the DoJ would crack its brains on Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL). But now, Facebook is targeted by both entities. The latter news could weigh on Facebook’s share price in the short-run, but overall, investors remain highly attracted to the U.S.’ most popular growth stocks. According to a Bloomberg survey, 87% of investors advise investing in Facebook with a twelve-month average target price of $231 per share, compared to the actual price of $182.80.
On the macro front, U.S. GDP is expected to have grown 2% in the second quarter, down from 3.1% printed in the first quarter of this year, as the negative impact of the trade frictions with China start showing up through a visibly weakened economic data.
U.S. stock futures edged lower in Asia, but that could change quickly. A soft GDP read could encourage Donald Trump to show more willingness to reach a trade deal with China besides fueling the expectations of another rate cut from the Federal Reserve (Fed) and support a further upswing in US equities.
Cable to reverse bullish trend on Brexit debacle
The pound fell to 1.2348 against the US dollar, the major 38.2% Fibonacci retracement on September rebound, on failure to clear the 1.25 offers on Supreme Court’s decision to reconvene Parliament. This means that investors expect nothing to change over the past couple of weeks in the UK’s political debacle regardless of suspended or unsuspended Parliament. In contrary, the pound will likely start feeling the pinch of snap election talks that could bring more uncertainty to the mix, though the Labour Party will likely reject an early vote before the Oct. 31 deadline is off the table.
From a technical standpoint, a move below the 1.2348-support should send the pound to the bearish consolidation zone and encourage a further decline to 1.2273 (50% retracement) and 1.2198 (major 61.8% retracement).
On the other hand, cheaper pound wets investors’ appetite in British blue chips. The FTSE 100 remained immune to the sell-off that hit other European indices on Wednesday. The index rebounded off its 200-day moving average, 7224p, and closed a touch below the 7300p level.
FTSE 100 Futures hint at a flat start on Thursday.
U.S. President Donald Trump said that there is a ‘good chance’ of reaching an agreement, following China’s commitment to purchase big amounts of U.S. farm products. But Donald Trump remains the major risk to the conclusion of any agreement. A tweet would suffice to shatter the market sentiment, again.
Now, it is unsure how the ongoing impeachment inquiry would impact Trump’s mood in October trade negotiations, but we believe that he may concentrate his efforts in sealing a much-desired trade deal with China to divert the market’s attention from his impeachment inquiry and get the stock markets racing higher. He may see a market rally as the best way to brush off the impeachment talks and to regain Americans’ appreciation into the 2020 presidential election year.
Nippon carmakers gain, Hong Kong stocks lag into the crucial Oct. 1 ‘celebration’
Japanese equities traded in the green, as Nippon automakers gained on news that the U.S. duties on Japanese industrials would ease or end. Investors bought Toyota (+1.02%), Mazda (+2.54%), Subaru (+1.93%), Honda (+1.01%) and Mitsubishi (+1.01%) shares, while Nissan (+0.21%) and Suzuki (+0.18%) lagged in the morning trading session in Tokyo. The Japanese yen eased against the U.S. dollar, giving a brighter smile to Japanese exporters.
Gold tumbled more than $30 an ounce since yesterday to $1503. The U.S. 10-year yield settled near the 1.70% mark.
Hang Seng (+0.29%) recorded timid gains; Shanghai Composite (-0.73%) remained offered as the trade optimism was overshadowed by a rising anxiety regarding the situation in Hong Kong as China Communist Party prepares to celebrate its 70th anniversary on Oct.1. Investors could further trim their exposure to Hong Kong stocks, as Oct.1 celebrations are expected to fuel the anti-China protests in the city’s streets and further weigh on the business sentiment.
U.S. futures edge lower before GDP data, DoJ announces parallel investigation on Facebook (NASDAQ:FB)
In what could be a fragile recovery, the S&P 500 and the Dow Jones advanced 0.62% and 0.61% respectively on Wednesday. Nasdaq gained 1.05%.
U.S. tech stocks led gains in New York on Wednesday; as Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) bounced higher on improved sentiment.
Meanwhile, the U.S. Department of Justice (DoJ) threw a parallel investigation on Facebook (NASDAQ:FB), on top of a Federal Trade Commission (FTC) probe already underway. Earlier this year, the FTC and the DoJ began a wide antitrust investigation on U.S.’ four tech giants to examine whether they acted in a way to harm competition in the tech industry. According to an agreement, the FTC would concentrate on Facebook and Amazon (NASDAQ:AMZN), while the DoJ would crack its brains on Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL). But now, Facebook is targeted by both entities. The latter news could weigh on Facebook’s share price in the short-run, but overall, investors remain highly attracted to the U.S.’ most popular growth stocks. According to a Bloomberg survey, 87% of investors advise investing in Facebook with a twelve-month average target price of $231 per share, compared to the actual price of $182.80.
On the macro front, U.S. GDP is expected to have grown 2% in the second quarter, down from 3.1% printed in the first quarter of this year, as the negative impact of the trade frictions with China start showing up through a visibly weakened economic data.
U.S. stock futures edged lower in Asia, but that could change quickly. A soft GDP read could encourage Donald Trump to show more willingness to reach a trade deal with China besides fueling the expectations of another rate cut from the Federal Reserve (Fed) and support a further upswing in US equities.
Cable to reverse bullish trend on Brexit debacle
The pound fell to 1.2348 against the US dollar, the major 38.2% Fibonacci retracement on September rebound, on failure to clear the 1.25 offers on Supreme Court’s decision to reconvene Parliament. This means that investors expect nothing to change over the past couple of weeks in the UK’s political debacle regardless of suspended or unsuspended Parliament. In contrary, the pound will likely start feeling the pinch of snap election talks that could bring more uncertainty to the mix, though the Labour Party will likely reject an early vote before the Oct. 31 deadline is off the table.
From a technical standpoint, a move below the 1.2348-support should send the pound to the bearish consolidation zone and encourage a further decline to 1.2273 (50% retracement) and 1.2198 (major 61.8% retracement).
On the other hand, cheaper pound wets investors’ appetite in British blue chips. The FTSE 100 remained immune to the sell-off that hit other European indices on Wednesday. The index rebounded off its 200-day moving average, 7224p, and closed a touch below the 7300p level.
FTSE 100 Futures hint at a flat start on Thursday.