Highlights

Good Articles to Share

Author: Tan KW   |   Latest post: Fri, 22 Feb 2019, 11:00 AM

 

Asian shares in tight range ahead of US-China trade talks

Author:   |    Publish date:


SYDNEY: Asian shares started the week on the backfoot on Monday as worries about global growth, U.S. politics and the ongoing Sino-U.S. tariff war kept investors cautious, while the safe-haven greenback held near a six-week top against major currencies.
 
MSCI's broadest index of Asia-Pacific shares outside Japan was a tad weaker after it was toppled from a four-month top on Friday.
 
That left MSCI's broadest index of Asia-Pacific shares outside Japan off 0.1 percent after it was toppled from a four-month top on Friday.
 
Trading volumes are expected to be light with Japan on public holiday.
 
Investors are now looking ahead to trade talks this week with a delegation of U.S. officials travelling to China for the next round of negotiations.
 
"After we went home on Friday, Asian equities closed the week weaker... reflecting an increased level of apprehension on whether or not the U.S. and China can find an agreement to de-escalate their trade tensions ahead of the March 1st deadline," said Rodrigo Catril, senior forex strategist at National Australia Bank.
 
"U.S.-led trade uncertainty along with increasing concerns over the extent of the current global growth slowdown has seen an increase in demand for core global bonds," Catril said.
 
"Against a backdrop of uncertainty and despite a Fed that is comfortably on hold, the dollar continues to win the least ugly contest."
 
The U.S. Federal Reserve has signalled patience on policy after it delivered four hikes in 2018, citing growing economic risks from a slowdown in global growth.
 
The dollar index held near a six-week high around 96.625 against a basket of currencies, after notching up its strongest weekly gain in six months as traders piled into the greenback in a safe-haven move. [nL5N2034P4]
 
The collapse in talks between U.S. Democrat and Republican lawmakers over the weekend amid a clash over immigrant detention policy raised fears of another government shutdown. [nL1N20503N]
 
That development was yet another worry for markets already under strain from a drumroll of gloomy news on the global economy. Last week, the European Commission sharply downgraded euro zone growth for this year and next and U.S. President Donald Trump added to the anxiety with a declaration that he had no plans to meet with Chinese President Xi Jinping before the March 1 deadline to achieve a trade deal. [nL5N2023IE] [nL1N2020Z6]
 
"Growth is probably the big area of risk – the U.S. is still on a healthy track but China stabilisation is more hope than reality at the moment while European momentum continues to soften," JPMorgan analysts said in a note.
 
"Investors have plenty to be nervous about, including the ongoing growth softness in Europe and the risk this drags the other major geographies down with it."
 
The rising pressure on growth means the near term fortunes of the equity markets will partly depend on earnings from major U.S. companies. These include Coca-Cola Co <KO.N>, PepsiCo Inc <PEP.O>, Walmart Inc <WMT.N>, Home Depot Inc <HD.N>, Macy's Inc <M.N> and Gap Inc <GPS.N> for further clues about the health of the consumer sector.
 
Analysts now expect first-quarter earnings for S&P 500 companies to decline 0.1 percent from a year earlier, which would be the first such quarterly profit decline since 2016, according to IBES data from Refinitiv.
 
Elsewhere, the euro <EUR=> was barely changed at $1.1324 after five straight days of losses took it to more than 2 weeks lows. Sterling <GBP=> dithered at $1.2934.
 
The Australian dollar <AUD=D3> inched up from Friday's one-month lows although sentiment was still cautious after the country's central bank opened the door to a possible rate cut. [nL3N2030DE]
 
Oil prices slipped on concerns about slowing global demand amid a pick-up in U.S. drilling activity. [O/R]
 
U.S. crude <CLcv1> was 73 cents weaker at $51.99 per barrel while Brent <LCOcv1> fell 69 cents to $61.41.
 
 
 - Reuters 
Share this

  Be the first to like this.
 


FEATURED EVENT
 

168  411  487  1093 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 IWCITY 0.64+0.05 
 SAPNRG 0.315-0.01 
 AAX 0.265-0.025 
 VS 0.99-0.03 
 HSI-C3W 0.43-0.01 
 SAPNRG-WA 0.1050.00 
 DNEX 0.34+0.015 
 SEACERA 0.3550.00 
 TATGIAP 0.10+0.01 
 HSI-H4Y 0.1650.00 

SPONSORED POSTS

1. Investment Bloggers Day 2019 MQ Trader Announcement!

TOP ARTICLES

1. PANTECH(5125) OR ALL-TECHNOLOGY STOCK IN THE OIL AND GAS SUPER BOOM TIME, CALVIN TAN RESEARCH THE INVESTMENT APPROACH OF CALVIN TAN
2. Why a second Special Dividend and more - Airasia Windfall Profit
3. The Bonuses of Airasia Windfall Profit
4. DIALOGUE (O&G Stock) : Will This Be Another QL RESOURCES DUTCH LADY OR NESTLE, Calvin Tan Research THE INVESTMENT APPROACH OF CALVIN TAN
5. This company got 5G network prospect + Mahathir factor, ready to punch all the way into glorious moment again Target Invest - We Target, We Invest
6. Price of Airasia Windfall Profit
7. FPI - Earnings dragged by higher operating cost (HLIB maintain BUY rating with TP of RM2.22) FPI 2大因素前景看好台灣聯友今年再 尋突破
8. CIMB's downward revision on Bumi Armada is weird - felicity Good Articles to Share
Partners & Brokers