NZ dollar still firm against USD but gains capped

Monday, 19 November 2018, 8:26 pm
Article: BusinessDesk

NZ dollar still firm against USD but gains capped by waning risk appetite

By Rebecca Howard

Nov. 19 (BusinessDesk) – The New Zealand dollar held its gains against the greenback after the US Federal Reserve officials were cautious about the global growth outlook but jitters about the US-China trade dispute kept it capped.

The kiwi traded at 68.52 US cents at 5pm in Wellington versus 68.53 US cents at 8am and from 68.76 cents on Friday in New York. The trade-weighted index was at 74.67 from 74.83 last week.

Richard Clarida, the Fed’s newly appointed vice chair, cautioned about a slowdown in global growth in an interview with CNBC while Federal Reserve Bank of Dallas President Robert Kaplan told Fox Business he is seeing a growth slowdown in Europe and China. Those comments weighed on the US dollar as investors saw them as signaling fewer rate cuts on the horizon.

The kiwi, however, is keeping to a very tight range as ongoing worries about the US-China trade dispute weigh on risk appetite, said Mark Johnson, a private client manager at OMF.

Weekend comments by US Vice President Mike Pence fueled the concerns. Pence – who was attending the Asia- Pacific Economic Cooperation summit in Papua New Guinea – said that there would be no end to U.S. tariffs on $250 billion of Chinese goods until China changed its ways, according to Reuters. Also, for the first time in its nearly three-decade history, officials of the 21-member Pacific Rim group ended two days of meetings in Port Moresby without issuing a joint communique.

“You all know who the two big giants in the room were, so what can I say, ” PNG Prime Minister Peter O’Neill said, Dow Jones Newswires reported.

The

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Dow Gains 545 Points Because It's Finally Over

Michael Haddad

Relief Rally. Democrats took the House as expected, Republicans expanded their control of the Senate. The market surged on Wednesday lead by health-care, tech, and consumer-discretionary stocks. In today’s After the Bell, we…

…discuss what a divided Congress could block; …highlight Cimarex Energy’s move to the top of the S&P 500; …and explain why Coty tumbled more than 20%. Reveling in the Gridlock

Stocks surged after most of the results of the midterm election were announced. The Dow Jones Industrial Average gained 545.29 points, or 2.1%, to 26,180.3, while the S&P 500 increased 58.44 points, or 2.1%, to 2813.89 and the Nasdaq Composite added 194.79 points, or 2.6%, to 7570.75.

The election outcome was no surprise, but the market’s very upbeat reaction to it warrants some explanation.

Some argue that a divided Congress means the scope of President Donald Trump’s trade war with China will be limited. But INTL strategist Vincent Deluard thinks it’s also unlikely to de-escalate anytime soon, as both sides view the dispute as a threat to national security.

Deluard suggests investors look into countries that might be courted by the two superpowers in the trade war and hence benefit from the confrontation. “Investors should look for cheap, industrialized economies that are not reliant on foreign funding,” he writes in a note on Wednesday. South Korea, Chile, Peru, Malaysia, Indonesia, Thailand, and Vietnam are countries on the analyst’s list that could offer some good opportunity in the next market cycle.

The trade war is not the only thing that could be stymied by a divided Congress. “A key risk under gridlock is failure to enact pro-growth measures over the next two years that might create economic momentum for the incumbent,” writes Michelle Meyer of Bank of America

Read More Here...

Dow Gains 545 Points Because It's Finally Over

Michael Haddad

Relief Rally. Democrats took the House as expected, Republicans expanded their control of the Senate. The market surged on Wednesday lead by health-care, tech, and consumer-discretionary stocks. In today’s After the Bell, we…

…discuss what a divided Congress could block; …highlight Cimarex Energy’s move to the top of the S&P 500; …and explain why Coty tumbled more than 20%. Reveling in the Gridlock

Stocks surged after most of the results of the midterm election were announced. The Dow Jones Industrial Average gained 545.29 points, or 2.1%, to 26,180.3, while the S&P 500 increased 58.44 points, or 2.1%, to 2813.89 and the Nasdaq Composite added 194.79 points, or 2.6%, to 7570.75.

The election outcome was no surprise, but the market’s very upbeat reaction to it warrants some explanation.

Some argue that a divided Congress means the scope of President Donald Trump’s trade war with China will be limited. But INTL strategist Vincent Deluard thinks it’s also unlikely to de-escalate anytime soon, as both sides view the dispute as a threat to national security.

Deluard suggests investors look into countries that might be courted by the two superpowers in the trade war and hence benefit from the confrontation. “Investors should look for cheap, industrialized economies that are not reliant on foreign funding,” he writes in a note on Wednesday. South Korea, Chile, Peru, Malaysia, Indonesia, Thailand, and Vietnam are countries on the analyst’s list that could offer some good opportunity in the next market cycle.

The trade war is not the only thing that could be stymied by a divided Congress. “A key risk under gridlock is failure to enact pro-growth measures over the next two years that might create economic momentum for the incumbent,” writes Michelle Meyer of Bank of America

Read More Here...

Dow Gains 545 Points Because It's Finally Over

Michael Haddad

Relief Rally. Democrats took the House as expected, Republicans expanded their control of the Senate. The market surged on Wednesday lead by health-care, tech, and consumer-discretionary stocks. In today’s After the Bell, we…

…discuss what a divided Congress could block; …highlight Cimarex Energy’s move to the top of the S&P 500; …and explain why Coty tumbled more than 20%. Reveling in the Gridlock

Stocks surged after most of the results of the midterm election were announced. The Dow Jones Industrial Average gained 545.29 points, or 2.1%, to 26,180.3, while the S&P 500 increased 58.44 points, or 2.1%, to 2813.89 and the Nasdaq Composite added 194.79 points, or 2.6%, to 7570.75.

The election outcome was no surprise, but the market’s very upbeat reaction to it warrants some explanation.

Some argue that a divided Congress means the scope of President Donald Trump’s trade war with China will be limited. But INTL strategist Vincent Deluard thinks it’s also unlikely to de-escalate anytime soon, as both sides view the dispute as a threat to national security.

Deluard suggests investors look into countries that might be courted by the two superpowers in the trade war and hence benefit from the confrontation. “Investors should look for cheap, industrialized economies that are not reliant on foreign funding,” he writes in a note on Wednesday. South Korea, Chile, Peru, Malaysia, Indonesia, Thailand, and Vietnam are countries on the analyst’s list that could offer some good opportunity in the next market cycle.

The trade war is not the only thing that could be stymied by a divided Congress. “A key risk under gridlock is failure to enact pro-growth measures over the next two years that might create economic momentum for the incumbent,” writes Michelle Meyer of Bank of America

Read More Here...

Dow Gains 545 Points Because It's Finally Over

Michael Haddad

Relief Rally. Democrats took the House as expected, Republicans expanded their control of the Senate. The market surged on Wednesday lead by health-care, tech, and consumer-discretionary stocks. In today’s After the Bell, we…

…discuss what a divided Congress could block; …highlight Cimarex Energy’s move to the top of the S&P 500; …and explain why Coty tumbled more than 20%. Reveling in the Gridlock

Stocks surged after most of the results of the midterm election were announced. The Dow Jones Industrial Average gained 545.29 points, or 2.1%, to 26,180.3, while the S&P 500 increased 58.44 points, or 2.1%, to 2813.89 and the Nasdaq Composite added 194.79 points, or 2.6%, to 7570.75.

The election outcome was no surprise, but the market’s very upbeat reaction to it warrants some explanation.

Some argue that a divided Congress means the scope of President Donald Trump’s trade war with China will be limited. But INTL strategist Vincent Deluard thinks it’s also unlikely to de-escalate anytime soon, as both sides view the dispute as a threat to national security.

Deluard suggests investors look into countries that might be courted by the two superpowers in the trade war and hence benefit from the confrontation. “Investors should look for cheap, industrialized economies that are not reliant on foreign funding,” he writes in a note on Wednesday. South Korea, Chile, Peru, Malaysia, Indonesia, Thailand, and Vietnam are countries on the analyst’s list that could offer some good opportunity in the next market cycle.

The trade war is not the only thing that could be stymied by a divided Congress. “A key risk under gridlock is failure to enact pro-growth measures over the next two years that might create economic momentum for the incumbent,” writes Michelle Meyer of Bank of America

Read More Here...

Dow Gains 545 Points Because It's Finally Over

Michael Haddad

Relief Rally. Democrats took the House as expected, Republicans expanded their control of the Senate. The market surged on Wednesday lead by health-care, tech, and consumer-discretionary stocks. In today’s After the Bell, we…

…discuss what a divided Congress could block; …highlight Cimarex Energy’s move to the top of the S&P 500; …and explain why Coty tumbled more than 20%. Reveling in the Gridlock

Stocks surged after most of the results of the midterm election were announced. The Dow Jones Industrial Average gained 545.29 points, or 2.1%, to 26,180.3, while the S&P 500 increased 58.44 points, or 2.1%, to 2813.89 and the Nasdaq Composite added 194.79 points, or 2.6%, to 7570.75.

The election outcome was no surprise, but the market’s very upbeat reaction to it warrants some explanation.

Some argue that a divided Congress means the scope of President Donald Trump’s trade war with China will be limited. But INTL strategist Vincent Deluard thinks it’s also unlikely to de-escalate anytime soon, as both sides view the dispute as a threat to national security.

Deluard suggests investors look into countries that might be courted by the two superpowers in the trade war and hence benefit from the confrontation. “Investors should look for cheap, industrialized economies that are not reliant on foreign funding,” he writes in a note on Wednesday. South Korea, Chile, Peru, Malaysia, Indonesia, Thailand, and Vietnam are countries on the analyst’s list that could offer some good opportunity in the next market cycle.

The trade war is not the only thing that could be stymied by a divided Congress. “A key risk under gridlock is failure to enact pro-growth measures over the next two years that might create economic momentum for the incumbent,” writes Michelle Meyer of Bank of America

Read More Here...

Sensex, Nifty Seen Opening Up As RBI Board Meets

Indian shares may open higher on Monday, tracking positive global cues as investors look forward to improvement in the U.S.-China trade relations ahead of this month’s G-20 summit.

Benchmark indexes Sense and the Nifty rose around 1 percent last week and the rupee gained 0.8 percent to close at 71.93 per dollar, as a sharp fall in oil prices helped ease investor concerns surrounding inflation and the twin deficits.

Oil price movements, the direction of rupee and foreign fund flows may influence trading sentiment as the quarterly earnings season draws to a close.

There will not be any significant impact of the state elections on the markets as the results of all the assembly election will be declared only on December 11.

The much-awaited meeting of the Reserve Bank of India board will be held today, with the central bank and the government expected to reach a common ground on certain key issues to help raise liquidity in the system.

Meanwhile, it’s going to be a truncated week with markets likely to remain closed on November 23 on account of Gurunanak Jayanti.

Asian markets are broadly lower this morning after U.S. President Donald Trump said the United States might not have to impose further tariffs on Chinese goods.

Trump said China has provided a “large list” of trade items the communist country is willing to compromise on but argued any trade deal has to be “reciprocal.”

However, White House officials subsequently told CNBC people should not read too much into the president’s claims.

Brent crude futures rose in Asian trade after falling nearly 5 percent to $66.76 a barrel last week.

U.S. stocks ended mixed on Friday after President Donald Trump said that China was ready to make a deal to diffuse trade tensions.

The Dow rose half a percent

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Asian shares mostly up cheered by Wall Street buying spree

TOKYO — Asian shares were mostly higher Monday after a buying spree on Wall Street kept up investor optimism into a new week, despite continuing worries about trade tensions.

KEEPING SCORE: Japan’s benchmark Nikkei 225 rose 0.5 percent to 21,784.87, while Australia’s S&P/ASX 200 fell 0.7 percent to 5,693.30 in early trading. South Korea’s Kospi gained 0.3 percent to 2,099.45. Hong Kong’s Hang Seng added 0.6 percent to 26,331.84, while the Shanghai Composite stood at 2,693.93, also up 0.6 percent. Shares were mostly higher in the rest of Asia, with benchmarks rising in Taiwan and Indonesia.

WALL STREET: The S&P 500 index rose 6.07 points, or 0.2 percent, to end the week at 2,736.27. The Dow Jones Industrial Average gained 123.95 points, or 0.5 percent, to 25,413.22. The Nasdaq composite slid 11.16 points, or 0.2 percent, to 7,247.87. The Russell 2000 index of smaller companies picked up 3.41 points, or 0.2 percent, to $1,527.53. But the S&P 500, which finished higher for the second straight day, ended the week with a loss of 1.6 percent.

TRADE WORRIES: The Trump administration has imposed a 10 percent tariff on $200 billion of Chinese goods over complaints Beijing steals or pressures foreign companies to hand over technology as the price of market access. That tariff is set to rise to 25 percent in January. Another $50 billion of Chinese goods already is subject to 25 percent duties. Beijing has responded with penalty duties on $110 billion of American goods. Washington and Beijing have resumed talks over their spiraling trade dispute.

JAPAN TRADE: Japan reported a trade deficit for October but has seen a recovery in exports after getting slammed by natural disasters in September. Data from the Ministry of Finance showed exports grew 8.2 percent from the same month the previous year. In

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Japanese Market Advances

The Japanese stock market is advancing on Monday despite the mixed cues from Wall Street on Friday and lingering worries about U.S.-China trade tensions. Trade data showing an increase in Japanese exports during the month of October boosted investor sentiment.

The benchmark Nikkei 225 Index is rising 138.82 points or 0.64 percent to 21,819.16, after touching a high of 21,852.92 in early trades. Japanese shares fell on Friday.

In the tech space, Advantest is gaining almost 3 percent and Tokyo Electron is higher by 3 percent. SoftBank is gaining almost 4 percent.

Among the major exporters, Sony and Mitsubishi Electric are rising more than 2 percent each, while Canon is adding 0.4 percent and Panasonic is edging up less than 0.1 percent.

Automaker Honda is declining 0.7 percent and Toyota is down 0.3 percent. In the banking sector, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are lower by almost 3 percent each.

In the oil space, Inpex is rising more than 2 percent and Japan Petroleum is advancing almost 2 percent even as crude oil prices were unchanged on Friday.

Among the other major gainers, Tokai Carbon and Screen Holdings are rising more than 4 percent each, while Showa Denko is up 4 percent.

On the flip side, banks and financial stocks are among the major losers. Shizuoka Bank is losing more than 6 percent, while Fukoka Financial, Concordia Financial, JGC Corp. and Sony Financial are all lower by almost 4 percent each.

On the economic front, the Ministry of Finance said that Japan posted a merchandise trade deficit of 449.3 billion yen in October. That missed forecasts for a shortfall of 70.0 billion yen following the 131.3 billion yen surplus in September.

Exports were up 8.2 percent on year, shy of expectations for an increase of 8.9 percent following

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Australian Market Declines

The Australian stock market is declining on Monday following the mixed cues from Wall Street on Friday and on worries about U.S.-China trade tensions following the weekend’s Asia-Pacific Economic Cooperation or APEC summit where leaders failed to agree on a post-summit communiqué for the first time in history.

The benchmark S&P/ASX 200 Index is losing 24.30 points or 0.42 percent to 5,706.30, off a low of 5,704.20 earlier. The broader All Ordinaries Index is down 24.40 points or 0.42 percent to 5,798.40. Australian markets finished marginally lower on Friday.

The major miners are weak despite stronger metals prices. Rio Tinto is down 0.3 percent and Fortescue Metals is declining more than 1 percent, while BHP is edging up less than 0.1 percent.

Oil stocks are also lower after crude oil prices ended flat on Friday. Oil Search is down almost 1 percent, Woodside Petroleum is lower by 1 percent and Santos is losing more than 1 percent.

In the banking sector, ANZ Banking, Commonwealth Bank, National Australia Bank and Westpac are down in a range of 0.4 percent to 0.6 percent.

Bucking the trend, gold miners are higher after gold prices rose on Friday. Newcrest Mining is advancing almost 1 percent and Evolution Mining is rising more than 1 percent.

Myer Holdings’ shares are losing more than 6 percent on their return to trade on Monday after being forced into a trading halt Friday following media reports that it may have breached disclosure rules by failing to provide details of the extent of its sales decline.

Shareholders of Fairfax Media are gaining more than 2 percent after the company’s shareholders voted overwhelmingly in favor of the 175-year-old company’s A$4 billion merger with Nine Entertainment. Nine Entertainment’s shares are gaining more than 3 percent.

In the currency market, the Australian dollar

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