Stocks cheered by trade deal hopes but caution prevails

© Reuters. FILE PHOTO: Passersby are reflected on a stock quotation board outside a brokerage in Tokyo

By Andrew Galbraith

SHANGHAI (Reuters) – Asian stocks jumped on Friday, lifted by White House comments that suggested the possibility of an imminent trade deal between Washington and Beijing, which revived hopes that their tariff war may be nearing an end.

However, investor sentiment remains fragile after weak data from China reinforced concerns about the global economy and amid increasing caution about false signs of progress in Sino-U.S. trade talks.

The buoyant mood looked set to extend to Europe, where pan-region rose 0.57% to 3,705, German climbed 0.53% to 13,253.5, and futures inched up 0.36% to 7,322.

U.S. S&P 500 e-mini stock futures also rose, adding 0.35% to 3,107.8 after the finished at a record closing high on Thursday.

Providing a fillip to investor confidence in early Asian trade, White House economic adviser Larry Kudlow said Washington was getting close to a trade agreement with China.

That helped to lift MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.57%. Japan’s added 0.7% and Australian shares gained 0.87%.

Chinese blue-chip shares, in contrast, struggled to hold gains after rising as much as 0.23% earlier in the day. The CSI300 index was last down 0.45%.

In Hong Kong, where anti-government protesters paralyzed parts of the financial hub for a fifth day on Friday, the gained 0.15%, but was on track for its worst weekly performance in nearly four months.

Shane Oliver, chief economist at AMP Capital in Sydney, likened regional markets’ bullish reaction to positive trade news to being in a relationship with an alcoholic, driven by entrenched hopes for recovery.

“Markets want to believe that there will be some sort of resolution to this issue, some sort of lasting truce at least, even

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European Shares Seen Up On Trade Deal Hopes

European stocks are likely to open higher on Friday as a goodwill gesture by China and White House economic adviser Larry Kudlow’s comments on trade helped revive hopes of a U.S.-China deal.

Kudlow said that the two sides are communicating “every single day” and a deal was close though “not done yet.”

A spokesperson for China’s commerce ministry said that the two countries are holding “in-depth” discussions on the ‘phase one’ trade deal, and that canceling tariffs is an important condition for reaching an agreement.

China also lifted a nearly five-year ban on imports of U.S. poultry meat, a move that could lead to more than $1 billion in annual shipments to China.

Asian markets traded mostly higher following positive cues on the trade war front. The dollar and riskier trade-exposed currencies found some support while oil rebounded after sliding on Thursday on data showing a larger than expected increase in crude stockpiles last week.

U.S. Treasury yields rose after U.S. Federal Reserve Chair Jerome Powell said the risk of the U.S. economy facing a dramatic bust is remote.

Final inflation and foreign trade figures from euro area are due later in the session, headlining a light day for the European economic news. Across the Atlantic, reports on retail sales and industrial production may sway sentiment.

Overnight, U.S. stocks ended mixed as optimism over a ‘phase one’ U.S.-China trade deal faded and Cisco Systems issued a bleak outlook.

The S&P 500 inched up 0.1 percent to a fresh record closing high, while the Dow Jones Industrial Average and the Nasdaq Composite index edged down marginally.

European markets ended lower on Thursday as investors reacted to weak data from Asia and Europe.

The pan European Stoxx 600 shed 0.4 percent. The German DAX dropped 0.4 percent, France’s CAC 40 index

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MARKET LIVE: Sensex gains 200 pts, Nifty tops 11,900; Voda Idea tanks 10%

Markets

edged higher on Friday tracking gains from Asian peers.

The benchmark S&P BSE Sensex was at 40,433.3 level with State Bank of India (SBI) and Tata Motors advancing nearly 2 per cent each. TCS and NTPC, on the other hand, slipped 0.5 per cent each in the early trade. 

On the NSE, the Nifty50 was trading at 11,913-mark.

Sectorally, all the indices were surging ahead. Nifty PSU Bank index gained the most, up over 1 per cent, followed by Nifty Auto, Metal and Media indices.

In the broader market, S&P BSE mid-cap index added 0.5 per cent, while the S&P BSE small-cap rose 0.34 per cent.

EARNINGS TODAY

About 17 companies are scheduled to report their September quarter earnings today.

BUZZING STOCKS

Telecom major Vodafone Idea plunged 11.5 per cent to hit an all-time low of Rs 2.61 apiece on the BSE on Friday after the company reported a net loss of Rs 50,922 crore, the biggest ever loss in corporate India’s history, due to outstanding payment related to adjusted gross revenues, or AGR. READ MORE

CATCH ALL THE LIVE UPDATES Auto Refresh

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Market Ahead, Nov 15: Top factors you need to know before the Opening Bell

Vodafone Idea yesterday reported a massive net loss of Rs 50,922 crore, the highest-ever for an Indian company, in the September quarter after it provided for payments related to AGR

BS Web Team  |  New Delhi  Last Updated at November 15, 2019 08:04 IST

Investors will look at global cues, stock-specific action, the rupee’s trajectory against the US dollar, and foreign fund flow for market direction today.

yesterday reported a massive net loss of Rs 50,922 crore, the highest-ever for an Indian company, in the September quarter after it provided for payments related to adjusted gross revenues, or AGR.

For the very same reason, Bharti Airtel also reported a pre-tax loss of Rs 31,334 crore for the quarter as compared to the pre-tax loss of Rs 1,998 crore in the year-ago quarter. In today’s session, the stocks of both these companies will remain under pressure.

Moreover, a small batch of 17 companies is scheduled to announce their September quarter numbers today.

In another development, Moody’s has cut India’s calendar year 2019 GDP growth forecast to 5.6 per cent from 6.2 per cent, citing a consumption slowdown.

Global Cues:

On Wall Street, the Dow Jones Industrial Average and Nasdaq Composite dropped marginally while the S&P 500 posted slim gains.Asian equities rose on Friday. Early in the Asian trading day, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.34 per cent. Japan’s Nikkei added 0.58 per cent and Australian shares gained 0.53 per cent. The SGX Nifty was also trading higher in early trade, indicating a positive start for domestic indices.

In commodities, oil prices were mixed on Thursday. Brent crude futures were trading 28 cents higher at $62.56 per barrel.

Benchmark indices ended Thursday’s volatile session in the positive territory. The S&P

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Why American Outdoor Brands, International Game Technology, and Dillard's Jumped Today

The stock market came under modest pressure on Thursday, although pullbacks were still relatively small and major benchmarks stayed close to their historic highs. Bad news on the earnings front from a major tech company weighed on investor sentiment, and some worried rising unemployment claims were a potential harbinger of economic weakness. Yet even with a slightly downbeat mood on Wall Street, some stocks managed to post strong gains. American Outdoor Brands (NASDAQ:AOBC), International Game Technology (NYSE:IGT), and Dillard’s (NYSE:DDS) were among the top performers. Here’s why they did so well.

A Smith & Wesson spinoff is coming

Shares of American Outdoor Brands gained 6% after it announced that it would break itself up into two companies. American Outdoor said it would spin off its firearm business into a company to be known as Smith & Wesson Brands, with the remaining corporate entity keeping its original name and containing the outdoor products and accessories business. Board chair Barry Monheit said he expects the breakup to let each company “better align its strategic objectives with its capital allocation priorities.” Given the challenges related to the gun business overall, it’ll be interesting to see which stock performs better once the deal closes in the second half of 2020.

Image source: American Outdoor Brands.

IGT plays to win

International Game Technology saw its stock climb more than 23% after reporting its third-quarter financial results. Revenue for the slot machine and lottery specialist was essentially flat from year-earlier levels, and adjusted earnings per share plunged 32% year over year. Yet investors seemed pleased with the numbers, in part because of how the company fought against higher taxes in the Italian market and particularly strong performance in the year-ago quarter. Moreover, IGT’s outlook was reasonably solid, and those following the stock are excited about the innovative

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Asian shares rise as Kudlow comments lift trade hopes

SHANGHAI (Reuters) – Asian stocks jumped on Friday, propelled by a record S&P 500 finish and White House comments suggesting Washington and Beijing were close to striking a trade deal, reviving hopes the tariff war may near an end.

FILE PHOTO: Passersby are reflected on a stock quotation board outside a brokerage in Tokyo, Japan, August 6, 2019. REUTERS/Issei Kato

However, analysts said investor sentiment remained fragile after weak data from China reinforced concerns about the global economy and amid increasing caution about false signs of progress in Sino-U.S. trade talks.

White House economic adviser Larry Kudlow said on Thursday that Washington was getting close to a trade agreement with China, providing a fillip to investor confidence.

That helped to lift MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.67%. Japan’s Nikkei added 0.76% and Australian shares gained 0.8%.

Chinese blue-chip shares gained 0.06% shortly after the start of trade.

Shane Oliver, chief economist at AMP Capital in Sydney, likened the market’s reaction to positive trade news to being in a relationship with an alcoholic, driven by entrenched hopes for recovery.

“Markets want to believe that there will be some sort of resolution to this issue, some sort of lasting truce at least, even though the experience of the last 18 months doesn’t give a lot of cause for comfort,” he said.

However, Oliver said weaker Chinese and U.S. economies, and the U.S. presidential election next year put pressure on both sides to come to an agreement.

The safe-haven yen weakened, with the dollar rising 0.18% to buy 108.58 yen. The euro was barely changed at $1.1023 and the dollar index, which tracks the greenback against a basket of six major rivals was off just 0.01% at 98.154.

Higher U.S. Treasury yields also illustrated

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Gold settles higher as US dollar, stocks fall

Chicago, Nov 15 (IANS) Gold futures on the COMEX division of the New York Mercantile Exchange gained for the second day in a row as the US dollar weakened and stock benchmarks retreated.

The most active gold contract for December delivery was up $10.10, or 0.69 per cent, to close at $1,473.40 per ounce on Thursday, Xinhua news agency reported.

US stocks traded lower on Thursday. Shortly before gold’s settlement, the Dow Jones Industrial Average decreased 35.40 points, or 0.13 per cent, to 27,748.19 points. The S&P 500 and Nasdaq Composite Index followed Dow’s fall.

When equities post losses, the precious metal usually goes up, as investors are looking for a safe haven.

Meanwhile, the US dollar index, a gauge of the greenback against a basket of other major currencies, was down 0.21 per cent to about 98.17 on Thursday. When the dollar weakens, it makes the dollar-priced less expensive for investors holding other currencies.

Another support came from the US government debt. The yield on the benchmark 10-year Treasury note was lower at around 1.824 per cent as investors flocked to other safe assets, such as gold.

–IANS

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S&P 500 ekes out another record

A day of listless trading on Wall Street ended Thursday with another record high for the S&P 500.

The benchmark index notched its third consecutive gain after spending most of the day wavering between small gains and losses. The Dow Jones Industrial Average and Nasdaq composite also budged little, capping the day with miniscule drops.

The market’s lethargic turn came on a day with little market-moving news. Investors were awaiting details on the status of trade talks between the U.S. and China. Published reports have suggested this week negotiations between the world’s two largest economies have hit some snags. Beijing is pressing Washington to roll back tariffs as part of a potential deal the nations are trying to hammer out.

While the market has been sensitive to the swings in the trade talks, the latest speculation did not put most investors in a selling mood.

“We’ve had headlines like this before and the market is doing a little bit better job of looking through them,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. “Until something is announced, yay or nay, it probably doesn’t make much sense to trade on it, especially when President Trump himself has tweeted out that talks are going well.”

The S&P 500 rose 2.59 points, or 0.1 percent, to 3,096.63. The Dow slipped 1.63 points, or less than 0.1 percent, to 27,781.96. The index had briefly been down around 100 points.

The Nasdaq fell 3.08 points, or less than 0.1 percent, to 8,479.02. The Russell 2000 index of smaller company stocks dropped 0.39 points, or less than 0.1 percent, to 1,588.79.

The broader market has been gaining ground for weeks on hopes that the U.S. and China can make progress in their latest push for a deal. Investors have been encouraged by good

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Asian shares rise, but gains capped by weak sentiment

By Andrew Galbraith

SHANGHAI (Reuters) – Asian equities rose on Friday after the S&P 500 index notched a new record closing high, but investor sentiment remained fragile following weak data from China and Germany, which reinforced concerns about the global economy.

Early in the Asian trading day, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.34%. Japan’s added 0.58% and Australian shares gained 0.53%.

The safe-haven yen weakened, with the dollar rising 0.11% to buy 108.50 yen. The euro was unchanged at $1.1021 and the , which tracks the greenback against a basket of six major rivals was flat at 98.163.

Providing a fillip to investor confidence in Asia were comments from White House economic adviser Larry Kudlow that Washington was getting close to a trade agreement with China.

Higher U.S. Treasury yields also indicated a slight risk-on tone in the Asian session, with the 10-year yield rising to 1.8307% from a US close of 1.815% on Thursday.

The policy-sensitive two-year yield rose to 1.6036% from 1.593% on Thursday after U.S. Federal Reserve Chair Jerome Powell said the risk of the U.S. economy facing a dramatic bust is remote.

A Reuters poll of more than 100 economists showed that while concerns have eased over a U.S. recession, few see an economic rebound, and most believe a trade truce is unlikely in the coming year.

Global sentiment has been buffeted in recent weeks by conflicting assessments of progress in talks between the United States and China aimed at ending their 16-month-long trade war.

On Thursday, China’s commerce ministry said that the two countries are holding “in-depth” discussions on a first phase trade agreement, and that cancelling tariffs is an important condition to reaching a deal.

China has also ended a nearly five-year ban on imports of U.S. poultry

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US stocks close mixed after trading low

New York, Nov 15 (IANS) After trading low as the investors continued to monitor the latest development of US-China trade issues and digested major economic date, the US stocks ended mixed.

The Dow decreased 0.01 per cent to 27,781.96, the S&P 500 increased 0.08 per cent to 3,096.63, and the Nasdaq decreased 0.04 per cent to 8,479.02 on Thursday, Xinhua news agency reported.

At midday, the Dow Jones Industrial Average decreased 35.95 points, or 0.13 per cent, to 27,747.64. The S&P 500 lost 1.76 points, or 0.06 per cent, to 3,092.31. The Nasdaq Composite Index went down 13.35 points, or 0.15 per cent, to 8,469.01.

The market has been closely monitoring what the two sides said about trade talks and has been looking for signs of progress.

On the economic front, in the week ending November 9, weekly jobless claims reached 225,000 last week, an increase of 14,000 from previous week’s unrevised level, the US Department of Labor said on Thursday.

In corporate news, Cisco issued weaker-than-expected revenue guidance for its fiscal second quarter. Its shares declined more than 7 per cent after the company said it expects 75 cents to 77 cents in Non-GAAP earnings per share, and an annualized revenue decline of 3 per cent to 5 per cent in the fiscal second quarter.

Earlier after the opening bell, the Dow Jones Industrial Average decreased 15.36 points, or 0.06 per cent, to 27,768.23. The S&P 500 lost 3.54 points, or 0.11 per cent, to 3,090.50. The Nasdaq Composite Index decreased 20.76 points, or 0.24 per cent, to 8,461.34.

–IANS

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