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Tech & Science 8@eight: ASX set to fall as trade deal worries hit markets

08:10  27 november  2019
08:10  27 november  2019 Source:   theage.com.au

Trade deals expected to pass parliament

  Trade deals expected to pass parliament The Morrison government expects the parliament to back trade deals with Indonesia, Hong Kong and Peru in the Senate late on Monday.Legislation enacting trade deals with Indonesia, Hong Kong and Peru is expected to pass parliament late on Monday.

Trade deal concern hit markets overnight, sending markets lower. Futures are pointing to a drop of 22 points, or 0.3 per cent, for the Australian Risk appetite in broader financial markets was sapped overnight, after the release of some sobering trade -war news, and some weak US economic data.

The S&P500 touched fresh record highs, and that’s setting up the ASX 200 for a solid open this morning. It was an otherwise light data-data day for 2. Signs of further momentum in trade talks: The latest cause for optimism regarding the trade -war in global markets was news that the Chinese will

  8@eight: ASX set to fall as trade deal worries hit markets © AAP Image/Paul Miller

Trade deal concern hit markets overnight, sending markets lower. Futures are pointing to a drop of 22 points, or 0.3 percent, for the Australian sharemarket at the open.

1. Sentiment turns and economic health returns to fore: The post-Fed positivity proved short-lived. Risk appetite in broader financial markets was sapped overnight, after the release of some sobering trade-war news, and some weak US economic data. Concerns about global growth have returned – in part due to, too, data that showed Chinese manufacturing contracted again last month, and the Hong Kong economy has slipped into recession.

Wall Street slips as retail sales drop to seven-month low, ASX to fall

  Wall Street slips as retail sales drop to seven-month low, ASX to fall Australian shares are likely to fall in early trade as anxiety over trade wars resurface and the US posts its worst retail sales figures in seven months. Retail sales dropped 0.3 percent in September as households cut back their spending on motor vehicles, building materials, hobbies and online purchases. Given consumer spending makes up about two-thirds of US economic activity, investors see this as a worrying sign — especially given that America recently posted its worst manufacturing figures in 10 years.

Stock markets traded lower generally, as hopes for a phase-one trade Again, it would seem that the countries negotiators are hitting a few roadblocks, apparently around the matter of But momentum is waning, and there’s the niggling fear that the market has moved too quickly in pricing in a trade - deal .

Markets . 8 @ eight . The Australian share market is expected to open lower this morning after a negative lead from Wall Street, where stocks tumbled on concern tensions with 7. A Brexit deal still miles away: Crossing to European trade , and the news flow was dominated by Brexit developments.

This combination of factors saw the S&P500 drop, despite some strong company earnings reports. Brexit developments were the silver lining last night, and boosted hopes of a clearer path to a UK and European divorce. The poor overnight lead is setting-up another weak day for the ASX200.

Australian shares likely to open higher on upbeat trade deal comments; NZ down

  Australian shares likely to open higher on upbeat trade deal comments; NZ down Australian shares likely to open higher on upbeat trade deal comments; NZ downMarket sentiment warmed after U.S. President Donald Trump said on Friday a trade deal was "potentially very close", reciprocating comments by Chinese President Xi Jinping that Beijing wanted to work out an initial pact.

8 @ eight : ASX set to fall as Trump's new tariffs shock global markets . Skip to sections navigation Skip to content Skip to footer. Our network. On Wall Street, all three share market indexes made U-turns after the Trump tweets announcing the additional tariffs, erasing early gains and skidding sharply lower.

Markets . 8 @ eight . The Australian sharemarket is poised for more gains after Wall Street shone overnight on more trade deal optimism, with the S&P 500 hitting a new record high. 1. Record highs fall , as week ramps-up: The S&P500 has ascended to fresh record-highs, thanks – ostensibly – to

2. China undermines enthusiasm for trade-deal: For some, it was a bit of a "duh!" moment: hopes for trade-war progress were hindered by a Bloomberg report last night that the Chinese doubt a long-term trade-truce with the US is truly possible.

A reminder of the intractable problems posed by zero-sum power politics, the story had the effect of diminishing a degree of the bullishness engendered by a looming "phase-1" trade deal this month. The story washed-out what would have otherwise been considered a day of progress in trade-talks. Reportedly, the US and China today will hold a phone-call today to determine a location to sign its "partial" trade deal.

3. US economic data disappoints, prefaces big night of data tonight: The bearishness elicited by the latest trade-war reports were compounded by some weak US data last night. A gauge of US manufacturing activity fell significantly last month, heralding concerns that business conditions in the US are still deteriorating.

Upbeat U.S. data lifts dollar; sterling rises

  Upbeat U.S. data lifts dollar; sterling rises Upbeat U.S. data lifts dollar; sterling risesNEW YORK (Reuters) - The dollar rose against a basket of currencies on Wednesday on upbeat U.S. data in subdued trading as uncertainty about a possible U.S.-China trade deal lingered during a U.S.-holiday shortened week.

2. ASX 200 erases financials-driven gains on Sino-US trade war fears: SPI futures are pointing cautiously higher ahead of Wednesday’s opening bell in Sydney but a Losses in the materials space proved to be overwhelming however amid worries about an escalating Sino-US trade war.

That's seen the sell-off in equities ease, setting up the ASX 200 for something of a recovery today, after two days of heavy falls . Because come the beginning of US trade , a handful of well-timed news reports hit the airwaves talking-up BusinessWall Street inches higher as trade deal worries hover.

It sets up an end to the week almost solely focused on US economic data. US ISM Manufacturing PMI and US Non-Farm Payrolls are released tonight. Traders will be watching intently to see whether business activity continues to contract in the US economy. And on top of that, whether that contraction is beginning to manifest in an already softening US jobs market.

4. China’s and Hong Kong’s economy demonstrably weaker: It’s not just US data that’s getting traders somewhat antsy. The global economic data "pulse" in general was underwhelming last night and yesterday. Canadian GDP data missed expectations. Chinese Manufacturing activity was also revealed to have declined by more than forecast, while Hong Kong’s economy was announced to have officially entered recession.

The days’ worth of "bad news" resulted in classic risk-off behaviour in global markets by the end of the US session. Stocks fell across the globe, bond yields dived, igniting a rally in gold, while oil prices fell, the Japanese Yen climbed, and the Australian Dollar gave up early gains to close Thursday’s trade lower.

Asian shares waver, Hong Kong tensions spoil festive mood after upbeat U.S. data

  Asian shares waver, Hong Kong tensions spoil festive mood after upbeat U.S. data Asian shares waver, Hong Kong tensions spoil festive mood after upbeat U.S. dataAsian share markets wobbled on Thursday as concerns that tensions over Hong Kong could stymie a U.S.-China trade deal cast a pall over Thanksgiving cheer from unexpectedly positive U.S. economic data.

Another sluggish day on Wall Street sets up the ASX for falls this morning. 1. US corporate data weighed against trade -news The benchmark S&P500 closed Wall Street trade effectively flat overnight, off the back of a night’s trade counterbalanced by disappointing corporate results, and positive

1. Worries about US growth driving markets : Stock markets plunged last night, as investors fears grow that the global economy could be heading for a severe US Treasuries rallied, pushing bond yields in the United States lower, as traders increase bets that the US Fed will have to take a more assertive

5. Growth concerns distract from solid day for US corporates: The macro washed out the micro on Wall Street. US earnings season rolled on, and yesterday, delivered some strong results. Facebook and Apple reported early yesterday morning, and beat analyst estimates. That kept US tech stocks supported, with NASDAQ down only 0.1 per cent, compared to the S&P500s 0.5 percent overnight.

It’s still proving to be a better than expected US reporting season – even if that has come off a "low base". EPS growth is now expected to only contract this quarter by -2.4 per cent. The number of "positive surprises" has fallen to 74 per cent according to Bloomberg data – but that remains relatively high.

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6. The path to Brexit smoothed a little more: In what might be considered, at least for financial markets, a silver lining to last night’s trade, a morsel of Brexit related news raised the chances of a smoother Brexit. Nigel Farage’s Brexit Party, reportedly, will be removing hundreds of its candidates from this December’s UK General Election, in order to open the doors for a Tory majority parliament.

The Pound rallied off this news – it was also supported by the weaker US Dollar – to push towards the 1.30 level once again. The market’s overall view appears to be that, finally, Brexit will, this time, arrive before the end of the next deadline.

Stocks slip on trade worries as record high stays elusive

  Stocks slip on trade worries as record high stays elusive Stocks slip on trade worries as record high stays elusiveLONDON (Reuters) - World shares slipped on Friday as a leading index strained for a record high, with nerves gnawing away from Asia to Europe over how, or when, the U.S. and China can agree a truce in their damaging trade war.

What happened overnight and what's ahead for the ASX . 3. Stocks jump on “bad news is good news” dynamic: Wall Street stocks tumbled at the open of North American trading session. 4. Markets betting on very aggressive Fed: This explanation checks-out based on pricing in interest rate markets .

1. Sentiment swings as markets prepare for trade talks: The hot-to-cold 2. Happy headlines send stocks rallying: After a soft day for Asian markets , which saw the The consumer inflation figures will back Wednesday’s underwhelming producer inflation figures, which showed a surprise fall in prices

7. ASX to fall at open, possibly ending a soft week for Aussie equities: The weak lead handed to it by Wall Street will see the ASX200 fall by around 30 points this morning. It backs up another day yesterday whereby the ASX failed to capture the positivity generated by record high in US equities. Undoubtedly, there remains low appetite for Australian equities in the very short-term.

However, the poor showing for the ASX200 in Thursday’s trade was likely a quirk of domestic concerns and index composition. The financials were responsible for 23 of the 26 points shed from the index, after ANZ’s disappointing report card prompted concern about, and a subsequent sell off in, bank stocks.

8. Market watch:

ASX futures down 25 points or 0.4% to 6614 near 7am AEDT

  • AUD -0.1% to 68.94 US cents
  • Sterling +0.4% to $US1.2953
  • On Wall St near 4pm: Dow -0.5% S&P 500 -0.6% Nasdaq -0.1%
  • In New York: BHP -1.3% Rio -1.4% Atlassian -2.4%
  • In Europe: Stoxx 50 -0.4% FTSE -1.1% CAC -0.6% DAX -0.3%
  • Nikkei 225 futures -1.2% Hang Seng futures -1%
  • Spot gold +1.1% to $US1511.90 an ounce at 2.04pm New York time
  • Brent crude -0.7% to $US60.21 a barrel
  • US oil -1.4% to $US54.28 a barrel
  • Iron ore -1.3% to $US85.97 a tonne
  • Dalian iron ore -0.2% to 620 yuan
  • LME aluminium -0.3% to $US1755 a tonne
  • LME copper -1.9% to $US5797 a tonne
  • 2-year yield: US 1.52% Australia 0.82%
  • 5-year yield: US 1.51% Australia 0.84%
  • 10-year yield: US 1.68% Australia 1.14% Germany -0.41%
  • 10-year US/Australia yield gap near 7am AEDT: 54 basis points


ASX sinks as Donald Trump threatens to impose tariffs on Brazil and Argentina metal imports .
Australian shares tumble after US President Donald Trump decides to widen his trade war by reinstating tariffs on steel and aluminium imported from Brazil and Argentina.By 1:25pm (AEDT), the ASX 200 had fallen by a steep 138 points, or 2 per cent, to 6,724.

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