Tech & Science ASX steadies as investors await further volatility with US-China trade war

01:46  06 december  2019
01:46  06 december  2019 Source:   msn.com

Asian stocks cheered by fresh trade talk momentum

  Asian stocks cheered by fresh trade talk momentum Asian stocks cheered by fresh trade talk momentumTOKYO (Reuters) - Asian stocks rose on Tuesday, bolstered by Wall Street's record closing highs and signs of new momentum in Beijing's and Washington's efforts to end their long and acrimonious trade dispute.

U.S. Treasury yields slipped lower on Monday as investors seek refuge following a turbulent weekend in the U . S .- China trade war . Treasury yields held steady Monday despite the rate on the benchmark 2-year note rising above that of the 10-year, triggering again a recession indicator that has dogged

The ASX 200 was always likely to be in the eye of any storm caused by a breakdown of US - China trade talks. That said it still looks quite resilient in the But that doesn’t look likely without the decisive fundamental boost that only a positive US / China trade story seems plausibly able to bring, and which

ASX© Getty ASX

Australian shares are likely to start the day with little momentum, following a volatile week due to conflicting signals about how the US-China trade dispute was progressing.

It began with a massive global sell-off after US President Donald Trump unexpectedly decided to impose metal tariffs on Brazil and Argentina, then suggested he was in no hurry to end the long drawn out US-China trade war.

However, markets rebounded on Thursday when he switched gears and said trade talks were going "very well".

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.

* U . S .- China moving closer to agreeing on tariff rollback- report. Dec 4- Gold steadied on Wednesday, hovering near a one-month high as investors awaited clarity on 15, given the headlines we've been seeing in the past couple of weeks," ING analyst Warren Patterson said. A further 15% U.S. tariff on

US stock indexes moved slightly lower on Thursday as investors moved to the sidelines with mixed messages and no concrete signs of progress on US - China relations. As a result, investors were wary of putting further bets on a trade deal and keeping in mind that stocks are still near record highs.

By 7:15am (AEDT) on Friday, ASX futures were up 10 points or 0.2 per cent.

Meanwhile, the Australian dollar had slipped to 68.3 US cents (AUD$0.99).

Wall Street traders were cautious overnight, waiting to see whether Washington and Beijing will actually sign their so-called "phase one" trade deal by the end of next week December 15 — when the US is scheduled to impose its next round of tariffs on Chinese goods.

Analysts are warning investors to expect further volatility until then.

"If the [China] tariffs go into effect, and if we start new trade wars with Europe, most investors will be looking to reduce their stock exposure," said Rick Meckler, a partner at Cherry Lane Investments in New Jersey.

"With that period nearby, investors are reluctant to commit to new purchases."

The Dow Jones index closed 0.1 per cent higher at 27,678 points.

The S&P 500 lifted by 0.2 per cent, while the tech-heavy Nasdaq was flat.

European markets, on the other hand, were much more pessimistic about the US-China trade tensions.

London's FTSE and Germany's DAX indices experienced moderate falls, down 0.7 per cent each.

Brent crude oil posted moderate gains (+0.6 per cent), driving its price up to $US63.40 (AUD$92.79) per barrel.

Spot gold was steady at $US1,475.64 (AUD$2159.86) an ounce.

Stocks little changed ahead of looming trade deadline .
Stocks were little changed Tuesday as investor sentiment was kept in check by a looming deadline for U.S.-China trade talks. China and the U.S. have until Dec. 15 to come strike a so-called phase one trade deal. If an agreement wasn’t reached by then, new U.S. tariffs will take effect.The Wall Street Journal reported the U.S. plans to delay slapping China with additional tariffs as both sides try to work out the agreement. U.S. negotiators have also asked Chinese officials to commit to some agricultural purchases up front before moving forward with a deal, the report added.

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