Brexit: Defeat today in the UK – markets mixed

New Brexit-defeat was today in the UK Parliament, when the MPs voted by 303-258 to reject the UK Goverment´s motion. This means that the Parliament has voted no to the Goverment´s plan to renegotiate the Irish border backstop.

The UK is planning to leave the EU on the 29th March 2019 and the next EU leaders summit will be on the 21st March. It was planned that UK PM Theresa May would  have tried to renegotiate the Irish Border issue with the EU collaques before the EU Summit. According to Prime Minister´s office, the target is still the same, to get a new agreement regarding the backstop.

In the City of London, the FTSE- index was quite stable and gained 0,09% to 7197 points. In Germany, the DAX-index declined by 0,69 % to 11 089 points and in France the CAC40 -index lost 0,23 % to 5062 points.

In Wall Street the financial markets were mixed, while the Dow Jones as down 0,13 % to 25511 points and S&P 500 -index -0,09 % to 2750 points. The Nasdaq was up 0,24 % to 7438 points.

In Asia the stocks ended by 0,23 % decline in HongKong and HangSeng- index was 28 432 points. In Tokyo the Nikkei-index ended down 0,02 % to 21139 points.

According to Bloomberg, the US President Donald Trump is ready to sign a compromise spending legislation that would avoid goverment shutdown and on the other hand would get funding for a border wall. The US-China trade talks are going “very well” and goverment spokesman said that the US President is considering delaying the possible tariffs by 60 days to get the deal done.

The trade negotiations have been led by the US Treasury Secretary Steven Mnuchin and his Chinese collaque Vice Premier Liu He.

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Wall Street slightly mixed – trade talks to continue

The financial markets were slightly mixed in Wall Street on Friday. The US-China trade talks made  progress and president Donald Trump made a statement that the deal might be done by March 1st. Also the macrodata from US jobs lifted the markets.

Dow Jones -index ended up  0,26 % to 25063  points, the S&P 500 -index ended up 0,09 % to 2706 points and the Nasdaq-tech index ended down by 0,25 % to 7263 points for the week.

According to Xinhua News Agency, China agreed to buy more US goods, including agriculture products, but also the talks included some agreements about IP rights. The talks will continue in China for the next round in mid-February and the US-China Presidents´summit might take place before the March time according to Bloomberg. The Chinese markets will be closed during next week due to the New Year´s holidays.

In the UK, the Brexit situation with extending time period got new supporters. The UK Chancellor of the Exchequer Philip Hammond said that he excepts the delay of the exit-day if needed.

– If we do get the deal and we need a little bit more time to put all the legislation and so on in place then I’m sure everybody on both sides will take a reasonable approach to that,” Hammond said in an interview with ITV News according to Bloomberg.

The stocks in London ended up and FTSE 100 -index gained 0,69% to 3851 points. Also the markets in Germany and in France were positive and the CAC 40-index  ended up 0,51 % to 3911 points and the DAX-index 0,13 % to 11 180 points.

Oil gained nearly 3 % and a barrel was traded at 55,37 dollars. Energy sector was one of the leaders for the Friday trading.

Euro was trading quite firmly against dollar at 1,1456, up 0,07 %, but the UK sterling was down 0,23 % to 1,30 dollars.

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Stocks gained – no new news

Financial markets gained on the Wednesday trading in Wall Street. Dow Jones was trading 0,67 % to 23947, the tech- index Nasdaq was up 1,16 % to 6976 points. The composite index S&P 500- index was up 0,5 % to 2588 points.

The US-China trade talks gained also attention, when China committed to buy more US agricultural goods, energy goods and manufactured goods. Also president Donald Trump said that he is committed to make a deal.

In the UK the stocks ended up 0, 76 % to 3787 points. Prime Minister Theresa May was defending the Brexit plan. The Parliament is to vote about the deal on Tuesday next week. There were rumors in the EU side that the UK have to ask for an extention for the negotiating period.

In Germany the Dax- index ended up 0,83 % to 10893 points and in France the Cac- index ended 0,84 % to 4813 points.

In Asia the Nikkei-index ended up 1, 10 % to 20427 points. In Hong Kong the Hang Seng index ended up 2,27 % to 26462 points.

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Stocks started up in Wall Street – Tesla and Apple in headlines

The financial markets ended slightly up on Wednesday trading in Wall Street. The year´s first trading day started with a small downside, but at the end of the day, the direction was positive with all the major Wall Street indices.

The electric car manufacturer Tesla (TSLA) announced its production figures from the fourth quarter and according to the information, the company produced 63.150 Model 3 Sedans during that period. Totally the company annual electric car production was about 245.200 in 2018. The official quarter figures are still to be published, the day is not yet confirmed. Tesla shares fell sharply first, but ended down 6,81 % to 305,50 dollars due to the published price cuts. The company informed that the car prices will be lowered by 2000 dollars in the US markets.

The second surprice for the markets was the mobile phone manufacturer Apple (AAPL), who said that the revenue forecast will be lower due to the economy situation in China. According to CEO Tim Cook, the China economy slowdown has been greater than earlier expected. Apple´s announcement sent the stock price to about 7 % decline.

Apple´s announcement was the first big information about the China economy and the trade talks situation. The President Donald Trump and his Chinese collaque President Xi Jinping are expected to continue the talks next week. During the holiday weekend president Trump indicated that the US and China trade talks have had positive signs.

In the US markets, the goverment shutdowns have continued and after the political leaders meeting the outcome was, that the shutdowns are expected to continue.

In the UK, The Brexit situation is the same as Prime Minister Theresa May said that the situation is not changed. According to Financial Times, PM May is going to have discussions with some of the European leaders during this week.  The UK Goverment has urged pharma companies and supermarkets to reserve enough drug and food stock in the case of no-Brexit. The UK Parliament is expected to vote on the deal in the middle of January.

Dow Jones -index ended up 0,08 % to 2344 points, S&P 500 -index ended up 0,12 % to 2509 points and Nasdaq-index ended up 0,46 % to 6665 points. In London the FTSE 100 -index was up 0,09 % to 6734 points and in Germany the DAX-index ended up 0,20 % to 10580 points.

In Asia the Wednesday trading was on negative side, while in Tokyo the stocks fell and Nikkei-index ended down 0,31 % to 20014 points and in Hong Kong  the Hang Seng index declined 2,77 % to 25 130 points.

Euro declined 1,04 % to 1,13 dollars as did the UK sterling, 1 % to 1,26 dollars.

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Stocks made comeback – Fed planning press calls 2019

The US stock markets made their comeback during Thursday trading. After the morning decline the stocks turned to green at the end of the trading day and for example the Dow Jones -index ended up 1,14 % to 23 138 points.

Investors were worried about the economy outlook related to tradetalks between the US and China, the goverment shutdowns and latest macro data regarding the consumer confidence.  According to the Conference Board ,the confidence index declined to 128,1, while the market estimate was 133,5 (Bloomberg).

Some new insight was given during the day, while it is expected that the US and China negotiators will meet on January the 7th in Beijing to continue the trade talks. One of the biggest issues is  also the tech-company Huawei and its position in the US markets. According to Reuters, President Donald Trump is considering different options related to the company and its security issues.

The recent discussion about the Federal Reserve and its interest rates policy has had its impact on the communications of the Central Bank. The Chairman  Jerome Powell is considering having press calls after each Fed meeting, starting next year. This would have its new impact on the trading activities as well, while new comments, and maybe market-moving comments may appear after the meetings.

The tech-index Nasdaq ended up 0,38 % 6579 points and larger S&P 500 -index 0,86 % to 2488 points.

In Europe the FTSE 100 -index declined 1,52 % to 6584 points – in Frankfurt the Dax-index ended down 2,37 % to 10381 points and in Paris the CAC 40 -index declined 0,60 % to 4598 points.

In Asia, Nikkei-index ended up 3,88 % to 20077 points in Tokyo but in Hong Kong the Hang Seng index declined 0,67 % to 25 478 points.

Euro gained 0,72 % against dollar and was 1,114 dollars. The UK sterling gained 0,13 % was was 1,265 dollars.

The Swiss franc gained as safe-haven currency against euro and dollar and was 0,9875 dollars and 1,129 euros.

Brent crude (ICE)  declined 2,92 % to 52,88 dollars per barrel.

Business Finance

Trump: Opportunities in the stock markets

US President Donald Trump said on Tuesday, the Christmas Day, that the US stocks offer now opportunities to buy. He commented the stock market turbulence and information related to Treasury Secretary, Federal Reserve and the US economy in general.

He said that he has the confidence related to the Treasury Secretary Steven Mnuchin. The fianncial markets were surprised by the information that Mr Mnuchin had called the largest banks related to the market volatility and liquidity issues this week. He also spoke with the market regulators.

President Trump also pointed that there is now opportunities in the stock markets while the US companies are great and they are doing well. News related to the Federal Reserve and its policy and management, the President repeated that the Central Bank has raised intetrest rates too quickly, but in general he is confident with the bank otherwise.

The financial markets were closed on Tuesday. On Wednesday, the 26th December or Boxing Day, the markets will be open in the Nasdaq and NYSE stock exchanges. But on the other hand, the markets will be closed in the London Stock Exchange and in the Nordics on Wednesday.

Business Finance

Wall Street down – trade talks and yield in focus

Wall Street fell sharply onTuesday due to the new concers over the US China trade talks and the Treasury yield curve.

According to markets, the Treasury 10-year yield curve, which indicates the coming recession, was one of the market concerns and the 10-yield hit its lowest value since September. The demand for longer-dated Treasuries rose.

Also President Donald Trump said on Tuesday that if the countries cannot solve the trade issues and differences, he is a “tariff man”.

Dow Jones fell 2,66 % and was 25 138 points. S&P 500 index fell 2,17 % to 2729 points and Nasdaq dropped 3,21 % and ended at 7202.

In Europe the decline was modest. In London the FTSE100  fell 0,56 % to 7022 points and German Dax-index 1,14 % to 11 335. In Paris the CAC40 -index ended down 0,82 % and was 5012. In Asia the stock markets were mixed and for example in Hong Kong the stocks rose 0,29 % , but in Tokyo the markets fell 2,39 %.

The UK Parliament was having Brexit discussions and the Parliament voted about the legal advice related to the topic. The outcome was that the Goverment will have to publish the full disclosure of the Brexit legal advice.

Euro and sterling ended slightly down and euro was 1,1341 dollars and sterling 1,2716 dollars.

The US stock and bond markets will be closed on Wednesday.

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