Stocks mixed in NY before G20 Osaka

The US equities closed mixed today in New York ahead of the G20 meeting in Osaka, Japan on Saturday. The US President said he would use the “Plan B” if the US and China cannot proceed with the trade issues during the weekend. He said the new tariffs would be closer to 10 % rather than 25 %.

Dow Jones closed down 0,04 % to 26 536 points, S&P 500 index closed down 0,12 % to 2913 points, but Nasdaq ended up 0,32 % to 7909 points.

In the tech-stocks the ride-hailing company Uber (UBER) ended down 1,37 % to 42,45 dollars, showing the market capital of 72 billion dollars. The rival Lyft (LYFT) ended also down 1,67 % to 62,82 dollars with the market cap of 18,3 billion dollars. The latest IPO tech company, Slack Technologies rose 4,96 % to 32,37 dollars (16,4 billion market cap). Cryptocurrency Bitcoin reached above 13 000 dollars.

One of the hottest issues during the G20 leaders summit will be foreign exchange rates. Mr Trump has said that the US dollar is too strong compared to euro and Chinese yuan and thus taking competitive edge from the US companies. The G20 finance ministers and central bankers have already made their commitments from competitive devaluation, according to Bloomberg. In the markets, the Federal Reserve rate cut is expected to happen in July meeting.

The important meeting with President Donald Trump and the Chinese President Xi Jinping will be on Saturday. Mr Trump will also meeting for example the Russia´s President Vladimir Putin and Turkey´s Erdogan.

In Europe the stocks wee also mixed. In London the FTSE 100 index ended down 0,08 % to 7416 points, while in Germany the DAX index ended up 0,14 % to 12 245 points. In France the stocks declined by 0,25 % to 5500 points. The German 10 year government bond yield dropped to record low to -0,31 %.

The debate about Brexit continued and Boris Johnson, the PM and Conservative leader candidate, said that he does not expect no-deal departure on October.

The sterling was trading down 0,03 % to 1,2685 dollars, while euro was trading down 0,01 % to 1,1366 dollars. Dollar was up 0,54 % to 107,78 Japanese yen.

In Asia the stocks were also mixed. In Shanghai the stocks closed down 0,19 % to 3117 points, while in Hong Kong the Hang Seng index closed up 0,13 % to 28 221 points. In Japan the Nikkei 225 index ended down 0,51 % to 21086 points.

Business Finance

Stocks closed down in NY- US data and trade tariffs

The US equities closed down today due to weak consumer confidence data and the trade tariffs between the US and China. The US and China leaders are meeting this week in G20 meeting in Japan and the information from the Federal Reserve has been that the tariffs can increase the risk of slower growth globally if there is no more confidence in the markets.

Dow Jones closed down 0,67 % to 26 549 points, S&P 500 index down 0,95 % to 2917 points and Nasdaq down 1,51 % to 7884 points. In Europe the FTSE 100 -index closed up 0,08 % to 7422 points, while the equities on the continent were down. In Germany the DAX closed down 0,38 % to 12 228 points and in France the CAC 40 down 0,13 points to 5514 points.

The US consumer confidence and new home sales were both below markets expectations. On the other hand on the M&A side, the deal volumes and values have been record high, according to Bloomberg data. On Tuesday, AbbVie said it would buy Allergan company, the Botox maker, for 63 billion dollars.

The G20 meeting on Friday and Saturday in Osaka, Japan will give more information while the US President Donald Trump and the Chinese President Xi Jinping will have their discussions then. According to Bloomberg, the US officials have signalled that the trade deal is unlikely to happen.

The US markets have been pricing a 50 basis points rate cut for the next Federal Reserve meeting in July, but according to St.Lous Fed President James Bullard such a rate cut would be too much. He commented the situation in a Bloomberg interview.

The central bankers have been discussing about the cryptocurrencies and Facebook´s new Libra coin in the central banks meeting in Switzerland today. The question of financial stability, consumer and regulatory standpoint are the major issues for the tech company and some believe Libra is not going to be a Bitcoin.

According to Reuters, the Facebook other issues related to privacy concerns and hate speeches have been the major topics and central bankers are requiring more information from Facebook in order to proceed with the new currency. The Britain’s Financial Conduct Authority (FCA) also commented the issue today with the same tone of voice.

In London, the discussions about the Brexit deal and the new Prime Minister have continued. Boris Johnson or Jeremy Hunt will be the next Prime Minister for the UK and the new leader will be announced on the 23rd of July. The deadline, October 31st will be soon, while the UK Parliament is starting their summer holidays on July 25 and the MPs will return on the September 3rd.

The euro was trading slightly up 0,01 % to 1,1368 dollars and the sterling up 0,06 % to 1,2696 dollars.

In Asia, the stocks were also down, the Shanghai All ended down 0,87 % to 2982 points, the Hang Seng in Hong Kong down 1,15 % to 28185 points and the Nikkei-index in Japan down 0,43 % to 21 193 points.

 

 

 

 

 

 

Business Finance

Trump and Xi to have extended meeting in G20

The US President Donald Trump said today that he and the Chinese President Xi Jinping will have extended meeting during the G-20 meeting in Osaka, Japan next week.

Mr Trump tweeted that he had a “very good” phone conversation with Mr Jinping today and he confirmed that the trade negotiations teams will begin talks prior the meeting.

The meeting will take place in Osaka, where the G-20 leaders will gather on June 28-29. According to the Japan Prime Minister Shinzo Abe the meeting in Osaka, Japan is determined to lead global economic growth by promoting free trade and innovation, achieving both economic growth and reduction of disparities, and contributing to the development agenda and other global issues with the Sustainable Development Goals (SDGs) at its core. Through these efforts, Japan seeks to realize and promote a free and open, inclusive and sustainable, “human-centered future society.”

 

 

 

 

 

 

 

 

 

Business Finance

Stocks tumbled globally – trade conflict

The global stocks markets tumbled on Thursday trading. The main reason for the bear sentiment were the trade discussions between the US and China, which are still open. The US President Donald Trump and the Chinese President Xi Jinpeng are expected to meet in Japan in the G20 – meeting in June.

Dow Jones-index ended down 1,11 % to 25490 points, the S&P 500 -index closed down 1,18 % to 2822 points and the technology index Nasdaq down 1,58 % to 7628 points. The 10-year government bond yield dropped to lowest levels since 2017 and the energy stocks dropped by 3,13 % on Thursday trading.

Hewlett-Packard (HPE) announced its quarterly results and guided for fiscal 2019 the net EPS to be 2,04-2,11 dollars per share. The company net revenue was 14 billion dollars during the quarter, up 0,2 % from the year earlier. The personal systems accounted for 8,9 billion dollars of the sales and the profitable printing side 5,1 billion dollars. The stock ended down 2,65 % to 14,70 dollars.

The US President Donald Trump said in the White House press conference that the Goverment will help farmers with a new 16 billion dollars direct aid. He also mentioned that the US economy has done better since 2016 with the value of 8 billion dollars. In the trade talks issues he mentioned also the new deal with Japan in the agriculture products and also the new USMCA agreement with Mexico and Canada. According to the President, many democrats in the congress are also backing the USMCA deal.

In Europe the stocks ended also down with FTSE 100 -index down 1,41 % to 7231 points, the German Dax-index 1,78 % to 11952 points and the France CAC 40 -index down 1,81 % to 5281 points.

The EU and UK Brexit situation is still open and both sides are waiting for the EU elections results due to next Sunday evening. UK Prime Minister Theresa May is expected to leave her position after the Brexit deal and according to the new situation, all the options are still valid: no-deal or deal Brexit or new referendum.

The UK Goverment said that the Withdrawal Bill will be presented to the UK Parliament in early June. The US President Donald Trump is visiting the UK in early June from 3rd-5th June.

The sterling was trading down 0,04 % 1,2660 dollars and the euro was up 0,29% to 1,118 dollars. The US-dollar was down 0,72 % to 109,57 yens and euro was up 0,31 % to 0,8833 pounds.

Business Finance Tech

US to make 16 billion dollars aid to farmers- WSJ

The US Government has rolled out a 16 billion dollars aid package for the US agriculture sector to offset the losses from the trade conflict with China. According to Wall Street Journal the commodity prices have sank to the lowest level in more than 10 years while the expectation is that the trade conflict will hinder the agritrade between the countries.

According to WSJ this program is similar to the aid initiative in 2018 which was about 12 billion dollars founding for farmers. This initiative is about direct aid to farmers.

The S&P GSCI Agricultural Commodities index was trading today up 0,06 % to 274,30 points. During one year time the index has dropped by 18,59 % and 5-years time by 13,40 %.

Soybeans are the biggest product crop to be exported to China. Before the conflict the US shipped 10 billion – 12 billion dollars of soybeans to China a year, writes the WSJ.

Business Finance

Mnuchin: US close to resolve steel tariffs – WSJ

According to US Treasury Secretary Steven Mnuchin, the US is close to an understanding with resolving the steel and aluminium tariffs with Mexico and Canada.

Wall Street Journal also reported that according to Mnuchin the US negotiators are likely to travel to Beijing soon to continue the negotiations with China. The goal is to have “free and fair trade” policy with China.

According to Bloomberg, the US President Donald Trump is considering to delay the auto tariffs up to six months in order to avoid the time overlaps with the EU and Japan. The auto industry is vital for the US trade balance, while it is estimated that the half of the US trade deficit comes from automotive.

Business Finance

Trump and Xi to meet in Japan in June

The US President Donald Trump and his Chinese colleague President Xi Jinping are meeting in Japan in the G20 meeting in June. According to Reuters, the White House economic adviser Larry Kudlow confirmed the meeting on Fox News Sunday.

The trade situation with the both countries have been stable after the news that the US raised the tariffs on Friday and threatened to put tariffs on all goods from China if there is no deal. The new deadline is agreed to be one month long according to Bloomberg News.

The G20 meeting will be held in for the first time in Japan. The G20 leaders will meet on the 28th and 29th of June in Osaka.Also the Finance Ministers and Central Banks Governors meeting and the Foreign Ministers’ meeting will also be at the same time in Japan, but in different locations.

Business Finance