Latest news with #shareindexes
Zawya
4 days ago
- Business
- Zawya
Shares edge higher, geopolitics and inflation data the week's focus
SYDNEY/LONDON - Major share indexes around the world crept higher on Monday continuing to grind back towards their late July peaks, with the focus of the week on a crucial report on U.S. inflation that will likely set the course of the dollar and bonds. Europe's STOXX 600 share index rose 0.3%, with Asia-Pacific stocks up 0.2% and S&P 500 futures also 0.2% higher. MSCI's world share index is now just 0.2% from its all-time high hit in late July as a strong earnings season in the United States, and a mildly positive one in Europe, support overall sentiment, helping investors to shrug off the impact of soft U.S. July jobs data. Trade and geopolitics loom large this week. A U.S. tariff deadline on China, due to expire on Tuesday, is expected to be extended again, while U.S. President Donald Trump and Russian leader Vladimir Putin are due to meet in Alaska on Friday to discuss ending the Ukraine war. The main economic release will be U.S. consumer prices on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3% to an annual pace of 3.0% and away from the Federal Reserve target of 2%. An upside surprise would challenge market wagers for a September rate cut, though analysts assume it would have to be a very high number given that a downward turn in payrolls is now dominating the outlook. It also comes at a complicated time for the Fed, with Trump having repeatedly criticised policymakers for not cutting rates at recent meetings, and with the focus on who will succeed current chair Jerome Powell, whose term ends in May. This, said Paul Mackel, Global Head of FX Research at HSBC, means that the dollar's reaction to the CPI data will not be straightforward. If the figure indicates higher U.S. tariff price pressures, "that could support the stagflation narrative, and to the dollar's detriment", he said, adding this would also go against the view of some policymakers that tariffs are not causing prices to increase. "If, however, softer U.S. CPI readings materialise, including the core goods figures, this would likely challenge the dollar too by supporting the case for further Fed easing, and perhaps see greater criticism from the U.S. administration towards Fed Chair Powell." Markets imply around a 90% probability of a September easing, and at least one more cut by year-end. That has helped support Treasuries, and the U.S. benchmark 10-year yield was last 4.25%, hovering near last week's low of 4.187%. The prospect of lower borrowing costs has supported equities, along with a run of strong earnings, particularly from tech names. Analysts were unsure what to make of reports, including by Reuters, that Nvidia and AMD have agreed to give the U.S. government 15% of their revenues from chip sales in China, under an arrangement to obtain export licences for the semiconductors. CHINA EXPORTS DEFLATION Chinese blue chips added 0.5% after data showed consumer price inflation ticked up in July, but producer prices kept falling as the country's massive manufacturing sector exported deflation to the rest of the world. Figures on Chinese industrial output and retail sales for July are due on Friday, and forecasts are for a slight slowdown after a jump in the previous month. Currencies were quiet, with early trading thinned by a holiday in Japan. The euro was marginally higher at $1.1651 and further away from a recent trough of $1.1392, while the dollar dipped to 147.38 yen. The Australian dollar eased to $0.6520 ahead of a meeting of the Reserve Bank of Australia, which is widely expected to back a rate cut. It stunned markets in July by skipping an easing of policy to await more inflation data. In commodity markets, gold fell 1.1% to $3,360 an ounce after wild swings last week on reports that the U.S. would slap 39% tariffs on some gold bars, which are major exports of Switzerland. The White House said on Sunday it planned to issue an executive order clarifying the country's stance. Oil prices slipped on the possibility that the scheduled talks between Trump and Putin in Alaska on Friday could make progress towards a ceasefire in Ukraine and potentially prompt an eventual easing of sanctions on Russian oil exports. Brent dropped 0.9% to $65.97 a barrel, while U.S. crude eased 0.8% to $63.38.
Reuters
4 days ago
- Business
- Reuters
Shares edge higher in Asia, Nikkei futures near record top
SYDNEY, Aug 11 (Reuters) - Major share indexes crept higher in Asia on Monday as upbeat company earnings underpinned high valuations in the tech sector, while a crucial report on U.S. inflation would likely set the course of the dollar and bonds. While Japan's stock market (.N225), opens new tab was closed for a holiday, futures pushed up to 42,380 and suggested the cash index will test its all-time high of 42,426 this week. EUROSTOXX 50 futures added 0.2%, while FTSE futures rose 0.1% and DAX futures firmed 0.2%. Trade and geopolitics loom large with a U.S. tariff deadline on China due to expire on Tuesday amid expectations it will get extended again, while President Donald Trump and Russian leader Vladimir Putin are due to meet in Alaska on Friday to discuss Ukraine. The main economic release will be U.S. consumer prices on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3% to an annual pace of 3.0% and away from the Federal Reserve target of 2%. An upside surprise would challenge market wagers for a September rate cut, though analysts assume it would have to be a very high number given a downward turn in payrolls is now dominating the outlook. "The tone from the Fed has shifted as a number of officials expressed concerns about growth following the July employment report," said Bruce Kasman, chief economist at JPMorgan. "We now expect the Fed to restart its easing cycle in September," he added. "Recession risks are elevated at 40%, but we do not yet see a case for a larger than 25bp series of cuts." Markets imply around a 90% probability of a September easing, and at least one more cut by year end. Trump's pick for Fed governor, Stephen Miran, may or may not be in place in time to vote for a cut in September, while the choice of a new chair has broadened out to around 10 contenders. The prospect of lower borrowing costs has supported equities, along with a run of strong earnings. Analysts at BofA note 73% of companies had beaten on earnings, well above the 59% long run average, while 78% beat on revenue. "While mentions of 'weak demand' ticked up and tariff concerns remain, corporate sentiment and guidance are improving," they said in a note. S&P 500 futures and Nasdaq futures both edged up 0.1% on Monday to near record highs. Analysts were unsure what to make of a report in the Financial Times that tech majors Nvidia (NVDA.O), opens new tab and AMD (AMD.O), opens new tab have agreed to give the U.S. government 15% of their revenues from chip sales in China, under an arrangement to obtain export licenses for the semiconductors. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab gained 0.3%, while South Korea (.KS11), opens new tab was flat having bounced 2.9% last week. Chinese blue chips (.CSI300), opens new tab added 0.5% after data showed consumer price inflation ticked up in July, but producer prices kept falling as the country's massive manufacturing sector exported deflation to the rest of the world. Figures on industrial output and retail sales for July are due on Friday, and forecasts are for a slight slowdown after a jump the previous month. Currencies were quiet with markets thinned by Japan's absence, with the dollar index a fraction lower at 98.066 after slipping 0.4% last week. The euro added 0.2% to $1.1670 and further away from a recent trough of $1.1392, while the dollar dipped to 147.50 yen having met resistance around 147.90. The Australian dollar eased to $0.6520 ahead of a meeting of the Reserve Bank of Australia which is widely expected to sanction a rate cut, having stunned markets in July by skipping an easing to await more inflation data. The figures turned out benign, so investors have again fully priced a quarter-point cut to 3.60%. In commodity markets, gold fell 0.6% to $3,378 an ounce after wild swings last week on reports the U.S. would slap 39% tariffs on some gold bars, which are major exports of Switzerland. Gold futures pared gains on Friday when the White House said it planned to issue an executive order clarifying the country's stance on gold bar tariffs. Oil prices slipped amid risks the talks between Trump and Putin could make progress to a ceasefire in Ukraine and possibly an eventual easing of sanctions on Russian oil exports. Brent dropped 0.6% to $66.22 a barrel, while U.S. crude eased 0.7% to $63.44 per barrel.
Reuters
4 days ago
- Business
- Reuters
Shares edge ahead in Asia, Nikkei futures near record peak
SYDNEY, Aug 11 (Reuters) - Major share indexes crept higher in Asia on Monday as upbeat company earnings underpinned high valuations in the tech sector, while a crucial report on U.S. inflation would likely set the course of the dollar and bonds. While Japan's stock market (.N225), opens new tab was closed for a holiday, futures climbed to 42,465 and suggested the index will test its all-time high of 42,426 this week. Trade and geopolitics loom large with a U.S. tariff deadline on China due to expire on Tuesday amid expectations it will get extended again, while President Donald Trump and Russian leader Vladimir Putin are due to meet in Alaska on Friday to discuss Ukraine. The main economic release will be U.S. consumer prices on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3% to an annual pace of 3.0% and away from the Federal Reserve target of 2%. An upside surprise would challenge market wagers for a September rate cut, though analysts assume it would have to be a very high number given a downward turn in payrolls is now dominating the outlook. "The tone from the Fed has shifted as a number of officials expressed concerns about growth following the July employment report," said Bruce Kasman, chief economist at JPMorgan. "We now expect the Fed to restart its easing cycle in September," he added. "Recession risks are elevated at 40%, but we do not yet see a case for a larger than 25bp series of cuts." Markets imply around a 90% probability of a September easing, and at least one more cut by year end. Trump's pick for Fed governor, Stephen Miran, may or may not be in place in time to vote for a cut in September, while the choice of a new chair has broadened out to around 10 contenders. The prospect of lower borrowing costs has supported equities, along with a run of strong earnings. Analysts at BofA note 73% of companies had beaten on earnings, well above the 59% long run average, while 78% beat on revenue. "While mentions of 'weak demand' ticked up and tariff concerns remain, corporate sentiment and guidance are improving," they said in a note. S&P 500 futures and Nasdaq futures both edged up 0.2% on Monday to near record highs. Analysts were unsure what to make of a report in the Financial Times that tech majors Nvidia (NVDA.O), opens new tab and AMD (AMD.O), opens new tab have agreed to give the U.S. government 15% of their revenues from chip sales in China, under an arrangement to obtain export licenses for the semiconductors. EUROSTOXX 50 futures added 0.2%, while FTSE futures rose 0.1% and DAX futures firmed 0.3%. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab gained 0.1%, while South Korea (.KS11), opens new tab was flat having bounced 2.9% last week. Chinese blue chips (.CSI300), opens new tab added 0.3% after data showed consumer price inflation ticked up in July, but producer prices kept falling as the country's massive manufacturing sector exported deflation to the rest of the world. Figures on industrial output and retail sales for July are due on Friday, and forecasts are for a slight slowdown after a jump the previous month. Currencies were quiet with markets thinned by Japan's absence, with the dollar index a fraction lower at 98.104 after slipping 0.4% last week. The euro added 0.2% to $1.1666 and further away from a recent trough of $1.1392, while the dollar dipped to 147.53 yen having met resistance around 147.90. The Australian dollar eased to $0.6520 ahead of a meeting of the Reserve Bank of Australia which is widely expected to sanction a rate cut, having stunned markets in July by skipping an easing to await more inflation data. The figures turned out benign, so investors have again fully priced a quarter-point cut to 3.60%. In commodity markets, gold fell 0.6% to $3,378 an ounce after wild swings last week on reports the U.S. would slap 39% tariffs on some gold bars, which are major exports of Switzerland. Gold futures pared gains on Friday when the White House said it planned to issue an executive order clarifying the country's stance on gold bar tariffs. Oil prices slipped amid risks the talks between Trump and Putin could make progress to a ceasefire in Ukraine and possibly an eventual easing of sanctions on Russian oil exports. Brent dropped 0.5% to $66.24 a barrel, while U.S. crude eased 0.6% to $63.48 per barrel.
Yahoo
4 days ago
- Business
- Yahoo
Shares edge ahead in Asia, Nikkei futures near record peak
By Wayne Cole SYDNEY (Reuters) -Major share indexes crept higher in Asia on Monday as upbeat company earnings underpinned high valuations in the tech sector, while a crucial report on U.S. inflation would likely set the course of the dollar and bonds. While Japan's stock market was closed for a holiday, futures climbed to 42,465 and suggested the index will test its all-time high of 42,426 this week. Trade and geopolitics loom large with a U.S. tariff deadline on China due to expire on Tuesday amid expectations it will get extended again, while President Donald Trump and Russian leader Vladimir Putin are due to meet in Alaska on Friday to discuss Ukraine. The main economic release will be U.S. consumer prices on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3% to an annual pace of 3.0% and away from the Federal Reserve target of 2%. An upside surprise would challenge market wagers for a September rate cut, though analysts assume it would have to be a very high number given a downward turn in payrolls is now dominating the outlook. "The tone from the Fed has shifted as a number of officials expressed concerns about growth following the July employment report," said Bruce Kasman, chief economist at JPMorgan. "We now expect the Fed to restart its easing cycle in September," he added. "Recession risks are elevated at 40%, but we do not yet see a case for a larger than 25bp series of cuts." Markets imply around a 90% probability of a September easing, and at least one more cut by year end. Trump's pick for Fed governor, Stephen Miran, may or may not be in place in time to vote for a cut in September, while the choice of a new chair has broadened out to around 10 contenders. The prospect of lower borrowing costs has supported equities, along with a run of strong earnings. Analysts at BofA note 73% of companies had beaten on earnings, well above the 59% long run average, while 78% beat on revenue. "While mentions of 'weak demand' ticked up and tariff concerns remain, corporate sentiment and guidance are improving," they said in a note. S&P 500 futures and Nasdaq futures both edged up 0.2% on Monday to near record highs. Analysts were unsure what to make of a report in the Financial Times that tech majors Nvidia and AMD have agreed to give the U.S. government 15% of their revenues from chip sales in China, under an arrangement to obtain export licenses for the semiconductors. EUROSTOXX 50 futures added 0.2%, while FTSE futures rose 0.1% and DAX futures firmed 0.3%. CHINA EXPORTS DEFLATION MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.1%, while South Korea was flat having bounced 2.9% last week. Chinese blue chips added 0.3% after data showed consumer price inflation ticked up in July, but producer prices kept falling as the country's massive manufacturing sector exported deflation to the rest of the world. Figures on industrial output and retail sales for July are due on Friday, and forecasts are for a slight slowdown after a jump the previous month. Currencies were quiet with markets thinned by Japan's absence, with the dollar index a fraction lower at 98.104 after slipping 0.4% last week. The euro added 0.2% to $1.1666 and further away from a recent trough of $1.1392, while the dollar dipped to 147.53 yen having met resistance around 147.90. The Australian dollar eased to $0.6520 ahead of a meeting of the Reserve Bank of Australia which is widely expected to sanction a rate cut, having stunned markets in July by skipping an easing to await more inflation data. The figures turned out benign, so investors have again fully priced a quarter-point cut to 3.60%. In commodity markets, gold fell 0.6% to $3,378 an ounce after wild swings last week on reports the U.S. would slap 39% tariffs on some gold bars, which are major exports of Switzerland. [GOL/] Gold futures pared gains on Friday when the White House said it planned to issue an executive order clarifying the country's stance on gold bar tariffs. Oil prices slipped amid risks the talks between Trump and Putin could make progress to a ceasefire in Ukraine and possibly an eventual easing of sanctions on Russian oil exports. [O/R] Brent dropped 0.5% to $66.24 a barrel, while U.S. crude eased 0.6% to $63.48 per barrel. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Shares edge up in Asia, US inflation data looms large
By Wayne Cole SYDNEY (Reuters) -Major share indexes crept higher in Asia on Monday as upbeat company earnings underpinned high valuations in the tech sector, while a crucial report on U.S. inflation would likely set the course of the dollar and bonds. Trade and geopolitics also loom large with a U.S. tariff deadline on China due to expire on Tuesday amid expectations it will get extended again, while President Donald Trump and Russian leader Vladimir Putin are due to meet in Alaska on Friday to discuss Ukraine. The main economic release will be U.S. consumer prices on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3% to an annual pace of 3.0% and away from the Federal Reserve target of 2%. An upside surprise would challenge market wagers for a September rate cut, though analysts assume it would have to be a very high number given a downward turn in payrolls is now dominating the outlook. "The tone from the Fed has shifted as a number of officials expressed concerns about growth following the July employment report," said Bruce Kasman, chief economist at JPMorgan. "We now expect the Fed to restart its easing cycle in September," he added. "Recession risks are elevated at 40%, but we do not yet see a case for a larger than 25bp series of cuts." Markets imply around a 90% probability of a September easing, and at least one more cut by year end. Trump's pick for Fed governor, Stephen Miran, may or may not be in place in time to vote for a cut in September, while the choice of a new chair has broadened out to around 10 contenders. The prospect of lower borrowing costs has supported equities, along with a run of strong earnings. Analysts at BofA note 73% of companies had beaten on earnings, well above the 59% long run average, while 78% beat on revenue. "While mentions of 'weak demand' ticked up and tariff concerns remain, corporate sentiment and guidance are improving," they said in a note. S&P 500 futures and Nasdaq futures both edged up 0.1% to near record highs. Analysts were unsure what to make of a report in the Financial Times that tech majors Nvidia and AMD have agreed to give the U.S. government 15% of their revenues from chip sales in China, under an arrangement to obtain export licenses for the semiconductors. Japan's stock market was closed for a holiday, but futures stood at 42,290 and well above the cash close of 41,820, suggesting the index could test its all-time high of 42,426 this week. MSCI's broadest index of Asia-Pacific shares outside Japan was a fraction firmer, while South Korea was flat having bounced 2.9% last week. EUROSTOXX 50 futures added 0.2%, while FTSE futures were flat and DAX futures firmed 0.3%. Currencies were quiet with markets thinned by Japan's absence, with the dollar index steady at 98.246 after slipping 0.4% last week. The euro was flat at $1.1644 and comfortably above its recent trough of $1.1392, while the dollar held at 147.66 yen having met resistance around 147.90. The Australian dollar eased to $0.6516 ahead of a meeting of the Reserve Bank of Australia which is widely expected to sanction a rate cut, having stunned markets in July by skipping an easing to await more inflation data. The figures turned out benign, so investors have again fully priced a quarter-point cut to 3.60%. In commodity markets, gold dipped 0.3% to $3,386 an ounce after wild swings last week on reports the U.S. would slap 39% tariffs on some gold bars, which are major exports of Switzerland. [GOL/] Gold futures pared gains on Friday when the White House said it planned plans to issue an executive order clarifying the country's stance on gold bar tariffs. Oil prices slipped amid risks the talks between Trump and Putin could make progress to a ceasefire in Ukraine and possibly an eventual easing of sanctions on Russian oil exports. [O/R] Brent dropped 0.6% to $66.22 a barrel, while U.S. crude eased 0.7% to $63.44 per barrel. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
