stock Archives - Desmond Gibbons & Co.

Stock markets boosted by fresh trade hopes

Stock markets boosted by fresh trade hopes

Renewed hopes for trade talks boosted stock markets today after China said it would not retaliate against the latest US tariffs, setting up a positive end to a volatile week.

New trade optimism helped alleviate gloom about predictions for a coming slowdown in the world economy, analysts said.

“We may be facing up to the reality of recession but optimism continues to flow through the veins of investors following comments from the Chinese Commerce Ministry on Thursday,” said Craig Erlam, senior market analyst at Oanda trading group.

The easing tensions helped China’s yuan strengthen slightly against the dollar, having fallen to an 11-year low earlier in the week.

Sterling rose after heavy Brexit-fuelled losses earlier in the week.

Across the Atlantic, US stock markets were higher at the opening bell.

Dealers brushed off data showing the US economy grew at a slower pace than initially thought in the second quarter.

Those figures were mitigated by the fact that consumer spending remained strong.

Article Source: Click Here

Stock markets higher on hopes for stimulus, trade progress

Stock markets higher on hopes for stimulus, trade progress

European shares are up for the third straight session, building on a recovery since late last week. Shares in Asia also rose in overnight trade.

Global stocks rallied at the start of the trading week on rising optimism about stimulus measures in China and Germany as investors welcomed more conciliatory signs in the long-running US-China trade war.

Germany’s central bank, the Bundesbank, warned that Europe’s biggest economy could enter a recession in the third quarter, a statement that further fueled expectations that a stimulus program would be coming.

Market watchers also expect further stimulus measures by China to boost growth.

They’re confident too that Federal Reserve Chair Jerome Powell will communicate dovish direction at a big central bank gathering at the end of the week in Jackson Hole, Wyoming.

Analysts also cited the Trump administration’s decision to delay by 90 days a ban on US companies doing business with Huawei.

The move is seen as a conciliatory step in the running US-China trade fight and coming on the heels of statements from US President Donald Trump and other top administration officials emphasizing efforts to revive talks with Beijing.

Article Source: Click Here

Global stocks hold highs in rate-cut bet

Global stocks hold highs in rate-cut bet

World stocks held near two-week highs as investors bet on a worldwide wave of central bank stimulus, with expectations growing that the US and the eurozone may deliver interest rate cuts as early as July.

Markets have been fired up by European Central Bank president Mario Draghi’s Tuesday volte-face on policy easing. In one of the biggest policy reversals of his eight-year tenure, Draghi flagged more easing if inflation failed to pick up.

But some caution seeped in after the previous day’s frenzy.

German and US bond yields, which hit record lows and two-year lows respectively after Draghi’s comments, inched around three basis points higher on the day.

European shares slipped off six-week highs and Wall Street futures indicated a slightly weaker opening on Wednesday.

Some of the trepidation is down to expectations that US Federal Reserve would follow the lead of the European Central Bank and open the door to future rate cuts.

“We see now that central banks will try assertively to generate inflation so this would reinforce our positivity on risk assets overall,” said Justin Onuekwusi, portfolio manager at Legal & General Investment Management.

Market sentiment has been buoyed also by news that Trump will meet Chinese leader Xi Jinping at the G20 summit this month, even though many doubt the two men can reach a breakthrough on ending their trade dispute.

MSCI’s global equity index rose 0.4pc, adding to Tuesday’s 1pc gain, as Asian shares excluding Japan followed the lead of their European and US counterparts to jump almost 2pc – their biggest one-day rally since January.

Tokyo and Shanghai also climbed almost 2pc while Australia’s main bourse hit an 11-year high. New York’s S&P500 jumped almost 1pc on Tuesday to approach recent record highs.

All eyes are now on the Fed, with chairman Jerome Powell holding a news conference after the announcement.

As for Europe, markets have almost fully priced a cut in September, though some analysts, such as those at Germany’s Commerzbank, now say rates will be cut as early as July.

Article Source: Click Here