Breaking News
0

Global stocks recover but disquiet over trade talks lingers

Stock MarketsOct 10, 2019 01:51AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Hideyuki Sano

TOKYO (Reuters) - Global stocks recouped early losses as news reports raised hopes that the United States and China would settle some economic disputes, but investors were kept on edge by an earlier report that trade talks due to begin on Thursday could be cut short.

U.S. S&P500 mini futures (ESc1) traded down 0.1%, with a big part of early losses cut after the New York Times reported Washington will soon issue licenses allowing some U.S. firms to supply non-sensitive goods to China's Huawei Technologies.

Another report, from Bloomberg, that the White House is looking at rolling out a previously agreed currency pact with China, also raised hopes of a partial deal and helped to lift risk assets.

MSCI's broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) gained 0.24% while Japan's Nikkei (N225) rose 0.34%. Shanghai shares (SSEC) also rose 0.49%.

European stocks are on course to open higher, with pan-European Euro Stoxx 50 futures (STXEc1) rising 0.17% in Asian trade.

Earlier U.S. stock futures slumped as much as 1.3%, as the South China Morning Post (SCMP) reported the Chinese delegation, headed by Vice Premier Liu He, was planning to leave Washington after just a day of minister-level meetings, instead of as originally planned on Friday.

Top negotiators from the two countries were scheduled to meet in Washington on Thursday and Friday to try to end a bruising 15-month-old trade war.

Though there were some conflicting reports on whether Liu's plans have been changed, many market players remained cautious.

Without significant progress, U.S. President Donald Trump is set to hike the tariff rate on $250 billion worth of Chinese goods to 30% from 25% next Tuesday.

"Barring any surprise today, it looks like their talk is breaking down. The tariff will be hiked. The situation looks dire," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE:MS) Securities.

China is unlikely to be willing to make an easy compromise with a U.S. president who seems increasingly vulnerable to domestic political pressure as opposition Democrats seek to impeach him, analysts also said.

U.S. Democratic presidential contender Joe Biden called for the impeachment of Trump for the first time in a deepening partisan fight over a congressional investigation of the Republican president.

"Mr. Trump's recent impeachment risk has turned the timetable against him, Chi Lo, senior economist at BNP Paribas (PA:BNPP) Asset in Hong Kong, wrote in a report to clients.

"While China is not eager to reach a trade deal, Mr. Trump is, however, under pressure to get at least a temporary deal done to help his re-election bid before his impeachment risk rises and the U.S. economy weakens further," Chi said.

In the currency market, the offshore yuan reversed early losses to gain 0.3% to trade at 7.1148 per dollar following the Bloomberg report about a U.S.-China currency pact.

"The yuan rose on expectations of a currency pact. If there will be such an agreement, the yuan could rise to 6.9 to the dollar. But the trouble is, no one knows what's in that pact that they had reportedly agreed in February," said Ei Kaku, currency strategist at Nomura Securities.

In the onshore trade, the renminbi gained 0.25% to 7.1130 .

The safe haven yen and Swiss franc gave up most of their early gains.

The yen last stood almost flat at 107.56 while the Swiss franc traded at 0.9946 franc per dollar , about 0.1% higher than late U.S. levels. The euro firmed slightly to $1.0986 (EUR=).

Sterling wobbled near one-month lows against the dollar and the euro as hopes of a break-through on a key sticking point for a Brexit deal were dashed.

Northern Ireland's Democratic Unionist Party, a coalition partner in the British government, said it would emphatically oppose a reported European Union concession on the Irish backstop under any Brexit deal.

The pound last stood at $1.2227 , up 0.2% for the day but still not far from Tuesday's five-week low of $1.2196.

The Turkish lira retreated to six-week lows as Turkish troops, together with their Syrian rebel allies, attacked Kurdish militia in northeast Syria, opening a fresh chapter in Syria's eight-year-old civil war.

The lira fell to 5.8777 per dollar , the lowest since its flash crash on Aug. 26.

U.S. Treasuries yield slipped back after having risen to 1.594% on Wednesday, pressured partly by this week's heavy bond supply.

The 10-year Treasuries yield dipped to one basis point to 1.577% (US10YT=RR).

The price of front-end Fed funds rate futures gained on increasing bets on more rate cuts by the U.S. Federal Reserve.

The November contract is almost fully pricing in a 0.25 percentage point cut on Oct. 30.

Oil prices also slid on wariness over U.S.-China talks. Brent crude (LCOc1) futures fell 0.15% to $58.23 a barrel while U.S. West Texas Intermediate (WTI) crude (CLc1) lost 0.11% to $52.53 per barrel.

Global stocks recover but disquiet over trade talks lingers
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Adamo Nals
Adamo Nals Oct 10, 2019 2:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It’s a joke. We do more trade with Canada and Mexico. And everyone is focusing on China. China doesn’t matter as much asthe USMCA. Jesus Christ do some due diligence people and Wall Street
André Uruguay
André Uruguay Oct 10, 2019 2:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Indeed. But China is still a considerable slice of this pie:https://www.forbes.com/sites/kenroberts/2019/04/26/mexico-is-now-top-u-s-trade-partner-ahead-of-china-canada/
Andrew Paeth
Andrew Paeth Oct 10, 2019 2:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
We primarily trade energy, natural resources, and agricultural products due to proximity with Canada and Mexico. The trade war was/is more about balanced reciprocation, currency manipulation and intellectual rights.
Jon Buh
Jon Buh Oct 10, 2019 1:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no matter what it takes, usa is gonna take down china to defend #1 nation title
Patrick Mueller
Patrick Mueller Oct 09, 2019 8:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
...Trump's just playing, he doesn't really mean what he says, he doesn't really say what he means, just like you're reading this right now, you might remember it later, or you may not...
Zambi rambi
Zambi2019 Oct 09, 2019 8:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You got it correct
Daniel Lim
Daniel Lim Oct 09, 2019 8:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Indeed. Nothing is new here. Same old drama.
Edhi Pranasidhi
Edhi Pranasidhi Oct 09, 2019 8:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
when enough can not be found in trump's list of vocabulary...
Tumelo Mash
Tumelo Mash Oct 09, 2019 7:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump Is gonna be fuming... Prepare for more tariffs... This is bad for all of us... Regardless of our investments we need a trade deal. We are trading on fear nowadays
Brad Dover
Brad Dover Oct 09, 2019 7:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I sure am glad trump is making America great again...I would hate to see what making it crappy again looks like
Jeffrey Campbell
Jeffrey Campbell Oct 09, 2019 7:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The markets have become pawns in Trumps Sino-American tariff gamemanship ploy.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email