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The market minute of Thursday
- Global equities were slightly more stable, as investors expect a potential thaw in trade tensions between the US and China, which should bolster bullish sentiment.
- European markets, however, began cautiously before the political meetings of the Bank of England and the European Central Bank.
- The US dollar index is down as confidence improves, traders also citing yesterday 's surprise drop in inflation at the exit of the factory.
- The global downward trend in oil prices due to demand issues related to global trade, but the collapse of US crude stocks, as well as impending Iranian sanctions, provide price support.
- US equity futures are rising in the context of improving sentiment globally.
Snapshot of the market
Global equities were generally firmer on Thursday, as investors reacted to a small step forward in US-China trade war negotiations, helping Asian equities rebound after more than a year earlier.
European equities, however, should proceed more cautiously during the morning session before the policy meetings of the European Central Bank and the Bank of England, which will be scrupulously scrutinized for how they will react to the upcoming exit of Great Britain. of the European Union and the wider economic uncertainty related to developments in Italy and Turkey.
US equity futures declined slightly at 3:00 am ET, but improved in the following hours, indicating a 58-point gain for the Dow Jones Industrial Average.
Asian stocks posted strong gains on Thursday after White House economic adviser Larry Kudlow told reporters in Washington that Treasury Secretary Steve Mnuchin had urged Chinese officials to restart trade negotiations with the US. President Donald Trump. products made in China after the November elections, due to growing pressure from US business leaders.
"There are discussions and information we have received that the Chinese government – the Chinese government summit wanted to continue negotiations," Kudlow told Fox News on Wednesday. "Thus, Secretary Mnuchin, who is China's team leader, apparently issued an invitation."
#Shanghai The composite advanced 1.2% to 2686 thanks to the US proposal for new trade negotiations with China, a 5-day moving average retrieved.
Shenzhen Component and Chinaxt rose 0.65% and 0.4%.
Financial stocks and defense stocks dominated gains, while the health care sector was in correction. pic.twitter.com/MTSE51gdXe– YUAN TALKS (@YuanTalks) September 13, 2018
The Chinese Ministry of Commerce confirmed the receipt of the invitation on Thursday and said in a statement that he hoped the two sides could avoid escalating the current rhetoric of the trade war. The ministry also urged the United States to comply with WTO rules, a reference to their decision to impose US $ 7 billion worth of sanctions on US goods related to a 2013 anti-dumping dispute.
The potential thaw of tensions between the two largest global economies revived the MSCI Asia ex-Japan index, the largest measure of regional prices, up 0.6% at Thursday's session. 0.96% to end the session at 22,821.32 points.
European equities rose in morning trading, with the Stoxx 600 up 0.14% as regional benchmarks posted solid gains. The British FTSE 100, however, was 0.27% lower than its previous close, with traders preferring to wait until the BoE decision at noon and an emergency meeting of British Prime Minister Theresa May. discuss preparations for a "no transaction" Brexit.
The European supply chain of Apple Inc. (AAPL), however, traded a much higher turnover than the group, which unveiled new iPhones, watches and other gadgets that collectively increase the average selling price of its flagship product. about $ 800.
Action Alerts PLUS, which held Apple stocks, recorded a 0.24% rise on Thursday, indicating an opening price of $ 221.60 each, a move that would help recover some of the decline in shares. yesterday a little over 30%.
The Austrian company AMS AG (AMSSY), which accounts for around 35% of its chip sales to Apple, recorded a 2.76% increase in market opening, while Dialog Semiconductor plc (DLGNF ), listed in Frankfurt, gained 1.52%. STMicroelectronics (STM) jumped 2.6% in Amsterdam.
Tesla Inc. (TSLA) shares retreated in pre-market transactions after founder and CEO Elon Musk added to the group's recent problems by warning customers that they might see "longer response times" ". North American volumes.
Tesla shares were down 1.22% on Thursday, showing an opening price of $ 287.00 each, leaving the stock at $ 16 more than last week's low , but still 133 dollars less than the target of Musk take the private company to $ 420 per share.
The US dollar index, which compares the greenback to a basket of six global currencies, slipped to 94.93 at the start of European trading, about 0.25% lower than at the same time yesterday, in part because of the more optimistic US output market yesterday, which slowed for the first time in eighteen months.
That said, Federal Reserve officials have been keen to assure the markets that the central bank will not shrink from its tariff path, Fed Governor Lael Brainard said the strength of the national economy would allow rates to rise. . year and following.
The bond market reaction, however, was overshadowed by strong demand for a $ 23 billion 10-year note auction yesterday, which sparked stronger-than-expected interest from so-called indirect bidders, consisting of investors. foreign buyers, including governments. , and contributed to lower borrowing costs and Treasury yields, with benchmark indices trading at 2.952% in European transactions.
World oil prices were equally complicated as investors scrutinized a series of contradictory signals that collectively pushed prices down early in the session, but the International Energy Agency reduced its forecast of 200 000 barrels a day, while various figures show that OPEC members increased production by 278,000 barrels last month.
US crude stocks also fell below 400 million barrels last week, the Energy Information Administration said yesterday, which, with the impending sanctions on the sale of Iranian crude in just two months, should drive up world prices.
Brent crude contracts for November delivery were, however, 25 cents lower at $ 79.04 per barrel, while WTI contracts for the same months fell 50 cents to $ 69.66 per barrel.
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