Photographer: Andrew Harrer / Bloomberg
Photographer: Andrew Harrer / Bloomberg
Shares in China climb after the central bank injected cash Hopes of hoping for more supportive monetary policy, with stocks trading elsewhere mixed as investors rated US-China bonds. The dollar slipped.
The Shanghai composite was more than 2% higher after the People’s Bank of China squandered liquidity in the financial system to support banks. Hong Kong I came up. Shares in Japan and Australia were lower along with European futures for equities. S&P 500 contracts rose and crude oil rose. Gold fell, built on last week’s slide. Treasuries were stable, with the yield of 10 years at 0.70%.
The US and China have postponed the talks planned for the weekend which focused on progress on the six-month mark of their phase-one trade agreement, people familiar with the matter said. Friction remains between the two powers in the midst of the re-election of President Donald Trump. Trump on Friday officially ordered the Chinese owner of the popular music video app TikTok to sell his American possessions, citing national security reasons.
The nearly 50% recovery in global equities since the March downturns has kept an MSCI gauge close to its full-time high as investors bet on central banks and governments will continue to provide support for sick economies trying to recover to beat virus shutdowns. Minutes to be released Wednesday from the Federal Reserve’s last policy meeting could provide clues as to whether officials plan to introduce new language in September.
“The economy will continue to reopen as we move into the end of this year,” Brett Ewing, chief market strategist at First Franklin Financial Services, told Bloomberg TV. “If you can buy into that story, you have to be ahead of money flowing into these value and economic stocks – if you wait for a fax to come out, you’ll probably miss the biggest opportunity right now.”
Elsewhere, the New Zealand dollar did not change much as the country’s elections were delayed due to a deteriorating coronavirus situation.
Here are some important events to come:
- Revenues include Alibaba, JD.com, Walmart, Home Depot, BHP Group, Nvidia and Qantas.
- The report of the inventory of crude oil comes out on Wednesday.
- U.S. unemployment claims for the week ending August 15 are due Thursday.
- China’s prime interest rate is due on Thursday.
- On Friday, PMIs for euro area will come.
China and the US have postponed indefinite trade talks that were to take place over the weekend. No official reason was given.
These are the main movements in markets:
Shares
- Futures on the S&P 500 index added 0.3% from 5:30 am in London.
- The Japanese Topix index fell 0.6%.
- Hang Seng from Hong Kong added 1.3%.
- Shanghai Composite rose 2.3%.
- Australia’s S & P / ASX 200 index fell 0.7%.
- Euro Stoxx 50 futures fell 0.2%.
Currency
- The yen gained 0.1% to 106.54 per dollar.
- The offshore yuan traded at 6.9373 per dollar, up 0.1%.
- The euro bought $ 1.1859, up 0.1%.
- The Bloomberg Dollar Spot Index slipped 0.1%.
Bonds
- The yield on 10-year Treasury dipped to 0.70%.
- Australia’s 10-year yield was at 0.91%.
Commodities
- West Texas Intermediate crude rose 0.8% to $ 42.34 per barrel.
- Gold fell 0.2% to $ 1,941.60 an ounce.
– With the help of Justina Vasquez, Joanna Ossinger, and Cormac Mullen
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