A Peek Into The Markets: US Stock Futures Edge Higher Ahead Of Earnings, Fed Decision

… General Electric Company (NYSE: GE) and Paypal Holdings Inc (NASDAQ: PYPL) and QUALCOMM, Inc. (NASDAQ: QCOM). An advance report on …

Pre-open movers

U.S. stock futures traded slightly higher in early pre-market trade, after recording a rise in the earlier session. Investors are awaiting earnings results from Boeing Co (NYSE: BA), General Motors Company (NYSE: GM), General Electric Company (NYSE: GE) and Paypal Holdings Inc (NASDAQ: PYPL) and QUALCOMM, Inc. (NASDAQ: QCOM). An advance report on U.S. international trade in goods and wholesale inventories for June will be released at 8:30 a.m. ET. The pending home sales index for June is scheduled for release at 10:00 a.m. ET. The Federal Reserve is expected to announce its policy decision at 2:00 p.m. ET, while the Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 4,352,080 with around 149,250 deaths. Brazil confirmed over 2,483,190 cases, while India reported a total of at least 1,531,660 confirmed cases.

Futures for the Dow Jones Industrial Average gained 13 points to 26,310 while the Standard & Poor’s 500 index futures traded rose 6 points to 3,219.00. Futures for the Nasdaq 100 index climbed 43.5 points to 10,583.50.

Oil prices traded higher as Brent crude futures rose 0.9% to trade at $44.00 per barrel, while US WTI crude futures rose 0.8% to trade at $41.37 a barrel. The Energy Information Administration’s weekly report on petroleum inventories in the U.S. is scheduled to release at 10:30 a.m. ET.

A Peek Into Global Markets

European markets were mostly higher today, with the Spanish Ibex Index falling 0.4% and STOXX Europe 600 Index climbing 0.2%. The UK’s FTSE index was trading higher by 0.4%, while French CAC 40 Index rose 0.9% and German DAX 30 declined 0.1%.

In Asian markets, Japan’s Nikkei fell 1.15%, Hong Kong’s Hang Seng Index gained 0.45%, China’s Shanghai Composite Index gained 2.06% and India’s BSE Sensex fell 0.9%.

Broker Recommendation

Analysts at KeyBanc upgraded Quest Diagnostics Inc (NYSE: DGX) from Sector Weight to Overweight and announced a $144 price target.

Quest Diagnostics shares fell 0.5% to close at $123.46 on Tuesday.

Breaking News

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Gold Hits Record High As US-China Relations Deteriorate Further, Bitcoin Crosses $10000 Mark

The rise in Ethereum (ETH), the world’s second largest cryptocurrency after Bitcoin in terms of market valuation, has been even more spectacular, with …

As China and the United States forced each other’s consulates to close in key cities, investors flocked to safe-havens, driving gold prices to a record high, while market sentiment remained mixed in Asia on Monday.

Safe Havens, Bitcoin Extend Gains

Spot gold traded a record 1.75% higher at $1,934.9 against the dollar, surpassing the previous peak hit in September 2011.

Aggressive money printing adopted by central banks since the COVID-19 pandemic is raising fears among some investors of rampant inflation, Reuters noted earlier. This is being attributed to a preference towards safe-haven investments.

Goldman Sachs Group predicted Gold reaching $2,000 levels in the next 12 months, with Citigroup saying there is a 30% chance of that level being reached by the end of 2020, Bloomberg reported.

Chris Weston, head of research at Pepperstone Group in Melbourne, told Bloomberg, “If we think about real yields and what the Fed is doing, it just suggests to me that it’s a matter of time before real yields continue to trend lower and gold goes higher.”

It is typical for investors to seek non-country specific or other safer assets during times of geopolitical crises.

The rise of the yellow metal was accompanied by U.S. dollar falling against the Japanese yen at 105.48.

Bitcoin (BTC), which is sometimes touted as digital gold, crossed the $10,000 mark on Monday, a level not breached since June 2. It traded 5.67% higher at $10,237.78 at press time, according to CoinMarketCap data.

The rise in Ethereum (ETH), the world’s second largest cryptocurrency after Bitcoin in terms of market valuation, has been even more spectacular, with the asset rising 30% this week. Ethereum traded 6.76% higher at $323.34 at press time.

Asian Markets Retreat

The markets in Asia were mixed towards the end of their trading sessions. Japan’s Nikkei 225 index traded almost flat, down 0.16%, and South Korea’s KOSPI was up 0.8%.

Hong Kong’s Hang Seng Index was in the red by 0.44%. Mainland China’s Shanghai Composite was up 0.26% and Shenzhen Component was up 0.3%.

Shares in Asia were mainly supported by gains in technology stocks. Taiwan Capitalization index added 2.3% in the day, with Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM) mostly trading at the maximum 10% surge throughout the day, after rival Intel Corporation (NASDAQ: INTC) said it was delaying the production of 7nm chips to 2022 at least.

US Futures Suggest Higher Open

The U.S. futures traded higher early Monday. S&P 500 futures were up 0.2%, Dow futures traded 0.17% higher, and Nasdaq futures were up 0.4% at press-time.

Federal Reserve officials are reportedly meeting on Tuesday and Wednesday and it is expected they will maintain a near zero-rate policy, Bloomberg noted.

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Hong Kong stocks surrender gains with third wave of coronavirus in focus; gold miners advance

The founder of Bridgewater Associates sees a possibility in the US government banning investment in China, according to an interview aired on Fox …

Hong Kong stocks fell on Monday as worries over the worsening third wave of Covid-19 outbreak in the city overwhelmed earlier enthusiasm about technology stocks. Gold-mining companies had a field day as price set a new all-time high.

The Hang Seng Index declined 0.4 per cent to close at 24,603.26, giving up gains of as much as 1.1 per cent advance in the opening hour. The Hang Seng Tech Index, a new gauge tracking 30 largest new economy and other technology companies, declined 1.3 per cent on its debut. Market turnover fell to HK$126 billion (US$16 billion) from HK$168 billion on Friday.

In mainland China, the Shanghai Composite Index added 0.3 per cent to 3,205.23, while the CSI 300 of large caps in Shanghai and Shenzhen gained 0.5 per cent to 4,528.45. Turnover on both exchanges was 927 billion yuan (US$132 billion), snapping a 17-session streak of breaking the 1 trillion yuan level.

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Optimism that sent technology stocks such as Tencent Holdings flying in early trading quickly dissipated when concerns over the development of new coronavirus cases dominated, a turn of events that prompted the Hong Kong government to tighten containment measures.

“The market was earlier hopeful that new money would flow in to buy technology stocks. But it has since gone back to focusing on the fundamental side of things, which are the coronavirus and the US-China tensions,” said Kevin Leung, executive director of investment strategy at Haitong International Securities in Hong Kong.

Hong Kong has banned dining at restaurants, tightening the social distancing measures as the city recorded its 19th death related to the Covid-19 disease on Monday. As many as 128 cases of infection were reported on Sunday, the fifth straight day of triple-digit infections.

In Hong Kong, property stocks led the decline. Home builder and shopping centre owner New World Development slid 2.8 per cent to HK$36.20. Sun Hung Kai Properties, the city’s largest developer by market value, shed 0.9 per cent to HK$91.65.

HSBC, Europe’s largest bank, fell 1.8 per cent to HK$35.35, after publishing a statement on Chinese social media on Saturday to defend its role in the United States’ inquiry of Chinese telecom giant Huawei Technologies.

HSBC takes to WeChat social network to deny ‘framing’ Huawei in US investigations

Smoore International, a Shenzhen-based maker of e-cigarette, bucked the downward market. The stock surged 12.5 per cent to HK$42.20, extending a rally since it went public on July 9. The stock has risen 240 per cent from its listing price of HK$12.40.

Sentiment turned sour quickly on technology stocks as investors weighed the impact of Covid-19 cases and escalating political tensions between Beijing and Washington.

Index heavyweight Tencent Holdings, China’s online gaming and social media giant, declined 1.5 per cent to HK$520. Food delivery group Meituan Dianping fell 3 per cent to HK$185. Smartphone acoustic component maker AAC Technologies traded 1.2 per cent lower at HK$56.75.

They are among the biggest components in the Hang Seng Tech Index.

Fund managers expect ETFs tracking Hang Seng Tech Index to take off as investors seek a piece of the red hot industry

Gold miners surged after the price of the yellow metal jumped 2 per cent to US$1,940.1 per ounce, setting a fresh intraday all-time high record. Rising geopolitical tensions between the world’s two largest economies pushed investors into the safe haven commodity, while a weakening US dollar also boosted the rally.

US billionaire hedge fund manager Ray Dalio warned tensions between China and the US could escalate into a “capital war”. The founder of Bridgewater Associates sees a possibility in the US government banning investment in China, according to an interview aired on Fox News.

Shandong Gold Group, a state-owned gold miner based in eastern China, jumped 12.4 per cent to HK$24.90. Zijin Mining Group, based in the southeastern city of Xiamen, rose 6.8 per cent to HK$5.

Investors are also waiting for signals on the direction of global monetary policies from a scheduled US Federal Reserve meeting on Tuesday and Wednesday. The market expects no major shift in strategy from the meeting, after Fed officials promised to keep interest rates at “near-zero” level until the economy has withstood the test of the Covid-19 pandemic.

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Hong Kong launches share index of technology giants

Ant Group, a financial technology (fintech) firm, also wants to list on China’s tech-centric Star stock market as it shuns a US stock market listing.
The Hang Seng TECH Index went live on Monday and includes internet giant Alibaba.Image copyrightGetty Images

A new share index focused on China’s technology giants has been launched by Hong Kong’s stock market.

The Hang Seng Tech Index went live on Monday and includes internet giants such as Tencent, Alibaba and JD.com.

It will feature 30 of the largest tech firms listed in Hong Kong, which are among the world’s biggest companies.

The new index comes as Chinese tech firms face greater scrutiny in the US, with many looking at listings in both Hong Kong and China.

Jack Ma, the billionaire founder of Alibaba, recently announced plans to list its affiliate financial arm Ant Group in Hong Kong.

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Chinese stocks plunge and lead global markets lower as investors weigh escalating US-China …

The number was above Bloomberg consensus estimates of 1.3 million. Advertisement. Read More: An Andreessen Horowitz partner explains 3 big …
  • Global stocks tanked on Friday as investors weighed tensions between the US and China worsening at an exponential pace.
  • On Friday, China ordered the closing down of a US consulate in its city Chengdu in retaliation to a request to shut down its own consulate in Houston.
  • “This is a legitimate & necessary response to the unilateral provocative move by the US to demand the closure of China’s Consulate General in Houston,” China’s foreign ministry spokesperson said in a tweet.
  • Investors are contemplating a serious escalation in US-China tensions that run far beyond the risk of “mere tariffs” and a looming lurch lower in the US economy, Rabobank analysts said.
  • Chinese mainland stocks dived almost 4%, while equities in Europe were about 1% lower during morning trade.
  • Visit Business Insider’s homepage for more stories.

Global markets slid on Friday amid mounting geopolitical tensions between the US and China, after Beijing ordered the closure of a US consulate in the city of Chengdu.

China’s benchmark Shanghai index fell 3.8% and Hong Kong’s Hang Seng dropped 2.3%. Futures tied to the S&P 500 fell 0.5% in European trade Friday.

Stocks fell as China ordered the winding down of the US consulate in its southwestern city Chengdu and on news that it might refuse to obey a request to shut down its consulate in Houston, Texas.Advertisement

Of the move, China’s foreign ministry spokesperson said in a tweet: “This is a legitimate & necessary response to the unilateral provocative move by the US to demand the closure of China’s Consulate General in Houston.”

Both unemployment figures and slow progress on the next US fiscal stimulus package are likely to have contributed to the fall in US stocks.

The latest US jobless claims, totalling 1.42 million, marked the first increase in 15 weeks. The number was above Bloomberg consensus estimates of 1.3 million.


Read More:An Andreessen Horowitz partner explains 3 big cybersecurity trends that are winning out because of COVID-19 — and the hardest part about starting a new company during the crisis

China’s ordering of the closure of the Chengdu consulate followed an inflammatory speech from US Secretary of State Mike Pompeo on Thursday, in which he called on “free nations” to triumph over China’s “new tyranny.” “Today China is increasingly authoritarian at home, and more aggressive in its hostility to freedom everywhere else,” he said.Advertisement

In response to his speech, China’s spokesperson said: “What he is doing is as futile as an ant trying to shake a tree.”

Pompeo also reportedly said in a private meeting with UK politicians that the head of the World Health Organisation, Tedros Adhanom Ghebreyesus, was “bought by the Chinese government.”

“Markets can now contemplate a serious escalation in US-China tensions that runs far beyond the risk of mere tariffs; and of a looming lurch lower in the US economy, which might necessitate even more focus on foreign policy as a distraction,” Rabobank analysts said in a note.Advertisement

Read more:Buy these 19 cheap healthcare stocks poised to beat the market regardless of election outcome and the fate of Obamacare, BTIG says

Here’s the market roundup as of 12.55 p.m. in London (7.55 a.m. ET):

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