Stocks advance on fall in bond yields as Nvidia optimism boosts Nasdaq

NEW YORK -- Global stocks mostly rose Wednesday following lackluster economic reports that mitigated worries about further central bank tightening.

The tech-rich Nasdaq enjoyed outsized gains in anticipation of earnings from artificial intelligence player Nvidia.

Analysts said stocks were supported by a drop in yields of the 10-year US Treasury note, which had hit multi-year peaks in recent sessions.

The retreat in yields followed meager purchase managing index data from the United States and Europe, suggesting a slowing economy.

The drop in yields "created a little bit of an opportunity to buy on some of the weakness," said Briefing.com analyst Patrick O'Hare.

All three major US indices climbed, with the Nasdaq jumping 1.6 percent.

European markets closed higher following data showing Britain's economic activity contracting for the first time in six months while the downturn in the eurozone deepened.

Sentiment has taken a hit in recent weeks owing to a spike in US Treasury yields to around 15-year highs, fueled by expectations that a strong economy will force the Federal Reserve to stick to its campaign of monetary tightening.

That has forced investors to push back their expectations as to when borrowing costs will eventually come down -- just a few months ago, they were betting on a cut by the end of the year.

All eyes are on a planned speech Friday by Fed chief Jerome Powell, with dealers hoping for some clarity on its plans to keep inflation on a downward path and confirmation of the central bank's two percent target.

Meanwhile, oil prices fell as the data showing weak economic activity doesn't bode well for demand.

"Today’s disappointing economic numbers on both sides of the Atlantic have cut the rug out from underneath crude oil prices, falling to one-month lows, and down over four percent from their peaks of earlier this month," said Michael Hewson at CMC Markets UK.

Nvidia

Tech shares were also buoyed by hopes that a strong Nvidia report would "get the market back on track," said O'Hare.

The firm's shares have rocketed this year, helping boost many other tech firms, even as traders fret over the impact of higher borrowing costs on their bottom lines.

In results released after Wednesday's closing bell, Nvidia crushed expectations.

The Silicon Valley-based chip company said sales doubled year-on-year to $13.5 billion in the latest completed quarter, leaving a net profit of $6.2 billion -- an eye-watering 843 percent higher than a year before.

Signaling that the boom in AI is still going strong, Nvidia said revenue in its current quarter would ramp up further to $16 billion.

Shares of Nvidia surged more than eight percent in after-hours trading.

Agence France-Presse

US stocks mostly fall as tech rally peters out

NEW YORK -- A rally in tech shares ran out of steam Tuesday, as US stocks mostly retreated amid worries over higher Treasury bond yields that offset investor appetite to keep buying equities.

European and Asian stocks pushed higher, following up on Monday's session in New York, which saw the tech-focused Nasdaq surge.

The Nasdaq eked out a 0.1 percent gain on Tuesday, but both the Dow and S&P 500 retreated.

"Today it's a sober mindset," said Interactive Brokers strategist Steve Sosnick.

He added that Monday's rally in tech shares was probably "overenthusiastic" in light of rising bond yields.

Stocks have been under pressure in August, most recently due to a spike in Treasury bond yields to multi-year peaks, on expectations that interest rates will stay higher for longer.

Markets are looking ahead to an address on Friday by Federal Reserve Chair Jerome Powell for clues on future monetary policy.

Powell "likely will continue to emphasize the Fed's laser-focus on taming inflation, even with the central bank's benchmark funds rate already at the highest level in 22 years," said a note from Charles Schwab.

There is also still unease among traders about the Chinese economy, with another small cut in interest rates doing little to allay fears of a painful slowdown.

While authorities have pledged a series of measures to get the post-Covid recovery back on track, there has been little detail and they are facing growing calls to unveil more wide-ranging stimulus.

Adding to the problems are fears about the country's property sector. A number of major developers, including Country Garden and Evergrande, are on the ropes with vast debts and struggling to meet interest obligations.

"Policy easing announcements intended to invigorate market confidence have fallen short of their desired impact," said SPI Asset Management's Stephen Innes.

Agence France-Presse

Grab's Nasdaq debut to set tone for Southeast Asian tech listings

SINGAPORE -- Grab, Southeast Asia's biggest ride-hailing and delivery firm, makes its market debut on Thursday after a record $40-billion merger with a special purpose acquisition company (SPAC), in a listing that will set the tone for other regional offerings.

The backdoor listing on Nasdaq marks the high point for the nine-year-old Singapore company that began as a ride-hailing app and now operates across 465 cities in 8 countries, offering food deliveries, payments, insurance and investment products.

Grab's rivals, including regional internet firm Sea and Indonesia's GoTo Group, are also bulking up, with the region's internet economy forecast to double to $360 billion in gross merchandise volume by 2025.

Grab was founded by Anthony Tan, its chief executive, and Tan Hooi Ling, who developed the firm from an idea for a Harvard Business School venture competition in 2011.

CEO Tan, 39, expanded Grab into a regional operation with a range of services, after launching as a taxi app in Malaysia in 2012. It later moved its headquarters to Singapore.

"What we have shown to the world is that homegrown tech companies can develop great technology that can compete globally, even when international players are in town ... we can compete and win," Tan told Reuters.

He said Grab's listing would help showcase the opportunity available to investors in Southeast Asia, a region with a population of about 650 million.

Grab's listing brings a payday bonanza to early backers such as SoftBank Group Corp. and Chinese ride-hailing giant Didi Chuxing, which invested as early as 2014.

They were later joined by others, such as Toyota Motor, Microsoft and Japanese bank MUFG. Uber became a Grab shareholder in 2018 after selling its Southeast Asian business to Grab following a five-year battle.

Analysts see scope for many players in Southeast Asia's fragmented food delivery and financial services markets, but the road to profitability can be a long one.

In September, Grab cut its full-year adjusted net sales forecasts, citing renewed uncertainty over pandemic curbs on movement.

Third-quarter revenue fell 9 percent and its adjusted loss before interest, taxes, depreciation, and amortization (EBITDA) widened 66 percent to $212 million. Grab said GMV jumped 32 percent in the quarter to a record $4 billion.

It aims to turn profitable on an EBITDA basis in 2023.

Grab said it completed its business combination with the SPAC, Altimeter Growth Corp. Grab will begin trading on Nasdaq under the ticker symbol "GRAB."

Grab raised $4.5 billion alongside the SPAC transaction, including $750 million from Silicon Valley tech investor Altimeter Capital Management in a deal in April.

-reuters-

Revamped WeWork rises in Nasdaq debut

NEW YORK, United States - The office-sharing company WeWork made a strong Wall Street debut on Thursday, two years after a previous attempt disintegrated in spectacular fashion.

Shares of the venture that's been revamped with new corporate leaders hovered at around $11.01, or six percent up, on Thursday afternoon, hours after jumping nearly 10 percent shortly after midday, giving it a market value of about $9 billion.

The surge comes two days after shareholders from a special-purpose acquisition company (SPAC) called BowX voted to merge with WeWork.

Shares trade on Nasdaq under the ticker "We."

Known initially for catering to young freelancers, WeWork has turned its focus more towards companies of more than 500 employees looking for space in urban centers.

Those larger firms represent a little more than half of WeWork's clientele, compared to 42 percent at the end of 2019.

Chief executive Sandeep Mathrani, a real estate veteran who was tapped in February 2020, has overseen a major austerity drive, cutting several thousand jobs worldwide and reducing the number of leases.

WeWork generated $658 million in revenue between July and September but continues to lose money. The group, which has 762 workspaces in 38 countries and 150 cities, hopes to become profitable in the first quarter of next year.

The company aims to turn the page on the era of Adam Neumann, the co-founder and ex-boss whose antics and temperamental nature brought the company to the brink of bankruptcy.

'Refocusing' 

Thursday's debut comes two years after the company went into a dramatic tailspin that led to the canceling of its planned IPO and accepting a bailout by Japanese investment firm SoftBank.

To turn things around WeWork appointed Mathrani to lead the company, following Neumann's departure with a hefty severance package.

"WeWork has transformed its business by overhauling its operations and cost structure, rightsizing its real estate portfolio and most importantly -- refocusing on its core product," Anthony Yazbeck, the group's chief operating officer, recently told AFP.

WeWork is banking on the sustainability that labor will be organized in new ways even in a post-pandemic world.

The company has launched a monthly subscription giving access to the common areas of any of the group's buildings around the world.

They also rolled out a pay-per-use service in several countries -- including the United States, Britain and Australia -- allowing users to rent rooms by the hour or by the day.

Agence France-Presse

Coinbase heads for $89 billion valuation in Nasdaq debut

Shares of Coinbase Global Inc were set to jump 36 percent above their reference price in the cryptocurrency exchange's market debut on Wednesday, the latest sign of the surge in interest and trading in bitcoin and other digital currencies.

At 10:12 a.m. ET, the company's stock was indicated to open at $340, up from a reference price of $250 per share.

At the indicated price, the digital asset exchange would be valued at around $89 billion. 

-reuters-

Asian stocks on hold for Lunar New Year, bitcoin eyes record highs

TOKYO/NEW YORK - Asian shares hovered just below a record high on Friday as mixed US economic data caused some investors to show restraint after a global stock market rally pushed many bourses to dizzying heights.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.05 percent, trading just shy of an all-time high reached in the previous session. Australian stocks lost 0.63 percent. Shares in Tokyo fell 0.2 percent, pulling back from 30-year highs.

Futures for the S&P 500 declined 0.12 percent. Euro Stoxx 50 futures were up 0.03 percent, German DAX futures slipped 0.14 percent, and FTSE futures eased 0.13 percent, pointing to a subdued start to European trading.

Markets in Greater China and most of Southeast Asia are closed on Friday for the Lunar New Year holiday. China’s stock and bond markets, foreign exchange and commodity futures markets are closed through Feb. 17 for the holiday.

Bitcoin surged to a new record high after BNY Mellon said it would offer custodian services for cryptocurrencies. The dollar headed for a weekly loss, stung by bitcoin’s assent and disappointing U.S. economic data.

Trading in the United States and Europe on Thursday did not move prices enough to provide much direction, said Tom Piotrowski, a market analyst at CommSec in Sydney.

“We didn’t get much of a lead-in from the northern hemisphere,” Piotrowski said. “Markets are in a bit of a holding pattern waiting for the next catalyst and it is just a question of whether that catalyst is going to be a positive one or a negative one.”

World stock markets were holding close to record highs on Thursday as investors weighed some tepid economic data against increasing vaccinations against COVID-19 and the prospect that more government spending and continued cheap money from central banks will drive higher growth and, eventually, inflation.

The MSCI world equity index, which tracks shares in 49 countries, fell 0.03 percent on Friday, also pulling back from a record high.

On Wall Street, the Nasdaq and S&P 500 eked out gains of 0.4 percent and 0.2 percent, respectively, while the Dow Jones Industrial Average slipped 0.02 percent.

Prices held near records as investors bet on more government spending, although enthusiasm was tempered when U.S. President Joe Biden said that China was poised to “eat our lunch,” raising fears of renewed strain on Sino-U.S. ties.

U.S. weekly unemployment claims fell less than expected and core consumer prices rose at a slower pace, which caused some traders to temper the optimism about the economic outlook.

Bitcoin reached a record high of $49,000 before erasing gains.

BNY Mellon’s announcement that it will help clients hold, transfer and issue digital assets came just days after Elon Musk’s Tesla revealed it had bought $1.5 billion worth of the cryptocurrency and would accept it as a form of payment for its cars.

Spot gold fell 0.17 percent to $1,822.21 per ounce. U.S. gold futures fell 0.14 percent to $1,829.50. Gold prices are still on track for their best week in three amid broad dollar selling.

The dollar index edged up by 0.05 percent on Friday but was still on course for a 0.6 percent weekly decline.

Soft demand at an auction of $27 billion of new 30-year Treasuries on Thursday rattled bond investors.

The yield on 10-year U.S. Treasuries rose to 1.1599 percent. The 30-year yield initially rose but then fell back to 1.9398 percent.

Brent crude fell 0.57 percent to $60.79 a barrel, having dropped half a percent the previous session. U.S. oil fell 0.64 percent to $57.88 a barrel, after falling by 0.8 percent on Thursday.

OPEC cut its demand forecast and the International Energy Agency said the market was still oversupplied, which cast a gloom over energy markets.

-reuters-

Asia shares mostly lower amid rising coronavirus cases, Washington turmoil

NEW YORK - Asian stocks were mostly lower on Tuesday, tracking Wall Street declines as political turmoil in Washington and rising coronavirus cases worldwide weighed on sentiment ahead of the start of the quarterly earnings season.

Political uncertainty dominated trading as House Democrats introduced a resolution to impeach U.S. President Donald Trump, accusing him of inciting insurrection following a violent attack on the Capitol last week.

Several big tech giants, including Twitter Inc, Amazon.com Inc , Alphabet Inc, Facebook Inc and Apple Inc, have taken actions against Trump and his network of supporters, as concerns mounted over the risk of continued violence.

Twitter’s stock tumbled 6.4 percent on Monday after the micro-blogging site permanently suspended Trump’s account last Friday.

Investors also kept an eye on the continued spread of the coronavirus globally as cases surpassed 90 million on Monday, according to a Reuters tally.

“The weakness was led by tech and I think the banning of Trump’s account by Twitter and Amazon stepping up against Parler all brought a renewed focus on increased regulation and reining in on tech,” said Thomas Hayes, chairman of Great Hill Capital in New York.

Japan’s Nikkei slipped 0.48 percent, South Korea’s KOSPI fell 0.91 percent and Hong Kong’s Hang Seng index futures lost 0.54 percent.

Defying the broader selloff, Australia’s S&P/ASX 200 rose 0.24 percent.

On Wall Street, the Dow Jones Industrial Average fell 0.29 percent, the S&P 500 lost 0.66 percent and the Nasdaq Composite dropped 1.25 percent.

Investors are expecting guidance on the extent to which executives see a rebound in 2021 earnings and the economy from results and conference calls from JP Morgan, Citi and Wells Fargo Friday.

Meanwhile, longer-term Treasury yields were at their highest since March before new long-dated supply coming this week and on speculation of more U.S. fiscal stimulus as Democrats will have control of Congress and the White House.

“People are optimistic to see the yield curve steepening and it could help spreads and net interest margins for banks,” Hayes said.

Benchmark 10-year notes last fell 11/32 in price to yield 1.1443 percent, from 1.107 percent late on Friday.

The spread between the two-year and 10-year Treasury yields brushed against 100 basis points to hit its steepest since July 2017.

The climb in yields in turn offered some support to the dollar, which rose to its highest in over two weeks against a basket of currencies.

The U.S. dollar index rose 0.256 percent, with the euro down 0.54 percent to $1.2152. The Japanese yen weakened 0.24 percent versus the greenback at 104.20 per dollar, while Sterling was last trading at $1.3516, down 0.35 percent on the day.

Crude oil prices fell, hit by renewed concerns about global fuel demand amid tough coronavirus lockdowns across the globe, as well as the stronger dollar.

U.S. crude recently fell 0.1 percent to $52.19 per barrel and Brent was at $55.61, down 0.68 percent on the day.

Safe-have spot gold dropped 0.2 percent to $1,844.27 an ounce. Silver fell 1.70 percent to $24.94.

-reuters-

Wall Street rises, Nasdaq hits record high on US recovery hopes

Wall Street's main indexes rose and the tech-heavy Nasdaq hit a record high on Friday as optimism around an economic rebound next year outweighed fears of an expected surge in coronavirus infections following the Thanksgiving holiday.

Five of the 11 major S&P indexes were up by mid-morning, with information technology jumping 0.8% on demand for stay-at-home winners Apple Inc, Microsoft Corp and Nvidia Corp.

Sentiment was also lifted by President Donald Trump saying he will leave the White House if the Electoral College votes for President-elect Joe Biden, the closest he has come to conceding the Nov. 3 election, market participants said.

"While it was certainly the expectation of the vast majority of traders that there would be an easy transfer of power, at the end of the day it gives a little bit of confidence," said Rick Meckler, a partner at Cherry Lane Investments in New Jersey.

Market volatility, as measured by the CBOE volatility index , slipped to levels last seen in late-February. Trading volumes are expected to be light as the U.S. stock market closes early on Friday.

By 11:03 a.m. ET, the Dow Jones Industrial Average was up 0.19%, the S&P 500 was up 0.36% and the Nasdaq Composite was up 1.08%.

Hopes of more stimulus, signs of progress in developing COVID-19 vaccines and encouraging economic data have lifted the three main U.S. stock indexes by more than 10% this month and set the S&P 500 on course for its best November ever.

A rotation into sectors deemed to benefit from an economic recovery, such as industrials and financials, has also powered the Dow to record highs and put it on track for its biggest monthly gain since 1987.

But with the next fiscal stimulus package now expected only after Biden is sworn in on Jan. 20, traders said the nascent economic rebound could slow again.

"We have been waiting for stimulus forever and the market's certainly expecting something," said Joe Saluzzi, co-manager of trading at Themis Trading LLC in New Jersey, adding that "it will probably take even longer."

All eyes will be on the monthly employment report on Dec. 4, with economists polled by Reuters expecting unemployment to dip to 6.8% from 6.9%, but to remain above the 4.5% rate in March, before much of the U.S. economy went into lockdown.

In thin company news, U.S.-listed shares of iQIYI Inc fell 2.3% after Reuters reported Alibaba Group Holding Ltd and Tencent Holdings Ltd had put on hold talks to buy a controlling stake in the video streaming service.

Advancing issues outnumbered decliners 1.11-to-1 on the NYSE and 1.36-to-1 on the Nasdaq.

The S&P index recorded 22 new 52-week highs and no new low, while the Nasdaq recorded 127 new highs and seven new lows. 

-reuters-

Asian stocks at 2-week high as Trump returns to White House

SINGAPORE - Asian stock markets advanced to a two-week high on Tuesday after U.S. President Donald Trump was discharged from hospital following treatment for COVID-19 and as prospects for a fresh U.S. stimulus package appeared to brighten.

Bonds and the dollar nursed losses amid the improving risk appetite, while oil extended gains.

Trump returned to the White House on Monday after a three-night hospital stay and said he felt "real good", though one of his doctors cautioned that he may not be out of the woods yet. 

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.71 percent to a two week-high, led by Hong Kong climbing 0.88 percent. Japan's Nikkei also added 0.41 percent.

Separately, U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour and were preparing to talk again Tuesday, continuing their work towards a deal on coronavirus relief spending. 

As well as Trump's health, "there is also some market attention on whether the U.S. Congress will pass the extra stimulus bill," said Tai Hui, Chief Asia Market Strategist, J.P. Morgan Asset Management

"If we do see some form of stimulus coming through, I think the market will take it in a positive light as much of the important support from the previous round has expired," he said.

S&P 500 futures rose 0.08 percent after the best daily gain on the S&P 500 index in a month overnight. Oil held sharp overnight gains. 

Australia's ASX 200 was more subdued, up 0.17 percent, ahead of a central bank meeting at 0330 GMT and the government's budget later in the day.

China's markets remain closed for a holiday.

Asian markets on Monday unwound most of a Friday selloff in the wake of Trump's COVID-19 diagnosis. That improvement also caused Wall Street to rally sharply overnight with energy, tech and healthcare stocks leading. The Dow rose 1.7 percent, the S&P 500 1.8 percent and the Nasdaq 2.3 percent. 

Bond markets also joined in, with the safe-haven asset being sold - especially at the long end - in line with the optimistic mood. The yield on U.S. 30-year government bonds rose 10 basis points to a four month high of 1.5930 percent, before easing slightly. 

Benchmark 10-year yields hit a more than five-week high, and held just shy of that in Asian morning trading at 0.7634 percent.

"Improved near-term stimulus prospects and then potentially bigger deficits under a Biden presidency that has the benefit of clean sweep, are behind the yield gains here," said Ray Attrill, head of FX strategy at National Australia Bank in Sydney.

In currency markets, the dollar was under pressure on other majors apart from the yen, since higher yields can often draw flows from Japan. 

The yen hovered at 105.7 per dollar, while the risk-sensitive Australian and New Zealand dollars edged ahead, with the Aussie last up 0.13 percent at $0.7191.

Oil jumped more than 5 percent overnight and held there in Asia, supported by optimism surrounding Trump's health and a supply squeeze as a strike shut six Norwegian offshore oil and gas fields. 

The strike will cut Norway's total output capacity by just over 330,000 barrels of oil equivalent per day, or about 8% of total production, according to the Norwegian Oil and Gas Association (NOG). 

U.S. crude last stood at $39.27 up 0.13 percent and, Brent crude rose 0.2 percent to $41.37. Gold was steady at $1,912 an ounce.

-reuters-

Dow falls 8.7 percent as US stocks face another rout

NEW YORK - Wall Street stocks were deep in the red early Thursday, resuming after a 15-minute suspension as the economic pain from the coronavirus deepens and widens.

About 25 minutes into trading, the Dow Jones Industrial Average was at 21,505.07, down more than 2,000 points or 8.7 percent.

The broad-based S&P 500 tumbled 8.1 percent to 2,519.43, while the tech-rich Nasdaq Composite Index shed 7.9 percent to 7,323.31.

Trading was suspended after losses hit seven percent on the S&P 500, a benchmark that triggers circuit breakers halting transactions to manage crises.

Anxiety was elevated a day after the Dow entered a bear market as the spread of the virus further crimped economic activity. 

The NBA suspended its professional basketball season after a player tested positive, while Carnival announced that its Princess cruise line would suspend service for 60 days.

The European Central Bank on Thursday followed other major central banks with a flurry of measures to cushion the impact of the coronavirus, including increased bond purchases and cheap loans to banks, but surprised observers by leaving key interest rates unchanged.

Stock losses were widespread, but the impact on major airlines was especially acute after US President Donald Trump announced a 30-day travel ban on European travelers. 

Both Delta Air Lines and United Airlines tumbled more than 10 percent, adding to losses in a bruising period for the industry.

source: news.abs-cbn.com

Asian stocks, US Treasury yields fall as pandemic fears intensify

TOKYO -- Asian shares fell on Wednesday as a US warning to Americans to prepare for the possibility of a coronavirus pandemic drove another Wall Street tumble and pushed yields on safe-haven Treasuries to record lows.

The S&P 500 and the Dow Jones Industrial Average both shed more than 3 percent on Tuesday in their fourth straight session of losses.

That led MSCI's broadest index of Asia-Pacific shares outside Japan down 0.6 percent. Australian shares were down 1.77 percent, while Japan's Nikkei stock index slid 1.1 percent.

Yields on 10-year and 30-year US Treasuries teetered near record lows as worries about the economic impact of the virus outbreak boosted safe-haven assets.

Oil prices recovered some recent losses in Asia, but there are lingering concerns that expected output cuts by major oil producers will not be enough to offset a decline in global energy demand caused by the virus.

The World Health Organization says the epidemic has peaked in China, but concern that its spread is accelerating in other countries is likely to keep investors on edge.

"What we are seeing is share markets are playing catch up," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

"Other asset markets have been flashing warning signs for weeks. A corrective bounce in equities is possible, but we still have a lot of downward momentum."

While the stock rout has been global, the recent pace of selling in Asia has not been as severe as it has on Wall Street, which has been hit hard by the escalation of virus cases outside of Asia.

The S&P 500 lost $2.14 trillion in market capitalization over the last four sessions, according to S&P Dow Jones Indices analyst Howard Silverblatt.

US stock futures rose 0.5 percent in Asia on Wednesday, but that did little to brighten the mood.

Adding to recent fears was an alert from the US Centers for Disease Control and Prevention on Tuesday warning Americans to prepare for the spread of coronavirus in the United States, signalling a change in tone for the Atlanta-based US health agency.

The virus has claimed almost 3,000 lives in mainland China but has spread to dozens of other countries. Of increasing concern to investors, however, in the rising death toll in other countries.

Drastic travel restrictions slammed the brakes on China's manufacturing and consumer spending, and there are worries other countries will face similar disruptions.

The yield on benchmark 10-year Treasury notes traded at 1.3521 percent on Wednesday in Asia, close to a record low of 1.3070 percent The 30-year yield stood at 1.8274 percent, above a record low of 1.7860 percent.

The decline in yields weighed on the dollar. The greenback was last quoted at 110.25 yen, continuing a pullback from a 10-month high of 112.23 yen.

The dollar traded at $1.0877 per euro, off an almost three-year high of $1.0778 reached on Feb. 20.

US crude ticked up 0.58% to $50.19 a barrel. The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, have been sending signals that they will cut output further.

However, oil could come under more pressure as weekly US supply reports due later on Wednesday are expected to show a rise in inventories, according to a Reuters poll.

source: news.abs-cbn.com

Global stocks tumble as gold soars on virus pandemic fears

NEW YORK -- Global stocks were hammered Monday and gold prices soared on safe-haven buying as fears mounted that the new coronavirus would derail economic growth.

Equity bourses were a sea of red, including in Italy and South Korea -- two countries outside of China that have suffered outbreaks of the virus in recent days. In the US, the Dow plunged more than 1,000 points in its worst session in more than 2 years.

"The market reaction is a classic 'sell now and ask questions later,'" said Quincy Krosby, chief market strategist for Prudential Financial, who said the selloff reflects fears the virus will dent earnings growth.

Oil prices tumbled on worries about demand, while gold prices on the London Bullion Market spiked to $1,689.31 per-ounce, a level last seen in January 2013, before easing back somewhat as investors sought the precious metal as a safety measure amid the market turbulence.

Investors have been unsettled by the spread of the disease, analysts said.

Italy reported its seventh death from the coronavirus, but officials called for calm and reported the number of infections slowing after a spike over the weekend.

South Korea's K-league postponed the start of the new football season as a leap in cases wrought havoc across its sporting calendar.

Meanwhile, the World Health Organization said the new coronavirus epidemic had "peaked" in China but warned that a surge in cases elsewhere was "deeply concerning" and all countries should prepare for a "potential pandemic."

US President Donald Trump on Twitter said the virus "is very much under control in the USA," adding that "stock markets are starting to look very good to me!"

Trump's comments aimed to encourage bargain-hunting after major US indices ended down more than three percent, with all 11 industrial sectors tumbling.

Earlier, European stock markets were a sea of red, with Frankfurt and Madrid falling by 4 percent, Paris shedding 3.9 percent and London losing 3.3 percent.

"The root of the problem is this: there is burgeoning fear that the shutdown effect that has hit China's economy is going to take over elsewhere, dealing another blow to global growth, and earnings growth prospects," commented Patrick O'Hare at Briefing.com.

Travel and tourism linked firms were particularly vulnerable, with Sydney-listed airline Qantas plunging more than seven percent, and Air China off by nearly six percent in Hong Kong.

An exception was Gilead Sciences, which surged 4.6 percent following upbeat comments from a World Health Organization official about the company's remdesivir, an experimental drug to treat the virus.

KEY FIGURES AROUND 2200 GMT (6 a.m. Tuesday in Manila)

New York - Dow: DOWN 3.6 percent at 27,960.80 (close)

New York - S&P 500: DOWN 3.4 percent at 3,225.89 (close)

New York - Nasdaq: DOWN 3.7 percent at 9,221.28 (close)

Milan - FTSE Mib: DOWN 5.4 percent at 23,427.19 (close)

Madrid - IBEX 35: DOWN 4.1 percent at 9,483.50 (close)

London - FTSE 100: DOWN 3.3 percent at 7,156.83 (close)

Frankfurt - DAX 30: DOWN 4.0 percent at 13,035.24 (close)

Paris - CAC 40: DOWN 3.9 percent at 5,791.87 (close)

EURO STOXX 50: DOWN 4.0 percent at 3,647.98 (close)

Seoul - KOSPI: DOWN 3.9 percent at 2,079.04 (close)

Shanghai - Composite: DOWN 0.3 percent at 3,031.23 (close)

Hong Kong - Hang Seng: DOWN 1.8 percent at 26,820.88 (close)

Tokyo - Nikkei 225: Closed for a public holiday

Brent Crude: DOWN 3.8 percent at $56.30 per barrel

West Texas Intermediate: DOWN 3.7 percent at $51.42 per barrel

Gold: UP at $1,676.50 per ounce from $1,643.41 late on Friday

Euro/dollar: UP at $1.0852 from $1.0847

Pound/dollar: DOWN at $1.2924 from $1.2964

Euro/pound: UP at 83.95 pence from 83.67 pence

Dollar/yen: DOWN at 110.71 from 111.61

Agence France-Presse

Asian markets fall as coronavirus concerns weigh on sentiment

SYDNEY -- Stocks and oil fell while safe-haven gold rose on Monday as the death toll from a coronavirus outbreak surpassed the SARS epidemic, raising alarm bells about its severity.

As many as 908 people have so far died in China's central Hubei province as of Sunday with most of the new deaths in the provincial capital of Wuhan, the epicenter of the outbreak.

MSCI's broadest index of Asia-Pacific shares outside Japan stumbled 0.7 percent to be on track for its second straight day of loss. Japan's Nikkei fell 0.8 percent while South Korea's KOSPI was off 1.4 percent and Australian shares eased 0.5 percent.

The losses extended from Wall Street on Friday where the Dow fell 0.9 percent, the S&P 500 declined 0.5 percent while the Nasdaq dropped 0.5 percent. E-mini futures for S&P 500 were down 0.3 percent on Monday.

"Expect markets to be sensitive to virus headlines. In this environment, we favor defensive positioning," ANZ economists wrote in a note.

"Markets will be sensitive to coronavirus news, as factories and ports in China reopen. The extent to which that is achievable will indicate the level of ongoing disruption," they added.

As Chinese authorities made plans for millions of people returning to work after an extended Lunar New Year break a large number of workplaces and schools are still likely to remain closed and many white-collar employees will work from home.

Worries about the hit to the world's second-largest economy has hurt investor risk appetite though confidence in China's ability to contain the epidemic has prevented sharp losses.

China's central bank has taken a raft of measures to support the economy, including reducing interest rates and flushing the market with liquidity. From Monday, it will provide special funds for banks to re-lend to businesses working to combat the virus.

Despite the measures, many of China's usually teeming cities have almost become ghost towns as authorities ordered virtual lockdowns, cancelled flights, closed factories and shut schools.

On Friday, Singapore raised its coronavirus alert level and reported more cases not linked to previous infections or travel to China.

An advance team of international experts led by the World Health Organization (WHO) left for Beijing to help investigate the epidemic, the Geneva-based agency said on Sunday.

The virus has dominated broader market sentiment with better-than-expected US jobs data on Friday failing to lift sentiment.

Non-farm payrolls increased by 225,000 jobs in January, with employment at construction sites increasing by the most in a year amid milder-than-normal temperatures, the Labor Department said.

Benchmark 10-year U.S. Treasury notes ticked higher to push yields down to 1.5645 percent.

Euro zone bond yields fell after German industrial output tumbled in December to notch its biggest fall since January 2009, fanning concerns about the bloc's biggest economy.

The euro held near four-month lows at $1.0950.

The dollar slipped against the yen to be on track for a second straight day of losses. It was last at 109.61 yen.

The Australian dollar, considered a liquid proxy for China plays, briefly hit an 11-year low of $0.6679. It fell 0.2 percent last week to clock its six straight weekly loss. That left the dollar index flat at 98.662.

Oil prices slipped as Russia said it would need more time before committing to output cuts along with the Organization of the Petroleum Exporting Countries and other producers amid falling demand for crude as China battles the coronavirus.

Since Jan. 17, oil prices have fallen by 14 percent while copper has is down around 10 percent.

Brent crude futures declined 52 cents to $53.95 a barrel, while US crude futures slipped 45 cents to $49.87 a barrel.

U.S. gold futures added 0.3% at $1,577.5 an ounce. Spot gold was higher at $1,574.4.

source: news.abs-cbn.com

World stocks rally, safe-haven currencies drop on China plan to cut tariffs

NEW YORK -- World equity markets rallied for a fourth day on Thursday, with key stock indexes touching fresh peaks, as news that China plans to cut tariffs in half on some US goods buoyed risk sentiment and pushed safe-haven currencies lower.

The yield on Germany's benchmark 10-year Bund touched its highest in almost 2 weeks and US Treasury yields rose as investors bet China's efforts to contain the deadly coronavirus would mitigate its impact on the global economy.

The death toll in mainland China jumped by 73 to 563, with more than 28,000 infections confirmed.

US Treasury Secretary Steven Mnuchin, in an interview with Fox Business Network, downplayed concerns that the outbreak could affect global supply chains, but acknowledged "this is something we're monitoring very carefully."

Major stock indexes, including the STOXX Europe 600 of small-, mid- and large-cap stocks, the benchmark S&P 500 and Dow industrials on Wall Street, and the S&P/TSX composite in Toronto, set records.

The yen slid to a two-week low against the dollar and the franc fell to its weakest in more than a week as investors hailed news China would halve tariffs on 1,717 US goods.

Many risk-off moves taken over the past two weeks are being unwound, said Simon Harvey, an FX market analyst at Monex Europe in London.

"We're seeing credible responses from monetary authorities in China and it looks like it's soothing market fears of a more entrenched slowdown in the Chinese economy," Harvey said.

MSCI's gauge of stocks across the globe gained 0.53 percent and its emerging market stocks rose 1.03 percent.

The pan-European STOXX 600 index rose 0.44 percent, helped by a swathe of strong earnings reports, with the euro zone banks index posting its biggest daily gain in a month.

Indexes in Frankfurt, Paris and London all gained, rising between 0.3 percent and 0.9 percent.

The Dow Jones Industrial Average rose 95.16 points, or 0.32 percent, to 29,386.01. The S&P 500 gained 10.74 points, or 0.32 percent, to 3,345.43 and the Nasdaq Composite added 52.71 points, or 0.55 percent, to 9,561.39.

Rebounding worker productivity in the fourth quarter and other U.S. economic data also lifted sentiment on Wall Street.

The number of Americans filing for unemployment benefits dropped to a nine-month low last week.

Despite optimism about containing economic fallout, the impact of the health emergency in China was showing up in corporate reports. Chipmaker Qualcomm Inc flagged a potential threat to the mobile phone industry from the outbreak, and its shares fell 1.7 percent.

The dollar index rose 0.21 percent, with the euro down 0.2 percent to $1.0975. The yen weakened 0.15 percent versus the greenback at 110.00 per dollar.

Gold rose on expectations central banks will keep interest rates low. US gold futures settled up 0.5 percent at $1,570 an ounce.

Bond yields in Europe were pressured upward by remarks from European Central Bank President Christine Lagarde that euro zone growth remains modest but there are signs of stabilization.

Germany's Bund yield rose as much as 3 basis points to -0.339 percent, its highest in almost two weeks, before pulling back to around -0.39 percent.

Benchmark 10-year US Treasury notes fell 1/32 in price to yield 1.6508 percent.

Brent crude gave up early gains as the Organization of the Petroleum Exporting Countries and Russia gave mixed signals about possible further output cuts to counter concerns about weak demand due to the coronavirus.

Brent fell by 35 cents to settle at $54.93 a barrel while West Texas Intermediate rose 20 cents to settle at $51.07 a barrel.

source: news.abs-cbn.com

Wall Street ends off day's highs on renewed Middle East tensions

NEW YORK -- US stocks ended higher on Wednesday, but the day's uneven path showed investors' sensitivity to any signs of turmoil in the Middle East, with stocks rising on comments by President Donald Trump and paring gains on reports of blasts in Baghdad.

Trump spoke at a White House briefing after Iran's missile strikes overnight on military bases housing US troops in Iraq. The US president said the strikes had not harmed any Americans and that Tehran appeared to be standing down.

Comments earlier from Iran's foreign minister that the country did not seek an escalation and a tweet from Trump that "All is well!" also helped calm investor jitters.

Both the S&P 500 and Nasdaq hit record intraday highs, but major indexes cut their gains late in the day following reports of two blasts heard in Baghdad. After the bell, Iraq's military said two rockets had fallen inside Baghdad's Green Zone but there were no casualties.

"The measured tones coming out of the Trump administration potentially dialing back from a tit-for-tat reaction on balance is positive, but the market is going to react to minute-by-minute news of increased tensions in the Middle East," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.

The Nasdaq registered a record high close and most S&P 500 sectors rose, while the S&P 500 energy index fell 1.7 percent as oil prices slumped.

Global markets have been rattled by concerns about rising tensions in the Middle East after the US killing of influential Iranian Major General Qassem Soleimani on Jan. 3.

The Dow Jones Industrial Average rose 161.41 points, or 0.56 percent, to 28,745.09, the S&P 500 gained 15.87 points, or 0.49 percent, to 3,253.05, and the Nasdaq Composite added 60.66 points, or 0.67 percent, to 9,129.24.

Among the day's decliners, Boeing fell 1.8 percent after a 737-800 jet made by the company and belonging to a Ukrainian airline burst into flames shortly after takeoff from Tehran, killing all 176 people aboard.

Walgreens Boots Alliance Inc slid 5.8 percent after its quarterly profit missed expectations. Shares in rival CVS Health fell 1.3 percent.

On the upside, Lennar Corp ended up 0.8 percent after the No. 2 US homebuilder beat quarterly profit estimates and forecast 2020 homes sales above analysts' estimates as lower home prices and mortgage rates drive demand.

Adding to the upbeat mood, the ADP National Employment Report showed private payrolls jumped by 202,000 jobs last month, well above the 160,000 rise expected by economists polled by Reuters.

Advancing issues outnumbered declining ones on the NYSE by a 1.51-to-1 ratio

The S&P 500 posted 6258 new 52-week highs and no new lows; the Nasdaq Composite recorded 118106 new highs and 149 new lows.

Volume on US exchanges was 7.78 billion shares, compared to the 7.01 billion average for the full session over the last 20 trading days

source: news.abs-cbn.com

World stocks close out 2019 with robust gains

NEW YORK -- World stocks on Tuesday closed out a notably profitable year, with Wall Street recording its best annual performances since 2013, boosted by hopes for a US-China trade deal.

New York rallied into the close, turning positive for the day and leaving the broad-based S&P 500 and tech-heavy Nasdaq up 29 percent and 35 percent respectively for 2019, the best showings in 6 years.

Key European markets showed increases of 25 percent or more for the year, partly thanks to late surges on receding recession fears and easing China-US trade war tensions.

Brexit-hit London, however, trailed its peers with a 12 percent annual rise, less than half the percentage increase managed by Paris, Frankfurt and Milan.

Earlier on Tuesday as US markets were about to open, President Donald Trump tweeted that a partial trade deal with China would be signed in Washington on January 15, ending some of the uncertainty about efforts to cement the deal announced earlier this month.

Quincy Krosby of Prudential Financial told AFP the US-China detente could help decide the direction of the global economy next year.

"Much of the enthusiasm in the market is based on the idea that global growth is going to begin to accelerate, albeit slowly," she said. "The question will be, do we actually see positive growth, especially in China?"

Demand in China is crucial to chances for renewed growth in global trade, while the China trade agreement could see US corporations begin investing again after a year when corporate capital spending stagnated worryingly, according to Krosby.

'CAUTIONARY TONE'

Asian stock markets closed mainly lower on Tuesday, with Hong Kong ending a half-day of trading almost 0.5 percent down, although the bourse rallied more than seven percent in December. Tokyo was shut for a public holiday.

"While market volumes are predictably light, investors continue to strike a year-end cautionary tone as December optimism is gradually giving way to 2020's uncertainty," Stephen Innes, chief Asia market strategist at AxiTrader, said in a client note.

Asian investors were also watching for significant policy announcements early in the New Year.

In a New Year's speech on Wednesday, North Korean leader Kim Jong Un struck a decisively militaristic tone, warning of a new strategic weapon and "shocking" action. 

Analysts said all eyes were on nuclear-armed Pyongyang's threat of a "new way" after its end-of-year deadline for sanctions relief from the United States.

An address by China's President Xi Jinping will be followed closely by the markets as well.

Elsewhere Tuesday, oil prices slid despite reports Iran had seized a vessel suspected of smuggling fuel near the Strait of Hormuz -- a chokepoint for a third of the world's seaborne oil.

Over the year, the price of Brent North Sea crude jumped by almost one quarter and the New York benchmark contract WTI soared more than one third in value, helped by tighter supply.

The pound finished a volatile year with gains Tuesday against the dollar and euro.

KEY FIGURES AROUND 2130 GMT (5:30 a.m. Wednesday in Manila)

New York - Dow: UP 0.3 percent at 28,538.24 (close)

New York - S&P 500: UP 0.3 percent at 3,230.76 (close)

New York - Nasdaq: UP 0.3 percent at 8,972.60 (close)

London - FTSE 100: DOWN 0.6 percent at 7,542.44 points (close)

Paris - CAC 40: DOWN 0.1 percent at 5,978.06 (close)

Hong Kong - Hang Seng: DOWN 0.5 percent at 28,189.75 (close)

Pound/dollar: UP at $1.3248 from $1.3113 at 2200 GMT 

Euro/pound: DOWN at 84.65 pence from 85.40 pence 

Euro/dollar: UP at $1.1214 from $1.1199 

Dollar/yen: DOWN at 108.66 from 108.88 yen

Brent Crude: DOWN 1 percent at $66.0 per barrel

West Texas Intermediate: DOWN 1 percent at $61.06

Agence France-Presse

Nasdaq ends above 9,000 for 1st time, Dow also hits record

NEW YORK -- The tech-rich Nasdaq finished above 9,000 for the first time on Thursday, powering to its 10th straight record on gains by Amazon and other tech giants.

The Nasdaq surged 0.8 percent to finish the post-holiday session at 9,022.39.

The other two major indices also finished at records in a sleepy post-Christmas trading day when overseas markets were closed.

The Dow Jones Industrial Average added 0.4 percent to end at 28,621.39, while the broad-based S&P 500 gained 0.5 percent to close at 3,230.91.

A report by Mastercard Spending Plus estimated that holiday shopping sales rose 3.4 percent this year, which was better than expected, with e-commerce taking a bigger bite of overall sales.

E-commerce behemoth Amazon jumped 4.5 percent after boasting of another "record" performance this season.

Most other retailers rose at least somewhat, with Gap gaining 1.7 percent, Target 0.3 percent and Walmart 0.1 percent.

Briefing.com analyst Patrick O'Hare said the latest run of records reflects upbeat investor sentiment based on a lower risk of recession anytime soon, a mellowing of US-China trade tensions and accommodative monetary policy.

"In general the market will be supported and there will be an inclination to buy the dip in the absence of negative news shocks," O'Hare said.

Besides Amazon, other tech giants including Apple, Google parent Alphabet and Facebook all gained at least one percent.

But Dow member Boeing remained under pressure, shedding another 0.9 percent after a House investigative committee said earlier in the week that it obtained more records on the 737 MAX showing "very disturbing" signs about the aviation giant's approach to safety, according to a congressional aide.

Meanwhile, oil prices finished at a three-month high following industry data showing lower US oil inventories.

Agence France-Presse

Asia shares rest at highs, sterling licks wounds

SYDNEY -- Asian stocks took a breather at 18-month peaks on Wednesday having climbed for five straight sessions, while the British pound was licking its wounds as revived Brexit fears came back to bite it.

MSCI's broadest index of Asia-Pacific shares outside Japan was dead flat in thin early trade, just off its highest since June last year.

Japan's Nikkei dipped 0.1 percent and away from its 2019 top, while Korean shares edged up 0.1 percent to an 8-month peak. E-Mini futures for the S&P 500 were little changed.

Upbeat economic news had helped the S&P 500 reach a record for the fourth straight session, building on its 27 percent gain this year. The Dow ended Tuesday up 0.19 percent, while the S&P 500 gained 0.07 percent and the Nasdaq 0.11 percent.

US housing starts were surprisingly strong in November, and building permits rose to the highest level since May 2007. Manufacturing output picked up more than expected as a strike at General Motors Co ended.

A run of better data recently has helped calm fears of recession while the phase one Sino-US deal on trade seems to have lifted some of the uncertainty on the global outlook.

The sea change was clear in BofA Global Research's latest survey of fund managers with recession concerns diving 33 percentage points to a net 68 percent of investors saying a recession is now unlikely in 2020.

Global growth expectations jumped 22 percentage points, marking the biggest 2-month rise on record. As a result, funds' allocation to global equities climbed 10 percentage points to a net 31 percent overweight, the highest level in a year.

THEN AGAIN...

Yet it might be too soon to declare an all-clear on the political front with UK Prime Minister Boris Johnson upsetting markets by taking a hard line on Brexit talks.

Johnson will use the prospect of a Brexit cliff-edge at the end of 2020 to demand the EU give him a comprehensive free trade deal in less than 11 months.

The threat of a hard exit sent shivers through sterling, which slid 1.5 percent in its largest one-day fall this year.

The pound was last at $1.3110 having shed all the gains made on Thursday and Friday after it became clear that the Conservative Party was heading for a big win.

"We treat the risk of a hard Brexit as a 'tail risk' at this stage," said Joseph Capurso, a senior currency strategist at CBA. "A UK-EU trade deal by end 2020, while difficult, is still possible."

"In our view GBP/USD will remain supported at around $1.3000-$1.3100 and upside contained near $1.3500 over the next several months."

Sterling's slide gave the dollar index a lift to 97.184 against a basket of currencies, extending a bounce from last week's five-month low of 96.588.

The euro also surged on the pound and was steady on the dollar at $1.1150. The yen was little changed at 109.52 per dollar.

Spot gold was idling at $1,475.90 per ounce, after a couple of very quiet sessions.

Oil prices eased from three-month highs as data showed U.S. crude stocks rose unexpectedly in the most recent week.

US crude fell 37 cents to $60.57 a barrel, while Brent crude futures had yet to trade.

source: news.abs-cbn.com

World stocks rise after Fed keeps rates on hold; oil falls

NEW YORK -- Global equity markets rose on Wednesday after the Federal Reserve indicated interest rates would remain on hold for some time - a positive for risk assets - while oil prices fell after data showed an unexpected increase in US crude inventories.

New projections showed 13 of the US central bank's 17 policymakers foresee no change in rates until at least 2021 as moderate economic growth and low unemployment are expected to continue through next year's presidential election.

That outlook nudged stocks on Wall Street higher as investors await a decision on whether US President Donald Trump would allow his promised new tariffs on almost $160 billion of Chinese goods to go forward on Sunday.

The projection of no rate hikes for the foreseeable future is phenomenal when US monetary policy over the last few decades is considered, said Kristina Hooper, chief global market strategist at Invesco in New York.

"We shouldn't treat that as boring or uneventful; this is actually very important. The bar is very high for any rate hikes," she said.

Hooper said the Fed is the key factor that has been driving the stock market, in addition to US-China trade relations that have been center stage for markets in recent weeks as negotiators try to hammer out a "phase one" deal.

"The Fed decision to sit on its hands and its outlook for 2020 should be positive for the stock market," she said.

MSCI's gauge of stocks across the globe gained 0.41 percent, climbing to within two points of its all-time high of 550.63. The pan-European STOXX 600 index rose 0.22 percent.

On Wall Street, the Dow Jones Industrial Average rose 29.58 points, or 0.11 percent, to 27,911.3. The S&P 500 gained 9.11 points, or 0.29 percent, to 3,141.63 and the Nasdaq Composite added 37.87 points, or 0.44 percent, to 8,654.05.

The 17-month trade war has roiled capital markets and crimped global growth, noticeably in China. Paramount in investors' minds is the looming Dec. 15 US deadline on tariffs, with no immediate clarity on what the decision will be.

After US stocks set new highs two weeks ago and MSCI's global gauge of equity performance neared its all-time peak, stocks have since trended downward as investors await news on the trade front.

"The market's waiting for Godot, waiting on the tariffs," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

Confidence has grown as Sunday approaches that Trump will do something to keep the trade talks on track, which has increased risk-on sentiment in the market, Ghriskey said.

The White House's top economic and trade advisers are expected to meet with Trump in coming days on a decision, a source told Reuters.

Jamie Dimon, chief executive at JPMorgan and chairman of the Business Roundtable, a trade group of top US CEOs, said he expected a phase-one trade deal to be finalized and said not doing so would be "negative" for markets.

Gold rose and extended gains during comments by Fed Chair Jerome Powell, while the US dollar trended lower.

US gold futures settled 0.5 percent higher at $1,475 an ounce.

Investors also await the first European Central Bank meeting with Christine Lagarde as president on Thursday, as well as a general election in Britain that could determine the fate of the country's exit from the European Union.

The dollar index fell 0.3 percent, with the euro up 0.39 percent to $1.1135. The Japanese yen strengthened 0.14 percent versus the greenback at 108.57 per dollar.

The British pound, a high-flier of late, dropped from a seven-month peak after an opinion poll projected a narrower-than-expected victory for the Conservative party in the UK election.

Benchmark 10-year US Treasury notes rose 10/32 in price to yield 1.7983 percent.

In the Middle East, Saudi Aramco shares surged 10 percent above their initial public offering price on their first day of trading. That gave the state-controlled oil company a market value of about $1.88 trillion, making it the world's most valuable listed company.

Oil prices fell after US crude stocks clocked a surprise rise in the most recent week while gasoline and distillate inventories also rose, data from industry group the American Petroleum Institute showed.

Brent futures settled down 62 cents at $63.72 a barrel. West Texas Intermediate crude slipped 48 cents to settle at $58.76 a barrel.

source: news.abs-cbn.com

Asian shares adrift as tariff deadline looms

SINGAPORE -- Asian stocks flatlined on Wednesday as Sino-US trade talks approached a weekend deadline with little sign of progress, while a tightening of the UK election race knocked the pound.

Investors are beginning to suspect that even if US tariffs due to take effect on Sunday are delayed, it may be 2020 before Washington and Beijing can agree a broader rapprochement.

In the absence of detailed trade news, focus moves to the US Fed's outlook for the economy due at 2000 GMT (4 a.m. Thursday in Manila) - along with an expectation interest rates will be held steady - and Thursday's British election.

"The market is just so singularly focused on the trade thematic, it seems to push everything else aside," said James McGlew, executive director of corporate stockbroking at Perth broker Argonaut.

"These things never end well. Tariffs and artificial barriers in economies can never level the playing field the way proponents theorize it will ... no-one wins until this stops, its as simple as that."

MSCI's broadest index of Asia-Pacific shares outside Japan barely budged. Japan's Nikkei ticked lower after White House trade adviser Peter Navarro said a decision on the Dec. 15 tariffs would come soon, also knocking modest early gains off Australia's S&P/ASX 200.

The biggest mover of the morning was the British pound, which shed 0.3 percent to hit $1.3128 after a closely watched YouGov poll showed the ruling Conservatives tracking toward a much slimmer majority than forecast a fortnight ago.

The pound had climbed to an eight-month high overnight, before the survey, as investors priced in a comfortable Conservative victory and expected it could end years of uncertainty over Britain's exit from the European Union.

YouGov's research director, however, said the results showed a hung parliament was possible.

"Granted, this still portrays a Tory majority but given what is already priced ... the actual outcome has resulted in some of the heat coming out of a fairly frothy market," said Chris Weston, head of research at Melbourne brokerage Pepperstone.

TRADE STALEMATE

On the trade front, officials from Canada, Mexico and the United States signed a fresh overhaul of the quarter-century-old North American trade pact, but there were few hints of progress on a deal between the globe's two largest economies.

A Wall Street Journal report that said US and Chinese officials were preparing for a delay to the Dec. 15 round of tariffs knocked bonds but did not shift stocks since it suggested no resolution to the trade conflict.

"Assuming it is (delayed), then trade policy uncertainty is set to linger well into the next decade," said Ray Attrill, head of FX strategy at National Australia Bank.

"This has very much been the emerging consensus heading into the weekend deadline, hence the reports have failed to spark any market volatility."

White House economic adviser Larry Kudlow later said that no decision had been reached regarding the tariffs, which will automatically take effect unless they are reversed or suspended.

The Dow Jones Industrial Average and the S&P 500 each fell 0.1 percent, while the Nasdaq dropped by a little less.

The yield on benchmark 10-year Treasury notes, which moves inversely to price, last stood a little higher at 1.8399 percent.

US inflation data due at 1330 GMT, expected to hold steady, may further decrease the likelihood of 2020 rate cuts should it surprise on the upside.

The Fed is widely expected to hold rates steady at the conclusion of Wednesday's policy meeting, with investors instead focused on any change to the central bank's view of the economy and its 2 percent growth forecast for next year.

Elsewhere in currencies, the dollar slipped against the euro overnight as German economic sentiment sharply rose after an unexpected rebound in October exports.

US crude dipped 0.25 percent to $59.09 a barrel, while gold was slightly lower at $1463.526 per ounce.

source: news.abs-cbn.com