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25 June 2018
 |
| China financial markets (The Total Investment & Insurance
Solutions) |
Global stock markets sank Monday and oil prices were mixed amid
simmering worries about U.S.-Chinese trade tensions.
KEEPING SCORE: Germany's DAX fell 1.3 percent
to 12,414 and London's FTSE 100 gave up 1.4 percent to 7,575. France's CAC 40
shed 0.8 percent to 5,343. On Wall Street, the future for the Dow Jones
industrial average lost 0.7 percent and that for the Standard & Poor's 500
index was off 0.5 percent.
ASIA'S DAY: The Shanghai Composite Index fell
1.1 percent to 2,859.34 and Hong Kong's Hang Seng lost 1.3 percent to
28,961.39. Tokyo's Nikkei 225 shed 0.8 percent to 22,338.15 and Seoul's Kospi
was flat at 2,357.88. Sydney's S&P-ASX 200 lost 0.2 percent to 6,210.40 and
India's Sensex retreated 0.3 percent to 35,600.41. Benchmarks in Taiwan and
Southeast Asia declined while New Zealand was unchanged. The Total Investment & Insurance Solutions
US-CHINA TENSIONS: The Wall Street Journal
reported the Trump administration plans to impose curbs on Chinese investment
in American technology companies and high-tech exports to China. The newspaper,
citing unidentified sources, said the initiatives were aimed at preventing
Beijing from moving ahead with plans to develop global competitors in
technologies including biotech and electric vehicles. That follows President
Donald Trump's threat to hike tariffs on Chinese imports worth up to $450
billion over complaints Beijing steals or pressures foreign companies to hand
over technology. Meanwhile, the impact of new tariffs was made clear by
Harley-Davidson, which said it would move some production out of the U.S.
because of tariffs the EU has imposed in retaliation for U.S. duties on steel
and aluminum. The Total Investment
& Insurance Solutions
CHINA LENDING: Beijing freed up about $100
billion for additional bank lending in a move financial analysts said might
help reassure investors rattled by trade tensions with Washington. The cut in
the amount of money banks are required to hold in reserve, the second this year,
is one of a series forecasters had expected before the dispute over China's
trade surplus and technology policy erupted. The central bank said the move is
aimed at facilitating debt-for-equity swaps meant to help clear away a backlog
of nonperforming bank loans owed by state companies. The Total Investment & Insurance Solutions
ANALYST'S TAKE: Jingyi Pan of IG says that
stock markets are "shrouded in the gloom of trade tensions. China's latest
reserve ratio reduction, while expected, serves as a counterbalance to the soft
sentiment."
WEEK AHEAD: The United States is due to
report quarterly economic growth on Thursday. On Friday, Japan and South Korea
report monthly factory output and the European Union releases inflation
figures.
ENERGY: Benchmark U.S. crude gained 33 cents
to $68.91 per barrel in electronic trading on the New York Mercantile Exchange
amid questions over OPEC's ability to ramp up production, as it said it would
last week. The contract jumped $3.04 to $$68.58 on Friday, when OPEC made its
announcement. Brent crude, used to price international oils, dropped $1.06 to
$74.49 per barrel in London. It gained $2.52 the previous session to close at
$75.32.
CURRENCY: The dollar declined to 109.58 yen
from Friday's 109.97 yen. The euro gained to $1.1697 from $1.1657.The Total Investment & Insurance
Solutions
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