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30 October 2018
 |
| financial markets (The Total Investment & Insurance Solutions) |
World markets are mixed after U.S. President Donald Trump said he might
impose more tariffs on Chinese goods, though he said he was ready to strike a
"great deal" with Beijing over trade.
KEEPING SCORE: In Europe, Britain's FTSE 100
added 0.2 percent to 7,042. But Germany's DAX fell 0.2 percent to 11,316 and
the CAC 40 in France sank 0.2 percent to 4,980 after weak eurozone growth
figures. Wall Street was poised for an optimistic open. Futures for the Dow
were up 0.4 percent and the broader S&P 500 futures added 0.5 percent.
EUROPEAN GROWTH: The eurozone economy
expanded by only 0.2 percent in the July-September period — half the previous
quarter's rate and below expectations for another reading of 0.4 percent. The
quarterly performance is the worst since the second quarter of 2014. Experts
say it was hurt by one-off factors like new emissions standards for cars, so
growth is likely to pick up again. But they say it's unlikely to match last
year's strong performance as the region faces global issues like Brexit and
trade disputes.
ASIA'S DAY: Japan's Nikkei 225 index jumped
1.5 percent to 21,457.29 after official data showed that the unemployment rate
eased to 2.3 percent in September, from 2.4 percent a month earlier. The
Shanghai Composite index rebounded 1 percent to 2,568.05 and South Korea's
Kospi picked up 0.9 percent to 2,014.69. Australia's S&P-ASX 200 gained 1.3
percent to 5,805.10. Hong Kong's Hang Seng bucked the trend, slipping 0.9
percent to 24,585.53. Shares were higher in Taiwan, Indonesia and Thailand but
fell in Singapore.
CHINESE TRADE DEAL: In an interview with Fox
News on Monday, President Trump said he thinks there will be "a great deal
with China," while adding that tariffs on $267 billion more in Chinese
goods were "waiting to go" if a deal was not reached. Trump is set to
meet Chinese President Xi Jinping at a summit next month. According to
Bloomberg News, the additional tariffs will be announced in December if no
breakthrough results from the meeting. Separately, the Commerce Department
imposed restrictions on technology exports to Fujian Jinhua Integrated Circuit
Co., a state-supported Chinese semiconductor maker. But a weakening of the
Chinese yuan, which can make its products more price competitive, lifted
sentiment in Asia. The yuan fell to 6.9678 against the dollar on Tuesday
afternoon, its lowest level since May 2008. It recovered to 6.9599 per dollar
later in the day.
ANALYST'S TAKE: With new restrictions on a
Chinese semiconductor maker, the "U.S. has escalated its trade war with
China in an unexpected way," Chang Wei Liang of Mizuho Bank said in a
commentary. "We are watchful of any retaliatory actions from China, as
well as possible slump in Chinese technology stocks."
ENERGY: Benchmark U.S. crude shed 71 cents to
$66.33 per barrel in electronic trading on the New York Mercantile Exchange.
The contract dropped 55 cents to settle at $67.04 a barrel in New York. Brent
crude, used to price international oils, lost $1.14 to $76.20 per barrel. In
the previous session, it dropped 29 cents to $77.37 a barrel.
CURRENCIES: The dollar strengthened to 112.95
yen from 112.37 yen late Monday. The euro fell to $1.1354 from $1.1372.The Total Investment & Insurance
Solutions
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