Latest news with #Sino-U.S.
Mint
2 days ago
- Business
- Mint
Banks lead Australian shares to record close as inflation data lifts rate-cut hopes
Softer inflation data boosts rate-sensitive stocks Banks rise to more than one-week high ASX 200 eyes fourth consecutive month of gains July 30 (Reuters) - Australian shares rallied to a record close on Wednesday, led by heavyweight banks as softer inflation data boosted hopes for an interest rate cut next month, while improved prospects of an extension to the Sino-U.S. trade truce added to the relief. The S&P/ASX 200 benchmark index closed 0.6% higher at 8,756.40 points. The benchmark is on track to close July nearly 2% higher, its fourth straight month of gains. Australian consumer prices grew at the slowest pace in over four years in the June quarter, adding to the mounting pressure on the Reserve Bank of Australia to reduce borrowing costs at its policy meeting next month. "It (inflation data) also lowers the bar for faster and deeper easing ahead of year-end as disinflation broadens across both goods and services," Hebe Chen, market analyst at Vantage Markets said. Banks, among the biggest beneficiaries of lower interest rates, led the financial index 1.1% higher to a more than one-week high. All the "Big Four" banks advanced between 0.7% and 1.6%. Rate-sensitive real estate stocks climbed 1.3%. Mirvac Group added 2.7%, while Dexus rose 1.4%. Meanwhile, U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce, defusing an escalating trade war between the world's two biggest economies that threatens global growth. For Australia, the news offers a welcome reprieve -stabilising export demand for iron ore and LNG and providing near-term support for resource-heavy firms amid ongoing external uncertainty, said Chen. Miners ended marginally lower with BHP down 0.5% and Rio Tinto ending 1% lower. The world's biggest iron ore miner is expected to announce its interim results after market close. Energy stocks ticked 0.1% down, while gold stocks rose 0.3%. New Zealand's benchmark S&P/NZX 50 index fell 0.6% to 12,855.97 points. (Reporting by Sneha Kumar in Bengaluru; Editing by Harikrishnan Nair)
Business Recorder
2 days ago
- Business
- Business Recorder
China stocks hit 9-month high as investors brush off tariff risks, embrace bull market
SHANGHAI: China stocks rose to their highest level in nine months on Wednesday as investors looked past concerns over U.S. tariff threats and positioned themselves for a long-awaited bull market. The Shanghai Composite Index rose 0.6% to 3,636 points, its highest level since Oct 2024 and entering a bull market - commonly defined as climbing 20% from a recent trough. The index has risen for three consecutive months. U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks aimed at defusing an trade war between the world's two biggest economies that threatens global growth. 'Investors are increasingly insensitive to Sino-U.S. trade talks, and are paying more attention to domestic issues,' said Wang Zhuo, partner of Shanghai Zhuozhu Investment Management. Earlier this week, Goldman Sachs raised its target for Chinese stocks, citing 'brightened prospects for a U.S.-China trade deal.' Low interest rates are nudging investors into stocks, especially high-dividend blue-chips, while China's drive to crack down on excessive competition in some industries is improving the outlook for corporate earnings, Wang said. 'Now that the index is entering bull market territory, money will undoubtedly keep flowing in. I don't see signs of froth, so the bull run has legs.' China kicked off a 1.2-trillion-yuan ($167.3 billion)hydropower project in Tibet this month, and Beijing has launched a campaign against cut-throat price wars, fanning hopes for an end to the country's deflationary spiral. 'China's stock markets are flush with capital, and we're currently in a bull market driven by this abundance,' said Zeng Wenkai, chief investment officer at Shengqi Asset Management Co. China A-share market turnover remained elevated over the past week at around 1.8 trillion yuan per day, while the outstanding margin financing balance rose to a 10-year high of nearly 2 trillion yuan. In Hong Kong, the benchmark Hang Seng Index is near four-year highs. The market has jumped nearly 30% this year on the back of record inflows from mainland China, recovering foreign interest, and a booming market for initial public offerings (IPOs). Thirty-nine percent of Asia-Pacific family offices planned to increase their investments in Greater China over the next 12 months, according to UBS Global Family Office Report. By the lunch break, China's blue-chip CSI300 Index and the Shanghai Composite Index both climbed 0.5% while the Hong Kong benchmark Hang Seng was down 0.4%. Auto shares dragged the Hang Seng Index, with Li Auto down more than 10%, as the pricing of its new launch and competition concerned investors. Meanwhile, investors are awaiting details from the July Politburo meeting due this week for more policy direction, though some analysts say recent better-than-expected economic data and easing trade tensions may prompt leaders to hold off on further stimulus measures for now.
CNBC
2 days ago
- Business
- CNBC
Euro hovers near one-month lows after trade deal, focus switches to Fed
The euro steadied near its lowest in a month on Wednesday, nursing steep losses this week as investors counted the cost of the U.S.-EU trade pact and looked ahead to policy meetings from the Federal Reserve and the Bank of Japan. U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks in Stockholm. No major breakthroughs were announced, and U.S. officials said it was up to President Donald Trump to decide whether to extend a truce that expires on August 12. The Sino-U.S. talks come after a framework deal between the U.S. and EU was announced on Sunday. The accord has evoked a mix of relief and concern from Europe, as the agreement was lopsided and skewed towards the United States. "Markets seem to be increasingly interpreting trade agreements as symbolic and tactical rather than structural resolution," said Charu Chanana, chief investment strategist at Saxo in Singapore. "With terms often vague and enforcement mechanisms weak, investors are assigning lower market beta to these negotiations unless backed by concrete detail." The euro was 0.12% higher at $1.1558 in early trading after dropping for the first two days of the week and hitting a one-month low of $1.15185 on Tuesday. The euro is up 11.7% since the start of the year but on course for its first monthly drop this year. The single currency has benefited this year from the dollar losing its luster due to Trump's erratic trade policies, prompting investors to look for alternatives. Sterling was at $1.3358 and the Australian dollar last bought $0.6517. The offshore yuan was little changed at 7.178 per U.S. dollar. The Japanese yen firmed a bit to 148.20 per dollar. That left the dollar index, which measures the U.S. currency against six others, at 98.815, hovering near a one-month high. The index is set to record its first month of gains this year. Investor focus will now switch to central bank meetings, with the Fed due to announce its policy decision later on Wednesday. The Fed is widely expected to stand pat, making comments from Chair Jerome Powell crucial to gauge the policy path. The policy decision comes in the wake of Trump's constant demands for rate cuts, which have coincided with an unrelenting campaign of attacks on Powell by the president and administration officials. There is speculation that Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman could issue dissents if the Fed on Wednesday holds the policy rate steady for the fifth time since December. "While dissenting isn't uncommon, the dissents at this week's meeting may get more focus because Trump has made it crystal clear that he thinks the FOMC should be lowering interest rates," said Kristina Clifton, a senior economist at the Commonwealth Bank of Australia in Sydney. "Dissents at this meeting may be judged as political and put a dent in perceptions of the FOMC's independence." The BOJ is also expected to stand pat and the spotlight will be on comments from Governor Kazuo Ueda as investors hope the recent trade deal between Japan and the U.S. paves the way for the central bank to raise interest rates again this year.
Reuters
2 days ago
- Business
- Reuters
Dollar drifts before Fed, euro set for first monthly drop this year
SINGAPORE, July 30 (Reuters) - The U.S. dollar wobbled near a one-month high on Wednesday ahead of the Federal Reserve's policy decision, while the euro was poised to snap its run of six straight monthly gains as investors counted the cost of the U.S.-EU trade pact. The Japanese yen firmed against the dollar after a powerful earthquake struck off Russia's Far Eastern Kamchatka Peninsula and generated a tsunami, prompting evacuation warnings in the area and across most of Japan's east coast. Currency markets were mostly steady as investors were hesitant to place bets before crucial economic reports and central bank meetings in Canada, Japan and the United States. U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce, following two days of what both sides described as constructive talks in Stockholm. No major breakthroughs were announced and U.S. officials said it was up to President Donald Trump to decide whether to extend a truce that expires on August 12. The Sino-U.S. talks come after a framework deal between the U.S. and EU was announced on Sunday. The accord has evoked a mix of relief and concern from Europe, as the agreement was lopsided and skewed towards the United States. Investors have been keeping an eye on the trade pacts as countries scramble to get deals over the line before the August 1 deadline set by U.S. President Donald Trump. "Markets seem to be increasingly interpreting trade agreements as symbolic and tactical rather than structural resolution," said Charu Chanana, chief investment strategist at Saxo in Singapore. "With terms often vague and enforcement mechanisms weak, investors are assigning lower market beta to these negotiations unless backed by concrete detail." The euro firmed a bit to $1.1555 after dropping for the first two days of the week and hitting a one-month low of $1.15185 on Tuesday. The euro is up 11.7% since the start of the year but on course for its first monthly drop this year. The single currency has benefited this year from the dollar losing its lustre due to Trump's erratic trade policies, prompting investors to look for alternatives. Sterling was at $1.3355. The Australian dollar last bought $0.6514, steady on the day, after a set of surprisingly soft inflation figures that only cemented expectations for an interest-rate cut next month. The dollar index , which measures the U.S. currency against six others, was at 98.823, hovering near a one-month high and on course to post its first month of gains this year. Investor focus will now switch to central bank meetings, with the Fed widely expected to stand pat on rates later on Wednesday, making comments from Chair Jerome Powell crucial to gauge the policy path. The meeting comes in the wake of Trump's constant demands for rate cuts, which have coincided with an unrelenting campaign of attacks on Powell by the president and administration officials. There is speculation that Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman could issue dissents if the Fed on Wednesday holds the policy rate steady for the fifth time since December. Both were appointed by Trump as was Powell. "While dissenting isn't uncommon, the dissents at this week's meeting may get more focus because Trump has made it crystal clear that he thinks the FOMC should be lowering interest rates," said Kristina Clifton, a senior economist at the Commonwealth Bank of Australia in Sydney. "Dissents at this meeting may be judged as political and put a dent in perceptions of the FOMC's independence." The BOJ is also expected to stand pat and the spotlight will be on comments from Governor Kazuo Ueda as investors hope the recent trade deal between Japan and the U.S. paves the way for the central bank to raise interest rates again this year. The yen firmed 0.4% to 147.85 per dollar and was last at 148.06 after news broke about the Pacific earthquake and tsunami, with investors on alert for any damage to key infrastructure in Japan. Christopher Wong, currency strategist at OCBC, said the yen strength was in reaction to earthquake-related headlines and probably exacerbated by thin market liquidity. "The Nightmare of 2011 Tohoku earthquake lingers," he said, referring to the earthquake and tsunami that devastated northeastern Japan in March 2011. In cryptocurrencies, bitcoin was 0.5% higher at $118,042.85, while ether rose 1.2% to $3,808.81.
Zawya
2 days ago
- Business
- Zawya
Euro set for first monthly decline this year, focus switches to Fed
SINGAPORE: The euro steadied near its lowest in a month on Wednesday, nursing steep losses this week as investors counted the cost of the U.S.-EU trade pact, while the dollar wobbled ahead of the Federal Reserve's policy meeting. The Japanese yen firmed against the dollar after a powerful earthquake struck off Russia's Far Eastern Kamchatka Peninsula and generated a tsunami, prompting evacuation warnings in the area and across most of Japan's east coast. Currency markets were mostly steady as investors were hesitant to place bets before crucial economic reports and central bank meetings in Canada, Japan and the United States. U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce, following two days of what both sides described as constructive talks in Stockholm. No major breakthroughs were announced and U.S. officials said it was up to President Donald Trump to decide whether to extend a truce that expires on August 12. The Sino-U.S. talks come after a framework deal between the U.S. and EU was announced on Sunday. The accord has evoked a mix of relief and concern from Europe, as the agreement was lopsided and skewed towards the United States. Investors have been keeping an eye on the trade pacts as countries scramble to get deals over the line before the August 1 deadline set by U.S. President Donald Trump. "Markets seem to be increasingly interpreting trade agreements as symbolic and tactical rather than structural resolution," said Charu Chanana, chief investment strategist at Saxo in Singapore. "With terms often vague and enforcement mechanisms weak, investors are assigning lower market beta to these negotiations unless backed by concrete detail." The euro was 0.19% higher at $1.1566 after dropping for the first two days of the week and hitting a one-month low of $1.15185 on Tuesday. The euro is up 11.7% since the start of the year but on course for its first monthly drop this year. The single currency has benefited this year from the dollar losing its lustre due to Trump's erratic trade policies, prompting investors to look for alternatives. Sterling was at $1.3358 and the Australian dollar last bought $0.6517. The offshore yuan was little changed at 7.178 per U.S. dollar. That left the dollar index, which measures the U.S. currency against six others, at 98.815, hovering near a one-month high. The index is set to record its first month of gains this year. Investor focus will now switch to central bank meetings, with the Fed widely expected to stand pat on rates later on Wednesday, making comments from Chair Jerome Powell crucial to gauge the policy path. The meeting comes in the wake of Trump's constant demands for rate cuts, which have coincided with an unrelenting campaign of attacks on Powell by the president and administration officials. There is speculation that Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman could issue dissents if the Fed on Wednesday holds the policy rate steady for the fifth time since December. Both were appointed by Trump as was Powell. "While dissenting isn't uncommon, the dissents at this week's meeting may get more focus because Trump has made it crystal clear that he thinks the FOMC should be lowering interest rates," said Kristina Clifton, a senior economist at the Commonwealth Bank of Australia in Sydney. "Dissents at this meeting may be judged as political and put a dent in perceptions of the FOMC's independence." The BOJ is also expected to stand pat and the spotlight will be on comments from Governor Kazuo Ueda as investors hope the recent trade deal between Japan and the U.S. paves the way for the central bank to raise interest rates again this year. The yen firmed 0.3% to 147.94 per dollar and was last at 148.06 after news broke about the Pacific earthquake and tsunami, with investors on alert for any damage to key infrastructure in Japan. Christopher Wong, currency strategist at OCBC, said the yen strength was in reaction to earthquake-related headlines and likely exacerbated by thin market liquidity. "The Nightmare of 2011 Tohoku earthquake lingers," he said, referring to the devastating earthquake and tsunami that rocked Japan in March 2011. In cryptocurrencies, bitcoin was 0.4% higher at $117,944.64, while ether rose 1% to $3,807.34. (Reporting by Ankur Banerjee in Singapore; Editing by Jamie Freed and Sam Holmes)
