Stocks
Stocks mixed, dollar rises as traders weigh Trump shooting
Asian markets were mixed Monday as investors weigh the impact of the assassination attempt on Donald Trump with data suggesting it has boosted his chances of being re-elected president.
Eyes are also on a key meeting of China’s top leadership in Beijing, with hopes for measures to boost the world’s number two economy, which grew less than expected in the second quarter.
Investors struggled to extend the rally enjoyed on Wall Street, where all three main indexes ended on a positive note despite a forecast-topping read on US wholesale prices.
The figures were not enough to overshadow Thursday’s news that the consumer price index had slowed more than expected in June, which ramped up bets on a Federal Reserve interest rate cut in September.
That came after central bank chief Jerome Powell told lawmakers that inflation did not need to come in at decision-makers’ two percent target for them to begin lowering borrowing costs.
However, investors are keeping a close eye on developments in the United States after Trump was hit with a bullet on Saturday at a rally ahead of the Republican convention this week.
While the odds of him beating President Joe Biden had been rising in recent weeks, they got an extra lift from the shooting.
Observers said a Trump victory could see lower corporate taxes — a boost for companies’ bottom lines — but also an increase in tensions with China with fresh tariffs possible.
Still, Katrina Ell at Moody’s Analytics said: “The assassination attempt might lead to a temporary boost in the polls for Trump, but a lot can change before November.
“Financial markets are expected to soon refocus on the Federal Reserve and the growing likelihood of a rate cut in September.”
The dollar rose Monday, having softened last week owing to the prospect of lower rates, while equity markets were mixed.
Hong Kong, Shanghai, Seoul, Taipei and Jakarta dropped, while Sydney, Singapore, Manila and Wellington rose.
Official data showed the Chinese economy expanded just 4.7 percent in the second quarter, well below the 5.1 percent forecast in a survey by Bloomberg.
Separate data showed retail sales slowed sharply in June as the country’s army of consumers remain cautious.
The readings highlight the tough work leaders face as they grapple with a real estate debt crisis, weakening consumption, an ageing population and trade tensions with Western rivals.
President Xi Jinping and other top leaders are gathered in Beijing to hammer out plans to kickstart growth, though analysts warned there was unlikely to be any major announcement for the short-term.
“A Trump victory would be damaging for China’s economy given manufacturing and exports are powering the recovery,” Moody’s Ell added.
“Trump has indicated a number of significant trade barriers would be imposed on China under his leadership.”
– Key figures around 0230 GMT –
Hong Kong – Hang Seng Index: DOWN 0.9 percent at 18,123.67
Shanghai – Composite: DOWN 0.2 percent at 2,965.55
Tokyo – Nikkei 225: Closed for a holiday
Dollar/yen: UP at 158.04 yen from 157.88 yen on Friday
Euro/dollar: DOWN at $1.0889 from $1.0906
Pound/dollar: DOWN at $1.2966 from $1.2989
Euro/pound: DOWN at 83.95 pence from 83.97 pence
West Texas Intermediate: DOWN 0.5 percent at $81.80 per barrel
Brent North Sea Crude: DOWN 0.5 percent at $84.64 per barrel
New York – Dow: UP 0.6 percent at 40,000.90 (close)
London – FTSE 100: UP 0.4 percent at 8,252.91 (close)
Reviewing the U.S. Stock Markets, the Nasdaq Composite, recorded a decent loss of 1,023 points, reaching a closing value of 16,690 points by the end of the week. Similarly, the S&P 500 index showed a positive trend, losing 240 points to settle at 5,408 points. Meanwhile, DJIA Index experienced a notable hike, adding 1,218 points during the week and concluding at 40,345 points after a week of gaining.
In contrast, Russell 3000 Index saw a loss in week performance, with a slight drop of 141 point to reach 3,077 points by the end of the week.
Moving to Russell 2000 Index, demonstrated a notable lost of 126 points, ending the week at 2,091 points.
In the Outgoing week, the European stock market displayed a mixed performance.
Here is the data on the weekly performance of the European Stock Market, The STOXX Europe 600 index, which is considered a leading benchmark for the European market and covers approximately 90 percent of the market capitalization across 17 countries, reported a loss of 18.49 points to close at 506.56.
The United Kingdom’s FTSE 100, one of the most widely followed indices in Europe, also showed a significant drop, losing 195 points or finishing the session at 8,181.
In Germany, the DAX 30 index, added by 605 points to reach 18,301, while France’s CAC 40 decreased by 278 points to stop at 7,352 at the end of the trading day.
Italy’s FTSE MIB, which covers the top 40 stocks traded on the Milan Stock Exchange, decreased by 1,081 points to 33,291. However, Spain’s IBEX 35, lost by 228 points, to close at 11,173.
A review of South Asian stock markets shows that India’s Bombay Stock Exchange (BSE) index BSE Sensex has lost 1,182 points during the week. At the end of the week, the index stood at 82,365 points. On the other hand, the Nifty-50 index of the country’s National Stock Exchange dropped by 383 points last week. At the end of the week, the index stood at 24,852 points.
Pakistan Stock Exchange Index ‘KSE 100’, added 459 points last week. After a week of losing, the index settled at 79,002 points.
On the other hand, The Sri Lankan stock market index loss, and the Colombo Stock Exchange index ‘ASPI’ decreased by 94 points in a week. After a week the index settled at 10,775 points.
Bhutan’s stock market index ‘BSI’ dropped by 9 points hence the index stood at 1,500 points throughout the whole week. Nepal’s ‘NEPSE’ lost 22 points, therefore the index stands at 2,727 points.
Hence Dhaka Stock Exchange: The benchmark index ‘DSEX’ lost by 75.77 points or 1.31 percent, in the outgoing week. At the end of the week, the index stands at 5,728 points.
