NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

GLOBAL MARKETS-Asian shares stall, sterling falters amid Brexit, growth anxiety

Published 25/10/2019, 05:30 pm
© Reuters.  GLOBAL MARKETS-Asian shares stall, sterling falters amid Brexit, growth anxiety
EUR/USD
-
USD/JPY
-
UK100
-
XAU/USD
-
US500
-
DJI
-
AXJO
-
JP225
-
HK50
-
MSFT
-
MMM
-
DE30
-
DX
-
GC
-
LCO
-
UK100
-
CL
-
EU50
-
US2YT=X
-
US10YT=X
-
MIAPJ0000PUS
-
CSI300
-
DXY
-
PYPL
-

* MSCI Asia ex-Japan barely higher, Nikkei up 0.22%

* Europe seen opening sideways

* Investors await central bank decisions, key data

* Sterling weaker after PM Johnson election call

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Andrew Galbraith

SHANGHAI, Oct 25 (Reuters) - Asian shares trod water on Friday as investors awaited key central bank policy meetings next week amid signs of slowing global growth, while sterling extended its slide on a fresh bout of Brexit anxiety.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up just 0.05%, having spent the day oscillating between small losses and gains.

Europe looked set to be similarly directionless, with pan-region Euro Stoxx 50 futures STXEc1 up 0.06% at 3,613, German DAX futures FDXc1 down 0.03% at 12,864.5 and FTSE futures FFIc1 up 0.11% at 7,312 in early trade.

Chinese blue-chips .CSI300 were up by 0.56% and Hong Kong's Hang Seng .HSI fell 0.28%.

Japan's Nikkei .N225 finished up 0.22%, while the Australian share market .AXJO managed a 0.68% rise.

The British pound, which fell 0.51% on Thursday after British Prime Minister Boris Johnson's call for a general election on Dec. 12, extended its slide, edging down to $1.2845.

Johnson conceded on Thursday for the first time that he would not meet his "do or die" deadline to leave the European Union next week. continued uncertainty over Brexit comes against the backdrop of persistently sluggish global growth.

A Reuters poll of economists showed that most think a steeper decline in global growth is more likely than a synchronised recovery, despite central bank easing. his last meeting as president of the European Central Bank, Mario Draghi left ECB policy and guidance unchanged, but advised his successor to "never give up" on propping up the eurozone economy in the face of a worsening outlook. major focus for investors is next week's U.S. Federal Reserve policy meeting at which it's almost certain to cut interest rates for a third time this year. less about the Fed going to cut, it's more about if they're going to signal the pace, the magnitude of cuts," said Kay Van-Petersen, global macro strategist at Saxo Bank in Singapore.

Investors will also scrutinise a raft of data that will follow the Fed decision, he said. "It's really all about next week."

The Bank of Japan is also set for a two-day meeting ending Oct. 31. Its decision is expected to be a close call, though sources told Reuters the BOJ is leaning toward keeping monetary policy steady. Wall Street, strong quarterly results from Microsoft MSFT.O and PayPal PYPL.O helped lift the Nasdaq, which closed up 0.81% at 8,185.80.

The S&P 500 .SPX rose 0.19% on the day, but the Dow Jones Industrial Average .DJI finished 0.11% lower at 26,805.53, weighed down by 3M (NYSE:MMM) MMM.N after the company cut its full-year earnings forecast. remain cautious despite risk assets gains in recent weeks supported by apparent progress in Brexit negotiations and China-U.S. trade talks.

"On the whole, we conclude that we have not entered into a new 'risk on' phase from a broader trend perspective just yet," said George Davis, chief technical strategist at RBC Dominion Securities.

Investors are also nervous before a summit in Chile where U.S. President Donald Trump hopes to finalise a partial trade deal with his Chinese counterpart Xi Jinping.

Rattling confidence was a speech by U.S. Vice President Mike Pence on Thursday, which criticised China's handling of the Hong Kong protests and its treatment of Muslim Uighurs in the Xinjiang region. Those comments sent the S&P 500 index briefly lower. yield on benchmark 10-year Treasury notes US10YT=RR fell to 1.7574% on Friday compared with its U.S. close of 1.766% on Thursday. The two-year yield US2YT=RR , which rises with traders' expectations of higher Fed fund rates, was at 1.5777%, down from a U.S. close of 1.582%.

Expectations that the Fed will cut rates helped to lift gold prices. The precious metal XAU= was last up 0.09% to $1,504.62 per ounce. GOL/

The dollar was slightly higher against the yen at 108.66 JPY= and the euro EUR= was unchanged on the day at $1.1104.

The dollar index .DXY , which tracks the greenback against a basket of six major rivals, nudged 0.04% higher to 97.669.

Oil prices were lower after rising on Thursday on a surprise drop in U.S. crude inventories and the hopes for market-supporting actions by OPEC and its allies.

West Texas Intermediate (WTI) crude CLc1 was down 0.60% to $55.89 a barrel, and global benchmark Brent crude LCOc1 dipped 0.55% to $61.33 per barrel. Gold and 2 year yields

https://tmsnrt.rs/2PitwT5

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.