Month: April 2017

Wilbur Ross accuses Mexico of taking advantage of NAFTA rules in China trade

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

US Commerce Secretary Wilbur Ross told CNBC on Thursday that Chinese goods dumped in Mexico are finding their way to the United States.

“Mexico’s trade deficit with China is approximately equal to their trade surplus to us. It’s not an accident,” Ross said on “Squawk Box.”

“The rules of origin in NAFTA need some tightening,” he added. “Rules of origin are what let material outside of NAFTA to come in and benefit from all the taxes and tariff reductions within NAFTA.”

“It was a silly idea to let a lot of outside stuff in. The whole idea of a trade deal is to build a fence around participants inside and give them an advantage over the outside,” he continued. “So there’s a conceptual flaw in that, one of many conceptual flaws in NAFTA.”

Despite earlier indications, President Donald Trump, in separate Wednesday afternoon phone calls with Mexico and Canada, agreed not to terminate the North American Free Trade Agreement “at this time.”

Ross told CNBC on Thursday that Canada and Mexico are ready to start renegotiating NAFTA. “If we could only get Congress to release the 90-day letter, we’ll be going on our side as well,” he added, referring to the 90 days notice that must be given before beginning formal talks on NAFTA.

Ross, a billionaire who made his fortune investing in distressed assets, told CNBC two days ago that the White House was putting Canada on notice with a new import tariff on what it calls Canadian subsidies for lumber and a warning on Canadian trade practices the U.S. claims hurts American dairy farmers.

On another trade matter, Trump is set to sign a memo on Thursday afternoon authorizing an investigation into whether a flood of aluminum imports from China and elsewhere jeopardize national security. The move is similar to one last week for imported steel.

“We’re down to two smelters in the whole country. Imports are now 55 percent of the total aluminium market here,” Ross said on CNBC.

“In many critical things such as the very high purity of the aluminium we need in aerospace, we only have one producer,” he said, arguing “that’s not a good formula.”

In January, the Obama administration filed a complaint with the World Trade Organization alleging that Chinese aluminum producers receive artificially cheap loans, contributing to the country’s excess capacity.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Treasury’s Mnuchin: Trump wants 15% corporate rate in ‘biggest tax cut’ in US history

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Wanted: Investors to upgrade India’s roads

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Asia’s third-largest economy has kicked off an international roadshow in Singapore for a masala bond sale aimed at upgrading the country’s highways.

The National Highways Authority of India (NHAI) is looking to sell 50 billion rupees ($775 million) worth of the offshore rupee-denominated bond in order to build expressways, economic corridors, bridges and tunnels.

With stops to come in Hong Kong and London, the roadshow is a visible sign of Prime Minister Narendra Modi’s commitment to the upgrade of public works, which is seen as critical to future economic growth.

India is looking to reduce traffic congestion by building multi-lane roads and increasing the rate of national highway construction, the country’s Minister for Road Transport, Highways and Shipping Nitin Gadkari said at a Nomura event on Monday. Enhancing the monetization of existing infrastructure to fund maintenance and the development of multi-modal hubs were also key goals, he added.

New Delhi has already facilitated investments to fund these programs— the government will be injecting $3 billion of annual equity commitments into the newly-formed National Investment and Infrastructure Fund — but Modi wants the private sector to help.

To drum up foreign investor interest in India’s road network, the second-largest in the world, policymakers have undertaken a slew of reforms, Gadkari said. Measures include a one-time fund infusion to revive stuck projects, a fast-track dispute resolution and a new model of public-private partnerships that offers lower risk for the private sector.

Innovative technologies, such as electronic toll collection and intelligent transportation systems, are also underway.

Previously, confidence in the system was lacking and that impacted decision-making, Gadkari said. “Now, there is a stronger political will. We created confidence in the minds of people so the overall mind-set has changed.”

As part of a fiscal incentive package, New Delhi has granted 100 percent tax exemption for five years and duty-free import of specified equipment for highway construction.

Investors from more than ten countries already have stakes in various projects, including the U.S., Canada, China and Russia.

A former president of the ruling Bharatiya Janata Party, 59 year-old Gadkari assured his audience that corruption and red-tape, common complaints from Indian businesses, were no longer issues.

“We have zero tolerance against corruption, the system is transparent and each tender is there.”

Solid returns awaited long-term investors looking to participate in India’s highway story, Gadkari added. Vehicle sales keep increasing and the compound annual growth rate of road freight is expected to grow 15 percent over the next decade, he said.

“Every day we collect tolls so we are ready to give you returns daily, monthly or yearly.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Shares in Asia mostly higher after first round of French elections; Nikkei up 1.3%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Equities in Asia were mostly in the green on Monday following the widely-expected results of the first round of presidential elections in France, with exit polls indicating that Emmanuel Macron and Marine Le Pen would progress to the run-off on May 7.

Centrist candidate Macron won 23.7 percent of the votes in the first round of the election on Sunday while National Front leader Le Pen secured 21.7 percent, according to estimates.

“While the increased popularity of the centrist candidate (Macron) is not a strong market driver, a collective sense of relief that the global economy is over another hurdle should see a risk on rally in Asia Pacific trading today,” CMC Markets’ Chief Market Strategist Michael McCarthy noted.

The euro bounced against the dollar to trade at USD 1.0838 at 9:35 am HK/SIN. The euro had earlier traded at a five-month high of close to USD 1.0935 against the dollar, compared to Friday’s close around the USD 1.072 handle. The euro also made gains against the yen, trading higher at 119.20 yen.

“Euro/dollar has gapped much higher because we do not have the worst case scenario for the market. We may knock the level of USD 1.10 or possibly even USD 1.11 but this trade may fade as Le Pen is still there. This is going to keep traders on the sidelines,” ThinkMarkets’ Chief Market Analyst Naeem Aslam said in a note.

Asian markets were higher across the board. Japan’s benchmark Nikkei 225 index surged 1.33 percent on the back of the French polls while the Kospi gained 0.3 percent. The ASX 200 was higher by 0.27 percent, driven by the strong performance in its financials sub-index.

In greater China, the Hang Seng Index were higher by 0.63 percent. Equities in mainland China bucked the trend, with the Shanghai Composite down by 0.51 percent and the Shenzhen Composite off by 0.695 percent.

Geopolitical tensions in the Korean peninsula took a backseat even though tension continued to ramp up over the weekend. North Korea reportedly arrested an American citizen in Pyongyang. The hermit state also indicated that it was prepared to sink a US aircraft carrier to showcase its military prowess.

In other currency news, the dollar index traded lower at 98.980, compared to the 99 handle seen the past week. The greenback, however, was stronger against the safe-haven yen and off the 108 handle seen in the last two weeks. Dollar/yen last traded at 110.05. The risk-sensitive Aussie dollar traded around the USD 0.755 mark.

On the energy front, oil prices crept up slightly after falling at least 2 percent on Friday although US crude remained just below the USD 50 a barrel mark. US West Texas Intermediate (WTI) crude was 0.5 percent higher at USD 49.88 while Brent crude traded up by 0.56 percent at USD 52.25.

In corporate news, Hong Kong jeweler Chow Tai Fook’s acquisition of Australian utilities company Alinta Energy was approved by Foreign Investment Review Board in Australia. Investors had been watching if regulators would clear the deal after Chinese investment in Australian electricity grid Ausgrid was blocked last August. Chow Tai Fook shares were lower by 0.24 percent.

Stateside, US stock futures opened sharply higher on the back of the French election polls, with Dow futures soaring nearly 200 points earlier in the session. S&P and Nasdaq futures were both higher by around 1 percent. Wall Street had closed lower across the board last Friday.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Stocks close lower as Wall St braces for French election, but post weekly gains

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

U.S. stocks closed lower in choppy trade Friday as investors looked ahead to the French election. Wall Street also digested falling oil prices and comments from the Trump administration on tax reform.

The Dow Jones industrial average fell about 30 points with IBM contributing the most losses.

The index briefly turned positive in afternoon trade after President Donald Trump told The Associated Press his administration will unveil a “massive tax cut” in a new reform, though the timing of that package was unclear.

The S&P 500 declined 0.3 percent, with telecommunications falling more than 1 percent to lead decliners.

Energy was also among the decliners, falling 0.4 percent as U.S. crude dropped 2.15 percent to settle at $49.62 per barrel.

The Nasdaq composite closed 0.1 percent lower.

“We’ve had a pretty decent week, so people are taking a bit of risk off the table ahead of the French election,” said JJ Kinahan, chief market strategist at TD Ameritrade. “Depending on how it goes, it could be really good or really bad for the euro.”

The three major indexes were on track to post slight weekly gains as of 3:08 p.m. ET, with the S&P up around 1 percent for the week. Stocks received a boost from mostly strong earnings reports.

Nevertheless, the major indexes are lower for the month, with the S&P and Dow breaking below their respective 50-day moving averages.

“The 50-day moving average is the line of demarcation for this bifurcated market,” said Adam Sarhan, CEO of 50 Park Investments. “The longer the indexes stay below the 50-day moving average, the more negative the outlook gets.”

Equities rallied on Thursday, as corporate earnings and comments from Treasury Secretary Steven Mnuchin on tax reform lifted investor sentiment.

“Investors seem to be optimistic but there are factors dampening that optimism,” said Peter Cardillo, chief market economist at First Standard Financial. “The market is concerned over the French election.”

Uncertainty around the election has grown over the past month after far-left candidate Jean-Luc Melenchon’s surprising surge in the polls. Concerns over a victory from far-right candidate Marine Le Pen rose after a shooting in Paris.

Le Pen has said repeatedly that, if she wins, she’d pull France out of the European Union and the euro zone.

But centrist and pro-European candidate Emmanuel Macron is still the favorite to win the contest, according to French polling firm Ifop. The French presidential election is held over two rounds; the first one will be held Sunday and the second on May 7.

“He crushes each of them, most notably Marine Le Pen and Jean-Luc Mélenchon, in a head-to-head contest. These two outsiders therefore have a much higher mountain to climb in a much shorter period than Donald Trump had when challenging Hillary Clinton,” said Jeremy Klein, chief market strategist at FBN Securities, in a note.

The yield on the French 10-year bond bounced back from a three-month low to trade around 0.93 percent.

In corporate news, Dow component Visa reported better-than-expected quarterly results and announced a $5 billion buyback of class A stock. General Electric, another Dow component, also beat Wall Street estimates for earnings and revenue.

Earnings season has gotten off to a strong start. As of Friday morning, 77 percent of the 95 S&P 500 companies that had reported topped earnings-per-share estimates while 67 percent beat on sales, according to data from The Earnings Scout.

In economic news, existing home sales rose to levels not seen since 2007 last month.

The Dow Jones industrial average fell 30.95 points, or 0.15 percent, to close at 20,547.76, with Verizon leading decliners and Microsoft the top advancer.

The S&P 500 declined 7.15 points, or 0.3 percent, to end at 2,348.69, with telecommunications leading nine sectors lower; utilities and industrials were the only risers.

The Nasdaq pulled back 6.26 points, or 0.11 percent, to close at 5,910.52.

About five stocks declined for every four advancers at the New York Stock Exchange, with an exchange volume of 932.93 million and a composite volume of 3.467 billion at the close.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 14.7.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Here’s all you need to know about the French election

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The world is currently focused on France where voters are heading to the polls Sunday to choose their next president. Ahead of vote, which is being described as the most uncertain election ever in French politics, here’s a look at the key details.

Why is this election important?

France is the second-largest economy in the euro zone and one of the seven biggest across the world. Its president holds enough powers to influence the country’s economic and political path.

Furthermore, this election takes place at a time when the French people are increasingly concerned on security matters, after several terrorist attacks across the country, and disenchanted with high levels of unemployment and poor economic performance since the 2008 crisis. The candidates’ proposals show that whatever the outcome this election will not only shape the future of France, but also of the European Union.

“As two candidates to the French presidential election expressed their desire to work on a ‘Frexit’ once elected, these elections have of course implications beyond French borders,” Vincent Juvyns, global market strategist at JPMorgan Asset Management, told CNBC via email.

“Though the legislative hurdles to get to a ‘Frexit’ are high, one can at this stage not say that it is impossible. In such a situation, the European project would definitely be at risk, the volatility would increase on financial markets and we could get in a situation at least similar to the European debt crisis of 2012,” he added.

For the first time in 15 years, the far right has realistic chances of getting into power. This is also the first time in modern France when the incumbent president hasn’t run for a second term.
How many candidates are running?

There are 11 candidates running, of which four make up the list of frontrunners. A poll released by Elabe on Friday morning showed the centrist and independent candidate Emmanuel Macron winning the first round with 24 percent of the votes, closely followed by the far-right candidate Marine Le Pen with 21.5 percent of the support. The conservative candidate Francois Fillon placed third with 20 percent and the member of the far left Jean-Luc Melenchon came fourth with 19.5 percent.

All polls have shown that this election is too close to call.
Why are there two rounds of voting?

France use the two-round voting system. A leader can be elected this Sunday if they win an outright majority but the polls suggest that this is unlikely. As a result, a run-off between the two leading candidates is expected and is scheduled for May 7.

When will we know the results?

Polling stations are due to close between 7 p.m. Paris time (8 p.m. for the big cities) on Sunday. Preliminary results are expected around 9 p.m. Paris time, slightly later than usual as the close race is expected to complicate and delay the results. In recent history, France has never had a race that was too close to call, with the two leading candidates usually being pretty clear.

“This is a four way race with the potential for the numbers to be quite close to one another. In the previous elections exit polls have over/under estimated the candidates by up to +-2 percent either way. They correct themselves as the night progresses and typically by 9:30 pm (London time) they are more confident as to the results,” Nomura noted in a research note on Thursday.
What happens after the runoff?

With the run-off schedule for May 7, it is expected that a new president will be formally confirmed by May 11. “The official investiture of the new president will take place on the Sunday 14 May at the latest,” Juvyns from JPMorgan said.

He added that the formation of the next government will depend on who’s elected. “In the case of Francois Fillon or Emmanuel Macron, they should in theory be able to form a rather stable government as they have a wide – direct or indirect – support in both houses. For Marine Le Pen and Jean-Luc Melenchon, it could be more challenging given there is low support in the lower and upper house and also because the legislative elections in June could oblige them to work with other political parties in their governments which would be less likely for Fillon or Macron.”

How will markets react on Sunday?

“We think it will probably need both Le Pen and Melenchon to get through to the second round to do the euro any significant harm,” United Overseas Bank said in a note on Friday morning.

The worst case for markets would be if the far right and the far left made it to the second round and UOB believes there’s only about a 25 percent chance for such a scenario. However, the analysts said it would mean a much lower EUR/USD, with risk of breaking below the year to-date-low of 1.0340.

If polls prove to be right and Macron and Le Pen make it to the run-off, “EUR/USD could retest the 1.09-figure, though we don’t see the pair trading significantly higher,” the bank said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ex-Fed chief Greenspan: Get rid of Dodd-Frank and watch economy, stocks soar

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Former Federal Reserve Chairman Alan Greenspan told CNBC on Thursday the prospect of getting rid of the Dodd-Frank banking regulations has been a driver of higher stocks and would continue to be.

“If you get rid of Dodd-Frank, it’s going to have a very significant positive impact on the economy,” he said on “Squawk on the Street,” from the sidelines of the IMF–World Bank meeting of finance ministers in Washington.

“In my judgment, that’s where the surge in the stock prices has come from. It’s very difficult to find anything other than that, which I find really positive,” argued Greenspan, who served nearly two decades as Fed chairman from 1987 to 2006.

In February, President Donald Trump ordered the Treasury and other financial regulators to review the banking and consumer finance rules created under Dodd-Frank, the 2010 law crafted in response to the financial crisis two years earlier.

The tighter rules aimed at preventing taxpayers from having to bailout “too big to fail” banks in the future included higher rainy day capital requirements, which critics say stifle lending and hurt economic growth.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asia cautiously higher after Wall Street earnings; French election eyed

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Most Asian indexes were cautiously higher on Thursday, following key earnings on Wall Street and as oil prices came off two-week lows set earlier in the session.

Japan’s benchmark Nikkei 225 index climbed 0.22 percent and the ASX 200 was up by 0.29. The Kospi was higher by 0.16 percent.

But markets in greater China were narrowly mixed. The Shanghai Composite eased 0.18 percent lower while the Shenzhen Composite traded nearly flat. The Hang Seng Index bucked the trend and rose 0.22 percent.

“Weak overnight share trading and falls in crude oil and gold should see Asia Pacific shares under further pressure today. However, local investors are leading the current round of global selling and may confound international leads,” CMC Markets’ Chief Market Strategist Michael McCarthy said in a note.

Oil prices recouped some losses after falling to a two-week low, down nearly 4 percent, following an unexpected build in US gasoline inventories and an increase in US crude production. Brent crude was up by 0.62 percent to trade at USD 53.26 a barrel while US crude rose 0.61 percent at USD 50.75.

Investors are also expected to eye politics in Europe as tensions on the Korean peninsula appear to ebb, following news that a US aircraft carrier group had not actually been headed to seas near the Korean Peninsula.

The first round of the tight French presidential election this weekend could influence movements in euro/dollar, said IG Chief Market Strategist Christ Weston in a Thursday morning note. Centrist Emmanuel Macron and far-right candidate Marine Le Pen, who advocates leaving the euro zone, are most likely to go through to the second round of the election, he added.

“(I)t seems unlikely euro/dollar will break the USD 1.05 to USD 1.085 range on this outcome. I would however favor euro appreciation here and a brief rally in the CAC 40 cash, given the polls have consistently shown an easy win for Macron,” Weston said. Euro/dollar last traded at USD 1.0713.

Meanwhile, the dollar rose from around three-week lows to trade at 99.796 against a basket of rivals at 9:20 am HK/SIN. The greenback was also slightly stronger against the yen, trading higher at 108.86 compared to the 108.4 handle seen yesterday.

Sterling gave up some gains after rising to a six-and-a-half month high following the announcement of a snap election by Prime Minister Theresa May on Tuesday. Cable traded at USD 1.278, just off the USD 1.28 handle seen Wednesday.

Commenting on sterling, Port Shelter Investment Management Chief Executive Richard Harris told CNBC that the currency had been “due for a bounce” but is unlikely to strengthen further. “I don’t really see it moving much more from here. There’s still too much uncertainty out there,” he added.

In corporate news, Rio Tinto reported that iron ore production fell 3 percent on year but did not change its full-year guidance. Rio Tinto shares jumped 1 percent in early trade.

On the economic front, Japan reported that March exports rose 12 percent on year, against a 6.7 percent increase projected. This is the fourth consecutive month of gains for Japanese exports, Reuters said.

Japanese Finance Minister Taro Aso said on Wednesday there would be “various problems” if the Bank of Japan resorted to helicopter money as this would undermine its independence.

The Indonesian central bank is expected to announce its rate decision at 5:00 pm. It is widely expected to keep rates on hold.

Also in Indonesia, incumbent governor Basuki Tjahaja Purnama, commonly referred to as Ahok, ceded ground in the Jakarta gubernatorial election to challenger Anies Baswedan, a former education minister.

Stateside, stocks closed mostly lower on the back of a mixed earnings picture and lower oil prices, with the Dow Jones industrial average down 0.58 percent or 118.79 points after IBM announced mixed Q1 earnings, to finish at 20,404.49.

In its Beige Book report released on Wednesday, the US Federal Reserve indicated that the labor market was tightening but that inflationary pressures remained modest.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apple just made a bunch of apps free for everyone

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Apple just made iMovie, the entire iWork suite and GarageBand free for everyone.

Those applications have already been free for folks who purchased a new iOS or macOS device in the past several years. That means you may already have a free version installed or available to you through the App Store.

If you hadn’t purchased new hardware though, chances are you were looking at paying $9.99 per iOS app, like GarageBand for example, or up to $19.99 per iWork app. iWork consists of a suite of applications meant to compete with Microsoft Office or Google Docs.

iWork includes Pages, which is like Microsoft Word, Numbers (like Excel) and Keynote (like PowerPoint.) The apps stay in sync across devices, whether you’re using them on an iPhone, iPad or Mac, and documents can also be accessed easily through iCloud.

You should find the free apps available on your iPhone or Mac now.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asia markets lose ground, with resources, financial shares under pressure

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Asia markets declined on Wednesday, tracking Wall Street’s negative close overnight, with resources and financial shares losing ground.

Investors also remained vigilant amid US-North Korea tensions and the nearing of the French presidential election.

Stocks in Japan fell, with the Nikkei off 0.18 percent and the Topix slipping 0.18 percent, despite earlier briefly popping into positive territory.

Australia’s shares were also lower, with the S&P/ASX 200 down 0.43 percent.

Hong Kong’s Hang Seng Index shed 0.47 percent, while on the mainland, the Shanghai Composite was off 0.37 percent and the Shenzhen Composite lost 0.34 percent.

In South Korea, the Kospi shed 0.36 percent.

US-North Korea tensions lingered. Vice President Mike Pence, arriving in Tokyo from South Korea, reassured Japan of American commitment to reining in North Korea’s nuclear and missile ambitions on Tuesday, after warning that US strikes in Syria and Afghanistan showed the strength of its resolve.

The reclusive North has conducted a series of missile and nuclear tests in defiance of UN sanctions.

Some analysts weren’t overly concerned by the market declines.

“We are going through a technical correction and the market needs that because it’s been rising the past five months already,” Norman Chan, chief investment officer at Oreana Private Wealth, told CNBC’s “Squawk Box” on Wednesday.

Chan pointed to a host of positive data from China, particularly the strong gross domestic product (GDP) figures released earlier this week. He noted that the mainland’s economic improvement would help to boost other Asian economies as they export to China.

In Australia, some resources plays were lower, with BHP off 0.23 percent and Newcrest down 1.04 percent.

In a note on Tuesday, Citi reiterated a bearish view on iron ore, although it raised its forecast for 2017 to USD 70 a tone from USD 65.

The bank cited risks for the second half of this year, including “the slowdown of Chinese steel demand growth, large-scale restarts of Chinese iron ore mines, and stronger Indian supply growth due to cancellation of export tariffs on low-grade ores.”

Additionally, Morgans said in a research note on Tuesday that it was downgrading Newcrest shares to Hold from Add, citing a “large seismic event” at its Cadia East mine last week, with the bank assuming a two-month production interruption.

It noted that Cadia accounted for 31 percent of the company’s total production and 49 percent of the group’s earnings before interest, tax, depreciation and amortization (Ebitda).

In Japan, the commodity trading houses were lower, with Itochu shedding 1.53 percent and Mitsubishi Corp. losing 1.74 percent.

Financial stocks around the region were lower, after Goldman Sachs earnings missed the mark and as bond yields fell amid as markets turned cautious and US economic data disappointed.

In Australia, Westpac shed 1.16 percent, Japan’s Mitsubishi UFJ was off 1.27 percent and South Korea’s Hana Financial was down 1.33 percent. In Hong Kong, HSBC shed 0.56 percent and in Singapore, shares of DBS fell 1.16 percent.

European equities fell broadly after UK Prime Minister Theresa May overnight called for a snap election in June. The announcement also sent the British pound on a wild ride. The currency rose sharply after initially falling as low as USD 1.2520 on word that May would make an important announcement.

After the announcement the pound rose as high as USD 1.2904 on Tuesday. On Wednesday, it was fetching USD 1.2841 at 7:59 a.m. HK/SIN.

Naeem Aslam, chief market analyst at Think Markets, said in a note on Wednesday that the rally on the surprise snap election may be premature.

“Traders are getting well ahead of themselves,” he said. “Theresa May could easily win the upcoming election according to the latest polls. However, this doesn’t not mean that Brexit negotiations with the EU partners would become easy,” he added, noting “it is the EU which would be very much calling the shots.”

Aslam also noted that May’s lead could fade before the June 8 voting as the election could be seen as an opportunity for opponents to derail Brexit.

The dollar index, which measures the greenback against a basket of currencies, tumbled to 99.475 by 7:33 a.m. HK/SIN from levels over 100 overnight after weaker-than-expected housing starts, which fell 6.8 percent last month, compared with expectations for a 3.9 percent decline.

“The Beige Book is scheduled for release on Wednesday and while the U.S. economy in general continues to recover, if Fed districts report a slowdown, the dollar could extend its losses quickly,” Kathy Lien, managing director of foreign-exchange strategy at BK Asset Management, said in a note late Tuesday.

The Dow Jones industrial average fell 113.64 points, or 0.55 percent, to close at 20,523.28, the S&P 500 fell 0.3 percent dropped 6.82 points, or 0.29 percent, to end at 2,342.19 and the Nasdaq pulled back 7.32 points, or 0.12 percent, to close at 5,849.47.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow