Asia markets jump at open; Nikkei gains 2.6%, Kospi up 0.9%

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

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Asia markets opened higher on Monday, after a strong employment report stateside saw US stocks rise on Friday.

Japan’s Nikkei 225 rallied 2.6 percent in early trade, while the Topix was up 2.4 percent. Across the Korean Strait, the Kospi added 0.88 percent.

Australia’s ASX 200 was up 1.39 percent, boosted by some 1.7 percent gains in the financials subindex that makes up nearly half of the broader index. Major Australian banks rallied, with shares of ANZ climbing 2.6 percent.

“The bulls are seemingly in charge of everything right now,” said Chris Weston, chief market strategist at brokerage firm IG. “Whether that is the equity market, gold or US treasuries, no [one] seems to have much conviction in selling, or at least the buyers are buying in bigger size.”

The nonfarm payrolls report showed that the US created 287,000 jobs in June, versus 175,000 expected by economists surveyed by Reuters. The unemployment rate edged higher to 4.9 percent, versus the 4.8 percent estimate.

Despite the better-than-expected jobs report for June, analysts said it wouldn’t be enough to push the US Federal Reserve to raise interest rates.

“Abstracting from monthly noise, jobs growth averaged a solid 147,000 a month over the last three months, telling us that the US economy is doing well,” Shane Oliver, head of investment strategy and chief economist at AMP Capital, said in a Friday note after the report.

But Oliver added, “The Fed will probably still want to see more evidence that US growth has picked up sustainably and that global risks post Brexit are settling down and so won’t be rushing to raise rates soon particularly with wages growth remaining low.”

In the currency market, the dollar traded at 96.373 against a basket of currencies on Monday morning. In the immediate aftermath of the jobs report on Friday, the dollar index spiked momentarily to near 96.500 level before retreating back to levels before the release.

Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, said in a Friday note that foreign exchange traders were not convinced by the better-than-expected June jobs report and were eyeing the downward revision of the weak May numbers. The already weak payrolls growth from May was revised even further downward, to 11,000.

“There’s no reasonable case for a rate hike before the end of the year,” said Lien. She added that continued Brexit risks, US retail sales data, Chinese trade and GDP numbers due this week would mean another “volatile week for the greenback.”

The Japanese yen maintained its relative strength against the dollar, trading at 100.82, while the British pound traded at $1.2937, only a touch higher from its record 31-year lows.

Oil prices were lower during Asian hours, with global benchmark Brent down 0.68 percent at $46.44 a barrel, while US crude futures dropped 0.75 percent to $45.07.

In company news, the initial public offering price for Line Corp, a subsidiary of South Korean internet company Naver, was set at 3,300 yen per share, at the top of the range, according to a Reuters report. Naver shares were up 0.4 percent in early trade.

Major US indexes closed higher on Friday, with the Dow Jones industrial average closing up 250.86 points, or 1.40 percent, at 18,146.74. The S&P 500 closed up 32.00 points, or 1.53 percent, at 2,129.90, while the Nasdaq composite added 79.95 points, or 1.64 percent, to 4,956.76.

In other news, Japanese Prime Minister Shinzo Abe’s ruling coalition won a landslide victory on Sunday in an election for parliament’s upper house, according to media exit polls reported by Reuters. The victory came despite concerns about the effectiveness of his economic policies.

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Why some top banks say Brexit means buy emerging markets

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

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The market wobbles since the Brexit vote offered a buy signal for emerging markets (EM) stocks, some analysts said.

And the finger was being pointed squarely at the negative yields on developed markets bonds.

Following the turmoil of the UK’s vote to exit the European Union (EU), the combined value of bonds with negative yields jumped to USD 11.7 trillion, according to a Fitch Ratings report on June 29, marking a 12.5 percent increase since the end of May.

As the Brexit turmoil sent investors fleeing to safe-haven sovereign debt, Japanese bonds maturing in 40 years yielded less than 0.10 percent, while investors paid for the privilege of lending short-term money to Spain and Italy, countries where fiscal profligacy had sparked a crisis only a few years ago.

That made emerging markets equities look good by comparison, analysts said.

“While yields in emerging markets have also come down, they remain considerably higher than anything available in developed markets, and in quite a few cases are rather convincing from a risk-reward perspective,” Taimur Baig, chief economist at Deutsche Bank, wrote in a report titled, “Brexit’s loss could be EM’s gain,” on July 1.

“Economies like Brazil, India, Indonesia, and Turkey have their economic, structural, and political issues, but their relative attractiveness is considerable in this negative yield environment,” he said.

“These economies will, in all likelihood, deliver higher nominal gross domestic product (GDP) growth rates than their developed market counterparts, which should manifest in higher revenue and profit growth, making a strong case for their equity markets.”

That view was echoed by JPMorgan.

“In an emerging market context, you’ve had commodity stocks absolutely hammered, energy stocks absolutely hammered, exporters absolutely hammered. You have expectations that are very low and market positioning that is very underweight emerging market equities to begin with,” James Sullivan, head of Asia-Pacific equities research at JPMorgan, told reporters on June 29.

“Then you add into that the overall macro perspective from a rate perspective.”

He noted that there were 11 emerging markets where JPMorgan expected significant rate cuts, compared with many developed markets where central banks effectively were no longer able to use interest rates as tools.

China Markets The bullish case for emerging markets

The market wobbles since the Brexit vote offered a buy signal for emerging markets (EM) stocks, some analysts said.

And the finger was being pointed squarely at the negative yields on developed markets bonds.

Following the turmoil of the U.K.’s vote to exit the European Union (EU), the combined value of bonds with negative yields jumped to $11.7 trillion, according to a Fitch Ratings report on June 29, marking a 12.5 percent increase since the end of May.

As the Brexit turmoil sent investors fleeing to safe-haven sovereign debt, Japanese bonds maturing in 40 years yielded less than 0.10 percent, while investors paid for the privilege of lending short-term money to Spain and Italy, countries where fiscal profligacy had sparked a crisis only a few years ago.

That made emerging markets equities look good by comparison, analysts said.

“While yields in emerging markets have also come down, they remain considerably higher than anything available in developed markets, and in quite a few cases are rather convincing from a risk-reward perspective,” Taimur Baig, chief economist at Deutsche Bank, wrote in a report titled, “Brexit’s loss could be EM’s gain,” on July 1.

“Economies like Brazil, India, Indonesia, and Turkey have their economic, structural, and political issues, but their relative attractiveness is considerable in this negative yield environment,” he said.

“These economies will, in all likelihood, deliver higher nominal gross domestic product (GDP) growth rates than their developed market counterparts, which should manifest in higher revenue and profit growth, making a strong case for their equity markets.”

That view was echoed by JPMorgan.

“In an emerging market context, you’ve had commodity stocks absolutely hammered, energy stocks absolutely hammered, exporters absolutely hammered. You have expectations that are very low and market positioning that is very underweight emerging market equities to begin with,” James Sullivan, head of Asia-Pacific equities research at JPMorgan, told reporters on June 29. “Then you add into that the overall macro perspective from a rate perspective.”

He noted that there were 11 emerging markets where JPMorgan expected significant rate cuts, compared with many developed markets where central banks effectively were no longer able to use interest rates as tools.

That’s why Sullivan was positive on yield-oriented emerging market stocks such as telecommunications, utilities and real-estate investment trusts (REITs).

“If you’re in a low growth environment and people are cutting rates, then yield outperforms,” he said.

Others were also putting in their two-bits in favor of emerging markets.

Mark Jolley, equity strategist at CCB International Securities, told CNBC’s “Squawk Box” on Monday that negative interest rate policies in Japan and Europe were set to continue driving fund flows into emering markets and peripheral developed markets such as Australia.

“Australia doesn’t look that great at the moment, emerging markets don’t look that great, but relative to these places which are offering negative yield, they look quite good so I think you’ll continue to see people buying that market for yield,” Jolley said.

Nomura was also more positive on emerging markets in the wake of the Brexit vote, upgrading Southeast Asian markets as a result.

“In a post-Brexit environment where we expect greater policy accommodation (from the Bank of England, the Federal Reserve, the Bank of Japan, the European Central Bank and local central banks), ASEAN (Association of Southeast Asian Nations) should thus continue to outperform,” the bank’s analysts said in a note on July 1.

“We expect a period of inflows on the back of lower return expectations in Europe and Japan. Within Asia, Asean countries have among the lowest trade linkages and stocks markets’ revenue exposure to Europe,” it added.

Nomura raised its recommendation on Malaysia to overweight and recommended Indonesia as its “top overweight” in the region.

To be sure, the pivot toward emerging markets wasn’t absolute. Deutsche Bank’s Baig, for one, said he was cautious on emerging Europe because the region was likely to be affected by Brexit fallout due to strong trade and financial ties to the European Union.

And Goldman Sachs didn’t appear to be fully convinced, cutting its target for the MSCI Asia Pacific ex-Japan index in a note dated July 1. Goldman set its index targets at 395, 400 and 430 on a three-, six- and 12-month basis, down from 420, 420 and 425 previously.

While Goldman estimated that Asia’s economic growth would only take a hit of about 10 basis point from the Brexit, it noted that “second-order” impacts, such as greater uncertainty weighing domestic spending, could further shave growth in the region.

That was likely to weigh on markets in Asia, the bank added.

“Regional equity markets have historically been closely correlated with those in Europe,” it said, estimating the downside risk from a contraction in risk appetite could be 5-10 percent reduction in value for Asia’s stock markets.

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Euro zone growth ‘to decelerate’ after Brexit: IMF

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

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The U.K.’s decision to leave the EU is expected to weigh on euro zone growth, the International Monetary Fund (IMF) said on Friday, lowering its growth forecasts for the 19-country region.

Euro area gross domestic product (GDP) growth is expected to decelerate from 1.6 percent this year to 1.4 percent in 2017, the IMF said, “mainly due to the negative impact of the U.K. referendum outcome.”

The IMF warned that inflation expectations also remain “very low” and below the European Central Bank’s medium-term price stability objective or around 2 percent. The IMF said that headline inflation is expected to increase from 0.2 percent this year to 1.1 percent next year, however, helped by gradually rising energy prices.

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Asia markets mixed; Nikkei up 0.3%; Shanghai down 0.6%

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

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Asian markets traded mixed early on Friday, amid lower oil prices and caution ahead of all-important US June non-farm payrolls data.

The S&P/ASX 200 was flat after initially opening lower, weighed by its energy subindex, which was down 0.3 percent.

In Japan, the Nikkei 225 was up 0.25 percent; while across the Korean strait, the Kospi was lower by 0.18 percent.

Chinese mainland markets were lower, with the Shanghai composite down 0.55 percent and the Shenzhen composite slipping 0.1 percent.

US crude prices dropped 4.83 percent to USD 45.14 a barrel on Thursday after an Energy Information Administration (EIA) report showed stockpiles fell 2.2 million barrels in the week to July 1, far less than the 6.7 million barrel drawdown the American Petroleum Institute reported on the previous day.

But crude prices were recovering during Asian trade; US crude prices were trading up 0.91 percent at USD 45.54, while Brent futures were up 1.1 percent at USD 46.91 after it settled at USD 46.40.

“Oil will be front and centre in the Asian session…The real focus in the market is the lack of decline seen in gasoline inventories,” explained IG market strategist Angus Nicholson. “Summer driving season in the U.S. will end within the next two months, which is when demand for gasoline is at its highest, and yet gasoline inventories are not declining as expected.

“This is developing into a major concern for the oil market because once the seasonal demand disappears, gasoline inventories could be set to explode in the second half of the year,” he added.

Meanwhile, Japan’s May current account surplus stood at 1.81 trillion yen (USD 17.96 billion), falling 3.72 percent from a month earlier, Reuters reported. The stronger yen curbed gains from investment overseas, but tourism income hit a record high.

US June non-farm payrolls are due later in the day and investors will watch for signs that May’s disappointing headline figure of 38,000 was an anomaly. Friday’s data is expected to show a rebound to 175,000 nonfarm payrolls, according to Thomson Reuters – a number that will likely influence the Federal Reserve’s easing bias for the rest of the year.

Despite expectations of a strong payroll figure, which would likely strengthen the dollar, funds continued to favor safe havens, such as the yen, amid widespread market jitters in the wake of the UK vote to exit the European Union (EU).

“Most economists and investors expect a strong recovery in job growth after last month’s hauntingly weak report,” said Kathy Lien, managing director of FX strategy at BK Asset Management in a Friday note. “With such a view, we would normally expect the dollar to be trading higher against the yen, but instead of rising, USD/JPY fell for the fifth trading day in a row,”

The Japanese yen traded at 100.81 against the dollar early on Friday, compared with levels near 103 a week ago.

The British pound traded at USD 1.2923 as of 9:30 a.m. HK/SIN on Friday. The pound had dropped to a 31-year low of USD 1.2796 on Wednesday amid uncertainty surrounding the Brexit vote.

Wall Street’s middling finish overnight may have also weighed sentiment in Asia. The Dow Jones industrial average finished lower by 0.13 percent, the S&P 500 ended nearly flat and the Nasdaq composite finished up 0.36 percent, its sixth positive session in seven days.

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Oil plummets more than 3% as US crude stock draw disappoints

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

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Oil prices sank as government data showed a far weaker US crude inventory draw than an industry report released Tuesday suggested.

US commercial crude stockpiles fell by 2.2 million barrels to a total of 524.4 million in the week through July 1, the Energy Information Administration reported.

The American Petroleum Institute (API) said its data showed US crude stockpiles fell by 6.7 million barrels last week, declining for a seventh week in a row.

Brent crude oil futures fell USD 1.71, or 3.5 percent, at USD 47.09 per barrel at 12:24 p.m. ET (1624 GMT) on Thursday. US West Texas Intermediate (WTI) crude was trading at USD 45.80 per barrel, down USD 1.63, or 3.4 percent.

The EIA data also showed gasoline inventories fell by about 100,000 barrels and distillate fuel stocks decreased by 1.6 million barrels.

Preliminary weekly data showed US production fell by 194,000 barrels per day, primarily due to declines in Alaska’s output. Monthly data that operates on a significant lag is more accurate.

Prices had earlier risen on Thursday, drawing support from the API report and a weaker US dollar, which makes oil more affordable for holders of other currencies.

“Oil demand growth remains robust,” UBS said in a note, adding that “an historically high level of physical inventories … is no bar to a rising price if the direction of travel in market adjustment is supportive.”

The bank raised its price forecasts for 2016 and 2017.

However, traders warned that an economic slowdown and a glut in supplies of refined products were weighing on oil markets.

The EIA data may compound concerns about the fuel glut. The data showed gasoline supplies rose by 46,000 barrels per day to more than 9.75 million barrels per day.

Asian crude demand is slowing and by some measures falling, which market participants said could be due to an economic slowdown and perhaps even more permanent structural changes.

“Growth is slipping again … and things don’t seem quite so rosy,” HSBC said in a note to clients.

While both stocks and sterling climbed on Thursday, oil industry observers warned that fall-out from Britain’s vote to leave the European Union last month could weigh on oil prices if the market turmoil spread outside Europe.

German industrial output plunged unexpectedly in May for its steepest monthly drop since August 2014, data showed on Thursday, suggesting Europe’s largest economy lost steam in the second quarter after a surprisingly strong start to the year.

On the supply side, Libyan officials said oil export terminals that have been shut since 2014 could open again soon, potentially restoring 600,000 barrels per day of crude export capacity.

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‘Brexiteer’ Gove knocked out of race to be new UK prime minister

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

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June pvt sector jobs rose by 172,000 vs 159,000 expected: ADP

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

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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

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Asia opens higher; ASX up 0.6%, Nikkei flat, Kospi gains 1%

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

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Asian markets opened modestly higher on Thursday, likely taking cues from a stronger finish in the US, helped by rising oil prices and the release of dovish Federal Reserve minutes.

Australia’s ASX 200 was up 0.58 percent, boosted by gains in the energy, materials and the heavily-weighted financials sub-indexes. In Japan, the Nikkei 225 was near flat at 15,374.37, while across the Korean Strait, the Kospi was up by 1 percent.

Major indexes in the region had sold off in the previous session on global growth concerns that saw a flight to safety.

“Calmer heads seem to have prevailed in the US and we are once again seeing a situation where the U.S. economy is seemingly looking OK, while the U.K. and Europe are showing increasing signs of fragility,” Chris Weston, chief market strategist at brokerage firm IG, said in a Thursday morning note.

Major US indexes finished higher. The Dow Jones industrial average closed up 78 points, or 0.44 percent, at 17,918.62, the S&P 500 closed up 11.18 points, or 0.54 percent, at 2,099.73, and the Nasdaq composite was up 36.26 points, or 0.75 percent, at 4,859.16.

Stateside, data showed the pace of growth in the country’s service sector increased in June by the fastest pace in seven months.

“If we went off this report alone, then the Federal Reserve would be putting rates up today, but that is clearly not the case with the May trade balance and dovish (yet largely redundant) set of FOMC minutes keeping the growth bulls in check,” said Weston.

The US trade deficit widened more than expected in May. Minutes from the Fed’s June meeting, meanwhile, suggested policymakers were cautious about raising rates.

Asian markets sold off on Wednesday as investors scurried into safe-haven plays on global growth concerns that sent bond yields to record lowers. Worries were spurred by poor US factory orders data, Chinese Premier Li Keqiang’s Monday remarks suggesting China may not maintain its 6.7 percent growth rate, and renewed fears over the fallout from the Brexit vote.

In the currency market, the dollar traded at 96.097 against a basket of currencies, coming off levels near 96.290 it traded at on Wednesday afternoon Asia time.

The Japanese yen, a safe-haven currency, traded at 101.21 against the greenback, after touching the 100 handle in the previous session and levels near 103 on Friday. Analysts said the fresh strength in the yen seen on Wednesday was due to a flight to safety amid jitters across financial markets.

The British pound traded at USD 1.2921 as of 8:27 a.m. HK/SIN on Thursday. The Cable dropped to a fresh 31-year low of USD 1.2796 on Wednesday amid persistent uncertainty surrounding the UK’s future as a result of its decision to leave the European Union.

Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, said the further drop in the sterling was due to “nothing more than thin liquidity conditions.”

“Ultimately sterling is headed lower as bad news worsens,” Lien added. “Brexit puts significant stress on the financial sector and property funds are the first to feel the pain. Other sectors will start to implode, edging the UK economy and British pound lower.”

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

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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

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Asia markets tumble as investors scurry into safe-haven plays

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

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Markets in Asia sold off on Wednesday, as investors scurried into safe-haven plays on global growth concerns, sending bond yields to record lows. Renewed Brexit jitters also sent the British pound tumbling to a fresh 31-year low.

The British pound traded at USD 1.2898 as of 2:00 p.m. HK/SIN, after dropping to a fresh 31-year low of USD 1.2796 earlier.

The tumble began overnight as investors flocked to safe-haven assets such as US Treasurys, the yen and the greenback after three UK real estate funds halted selling and the Bank of England relaxed regulations to encourage banks to lend out more money.

Japan’s Nikkei 225 closed down 290.34 points, or 1.85 percent, at 15,378.99, after earlier tumbling as much as 3.2 percent on the back of fresh yen strength. The Japanese yen, a safe-haven asset, traded at 101.04 as of 2:02 p.m. HK/SIN, after the pair traded as low as 100.56 earlier and compared with levels near 103 on Friday.

“There’s a high level of complacency in dollar/yen trade as the markets have no defined direction other than chasing risk sentiment,” said Stephen Innes, a senior trader at OANDA. “I expect further probes lower as the latest Brexit sell-off is simply the tip of the iceberg.”

The yen strength saw Japanese exporters decline, with shares of Honda closing down 4.55 percent, Toyota down 1.73 percent and Nissan down 2.01 percent.

Australia’s ASX 200 closed down 30.50 points, or 0.58 percent, at 5,197.50, with the energy, materials and the heavily-weighted financials weighing. South Korea’s Kospi dropped 36.73 points, or 1.85 percent, to 1,953.12, while Hong Kong’s Hang Seng index tumbled 1.75 percent in afternoon trade.

On the Chinese mainland, the Shanghai composite was flat.

“The heady post-Brexit rally looks to be at an end, with all major US and European markets down overnight except the FTSE 100, which moved higher only as a response to the further decline in the pound,” said Angus Nicholson, a market analyst at spreadbettor IG.

Among safe-haven assets, the dollar advanced against a basket of currencies to trade at 96.357, compared with the 95.631 level on Tuesday during Asian hours.
“We saw investors flock into the safety of US dollars as the liquidation spread to stocks, commodities, the euro, Australian and Canadian dollars,” said Kathy Lien, managing director of foreign exchange strategy at BK Asset Management.
The yield on the benchmark 10-year Treasury touched new lows during Asian hours, falling as low as 1.345 percent, extending overnight declines and marking an all-time low, according to Reuters Tradeweb data which goes back to 1953.

Analysts expect Treasury yields to continue their decline and for the coupon curve to flatten.

Mark Cabana from Bank of America Merrill Lynch said in a note there will be two key drivers of Treasurys: “First, a flight out of gilts by risk-averse foreign investors should benefit Treasurys … second, attracting global liquidity when real rates are constrained and monetary policy is considered ineffective is not good news for inflation expectations,” he said.

The yield on the 10-year benchmark gilt was 0.771 percent, down from levels above 1.0 percent last week.

In Japan, the yield on the 10-year Japanese government bond (JGB) fell as low as negative 0.281 earlier in the session before climbing back slightly to negative 0.264. Reuters also reported the yield on the 20-year JGB turned negative for the first time on Wednesday, falling to negative 0.005 percent.

Gold prices advanced, with spot gold up 1.06 percent at USD 1,370.00, compared with levels near USD 1,320 in the previous week. Gold miners in Australia bucked declines in the broader market to trade up; Newcrest shares advanced 3.26 percent, while Evolution Mining was up 6.32 percent.

Adding to risk aversion, stateside data showed factory orders declined 1 percent in May after two straight months of increases. The highly anticipated nonfarm payroll report is due Friday.

Elsewhere, in a speech on Monday, Chinese Premier Li Keqiang said it would not be easy for China to achieve a growth rate of 6.7 percent in the first quarter, according to Xinhua News Agency.

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

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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

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Europe stocks slide amid Brexit fears; Pound dives to 31-yr low

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

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European stocks opened lower on Wednesday as fears over political and economic uncertainty in the European Union (EU) following the Brexit vote return to global markets.

The pan-European STOXX 600 was down 0.72 percent.

Growing anxiety about the fallout of the UK’s vote to leave the EU has continued to plague markets. Markets in Asia were trading sharply lower on Wednesday, as investors scurried into safe-haven plays on global growth concerns, sending bond yields to record lows.

As a result of the growing uncertainty, the British pound also dropped to a fresh 31-year low amid Brexit concerns, trading at USD 1.2880 around 5.30 a.m. London time after dropping as low as USD 1.2796 earlier.

The tumble began on Tuesday as investors flocked to safe-haven assets such as US Treasurys, the yen and the greenback after three UK real estate funds, Standard Life, Aviva and M&G Investments halted redemptions and the Bank of England relaxed regulations to encourage banks to lend out more money.

Concerns over the ramifications of the vote and about global growth prompted US stocks to close lower on Tuesday amid record lows in the benchmark 10-year Treasury yield.

In other news, UK Home Secretary Theresa May has taken the lead in the race to find a new Conservative party leader and British Prime Minister. May came top in a first round of voting on Tuesday, Liam Fox was eliminated from the race with the fewest amount of votes and Stephen Crabb pulled out of the leadership race leaving May, Andrea Leadsom and Michael Gove to face another round of voting Thursday.

Italian banks remain in focus for investors. Trading in shares of Banca Monte dei Paschi di Siena was halted during Tuesday’s session afterthe European Central Bank asked BMPS to slash its bad debts by over 40 percent in three years, Reuters reported.

Late on Tuesday, market watchdog Consob said short selling of BMPS shares would be banned in Wednesday’s trading session, Reuters added.

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

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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