Tag: global markets

World stocks rally after volatile week, trade worries on backburner

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

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World stocks rallied on Friday, with Wall Street opening higher and European indexes recovering from a volatile week pegged to a growing US-led trade battle with other top global economies, with those concerns pushed to the backburner for now.

Bank shares jumped after US lenders cleared the second part of the Federal Reserve’s stress test, pushing the sector 0.88% higher after it broke a 13-day losing streak on Thursday, and helping US stocks to recover some losses.

Nike also pushed US benchmark indexes higher after the world’s largest sneaker maker surged as much as 11.5% to a record peak on a strong earnings report.

The Dow Jones Industrial Average rose 276.37 points, or 1.14%, to 24,492.42, the S&P 500 gained 25.57 points, or 0.94%, to 2,741.88 and the Nasdaq Composite added 66.24 points, or 0.88%, to 7,569.92.

MSCI’s gauge of stocks across the globe gained 1.20%.

Earlier, the US stock market briefly dipped on a report by the Axios news website that indicated President Donald Trump was keen for the US to withdraw from the World Trade Organization; the market recovered after Treasury Secretary Steven Mnuchin told Fox Business Network the report was wrong. The Axios report cited people involved in talks with Trump.

The market’s wobbling was a reminder of heightened investor sensitivity to trade-related remarks or developments.

“The markets are very much subject to headlines on trade and tariffs,” said Peter Cecchini, chief market strategist at Cantor Fitzgerald in New York.

“They are important from the standpoint that trade globalization has been the cornerstone for growth and when you do something to sort of undermine that cornerstone, that’s a reasonable reason for concern.”

The U.S. administration is due to impose tariffs on Chinese goods worth $34 billion beginning July 6, likely prompting a tit-for-tat response from Beijing.

The pan-European FTSEurofirst 300 index rose 1.13%.

The euro was set for its strongest day in a month after leaders at an EU summit reached an agreement on migration, rising 0.8% to $1.1658. The agreement eased a threat to German Chancellor Angela Merkel’s ruling coalition over the issue.

While Asian stocks rose, the Chinese yuan suffered its worst month on record, losing 3% against the dollar in June as investors pulled money from a market likely to suffer from higher barriers to trade.

The U.S. dollar was set for its strongest quarterly gains since the fourth quarter of 2016, helped by the U.S. Federal Reserve’s move to raise interest rates in June, and expectations of further hikes this year.

The dollar index, tracking it against six major currencies, edged down 0.6% to 94.787 as the euro rose.

The yield curve between two-year and 10-year U.S. notes flattened to 31 basis points, the flattest since 2007, after U.S. consumer spending data disappointed some analysts’ expectations. Some investors see its flattening as a sign recession may be around the corner.

Oil prices extended gains to fresh highs on a tighter market as U.S. sanctions against Iran threatened to remove a substantial volume of crude oil from world markets amid rising demand.

Brent crude rose 2% to $79.51 per barrel, while U.S. crude added 0.6% to $73.90, its highest since November 2014.

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

Asian shares stay near 9-month lows as trade frictions weigh

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

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Asian shares remained near nine-month lows on Friday despite small gains on Wall Street overnight, as ongoing concerns over global trade frictions dampened sentiment, though a move to ease foreign investment curbs in China could boost markets there.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, Australian shares were 0.1 percent higher, while Japan’s Nikkei stock index was down 0.2 percent.

Stocks on Wall Street posted small gains on Thursday, helped by financial and technology shares, but broader market sentiment remained subdued on lingering concerns over US-driven trade tensions.

The Dow Jones Industrial Average rose 98.46 points, or 0.41 percent, to 24,216.05, the S&P 50 gained 16.68 points, or 0.62 percent, to 2,716.31, and the Nasdaq Composite added 58.60 points, or 0.79 percent, to 7,503.68.

On Thursday evening, China released details of a long-anticipated easing on foreign investment curbs on sectors including banking, automobiles, heavy industry and agriculture, as it moved to open its domestic markets.

In addition to confirming already announced pledges to remove ownership limits fully on industries such as insurance and autos within the next three to five years, China will also ease or scrap ownership caps on businesses including ship and aircraft manufacturing, power grids and the breeding of crops, excluding wheat and corn.

The US dollar index, which measures the greenback against a basket of six currencies, pulled back from near one-year highs to 95.253. The currency has risen in recent weeks, helped by the US Federal Reserve’s move to raise interest rates in June, and expectations of further hikes this year.

The dollar was mainly flat against the yen, at 110.43. The euro was also flat on the day at $1.1571.

Trade wars and emerging markets “fragility stand at the forefront of investor concerns,” Citi analysts said in a note Friday.

The yield on benchmark 10-year Treasury notes fell slightly to 2.8419 percent compared with its US close of 2.847 percent on Thursday, as investors picked up safe-haven assets.

The two-year yield, which rises with traders’ expectations of higher Fed fund rates, was at 2.5161 percent compared with a US close of 2.52 percent.

Oil prices stepped back from the three-and-a-half-year highs on Thursday over concerns that US sanctions could sharply cut crude exports from Iran.

The commodity has been hit also by supply worries due to falling US crude stockpiles, and production disruption in Canada after Syncrude Canada’s oil sands facility in Alberta province suffered a power outage.

US crude dipped 0.1 perccent to $73.38 a barrel. Brent crude was also 0.1 percent lower at $77.79 per barrel. Despite broad interest in safe-haven investments, gold remained near six-month lows, weighed down by trade worries, interest rate expectations and the strong dollar.

On Friday, spot gold was trading slightly higher at $1248.56 per ounce.

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

Drug stocks hit by Amazon health push, tech steadies Wall Street

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

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Amazon’s foray into the pharmacy space sent drug stocks sliding on Thursday, but gains in financial and technology stocks helped Wall Street keep its footing.

Amazon.com said it would buy online pharmacy PillPack, sending shares of drug distributors and retailers tumbling.

Walgreens Boots Alliance, already under pressure after its third-quarter earnings report, tumbled 9.3 percent and along with UnitedHealth’s 2 percent drop pulled the Dow Jones Industrial Average lower.

Shares of CVS Health sank 8.8 percent, Rite Aid fell 10.9 percent and Express Scripts was down 3.2 percent.

The S&P health sector dropped 0.61 percent, the most among the 11 S&P sectors, while Amazon gained 1.2 percent.

The US economy slowed more than previously estimated in the first quarter, according to Commerce Department data that showed gross domestic product increased at a 2 percent annual rate in the period, instead of the 2.2 percent pace reported last month.

The revision came amid the weakest performance in consumer spending in nearly five years and with the United States engaged in tit-for-tat trade tariffs with its major trade partners, including China, Canada and the European Union.

“It’s not unusual at this point in the quarter to have a little bit of a whacking in terms of economic numbers and corporate reports,” said Stephen Lee, founding principal at Logan Capital Management in Ardmore, Pennsylvania.

“That whacking tends to get pulled with some of the political drama in the US and around the world, and that seems to be what is moving things around.”

At 11:15 a.m. ET the Dow Jones Industrial Average was down 9.96 points, or 0.04 percent, at 24,107.63, the S&P 500 was up 2.13 points, or 0.08 percent, at 2,701.76 and the Nasdaq Composite was up 15.04 points, or 0.20 percent, at 7,460.13.

Amazon’s burgeoning reach was not limited to just the health sector. Its plans to entice entrepreneurs to set up their own package-delivery businesses sent shares of United Parcel Service and FedEx skidding more than 2 percent.

The stocks drove the S&P industrial index down 0.5 percent.

Six of the 11 major S&P sectors were higher, with the financial index gaining 0.47 percent ahead of results from the second round of the Federal Reserve’s stress test for banks and lenders.

The technology sector’s 0.58 percent jump gave the biggest boost to the market.

Accenture rose 5.5 percent after the consulting and outsourcing services provider reported quarterly revenue and profit above estimates.

Marvell Technology jumped 7 percent after the chipmaker said China cleared its $6 billion acquisition of rival Cavium, which rose 9.1 percent.

Declining issues outnumbered advancers for a 1.19-to-1 ratio on the NYSE and for a 1.18-to-1 ratio on the Nasdaq.

The S&P index recorded nine new 52-week highs and 23 new lows, while the Nasdaq recorded 23 new highs and 86 new lows.

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

Asian shares flirt with 9-month low on mounting trade war fears

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

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Asian stocks slumped to nine-month lows on Thursday on growing worries the US administration’s approach to trade is harming global economic growth even as it appeared to be modifying its approach to curb Chinese investments in US technology firms.

US oil prices hit a 3-1/2-year high as plunging US crude stockpiles compounded supply worries in a market already uncertain about Libyan exports, a production disruption in Canada and Washington’s demands that importers stop buying Iranian crude.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.25 percent to a nine-month low in early trade while Japan’s Nikkei shed 0.30 percent.

The US S&P 500 lost 0.60 percent on Wednesday to one-month closing low.

MSCI’s broadest gauge of the world’s stock markets fell to its lowest level in almost three months, on course to post its fourth month of loss in the last five. Its emerging market index hit the weakest level since mid-August.

In China, the markets have taken a battering as worries about a wobbly yuan and the trade spat with the United States have left investors bracing for a rocky final six months of the year.

That will keep traders focused on China stocks which were hit by bruising sell-off on Wednesday, with blue chips slumping to their worst loss in over a year.

Trump said on Wednesday he will use a strengthened national security review process to thwart Chinese acquisitions of sensitive American technologies, a softer approach than imposing China-specific investment restrictions.

Although that lifted US stocks initially, optimism quickly evaporated after White House economic adviser Larry Kudlow said Trump’s announced plan did not indicate a softened stance on China.

Markets remain anxious about Trump’s hard line approach to get better trade deals, with early signs his stance may not only be backfiring but also hurting the global economy.

Two US major auto trade groups on Wednesday warned the administration that imposing up to 25 percent tariffs on imported vehicles would cost hundreds of thousands of auto jobs, dramatically hike prices on vehicles and threaten industry spending on self-driving cars.

The move came after US motorcycle maker Harley-Davidson Inc said earlier this week it would move production for European customers overseas to avoid retaliatory tariffs.

“Initially investors saw Trump’s moves as negotiation tactics to get better deals. But now they are starting to worry about the damage to the economy,” said Mutsumi Kagawa, chief global strategist at Rakuten Securities.

“People have long thought the US economy will eventually hit a recession at some point. But there are growing worries Trump’s trade policies may hasten that. The fear now is that ‘America First’ may become ‘America Worst’,” he added.

The 10-year US Treasuries yield dropped to 2.827 percent, edging near its May 29 low of 2.759 percent.

In worrying sign for some investors, the US yield curve flattened further, with the spread between two and 10 year yields shrinking to a 10-year low of 32 basis points, or 0.32 percent point.

Historically, the US economy has tended to enter a recession after the spread had shrunk below zero percent, inverting the yield curve.

The fall in US bonds yields came despite inflationary pressure stemming from rising oil prices.

US crude futures surged 3.16 percent on Wednesday, rising as high as $73.06 a barrel, the highest since Nov. 28, 2014, on signs of tight supply.

US crude stocks fell nearly 10 million barrels last week while the fall in Canadian exports helped drain supplies of heavy crude across North America.

The US demand on other countries to cut all imports of Iranian oil is also seen as fuelling a shortage while a power struggle in Libya has left it unclear whether the internationally recognised government or rebels will handle oil exports.

US crude futures last traded at $72.50 a barrel, down 0.37 percent in early Asian trade.

On the other hand, copper, seen as a barometer of the strength of global economy because of its wide industrial use, hit a three-month low of $6,692.5 a tonne.

In the currency market, major currencies were treading water on uncertainties over the escalating trade frictions.

The euro was hit by concerns about political uncertainty in Germany although Chancellor Angela Merkel’s coalition partner said it was not seeking to break up the government.

The common currency stood at $1.1561, edging near an 11-month low of $1.1508 set a week ago.

The dollar changed hands at 110.26 yen, up slightly but well within its narrow trading range over the past month. The currency pair is on course to post its smallest monthly range in nearly fours this month.

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 shares struggle with trade fears, oil holds gains

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

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Asian shares were subdued on Wednesday as weakness in Chinese stocks and the yuan weighed on sentiment, while oil held hefty gains as the United States pressured allies to stop buying Iranian crude.

MSCI’s broadest index of Asia-Pacific shares outside Japan was off 0.05 percent after touching a two-year trough on Tuesday. Markets have been pressured by sharp losses in China, where blue chips were near 13-month lows.

Japan’s Nikkei has been faring better and was all but flat in early trade.

US crude oil futures jumped 3.6 percent on Tuesday after new broke that Washington was pushing allies to halt imports of Iranian crude.

The market rallied further after the American Petroleum Institute said US crude inventories had fallen by much more than expected. [O/R]

Early Wednesday, US crude was up 8 cents at $70.61, while Brent climbed 24 cents to $76.55 a barrel.

The jump in oil boosted the Wall Street energy sector 1.4 percent, making it the biggest gainer on the S&P 500.

The S&P 500 still only managed to add 0.22 percent overall, while the Dow rose 0.12 percent and the Nasdaq 0.39 percent.

Confusion still reigned over US trade policy.

The US House of Representatives overwhelmingly passed a bill on Tuesday to tighten foreign investment rules, spurred by bipartisan concerns about Chinese bids to acquire sophisticated US technology.

Yet President Donald Trump also endorsed a measured approach to restricting Chinese investments in US technology companies, saying a strengthened merger security review committee could protect sensitive technologies.

“We remain of the view that a large scale “trade war” remains a low probability though the odds of it happening appear to have increased,” said JPMorgan economist David Hensley.

He noted that the latest tariff threats from the White House would cover more than 30 percent of US imports, equal to almost 5 percent of annual economic output (GDP).

“If all this were to happen, and US trading partners were to retaliate, it would deliver a significant supply shock to the world economy, raising inflation and lowering growth.”

BACK TO YUAN WATCHING

In currency markets, the dollar regained some ground though investors remained unsure whether the tit-for-tat on tariffs would ultimately prove bullish or bearish for the currency.

Measured against a basket of currencies, the dollar was a fraction firmer at 94.705, after bouncing from 94.171 on Tuesday. The euro was back at $1.1648, having run into profit-taking at a top of $1.1720 overnight.

The dollar had also rallied to 110.12 yen, though that just left it in the middle of the recent 109.20/110.90 trading range.

The dollar was aided in part by recent gains on the Chinese yuan, which had stirred speculation Beijing was weakening its currency to bolster exports.

The dollar climbed 0.7 percent to a six-month peak of 6.5880 yuan in offshore trading overnight having risen for nine straight sessions.

All eyes were now on where China’s central bank would set the opening fix. The yuan ended at 6.5560 on Tuesday.

In commodity markets, gold was seemingly no longer considered a safe haven by investors and hit its lowest in over six months.

Spot gold was last at $1,258.30 having hit its weakest since mid-December at $1,254.16.

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

Market opens negative due to weak global cues as trade war intensifies

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

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The market opened lower on Tuesday with the BSE Sensex opening at 35,355 points and the NSE Nifty opening at 10,734 points following global peers as the trade war intensifies.

(Above mentioned: Opening Bell update)

What was expected?

The market is likely to open negative on Tuesday due to weak global cues. The Asian markets extended a sell-off amid the escalating trade war between the US and other major economies.

MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent on Tuesday.

Japan’s Nikkei lost 0.8 percent, South Korea’s KOSPI fell 0.55 percent and Australian stocks dropped 0.6 percent.

The investors are trading cautiously, away from riskier assets, lifting safe-haven US Treasuries and keeping the dollar on the defensive.

Equities in Asia took their cues from Wall Street, where the S&P 500 and Nasdaq suffered their steepest losses in more than two months overnight.

Wall Street opened lower on Monday where the benchmark index, Dow Jones, slipped 300 points in the session. The technology stocks were particularly hit and dragged the index.

A US government official on Sunday said the treasury department was drafting curbs that would block firms with at least 25 percent Chinese ownership from buying US companies with “industrially significant technology.”

Besides the trade spat with China, the United States has recently upped the ante in a challenge to the European Union by threatening to impose tariffs on cars imported from the bloc.

The Indian market closed in the red on Monday. The BSE Sensex closed 219 points lower at 35,470, with ICICI Bank, L&T being the worst performers while the Nifty fell 59 points to 10,762.

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 stocks extend global slide on intensifying trade row, dollar shaky

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

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Global stocks extended a sell-off on Tuesday as mounting trade tensions between the United States and other major economies continued to steer investors away from riskier assets, lifting safe-haven US Treasuries and keeping the dollar on the defensive.

Equities in Asia took their cues from Wall Street, where the S&P 500 and Nasdaq suffered their steepest losses in more than two months overnight.

US technology shares were particularly hard hit. Chipmakers which derive much of their revenue from China took a battering, following a report on Monday that the US Treasury Department was drafting curbs that would block companies with at least 25 percent Chinese ownership from buying US tech firms.

Besides the trade spat with China, the United States has recently upped the ante in a challenge to the European Union by threatening to impose tariffs on cars imported from the bloc.

MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent.

Japan’s Nikkei lost 0.8 percent, South Korea’s KOSPI fell 0.55 percent and Australian stocks dropped 0.6 percent.

“Increasingly hawkish trade rhetoric the United States is employing could begin impacting the economy by cooling investor sentiment and curbing capital expenditure by corporations,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

“It’s turning out to be a long-term bearish factor for the financial markets, as the United States is unlikely to back down at least through its midterm elections.”

The dollar index against a basket of six major currencies stood little changed at 94.302 after dipping 0.25 percent overnight, when it fell for the fourth straight session.

The greenback was pressured as long-term US Treasury yields declined to one-week lows amid the heightened risk aversion in financial markets.

The euro hovered just below an 11-day high of $1.1713 scaled overnight against the sagging dollar.

The US currency was down 0.2 percent at 109.525 yen, having fallen to a two-week low of 109.365 on Monday. The yen often attracts bids in times of political tensions and market turmoil.

Brent crude oil futures were up 0.3 percent at $74.95. The contracts had slid 1 percent overnight as receding investor risk appetite weighed on commodities.

Oil prices have seesawed after OPEC and its allies on Friday agreed to increase global supplies, albeit modestly.

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

Market opens negative as global investors worry about OPEC meet outcome, trade war

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

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The benchmark BSE Sensex opened at 35,398 points and the NSE Nifty50 opened at 10,728 points; taking a negative turn ahead of the OPEC meet outcome, following the global cues. The two-day OPEC meet will take place today and tomorrow, discussing the OPEC production and supply to countries. M&M, GAIL, ICICI Bank, BPCL and HCL Tech are the top Nifty gainers while UPL, Grasim, Coal India, Adani Ports and Bharti Infratel are the top Nifty losers.

(Above mentioned: Opening Bell update as of 09:20 am)

What was expected?

The market is likely to open negative with global investors being cautious amid the US-China trade war and many countries chipping away at corporate profits with oil prices being choppy ahead of the OPEC meeting.

The SGX Nifty is at levels around 10,700, indicating a weak opening for the Indian market on Friday.

The Asian market trades lower as the MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed in early trade, stuck barely above its six-month low hit on Tuesday. Japan’s Nikkei lost 1.0 percent.

On Wall Street, the Dow Jones Industrial Average fell for an eighth straight session on Thursday and the S&P 500 lost 0.63 percent.

Even the high-flying Nasdaq Composite shed 0.88 percent.

Choppy trade for the Indian market continued ahead of OPEC meeting outcome on Thursday.

Equities failed to hold on to gains seen through the day as the Nifty closed with a fall of 31 points at 10,741, while the Sensex slipped 237 points from opening high of 35,679 to end 115 points lower at 35,432.

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

Asian shares flirt with 6-month lows as signs of tariff effects appear

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

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Asian shares were under pressure on Friday on signs US trade battles with China and many other countries are starting to chip away at corporate profits, with oil prices choppy ahead of major producers meeting to discuss raising output.

MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed in early trade, stuck barely above its six-month low hit on Tuesday. Japan’s Nikkei lost 1.0 percent.

On Wall Street, the Dow Jones Industrial Average fell for an eighth straight session on Thursday and the S&P 500 lost 0.63 percent, with industrials and materials shares hit hard.

Even the high-flying Nasdaq Composite shed 0.88 percent.

The Philadelphia Federal Reserve’s gauge of US Mid-Atlantic business activity published on Thursday fell to a 1-1/2 year low.

Economists speculated the ebb in business conditions was the result of escalating tensions between the United States and its trade partners, including the European Union, Canada, Mexico and Japan.

“The Philadelphia Fed’s survey showed a drop in new orders. Investors are concerned that the trade frictions are starting to affect corporate sentiment and their activities,” said Nobuhiko Kuramochi, chief strategist at Mizuho Securities.

On Wednesday German carmaker Daimler cut its earnings forecast, saying tariffs on cars exported from the United States to China would hurt Mercedes-Benz sales.

Despite budding signs of economic damage, trade frictions have shown no sign of abating.

US Commerce Secretary Wilbur Ross said on Thursday the United States needs to make it harder for its trading partners to have high trade barriers in order to achieve President Donald Trump’s ultimate goal of lower tariffs and a level playing field.

India joined the European Union and China in retaliating against Trump’s tariffs on steel and aluminium, raising import duties on US almonds by 20 percent and leveraging its position as the world’s biggest buyer of the product.

While some investors still hope Washington and Beijing could work out a deal before July 6, when the first round of US tariffs on Chinese goods as well as retaliatory tariffs by China are due to take effect, others see diminishing hopes of a early compromise.

Worsening sentiment pushed US bond yields lower and triggered profit-taking in the dollar.

The 10-year US Treasuries yield fell to 2.899 percent from Thursday’s high of 2.950 percent and its three-week high of 3.010 percent touched Wednesday last week.

As the dollar lost steam, the euro bounced back to $1.1606 after hitting an 11-month low of $1.1508 on Thursday.

The single currency had fallen on bets of a protracted period of monetary policy divergence between the US Federal Reserve and the European Central Bank.

In addition, the Italian government’s appointment on Thursday of two eurosceptics to head key finance committees reignited worries about anti-euro voices in the euro zone’s third-largest economy.

The British pound jumped back from a seven-month trough after the Bank of England’s chief economist, Andy Haldane, unexpectedly joined the minority of policymakers calling for rates to rise to 0.75 percent, citing concerns about growing wage pressure.

The pound last fetched $1.3248, off Thursday’s low of $1.3102.

The dollar changed hands at 109.91 yen, having slipped 0.65 percent so far this week.

MSCI emerging market index fell to its lowest level in almost nine months this week as they were also hurt by rising US interest rates, which could prompt fund outflows and also raise funding costs for many borrowers in those countries.

Some emerging market countries have recently raised interest rates to stem decline in their currencies..

Oil prices were volatile ahead of a meeting of the Organization of Petroleum Exporting Countries (OPEC) and other major producers including Russia starting later on Friday.

Saudi Arabia and Russia have said a production increase of about 1 million barrels per day (bpd) or around 1 percent of global supply had become a near-consensus proposal for the group and its allies but Iran held out against a deal amid the prospect of lower exports due to US sanctions on Tehran.

Brent crude traded at $74.11 a barrel, up about a dollar, or 1.45 percent on Friday, a day after it had fallen $1.69.

US West Texas Intermediate crude for August delivery rose 92 cents to $66.46 per barrel.

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

June 21: Here’s what you should know before the opening bell

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

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The Indian market closed in the green on Wednesday as trade tensions between US and China faded.

The Nifty held 10,700 to close with a gain of 62 points at 10,772 and the Sensex 261 points higher at 35,547.

Here’s what you should know before the opening bell

• The Reserve Bank of India monetary policy committee struck a balanced note on its rate stance going forward and cited rising inflation pressure due to high oil prices as the key reason for raising interest rates in the June meeting, according to minutes of the meeting released by the RBI on Wednesday.
• Gold prices edged up on Thursday, but hovered close to a six-month low touched in the previous session as a firm US dollar curbed gains.
• Oil prices dipped on Thursday as Iran signalled it could be won over to a small rise in OPEC crude output, likely paving the road for the producer cartel to agree a supply increase during a meeting on June 22. However, prices were prevented from falling further by record refinery runs in the United States and a large decline in US crude inventories, a sign of strong fuel demand in the world’s biggest economy.
• The US has imposed import duty on large diameter welded pipes from India and China.
• India’s Chief Economic Adviser Arvind Subramanian said on Wednesday he was quitting his post to return to academic research in the United States, the third high-profile hire to leave Prime Minister Narendra Modi’s economic administration.
• The rupee ended at 68.09 against the US dollar on Wednesday.
• The dollar hovered near an 11-month high against a basket of currencies on Thursday, supported by a rise in US yields, while the pound struggled at its lowest level since November 2017 ahead of Bank of England’s monetary policy decision.
• B Sriram, managing director of State Bank of India, has been given additional charge of heading IDBI Bank for three months.
• The Sebi Board will meet on Wednesday and is likely to discuss the IPO and ICDR norms.
• Index provider MSCI said on Wednesday it will reclassify Argentina as an emerging market and begin including Saudi Arabia in that classification, sharply broadening the investor base for both countries in a move that could be supportive of their equity markets.

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