Trump

Market Review 14-02

Market Review 14-02

Forex News

Trump Considers 60-Day Extension for China Tariff Deadline

From: Bloomberg.com

  • Trump says trade talks in Beijing are going along ‘very well’
  • Ministerial-level talks set to take place Thursday and Friday

President Donald Trump is considering pushing back the deadline for imposition of higher tariffs on Chinese imports by 60 days, as the world’s two biggest economies try to negotiate a solution to their trade dispute, according to people familiar with the matter.

The president said Tuesday that he was open to letting the March 1 deadline for more than doubling tariffs on $200 billion of Chinese goods slide, if the two countries are close to a deal that addresses deep structural changes to China’s economic policies — though he added he was not “inclined” to do so. The people said that Trump is weighing whether to add 60 days to the current deadline to give negotiations more time to continue.

“I think it’s going along very well,” Trump told reporters in the Oval Office this week. “They’re showing us tremendous respect.”

A spokeswoman for U.S. Trade Representative Robert Lighthizer declined to comment.

Chinese officials had initially proposed an extension of 90 days, but that was knocked back by the U.S. side, people familiar with that request said.

Asian stocks steadied and U.S. stock futures climbed. Treasuries slipped and the yen dipped.

Lighthizer and Treasury Secretary Steven Mnuchin are in Beijing for the latest round of high-level talks with Chinese Vice Premier Liu He on Thursday and Friday. A meeting between Lighthizer and Chinese President Xi Jinping is being tentatively scheduled for this week. Trump’s willingness to extend the deadline may depend on the outcome of that meeting, one of the people said.

Trump has indicated he will need to meet Xi to agree on a final deal. While no date has been set, a White House aide this week said the U.S. president still wants to meet his Chinese counterpart soon in a bid to end the trade war.

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GBP/USD rebounds on Brexit news ahead of the London open

From: FXstreet.com

  • The GBP/USD pair trades around 1.2865 during early Thursday
  • The pair reversed from 1.2840 on news of likely delayed Brexit
  • The 1.2840 may offer immediate support contrast to 1.2920 acting as nearby resistance

The British Pound took a U-turn from 1.2840 against the USD while heading towards the UK markets’ open on Thursday. The pair declined Wednesday as softer than expected inflation numbers from the UK contrasted with the US consumer price index (CPI) statistics. The GBP/USD pair, also known as the Cable, received boost earlier in the day when The Times reported the news that 40 former British Ambassadors call on the Prime Minister Theresa May to delay Brexit.

On Wednesday, the GBP/USD pair weakened as January month the UK CPI lagged behind 1.9% market consensus to 1.8% on a yearly basis whereas monthly figures shrank more than -0.7% forecast to -0.8%. The British inflation numbers were in contrast to the US releases that said headline CPI YoY rose to 1.6% from 1.5% expectations while beating the 2.1% forecast for the Core CPI YoY by being unchanged at 2.2% during the first month of 2019.

At the start of Thursday, when speculations were already favoring delayed Brexit deadline, The Times reported that 40 ex-British Ambassadors urged the UK PM May to delay the Brexit deadline from presently holding 29 March. The news helped the GBP to register across the board strong on hopes of soft and/or delayed Brexit.

Looking forward, lack of British economics to publish puts higher emphasis on developments at the UK Parliament. PM May is still trying hard to get her plan through parliament rather than tabling the delay.

On the flip side, the US Treasury Secretary Steve Mnuchin and the trade representative Robert Lighthizer will start two-day trade negotiation with their Chinese counterparts headed by the President’s top aide Liu He. Recent comments from the Treasury Secretary and the President signalled brighter chances of a trade deal, if not then an extension of tariffs by nearly 60 days from the March 01 deadline.

In addition to the politics, monthly release of US Retail Sales, likely to register soft growth figure of 0.1% from 0.2% prior on a monthly basis, can also play its role.

GBP/USD Technical Analysis

The pair needs to surpass the 1.2920 upside barrier in order to aim for 1.2980 and 1.3000 mark.

On the downside break of 1.2840, sellers can aim for 1.2810 and the 1.2780 supoprts.

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Stock Market News

Apple aims for April launch of TV service with CBS, Viacom and Starz

From: Reuters.com

Apple Inc is targeting an April event to introduce a streaming television service that will likely include subscription TV services from CBS Corp, Viacom Inc and Lions Gate Entertainment Corp’s Starz among others as well as its own original content, sources familiar with the matter told Reuters on Wednesday.

Apple has long hinted at a planned video service, spending $2 billion in Hollywood to produce its own content and signing major stars such as Oprah Winfrey. The TV service is expected to launch globally, a person familiar with the matter said, an ambitious move to rival services from Netflix Inc and Amazon.com Inc’s Prime Video. Apple’s App Store, where the service is likely to be distributed, is currently available in more than 100 countries.

But it has kept its precise plans for how it will distribute those shows a secret, even as investors have started to fixate on revenue from paid subscriptions as a replacement for growth from iPhone sales, which declined over the holiday shopping quarter for the first time ever last year.

Apple aims to bring together its own shows into one central location with content from media companies, saving iPhone and other Apple device users from having to juggle multiple apps for those channels, the sources said. Apple is aiming to resell TV channels subscriptions similar to Amazon, whose Prime Video Service resells Starz and other channels and keeps a cut of the sales.

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Dow Racks up Triple-Digit Gains as Trade Hopes Trigger Rally

From: Investing.com

The Dow rallied Wednesday on growing hopes the U.S. and China will reach an agreement after President Donald Trump said trade talks were going “very well.”

The Dow Jones Industrial Average rose 0.46%, or 117 points. The S&P 500 added 0.30% and the Nasdaq Composite rose 0.08%. The S&P 500 and Nasdaq were each higher for a third straight day; the Dow’s gain was its second in a row. The indexes are higher by about 1.7% so far this week.

Trump said the high-level parley on trade between U.S. and China was progressing “well,” easing investor worries that the two nations would be unable to reach a trade agreement by end of the current trade war truce on March 1.

The president’s somewhat reassuring remarks on trade come a day after he told reporters he was open to extending the deadline beyond March 1 if there is sufficient progress on the talks.

The upbeat hopes of a trade deal and strong gains in General Electric (NYSE:GE) supported the trade-sensitive industrials sector.

GE rose 3.91% a day after Reuters reported the conglomerate had secured the most orders for electricity-generating gas turbines in 2018. But Mitsubishi Hitachi Power Systems beat General Electric to the top spot for orders of the largest and most advanced turbines.

Beyond trade, rising energy stocks powered the broader market higher. The gains reflected rising oil prices as Saudi Arabia’s pledge to continue cutting output offset data showing a larger-than-expected build in domestic crude stockpiles.

Tech stocks struggled to get in on the rally, weighed down by weakness in FANG stocks.

Apple reportedly is nearing the launch of a new streaming service that will feature free original content for device owners, but may not include Netflix, CNBC reported, citing people familiar with the matter.

Apple (NASDAQ:AAPL) fell 0.42%, and Netflix (NASDAQ:NFLX) dropped 2.3%.

The CNBC report comes as Goldman Sachs said it expects the iPhone maker to launch a streaming service this spring or summer to plug the gap from a decline in service revenue on expectations of a material drop in traffic acquisition costs.

Traffic acquisition costs, the fee Google (NASDAQ:GOOGL) pays companies for diverting traffic to its website, are expected to drop significantly this year, according to the bank.

“We forecast that traffic acquisition costs growth drops materially to about 29% in 2019 from 46% in 2018,” Goldman Sachs (NYSE:GS) said.

On the economic front, mixed U.S. inflation data also supported the broader market amid expectations subdued price pressures would strengthen the Federal Reserve’s case to hold off monetary policy tightening.

The Labor Department said on Thursday its Consumer Price index was flat January, after edging up 0.1% in the prior month. But core CPI, which excludes food and energy, rose 2.2% for the year through January, above forecasts for a 2.1% increase.

In Washington, Trump told reporters he would “take a very serious look” at the border security deal and reiterated he does not want the see a second government shutdown.

Top S&P 500 Gainers and Losers Today:

Freeport-McMoran Copper & Gold (NYSE:FCX), Activision Blizzard (NASDAQ:ATVI) and Hilton Worldwide Holdings (NYSE:HLT) were among the top S&P 500 gainers for the session.

DISH Network (NASDAQ:DISH), TripAdvisor (NASDAQ:TRIP) and Cerner (NASDAQ:CERN) were among the worst S&P 500 performers of the session.

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Cryptocurrency News

Nasdaq to Add Brave New Coin Bitcoin and Ethereum Indices This Month

From: Cointelegraph.com

Nasdaq will launch two new indices tracking cryptocurrency prices on Feb. 25, the company announced in an update to its website on Feb. 12.

The indices — the Bitcoin Liquid Index (BLX) and the Ethereum Liquid Index (ELX) — will offer real-time price updates in thirty-second intervals for clients using NASDAQ’s Global Index Data Service (GIDS).

BLX and ELX are the product of United States blockchain and crypto asset market data company Brave New Coin.

“(BLX and ELX) are each designed to provide a real-time spot or reference rate for the price of 1 BTC and 1 ETH respectively, quoted in USD, and based on the most liquid ends of their markets,” Nasdaq explains, adding:

“Both indices are calculated using a methodology that has been independently audited against key IOSCO principles.”

Nasdaq has taken an increasingly hands-on approach to cryptocurrency-related products and services, particularly over the past year.

In September, the company began looking into adding crypto data sets to its market analytics suite after considerable demand. Later, it emerged its own Bitcoin futures would launch some time in the first half of 2019.

In January, CEO Adena Friedman went on record to state her belief that Bitcoin could become a major world currency in future.

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