Nikkei declines more than 1% on US-China trade war, good to sell on rallies
Asian markets were trading lower and hits 4 month low as trade war escalates between U.S and China which will be affecting entire global demand. US President Trump warned that US would impose a 10% tariff on $200 billion of Chinese goods after Beijing’s decision to raise tarriffs on $50 billion in US goods. Nikkei declined more than 500 points from the high 23024. US markets have closed slightly weak with Dow Jones 24987 (0.41% lower) and S&P500 2773 (0.21% lower). US futures is trading weak with Dow Jones at 24712 (1.01% lower) and S&P500 2746 (0.95% lower). Nikkei is currently trading around 22290 1.21% lower.
It is good to sell on rallies around 2350-400 with SL at 22600 for the TP of 22000/21900.
Intel shares fall after small Wall Street firm downgrades chipmaker, predicting slower growth
By Tae Kim | @firstadopter
- Northland Capital Markets lowers its rating to underperform from market perform for Intel shares, citing rising competition from AMD and Nvidia.
- The firm predicts Intel’s sales growth in its data center segment will drop to 20 percent in its third quarter and fall to 11 percent in its fourth quarter.
GBP/NZD Forecast: Are Pound Sterling to New Zealand Dollar Exchange Rate Gains ahead on BoE Meeting?
By Adam Solomon
This week, Pound/New Zealand Dollar exchange rate movement may be caused by Confederation of British Industry (CBI) data today and Thursday’s Bank of England (BoE) meeting.
In the former case, the CBI’s industrial orders figures might cause a GBP/NZD exchange rate recovery, if they show a forecast-matching rise from -3 points to 2.
While this would only be a small positive reading, it would be a step towards the 17-point highs seen in 2017.
The more significant BoE event could cause major Pound Sterling gains or losses, depending on the opinions of BoE officials.
Policymakers will be meeting to discuss any adjustment to interest rates, but no change is expected from the current 0.5%.
More important will be Governor Mark Carney’s speech at a press conference after the rate decision.
On the other hand, if the Q1 GDP growth rate figures today show slowing growth, the New Zealand Dollar (NZD) could fall back against Pound Sterling (GBP).
Although the NZ economy has impressed in previous years, there are worries that the country is entering a period of slower economic growth.
GBPUSD at Risk from Brexit Vote and Bank of England
By Martin Essex, MSTA
- UK Prime Minister Theresa May faces another potentially damaging Brexit vote in Parliament today.
- The Bank of England will likely keep UK interest rates unchanged this week while an increase in August is far from nailed on.
- Together, those factors mean a recovery in GBPUSD is unlikely.