OPENING CALL: The Australian share market is expected to open flat.
President Trump rejected suggestions that the U.S. would accept a partial trade agreement with China, saying his administration is “‘looking for a complete deal.”
Alphabet Inc.’s Google plans to invest EUR3 billion to build data centers in Europe over the next two years, in a move to up its sustainability efforts, Chief Executive Sundar Pichai said.
Each Market in Focus
The index settled about 2% shy of July’s record high. National Australia Bank is one of the day’s biggest drivers, gaining 1.6% as it leads the financials sector that has risen 4.3% so far this month. Miners also close higher and more than counter weakness in industrials, telecommunications and utilities.
The Dow Jones Industrial Average suffered a loss of about 1% for the week, which featured turmoil in money markets and dramatic swings in crude prices following an attack on oil facilities in Saudi Arabia.
For the first time since the financial crisis, the Federal Reserve Bank of New York stepped in to relieve funding pressure in the money markets and committed to continuing such interventions through at least Oct. 10.
Rates on short-term repurchase agreements briefly jumped from around 2% to nearly 10% at the beginning of the week. The spike was likely caused by technical factors: corporate tax payments came due to the U.S. Treasury just as Treasury debt auctions settled, leading to large transfers of cash from the banking system.
geopolitical tensions remained high, boosting haven demand for the precious metal. President Donald Trump announced further sanctions on Iran.
December gold gained $8.90, or 0.6%, to settle at $1,515.10 on Comex. It rose about 1% for the week, according to FactSet data.
The global price gauge pared gains from earlier in the day, falling 0.2% to close at $64.28 — up 6.7%, its biggest one-week percentage jump since the week ending Jan. 4.
The gains followed the Sept. 14 drone attacks took out more than half of Saudi Arabia’s crude output. Officials at Saudi Arabian Oil Co., or Aramco, have said oil operations should be running at full production before the end of the month.
A sustained rise in fuel prices marks the latest threat to a global economy already pressured by the U.S.-China trade war. It could also impact stocks in the U.S., where steady consumer spending has helped lift major indexes. Higher energy prices can raise gas and heating bills, cutting into available income.
Brexit for Britain was a growing possibility.
U.K. Prime Minister Johnson held talks with Juncker earlier this week. The pound rose 0.3% against the dollar to $1.2571 and gained 0.3% against the euro to 1.1344.
Japanese stocks ended slightly higher, with the Nikkei Stock Average up 0.2% at 22079.09, the highest close since April 26. Electronics stocks led the gains to a nearly five-month high, one day after the Bank of Japan hinted at possible stimulus in October.
Gains were modest as investors remain focused on U.S.-China trade relations and Middle East geopolitical developments. Olympus rose 2.6%. Terumo gained 2.4%. The 10-year Japanese government bond yield rose 1 basis point to -0.220%. USD/JPY is at 107.88, compared with 108.05 late Thursday in New York.
Hong Kong stocks closed lower, with the Hang Seng Index ending down 0.1% to 26435.67. Apparel manufacturer Shenzhou International Group shed 3.9%, the worst performer on the index, following news in the morning of shareholder plans to sell shares via a block trade. Electronics suppliers also saw selling sentiment, after the sector sustained broad
gains over the past couple of days. AAC Technologies slides 2.6% and Techtronic Industries declines 0.6%. China Unicom edges down 0.2% despite reporting higher 4G user additions for August.
Indian stocks surged following the government’s surprise announcement of a slew of tax cuts, including lower taxes for companies, to boost economic growth. The benchmark Sensex ended the day 5.3% higher at 38014.62, the biggest percentage gain in nearly 11 years Auto makers led the gains with Hero MotorCorp up 13% and Maruti Suzuki India adding 11%. Financial stocks also rode on the policy stimulus with IndusInd Bank 11% higher and Bajaj Finserv rising 10%. Analysts are divided on the latest policy’s impact with some saying the improvement in the sentiment may be short-lived while others expect the cuts to revive foreign investment in the country’s equity markets.
South Korea’s benchmark Kospi closed up 0.5% at 2091.52, gaining for the 11th straight session as hopes rose that progress will be made at the high-level U.S.-China trade talks set for early October, a Shinhan Investment analyst says. The upbeat mood sent auto and shipbuilding stocks higher, while large-cap tech shares were mixed. Car maker Hyundai Motor rose 0.4% and shipbuilder Korea Shipbuilding & Offshore Engineering added 2.1%. Tech giant Samsung Electronics edged up 0.1% and chip maker and chip maker SK Hynix was down 0.6%.