US stocks edge down on virus woes, slowing economy

NEW YORK - The S&P 500 Index closed slightly lower on Monday after erasing early gains as worries about the Delta variant of the coronavirus and a slowing US economy overshadowed optimism around more fiscal stimulus and a strong second-quarter earnings season.

Federal Reserve Governor Christopher Waller said on CNBC late in the session that the Fed could start to reduce its support for the economy by October if the next two monthly jobs reports each show employment rising by 800,000 to 1 million, as he expects. 

He also suggested the Fed could announce in September it would start to reduce its monthly bond purchases, which could lift yields again - not the best news for the stock market. 

Data earlier in the day showed that although US manufacturing grew in July, its pace slowed for a second straight month as spending rotated back to services from goods, and shortages of raw materials persisted. 

The softer-than-expected data also sent US bond yields to their lowest since July 20 and knocked the blue-chip Dow off an intra-day record high hit in early trading. 

“An issue for the market... is the rise of the growth scare", said Rob Haworth, senior investment strategist at US Bank, "Whether it's more restrictions in China with infections rising in 14 provinces now, or questions about how far is the US going to have to go with mask mandates.”

Only four of the 11 S&P sectors traded higher by market close, among them utilities and real estate generally considered safe bets at a time of uncertainty.

The Dow Jones Industrial Average fell 97.31 points, or 0.28 percent, to 34,838.16, the S&P 500 lost 8.1 points, or 0.18 percent, to 4,387.16 and the Nasdaq Composite added 8.39 points, or 0.06 percent, to 14,681.07. Square Inc, the payments firm of Twitter Inc co-founder Jack Dorsey, jumped after it said it would purchase Australian buy now, pay later pioneer Afterpay Ltd for $29 billion. 

With manufacturing activity data coming in weaker than expected, investor focus now turns to services sector data on Wednesday and the Labor Department's monthly jobs report on Friday.

After mixed quarterly reports from technology behemoths last week, all eyes this week are on earnings from companies including Eli Lilly and Co, CVS Health Corp and General Motors Co.

Volume on US exchanges was 8.80 billion shares, compared with the 9.77 billion average for the full session over the last 20 trading days. 

Declining issues outnumbered advancing ones on the NYSE by a 1.07-to-1 ratio; on Nasdaq, a 1.05-to-1 ratio favored advancers.

The S&P 500 posted 76 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 98 new highs and 67 new lows.

-reuters

Stocks sag on concerns about Covid, global growth

NEW YORK -- Global stocks mostly fell Friday as worries about rising Covid-19 cases and their effect on global growth weighed on sentiment, pushing Wall Street into the red for the week.

After data showed an unexpected rise in US retail sales, Wall Street pushed higher at the open. But markets soon tumbled into the red and losses grew as the day progressed.

Analysts pointed to profit taking as a factor in Friday's session and throughout the week following records earlier in the month. 

Investors are "continuing to trim winning positions" as they await more clarity on the course of the economy, said Briefing.com analyst Patrick O'Hare.

The broad-based S&P 500 ended down 0.8 percent at 4,327.16, taking its weekly losses to around one percent.

The highly-contagious Delta variant has led to surging infection rates in many parts of the world, leading authorities to reimpose certain restrictions.

"Covid-19 concerns still linger and the economic outlook is not as bright as it was just a few weeks ago," said market analyst Edward Moya at trading platform Oanda.

Major European bourses retreated, along with Tokyo, which closed one percent lower as investors worried over rising Covid-19 infections and the Bank of Japan trimmed its economic growth forecast for the current fiscal year.

Hong Kong's leading index was flat as late profit-taking wiped out earlier gains ahead of a US warning about doing business in the territory.

In a long-awaited advisory that has already been denounced by China, the United States warned its business community of "growing risks" of operating in Hong Kong due to China's clampdown.

The advisory acknowledged that Hong Kong, a former British colony handed back to China in 1997, "retains many economic distinctions" from the mainland, including stronger protections of intellectual property.

But Washington pointed to a declining climate under a national security law enacted last year, including the arrest of one US citizen -- John Clancey, a prominent human rights lawyer.

Shanghai closed 0.7 percent lower while Seoul, Taipei, Kuala Lumpur and Bangkok also retreated. Wellington was flat while Sydney, Singapore, and Jakarta ticked higher.

- Key figures around 2030 GMT -

New York - Dow: DOWN 0.9 percent at 34,687.85 (close)

New York - S&P 500: DOWN 0.8 percent at 4,327.16 (close)

New York - Nasdaq: DOWN 0.8 percent at 14,427.24 (close)

London - FTSE 100: DOWN less than 0.1 percent at 7,008.09 (close)

Frankfurt - DAX 30: DOWN 0.6 percent at 15,540.31 (close)

Paris - CAC 40: DOWN 0.5 percent at 6,460.08 (close)

EURO STOXX 50: DOWN 0.5 percent at 4,035.77 (close)

Tokyo - Nikkei 225: DOWN 1.0 percent at 28,003.08 (close)

Hong Kong - Hang Seng Index: FLAT at 28,004.68 (close)

Shanghai - Composite: DOWN 0.7 percent at 3,539.30 (close)

Euro/dollar: DOWN at $1.1809 from $1.1812 at 2100 GMT Thursday

Pound/dollar: DOWN at $1.3765 from $1.3829

Euro/pound: UP at 85.77 from 85.42 pence

Dollar/yen: UP at 110.04 from 109.83 yen

Brent North Sea crude: UP 0.2 percent at $73.59 per barrel

West Texas Intermediate: UP 0.2 percent at $71.81 per barrel

Agence France-Presse

Stocks move higher on Wall Street, following gains overseas

Stocks headed higher in midday trading on Wall Street Tuesday, adding to the market’s gains from a day earlier, as investors focused on the prospects for an economic recovery as more businesses reopen after being shut down due to the coronavirus pandemic.

The S&P 500 was up 1% and on pace for its third straight monthly gain. The rally follows solid gains in Europe, where indexes marched higher after some encouraging economic data. Bond yields rose slightly, another sign that investors were regaining confidence in the economy.

Technology sector stocks, which led the way higher as the market rebounded the past three months from a 34% plunge, helped power the latest gains. Banks, health care stocks and companies that rely on consumer spending were among the big gainers. Real estate and utilities stocks fell.


Encouraging economic data, including retail sales and hiring, have helped stoke optimism among investors that the reopening of businesses in the U.S. and other countries will pull the economy out of its recession relatively quickly. The market has continued to climb, despite bouts of volatility, even as a rise in new coronvairus cases in the U.S. and other countries clouds the prospects for an economic recovery.

Investors have grown confident that the Federal Reserve and Congress are prepared to continue providing a historic amount of support to the market and economy, said Sam Stovall, chief investment strategist at CFRA.

“All of the negative news has basically been built into share prices,” Stovall said. “If we are to stumble, then the Fed and Congress are likely to step in to put a fiscal and monetary floor underneath the economy and the markets. And now, with the likelihood that the economy will not be shutting down entirely should we end up with a second wave, the market is basically saying it’s ‘onward and upward.’”

The Dow Jones Industrial Average was up 230 points, or 0.9%, to 26,259. The Nasdaq composite, which is heavily weighted with technology stocks, gained 1.4%. The index has only fallen twice so far in June. Small company stocks were also notching solid gains. The Russell 2000 index was up 0.7%.

The yield on the 10-year Treasury note rose to 0.72% from 0.70% late Monday. It tends to move with investors’ expectations for the economy and inflation.

The World Health Organization said over the weekend that the pandemic is still in its ascendancy. The U.S., which is seeing rapid increases in cases across the South and West, has the most infections and deaths by far in the world, with 2.3 million cases and over 120,000 confirmed virus-related deaths, according to a tally by Johns Hopkins University.

Still, investors have been placing more weight on economic data releases that suggest economies that have reopened are making strides to emerge from a deep recession.

On Tuesday, the Commerce Department said sales of new U.S. homes jumped 16.6% in May to an annual rate of 676,000, exceeding Wall Street’s forecasts. Several homebuilders rose. Century Communities was up 1.8%.

Further updates on the U.S. economy are expected toward the end of this week, when the government will issue data on consumer spending, weekly unemployment aid applications and durable goods orders.

European shares advanced after a measure of economic activity in the eurozone, the purchasing managers’ index, rose significantly in June from the month before. The index was just shy of the level that indicates the economy is growing again after a devastating plunge in the spring.

France’s CAC 40 gained 1.4%, while Germany’s DAX rallied 2.1%. Britain’s FTSE 100 rose 1.2%.

Asian markets overcame some early turbulence caused by reported comments by White House trade adviser Peter Navarro suggesting the U.S. trade deal with China was in trouble. President Donald Trump later said the agreement was still on.

Benchmark U.S. crude oil was up 0.1% to $40.77 a barrel. Brent crude, the international standard, was up 0.5% to $43.28 per barrel.

The Associated Press

Dow sinks 1,500 as virus cases rise, deflating optimism

Stocks are falling sharply on Wall Street as coronavirus cases increase again, deflating recent optimism that economy could recover quickly as lockdowns ease. The Dow fell more than 1,500 points and the S&P 500 was on track for its worst day in nearly three months. Many market watchers have been saying that a scorching comeback in the market since late March was overdone and didn’t reflect the dire state of the economy. A day earlier, the Federal Reserve said the road back to recovery would be long. Bond yields fell sharply, a sign of increasing caution among investors.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story is below:


Stocks are down sharply on Wall Street Thursday, pulling the Dow Jones Industrial Average more than 1,500 points lower and placing the S&P 500 on track for its worst day in nearly three months.

The S&P 500 was down 4.7% in afternoon trading, extending its losses into a third straight day. The benchmark index is now on track for its first weekly drop in four weeks.

The selling, which gained momentum as the day went on, comes as recent optimism that the reopening of businesses would drive a relatively quick economic recovery fades amid rising coronavirus cases in many U.S. states and countries.

The pullback marks a reversal for the market, which rallied 44.5% between late March and Monday, a scorching rate that many skeptics said was unsustainable and didn’t reflect the dire condition of the economy. Only a day ago the Nasdaq closed above the 10,000-point mark for the first time.

The Federal Reserve dimmed some of the optimism investors have had about a swift economic rebound Wednesday, warning that the road to recovery from the worst downturn in decades would be long. The central bank also said it doesn’t foresee a rate hike through 2022.

That, coupled with the recent run-up in stock prices, set the stage for the wave of selling Thursday, said Sal Bruno, chief investment officer at IndexIQ.

“It’s not surprising to see a bit of a sell-off, given the furious rally we’ve had coming out of the lows, despite the fact that the economy was not doing great,” Bruno said. “The fact that (the Fed) is talking about keeping interest rates this low through 2022 is a little eye-opening for a lot of folks.”

The Dow was down 1,512 points, or 5.6%, to 25,477. The Nasdaq composite, which was coming off an all-time high, slid 4%. Small company stocks continued to bear the brunt of the selling. The Russell 2000 index was down 5.9%. European and Asian markets also fell.


Nearly all of the companies in the S&P 500 were down. Technology, financial, industrial and health care stocks accounted for much of the market’s broad slide. Energy stocks were the biggest losers as crude oil prices fell sharply. Bond yields fell and the price of gold surged as worried investors shifted money into the traditional safe-haven assets.

Delta Air Lines, Boeing and MGM Resorts International were among the biggest decliners in the S&P 500. Each was down more than 11%.

Emergency rescue efforts by the Fed and Congress helped arrest the market’s staggering 34% skid in February and March. Since then, the market had been riding a wave of investor optimism that the economy will bounce back by the end of the year, if not sooner, as businesses reopen and people go back to work. But confidence in that scenario is waning as infections and fatalities continue to climb in the U.S. and elsewhere.

In the U.S., Texas and Florida were among the states reporting jumps in the number of coronavirus cases after precautions were relaxed last month. The total number of U.S. cases has now surpassed 2 million.

Still, investors are waiting for more data to see whether the spike in COVID-19 cases are a sign of a possible second wave of the infection, said Charlie Ripley, senior investment strategist for Allianz Investment Management.

He’s focusing on updates to job numbers and consumer spending to gauge how well the economy is recovering.

“We think the recovery is largely underway, but there is still some considerable uncertainty on the path we have ahead,” Ripley said. “If we see some more follow-on of people coming back to work and consumer sentiment picking up, that will be a positive sign for a faster recovery.”

Anxious investors shifted more money into government bonds Thursday, sending yields broadly lower. The yield on the 10-year Treasury yield slid to 0.67% from 0.74% late Wednesday, a big move. Last Friday it briefly moved above 0.90%.

Gold for August delivery climbed 1.2% to $1,740.60 an ounce.

Oil prices fell sharply. Benchmark U.S. crude oil for July delivery was down 8.4% at $36.26 a barrel. Brent crude oil for August delivery was off 7.8% at $38.48 a barrel.

Markets in Europe were broadly lower. France’s CAC 40 slid 4.7% and Germany’s DAX dropped 4.5%. Britain’s FTSE 100 fell 4%. Stock markets in Asia closed lower.

The Labor Department said Thursday that about 1.5 million people applied for U.S. unemployment benefits last week, another sign that many Americans are still losing their jobs even as the economy begins to gradually reopen. The latest figure marked the 10th straight weekly decline in applications for jobless aid since they peaked in mid-March when the coronavirus hit hard. Still, the pace of layoffs remains historically high.

Other jobs data have been more encouraging. A report on Friday showed that the U.S. job market surprisingly strengthened last month as employers added 2.5 million workers to their payrolls. Economists had been expecting them instead to slash another 8 million jobs.

That report helped stoke optimism among investors that the economy can climb out of its current hole faster than forecast. But the Fed estimated Wednesday that the economy will shrink 6.5% this year, in line with other forecasts, before expanding 5% in 2021. It also expects the unemployment rate at 9.3%, near the peak of the last recession, by the end of this year. The rate is now 13.3%.

The central bank said it would keep providing support to the economy by buying bonds to maintain low borrowing rates and forecast no rate hike through 2022, which could make it easier for consumers and businesses to borrow and spend enough to sustain an economy depressed by business shutdowns and high unemployment.

The Associated Press 

Continued oil market turmoil weighs on global stocks

Oil-price turmoil gripped markets once more Tuesday, a day after US crude futures crashed below zero for the first time as the coronavirus crisis crippled global energy demand and worsened a supply glut.

The commodity rout also sent world equity markets spiraling lower, as investors fretted it could compound an expected deep global economic downturn.

The benchmark WTI price collapsed Monday to an unprecedented low of minus $40.32. Negative prices mean traders must pay to find buyers to take physical possession of the oil -- a job made difficult with the world's storage capacity at bursting point.

A day after its historic slide into negative territory amid a supply glut, US oil futures finished in positive territory.

But the market remained under heavy pressure due to the oversupply as coronavirus shutdowns constrain global growth.

Storage is a particularly big problem in the US where WTI oil is delivered at a single, inland point.

In Europe, where Brent is the benchmark, there are several delivery sites and their proximity to the sea allows some of it to be stored on tankers.

"Players are now paying buyers to take oil volumes away as the physical storage limit will be reached. And they are paying top dollar," said Rystad Energy analyst Louise Dickson.

This week's massive sell-off came just ahead of Tuesday's expiration of the May contract. Most trading has now moved to the June contract, and May WTI was back in positive territory by the close of New York trading.

- 'Slice of pizza' -

Oil markets have been ravaged this year after the pandemic was compounded by a price war between Saudi Arabia and Russia.

"Ever thought that it could be imaginable to see the price of US oil valued at less than a pizza? Or even a slice of pizza? How about for it to actually cost (money) to sell US crude?" said Jameel Ahmad, head of currency strategy and market research at FXTM.

While the two big oil-producing nations have drawn a line under the dispute and agreed with other countries to slash output by almost 10 million barrels a day, that is not enough to offset the lack of demand and prices have remained low.

European benchmark Brent North Sea oil for June delivery tumbled to an 18-year low, before coming off worse levels in volatile deals.

- Stock markets sink -

Equity markets were meanwhile also deep in the red on Tuesday, having enjoyed a healthy couple of weeks thanks to massive stimulus measures and signs of an easing in the rate of new infections globally.

Key eurozone stocks markets closed with declines of up to four percent, while London did a little better thanks to a weaker pound.

On Wall Street, the Dow finished down more than 630 points, or 2.7 percent.

"Continued dysfunction in the crude oil markets" was the main factor behind the decline, analysts at Charles Schwab said, "while the Street continues to assess the timing of when the US economy may be able to reopen."

Analysts warned the drop in stock markets could be an indication that the recent surge may have been hasty, and that another prolonged sell-off is possible.

- Key figures around 2030 GMT -

West Texas Intermediate (May delivery): UP at $10.01 per barrel

West Texas Intermediate (June delivery): DOWN 43 percent at $11.57 per barrel

Brent North Sea crude (May delivery): DOWN 22.1 percent at $19.93

Brent North Sea crude (June delivery): DOWN 24.4 percent at $19.33

New York - Dow: DOWN 2.7 percent at 23,018.88 (close)

New York - S&P 500: DOWN 3.1 percent at 2,736.56 (close)

New York - Nasdaq: DOWN 3.5 percent at 8,263.23 (close)

London - FTSE 100: DOWN 3.0 percent at 5,641,03 points (close)

Frankfurt - DAX 30: DOWN 4.0 percent at 10,249.85 (close)

Paris - CAC 40: DOWN 3.8 percent at 4,357.46 (close)

EURO STOXX 50: DOWN 4.1 percent at 2,791.34 (close)

Tokyo - Nikkei 225: DOWN 2.0 percent at 19,280.78 (close)

Hong Kong - Hang Seng: DOWN 2.2 percent at 23,793.55 (close)

Shanghai - Composite: DOWN 0.9 percent at 2,827.01 (close)

Euro/dollar: DOWN at $1.0859 from $1.0862 at 2100 GMT

Dollar/yen: UP at 107.77 yen from 107.62

Pound/dollar: DOWN at $1.2301 from $1.2442

Euro/pound: UP at 88.27 pence from 87.30

burs-jmb/cs

Agence France-Presse

Asian markets surge as Trump fuels China trade deal hopes

HONG KONG — Asian markets enjoyed another rally on Friday after Donald Trump hailed positive talks with Chinese President Xi Jinping and a report said he had asked officials to draw up a draft bill as he eyes a potential trade deal between the two.

Hong Kong jumped almost four percent in the afternoon, while Shanghai and the yuan soared as dealers seized on the news, hoping for a breakthrough in a standoff that has rocked global equities and fuelled warnings about global growth.

The gains follow a third straight advance on Wall Street as a sense of optimism returns after a diabolical October, with riskier, higher-yielding currencies enjoying a bounce against the dollar, and the pound holding on to most gains.


The day had already started with a bang after Trump tweeted that he had held positive talks with Xi, which was a rare sign of hope in the months-long stand-off between the world's top two economies.

"Just had a long and very good conversation with President Xi Jinping of China. We talked about many subjects, with a heavy emphasis on Trade," he wrote.


He added that trade talks were "moving along nicely" and meetings were "being scheduled" at the G20 summit in Buenos Aires at the end of the month.

The comment comes days after Trump warned he would impose tariffs on all China's shipments to the US before saying he thought he could "make a great deal with China" but it was not yet ready.

Later, Bloomberg News, citing unnamed sources, reported that the president has requested key cabinet secretaries put together an outline deal to call a ceasefire in the painful row. It said several agencies had been called in to help with putting the plan together.

Hong Kong and Shanghai were already buoyant after Beijing said it would introduce measures to kickstart the stuttering economy following a string of weak data, including growth at its slowest pace in nine years during the third quarter.

The yuan also rallied to 6.9080 to the dollar, having hit 6.9302 earlier in the morning and is well off the 10-year lows around 6.97 on Thursday.

'Still cautious'

The optimism spread across the region. Tokyo was up 2.7 percent in the afternoon, Singapore 1.3 percent and Seoul piled on three percent, while Sydney reversed early losses to sit 0.1 percent higher.

Taipei, Bangkok, Mumbai and Jakarta also posted healthy gains.

"Positive comments from President Trump over US-China trade tension are cheering the market in the short term," said Tai Hui, chief market strategist for Asia Pacific at JP Morgan Asset Management.

"Dollar moderation, the stabilising trade relationship between US and China and more stimulus from Beijing will be the key ingredients to revive market confidence in Asia.

"While we are still cautious over a full resolution of recent tensions in the medium term, resumption of dialogue between Washington and Beijing would be good enough to investors for now."

Oil prices recovered after Thursday's plunge of more than two percent on oversupply worries, with US sanctions on Iran due within days but other major producers ready to pick up the slack.

The commodity has lost around 15 percent from four-year highs at the start of last month as Russia and OPEC said they would bolster output and dealers grew concerned about the impact on demand from a trade war between China and the US.

On currency markets high-yielding units were well bought. The Australian dollar climbed 1.1 percent, South Korea's won strengthened 1.5 percent and the South African rand was 1.6 percent higher.

India's rupee, which has been hammered this week by a standoff between the government and central bank, climbed almost one percent.

The pound dipped but held most of its gains after a report that British Prime Minister Theresa May had reached a post-Brexit deal with Brussels securing access to the EU for Britain's key finance sector.

Sterling jumped almost two percent on the report despite London and Brussels officials' reservations.

source: philstar.com

Asian stocks mixed as investors await US tariff hike

BEIJING — Asian stocks were mixed Tuesday after Wall Street's gains as investors waited for a new U.S. tariff hike in a trade battle with China.

KEEPING SCORE: The Shanghai Composite Index lost 0.3 percent to 2,661.33, while Tokyo's Nikkei 225 added 1 percent to 22,595.52. Hong Kong's Hang Seng retreated 0.3 percent to 26,538.58 and Sydney's S&P-ASX 200 advanced 0.5 percent to 6,171.00. Seoul's Kospi shed 0.3 percent to 2,281.90, while New Zealand. Benchmarks in Taiwan and Southeast Asia declined.

WALL STREET: U.S. stocks broke a four-day losing streak as industrial companies and retailers rose. Technology companies recovered some of last week's losses. Nike, Home Depot and Walmart all climbed. Microsoft and other technology companies rose, but Apple fell after saying more U.S. tariff hikes could push it to raise prices. The Standard & Poor's 500 index gained 0.2 percent to 2,877.13. The Dow Jones Industrial Average lost 0.2 percent to 25,857.07. The Nasdaq composite rose 0.3 percent to 7,924.16.



TRADE TENSIONS: The Trump administration is due to announce a decision shortly on whether to go ahead with 25 percent tariffs on $200 billion of Chinese imports in a dispute over Beijing's technology policy. The two sides already have raised duties on $50 billion of each other's goods. Trump said Friday that he was considering extending penalties to extending penalties to nearly all Chinese imports to the United States by raising duties on an additional $267 billion of goods.

ANALYST'S TAKE: "Wall Street balanced the tech gloom against the fresh focus on tax cuts on Monday yielding mixed returns," Jinyi Pan of IG said in a report. "The protracted expectation for more bad news to set in with the looming tariffs remains the most important factor weighing on markets currently."

ENERGY: Benchmark U.S. crude gained 4 cents to $67.58 per barrel in electronic trading on the New York Mercantile Exchange. The contract lost 21 cents on Monday to close at $67.54. Brent crude, used to price international oils, advanced 11 cents to $77.48 in London. It rose 54 cents the previous session to $77.37.

CURRENCY: The dollar gained to 111.36 yen from Monday's 111.12 yen. The euro edged down to $1.1590 from $1.1595.

source: philstar.com

Asian stocks mixed as weak dollar weighs on US economic data

SINGAPORE — Asian markets were mixed Thursday as positive sentiment from U.S. economic data and the country's willingness to strike a trade deal with Canada was shaken by a weaker dollar.

KEEPING SCORE: Japan's benchmark Nikkei 225 added 0.2 percent to 22,883.64 and the Kospi in South Korea gained 0.3 percent to 2,316.35. Hong Kong's Hang Seng was 0.4 percent lower at 28,297.41. The Shanghai Composite index fell 0.6 percent to 2,752.13. Australia's S&P/ASX 200 rose 0.3 percent to 6,369.00.



WALL STREET: Gains by big technology companies and Amazon took U.S. indexes higher on Wednesday. Stocks have rallied for four days as investors grew more hopeful about trade talks between the U.S., Mexico and Canada. The S&P 500 index closed 0.6 percent higher at 2,914.04, a record high. The Dow Jones Industrial Average rose 0.2 percent to 26,124.57 and the Nasdaq composite jumped 1 percent to a record 8,109.69. The Russell 2000 index of smaller-company stocks climbed 0.4 percent to 1,734.75.

U.S ECONOMY GROWS: The U.S. economy grew at a strong 4.2 percent annual rate in the April-June quarter, the best showing in nearly four years, the Commerce Department said Wednesday. Strength in business investment offset slightly slower consumer spending, placing growth on track to produce the country's strongest full-year gain in more than a decade. Economists expect growth to slow to a still-solid 3 percent annual rate the rest of the year, resulting in full-year growth of 3 percent for 2018.

POSSIBLE TRADE DEAL: President Donald Trump has said that efforts to reach a deal with Canada in the new North American Free Trade Agreement were "probably on track". The longtime U.S. ally and the country's second-largest trading partner after China had been left out of talks for the past five weeks. Canada has until Friday to reach a deal. Canadian Prime Minister Justin Trudeau said there was a "possibility of getting to a good deal for Canada" by Trump's deadline but said the country will not sign a bad agreement. Mexico, long the target of Trump's ire, has cut a preliminary deal with the United States to replace NAFTA with a pact that's meant, among other things, to shift more manufacturing into the United States.


ANALYST'S TAKE: "The positive impulse seen in the U.S. market has not flown through to Asia. Weakness of the dollar has reversed sentiment in the markets overnight," Michael McCarthy, chief market strategist at CMC Markets in Sydney, said in an interview.

ENERGY: Oil prices have extended their gains on concerns that looming sanctions on Iran may cause supply to drop. Benchmark U.S. crude added 13 cents to $69.64 per barrel in electronic trading on the New York Mercantile Exchange. The contract edged 1.4 percent higher and closed Wednesday at $69.51. Brent crude, used to price international oils, gained 12 cents to $77.58 in London.

CURRENCIES: The dollar eased to 111.63 yen from 111.69 yen. The euro advanced to $1.1703 from $1.1699.

source: philstar.com

Dollar slips, yen strengthens on Trump’s Fed criticism

TOKYO – The dollar slipped against the yen and a basket of major peers on Tuesday after U.S. President Donald Trump said he was “not thrilled” with Federal Reserve Chairman Jerome Powell for raising interest rates.

The dollar was also soft as investors pulled out of the safe-haven currency ahead of anticipated talks this week between China and the United States, which some market participants believe might lead to an easing in trade disputes.

“At the moment, markets fear that Trump may have some impact on the Fed’s policy,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.

“Especially the dollar/yen, which is sensitive to the rate moves of the United States, remains under pressure.”

The yen rose 0.18 percent to 109.87 yen as of 0050 GMT. The dollar on Tuesday fell below the psychologically-significant 110 yen level for the first time since June 28.

The dollar index against a basket of six other currencies fell 0.44 percent to 95.475 as of 0041 GMT after touching as low as 95.440, its lowest level since Aug. 9.

The greenback slipped after Trump said in a Reuters interview on Monday he was “not thrilled” with Powell’s raising of interest rates. Trump nominated Powell last year to replace former Fed Chair Janet Yellen.

The U.S. president spooked investors in July when he criticized the Fed over tightening monetary policy. On Monday he said the Fed should be more accommodating on interest rates.

Mizuho Securities’ Yamamoto said Fed officials don’t seem to be influenced by Trump’s comments.

“As long as the U.S. economy is okay…then I think there is no reason to stop the rate hikes from the Fed’s point of view,” he said.

Trump also said the U.S. central bank should do more to help him to boost the economy while he also accused China and Europe of manipulating their respective currencies.

Escalating trade tensions between the United States and its trading partners and a plunge in the Turkish lira had pushed the dollar index to 96.984 on Aug. 15, its highest since June 2017.

The dollar’s rally halted ahead of anticipated trade talks between Chinese and U.S. officials in Washington. Media reports have said the talks will take place in the next few days.

The euro, which had slipped to a 13-month low early last week amid concerns that the Turkish crisis could hurt European bank, gained on Tuesday. The single currency rose 0.37 percent to $1.1523 as of 0051 GMT.

The offshore Chinese yuan was 0.16 percent stronger at 6.8262 per dollar. The Australian dollar was 0.14 percent higher at $$0.7350.

source: interaksyon.com

Why markets are worried about suddenly cold Turkey

NEW YORK — Why are investors around the world so worried about Turkey's economy, when it's smaller than Florida's? Because of the possibility that somebody bigger will be next.

Investors have been pulling out of Turkey's markets, sending its stock market and currency plunging. That's making debt that Turkish companies owe in dollar terms even more expensive to pay back, which only further weakens the country's financial system.

Turkish companies need to pay close to 5.80 lira for each $1 of debt that they owe, for example, up from 3.79 lira at the start of the year.

The big fear, though, is that the distress could spill over into other emerging markets and cause a cascading wave of losses as investors pull out of other countries that borrow heavily in dollars and are dependent on foreign investors. Argentina? Brazil? South Africa?

Such a thing has happened before. A financial crisis that began in 1997 after Thailand devalued its currency eventually sent markets reeling across the region in what became known as the Asian financial crisis.

Stoking the concerns is the rising US dollar and a Federal Reserve that has pledged to continue raising short-term interest rates. Such moves have historically coincided with pain for emerging market stocks. When US rates are higher, investors feel less need to head to emerging markets in search of higher returns.

Many analysts along Wall Street, though, say they don't expect another Asian financial crisis. Turkey has borrowed much more in foreign currencies than any other country, as a percentage of its economy, and investors question how much authority its central bank has to raise interest rates.

Emerging-market economies broadly are also in much better shape than 20 years ago, with stronger currency reserves, say strategists at Wells Fargo Investment Institute.

"Turkey is both more exposed and less able to do something about it than any other country," says Brad McMillan, chief investment officer for Commonwealth Financial Network.

source: philstar.com

Most Asian markets up but trade fears stalk investors

HONG KONG — Asian markets mostly rose Wednesday, building on a positive start to the week as investors are cheered by healthy earnings but uncertainty caused by the US-China trade row is keeping optimism in check.

Wall Street provided another strong lead with the Nasdaq approaching a record high, while energy firms in Asia pressed on with their rally following more gains in oil prices.

Hong Kong was 0.1 percent higher in early trade while Tokyo ended the morning session 0.4 percent up and Sydney edged 0.3 percent ahead. Seoul, Wellington and Taipei all posted gains but Shanghai dipped 0.6 percent.

While the gains are welcome, traders remain on edge for any new developments in the trade saga between the world's top two economies.

On Tuesday the US said Donald Trump's 25 percent tariffs on a further $16 billion of Chinese goods will kick in on August 23. That is on top of the measures imposed on $34 billion of imports last month.

The move had been widely expected but with China lining up retaliatory measures it reinforced worries that the two sides are heading for an all-out trade war that could hammer the global economy. The White House has also lined up another $200 billion to target in future.

The yuan got some support after a Bloomberg News report said the Chinese central bank had emphasised the need for currency stability to the country's lenders as it looks to halt a slide in recent months.

It said officials called on bosses to prevent "herd behaviour" and momentum-chasing moves in the forex markets, fearing a run on the yuan similar to 2015-16, which hammered the unit and sent global markets into a tailspin.

The report comes after Friday's move by the People's Bank of China to make it harder to bet against the currency.

"This move is consistent with what the PBoC did earlier -- it can be considered as preemptive efforts made to slow the yuan’s depreciation, prevent one-sided bets on weakness and avoid a sense of panic," Eddie Cheung, Asia foreign-exchange strategist at Standard Chartered in Hong Kong, told Bloomberg.

Energy firms remain popular as oil prices rise on the back of worries about the trade row and a drop in Saudi Arabian output.

Both main contracts were flat in Asia after clocking up big gains on Tuesday.

Prices also got support from the US reimposing a first round of sanctions on Tehran after leaving the nuclear deal, with an embargo on the country's crude exports in November.

Trump warned other countries against doing business with Iran in the face of the sanctions, saying they would be refused from trading with the United States.

"The entreaty of the Americans that anyone who will do business with them (Iran) won't be able to do business in the US is something to watch," said Greg McKenna, chief markets strategist at AxiTrader.

Key figures at 0230 GMT

Tokyo - Nikkei 225: UP 0.4 percent at 22,750.48 (break)

Hong Kong - Hang Seng: UP 0.1 percent at 28,282.28

Shanghai - Composite: DOWN 0.5 percent at 2,764.45

Euro/dollar: UP at $1.1602 from $1.1597 at 2130 GMT

Pound/dollar: DOWN at $1.2936 from $1.2938

Dollar/yen: UP at 111.40 yen from 111.37 yen

Oil - West Texas Intermediate: UP five cents at $69.22 per barrel

Oil - Brent Crude: DOWN seven cents at $74.58 per barrel

New York - Dow Jones: UP 0.5 percent at 25,628.91 (close)

London - FTSE 100: UP 0.7 percent at 7,718.48 (close)

source: philstar.com

Asian stocks dip as trade tensions weigh on US tech sector

SINGAPORE — Asian markets were mostly lower on Tuesday, as moves by the U.S to gain an upper hand on trade with China weighed on the technology sector. Tech stocks have been the pillar of the Wall Street's long-running bull market.

KEEPING SCORE: Japan's benchmark Nikkei 225 index dropped 0.5 percent to 22,221.33 and South Korea's Kospi lost 0.9 percent to 2,337.60. Hong Kong's Hang Seng shed 1.2 percent to 28,619.21 and the Shanghai Composite in mainland China slipped 0.6 percent to 2,842.22. Australia's S&P/ASX 200 dipped 0.4 percent to 6,186.40. Taiwan's benchmark fell and Southeast Asian indexes were mostly lower.

WALL STREET: Major U.S. benchmarks finished broadly lower. The S&P 500 index dropped 1.4 percent to 2,717.07, its worst loss since April 6. The Dow Jones industrial average fell for the ninth time in 10 days, losing 1.3 percent to 24,252.80. The Nasdaq composite shed 2.1 percent to 7,532.01. The Russell 2000 index of smaller-company stocks slid 1.7 percent to 1,657.51.


TECH DOWNTURN: Stocks tumbled on reports that the Trump administration plans to limit exports of some high-tech products to China, and also limit investment in technology firms by companies with substantial Chinese ownership. Treasury Secretary Steven Mnuchin's suggestion that the investment restrictions wouldn't be limited to China caused stocks to slide further. The market recovered when Peter Navarro, one of President Donald Trump's top trade advisors, told CNBC that there was no plan for investment restrictions and that the administration's probe into alleged technology theft is limited to China. All but one of the 72 technology companies listed on the S&P 500 index closed lower on Monday.

TRADE TENSIONS: U.S. efforts to secure a pole position in trade are seeing some hit back. Iconic American motorcycle maker Harley-Davidson said it would move some production overseas to avoid tariffs the European Union is placing on motorcycles made in the U.S. Those tariffs were a response to taxes the U.S. placed on steel and aluminum from Europe. In less than two weeks, a 25 percent tariff will be imposed by the U.S. on billions of dollars of Chinese products. China will also raise import duties on $34 billion worth of American goods. China and the European Union agreed on Monday to launch a group that will, among other things, preserve support for international trade amid U.S. threats of import controls.

ANALYST'S TAKE: "Fears that China may pull investments in U.S. tech firms have caused a broad drawback. There is a sense that trade tensions could be long drawn and somewhat more antagonistic going forward," said Vishnu Varathan, head of economics and macro strategy at Mizuho Bank.
ENERGY: OPEC countries have agreed to raise the supply of crude oil by 1 million barrels a day. But investors aren't sure if the cartel will carry it out. Benchmark U.S. crude gained 7 cents to $68.15 per barrel in New York. It dipped 0.7 percent to settle at $68.08 per barrel on Monday. Brent crude, used to price international oils, rose 5 cents to $74.60 per barrel in London.

CURRENCIES: The dollar remained at 109.45 yen from late trading Monday. The euro strengthened to $1.1718 from $1.1704.

source: philstar.com

Asian stocks take a breather from trade tensions; markets up

SINGAPORE — Asian markets were mostly higher on Wednesday as traders sidelined tariffs that the U.S. and China have threatened to impose on one another, focusing on positive housing data instead.

KEEPING SCORE: Japan's benchmark Nikkei 225 index rose 1.2 percent to 22,540.07 and South Korea's Kospi gained 1.4 percent to 2,373.50. Hong Kong's Hang Seng rebounded 1.5 percent to 29,908.50 and the Shanghai Composite in mainland China increased 0.4 percent to 2,918.60. Australia's S&P/ASX 200 climbed 1.1 percent to 6,166.40. Taiwan's benchmark rose but Southeast Asian indexes were mixed.

U.S-CHINA TARIFFS: A burgeoning trade war between the U.S. and China is showing no signs of abating. On Tuesday, China's government called President Donald Trump's threat of new tariffs on $200 billion of Chinese goods "blackmail" and warned to retaliate with measures of its own. Trump has already announced a 25 percent tariff on up to $50 billion of Chinese products starting July 6. China retaliated by raising import duties on $34 billion worth of American goods, including soybeans, electric cars and whiskey.


POSITIVE HOUSING DATA: The solid U.S. job market has helped to boost demand for new homes. The Commerce Department said housing starts rose to a seasonally adjusted annual rate of 1.35 million in May, the strongest pace since July 2007. All of May's construction gains came from a 62 percent jump in the Midwest, while building slumped in the Northeast, South and West.


QUOTEWORTHY: "Trade tension is going to dominate market sentiment in the weeks to come. The market is waiting for Beijing to come out with counter measurements to offload more chips," said Margaret Yang, market analyst at CMC Markets Singapore.

WALL STREET: Major U.S. benchmarks finished lower. The S&P 500 index dropped 0.4 percent to 2,762.57 and the Dow Jones industrial average lost 1.1 percent to 24,700.21. The Nasdaq composite dipped 0.3 percent to 7,725.59.

ENERGY: Oil futures recovered losses from the previous day ahead of an OPEC meeting on Friday. Saudi Arabia and Russia are seeking to raise production by 1.5 million barrels per day, but they may not get their way. Benchmark U.S. crude rose 38 cents to $65.28 a barrel in electronic trading on the New York Mercantile Exchange. The contract settled at $64.90 per barrel on Tuesday. Brent crude, used to price international oils, gained 32 cents to $75.40 in London.
CURRENCIES: The dollar rose to 110.19 yen from 110.07 yen in late trading Tuesday. The euro ticked up to $1.1579 from $1.1575.

source: philstar.com

Asian stocks tumble after new Trump tariff threat

BEIJING — Asian stocks tumbled Tuesday after U.S. President Donald Trump escalated a dispute with Beijing over technology policy by threatening a tariff hike on additional Chinese goods.

KEEPING SCORE: The Shanghai Composite Index fell 2.3 percent to 2,953.54 points and Hong Kong's Hang Seng lost 2 percent to 29,685.28. Tokyo's Nikkei 225 retreated 0.9 percent to 22,482.89 and Seoul's Kospi lost 0.8 percent to 2,356.57. Markets in Taiwan, New Zealand and Southeast Asia also declined. Sydney's S&P-ASX 200 gained 0.3 percent to 6,123.00.

TRADE TENSIONS: Trump directed the U.S. Trade Representative to prepare new tariffs on $200 billion in Chinese imports, stepping up a dispute companies and investors worry could drag down global trade and economic growth. Trump accused Beijing of being unwilling to resolve the dispute over complaints it steals or pressures foreign companies to hand over technology. China's Commerce Ministry criticized the White House action as blackmail and said Beijing was ready to retaliate.

ANALYST'S TAKE: "President Donald Trump's unwillingness to back down became apparent this morning, once again sinking markets into a risk-off atmosphere," said Jingyi Pan of IG in a report. "Attention now turns to China for the country's response towards the latest accusations from the White House, but mostly signs of further retaliation."


WALL STREET: U.S. stocks finished mixed in trading that ended before Trump issued his latest tariff threat. Household goods companies took some of the worst losses as the Standard & Poor's 500 index fell for the third time in four days. The S&P 500 fell 0.2 percent to 2,773.75. The Dow Jones industrial average dropped 0.4 percent to 24,987.47. The Nasdaq composite edged up 0.65 points to 7,747.03. The Russell 2000 index of small-cap stocks rose 0.5 percent to a record 1,692.46. Many investors feel smaller and more U.S.-focused companies are less vulnerable in the event of a major trade dispute.

ENERGY: Benchmark U.S. crude lost 26 cents to $65.59 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 79 cents on Monday to $65.85. Brent crude, used to price international oils, fell 41 cents to $74.93 per barrel in London. The contract rose $1.90 the previous session to $75.34.

CURRENCY: The dollar declined to 109.98 yen from Monday's 110.54 yen. The euro edged up to $1.1633 from $1.1623.

source: philstar.com

IPHONE MINI? | Apple to unveil new product on March 21

Apple Inc sent an invite to reporters on Thursday for an event at its Cupertino, California headquarters on March 21, possibly signaling the unveiling of a new, smaller iPhone.

The world’s best-known technology company often reveals new products at such events. It is expected to update its flagship iPhone and iPad products soon.

Some Wall Street analysts expect the company to use the event to unveil a four-inch (10-cm) screen phone, reintroducing the smaller size after enlarging screens with the iPhone 6 and 6 Plus in 2014.

Apple shares have risen in the past two weeks as Wall Street bet the company will launch a less expensive iPhone this month to boost sales in developing countries like China.

With U.S. consumers upgrading their smartphones less often, manufacturers have been relying on China for growth.

source: interaksyon.com

US stocks plunge after global rout

NEW YORK - US stocks slumped Monday, the first trading day of 2016, as heavy sell-offs in global markets and geopolitical tensions between Iran and Saudi Arabia rattled nervous investors.

The Dow Jones Industrial Average tumbled 276.09 points, or 1.58 percent, to 17,148.94. The S&P 500 dropped 31.28 points, or 1.53 percent, to 2,012.66. The Nasdaq Composite Index shed 104.32 points, or 2.08 percent, to 4,903.09.

China's shares tumbled 7 percent Monday, triggering the new "circuit breaker" mechanism. The decline is generally being attributed to downbeat market sentiment stemming from weaker than expected manufacturing activity in December and a steep fall in the yuan exchange rate on the day.

The Caixin General China Manufacturing Purchasing Managers' Index (PMI), released Monday, edged down to 48.2 in December from 48.6 in November. The December reading, the 10th monthly figure in a row below the 50-point level, suggests a contraction.

Tokyo stocks plunged on the first trading day of the New Year as below-par manufacturing data from China compounded a dour market mood, with sentiment initially dashed by Wall Street's slump at the end of last year.

European equities also suffered big losses following Asian stocks' sharp decline Monday, with Germany's benchmark DAX index at Frankfurt Stock Exchange diving 4.28 percent.

Meanwhile, Saudi Arabia cut off diplomatic ties with Iran over the weekend and asked all Iranian diplomats to leave the country within 48 hours.

Analysts said the heightened geopolitical tensions in the Middle East sent traders scurrying from stocks to safe haven assets.

On the economic front, the US December ISM Manufacturing Index moved down from November's 48.6 to 48.2, missing market expectations of 49.2, said the Institute Supply Management Monday.

"That the manufacturing sector was weak in 2015 is not news, but a weaker-than-expected reading to close the year raises concerns the slowdown may continue well into 2016," said Jay Morelock, an economist at FTN Financial.

US construction spending data also came out disappointing. The Commerce Department announced Monday that construction spending during November 2015 was estimated at a seasonally adjusted annual rate of US$1,122.5 billion, 0.4 percent below the revised October estimate.

source: interaksyon.com

Weak Chinese trade, US rate hike fears sink global stocks

NEW YORK - Another contraction in Chinese trade and rising expectations of a US interest rate hike in December sent most global markets tumbling Monday.

China's 18.8-percent fall in imports from a year ago, and a 6.9 percent drop in exports, spelled more sluggishness in the world's second-largest economy and in global growth more generally, hitting commodity prices as well as the shares of companies like Caterpillar which depend on them.

Supporting that view, the Organisation for Economic Co-operation and Development on Monday cut its forecast for global growth to 2.9 percent this year and 3.3 percent in 2016, calling the stagnation in global trade "deeply concerning".

On top of that was the strong US jobs data on Friday that gave more support for the US Federal Reserve hiking interest rates for the first time in nine years, which would raise the borrowing costs of governments and companies around the world.

Wall Street's key indices all tumbled 1.0 percent with little to spur buying after six straight weekly gains.

Mace Blicksilver of Marblehead Asset Management said US investors have a number of concerns, and that the market was "probably stronger than it should have been" last week.

"A little weak China data didn't help," he added.

European markets fell as brokers pondered the impact of higher US rates and slower global growth. London's FTSE dipped 0.9 percent, Frankfurt's DAX 30 lost 1.6 percent and Paris' CAC 40 dropped 1.5 percent.

Friday's strong US jobs report "pretty much made it a given that a US rate hike will take place after all in 2015," said Markus Huber, senior analyst at broker Peregrine & Black.

Ironically Chinese shares pushed higher, buoyed by news that the government was lifting a four-month ban on IPOs.

Chen Jiahe of Cinda Securities said regulators were more comfortable "after leveraged funding through outside channels was cleared and investor confidence recovered."

The dollar stabilized after last week's surge on the rate expectations, trading at 123.18 yen and $1.0749 per euro in late deals.

Still, said Joe Manimbo of Western Union Business Solutions, "market focus on monetary policies that are expected to loosen in Europe and tighten in the US suggests more open road for the dollar to run over the foreseeable future."

The key figures around 2200 GMT

New York - Dow:            DOWN 1.0 percent at 17,730.48 (close)

New York - S&P 500:     DOWN 1.0 percent at 2,078.58 (close)

New York - Nasdaq Composite:    DOWN 1.0 percent at 5,095.30 (close)

London - FTSE 100:       DOWN 0.9 percent at 6,295.16 (close)

Frankfurt - DAX 30:        DOWN 1.6 percent at 10,993.241 (close)

Paris- CAC 40:               DOWN 1.5 percent at 4,911.17 (close)

EURO STOXX 50:           DOWN 1.4 percent at 3,418.36 (close)   

Tokyo - Nikkei 225:      UP 2.0 percent at 19,642.74  (close)

Euro/dollar:                    UP to $1.0748 from $1.0742 late Friday

Dollar/yen:                     UP to 123.19 yen from 123.16 yen late Friday

source: interaksyon.com

Remember Lehman Brothers and 2008 crisis? It's back in deal that led to First Data IPO

WILMINGTON, Delaware - First Data Corp's Chief Executive Officer Frank Bisignano hailed a $3.5 billion fund-raising in July 2014 for drawing a "who's who in equity investing" and paving the way for the payment processor's huge IPO last week.

The 2014 deal included one unusual investor: Lehman Brothers, the bank that collapsed in 2008 at the height of the financial crisis.

Lehman may be long gone from Wall Street, but its bankruptcy estate still manages a portfolio of more than $10 billion in assets, exceeding the market capitalization of fashion house Ralph Lauren Corp. or property investment firm Kimco Realty Corp.

From an office in Manhattan, Lehman's staff manage piles of cash and securities, interests in real estate and private equity investments, including a stake in Formula One motor racing.

While bankruptcy estates focus on liquidating assets for the benefit of creditors, Lehman dusted off its investing expertise last year and spent $151 million on private placement of stock in First Data.

According to a court filing, the money was spent on a "pro-rata" share of the private placement, indicating Lehman had a previous relationship with First Data. Lehman provided financing in 2007 for the buyout of First Data, which was led by KKR & Co.

"When you get a $3.5 billion vote of confidence by some fabulous investors," Bisignano told an analysts call in July 2014, "the who's who in equity investing in it gives your customers great confidence in your ability."

The private placement of stock was credited by Bisignano for providing cash to pay down First Data's debt and returning the company to profit after years of losses.

Lehman's management can make investments if they determine it will likely benefit creditors.

Lehman and First Data declined to comment on the Lehman stake.

Lehman did not disclose how the First Data investment performed.

KKR, which was the lead investor in the 2014 private placement, has estimated in securities filings the value of its investment in First Data rose about 13 percent from the private placement through June 30. However, those gains may have been offset after First Data cut the IPO price by 20 percent from the top of its target range.

Shares in First Data were little changed at $15.36 on Thursday, below the $16 IPO price.

Complex cases

Lehman emerged from bankruptcy in 2012 with a new board selected by creditors, overseen by Chairman David Pauker, formerly the executive managing director of Goldin Associates, a financial consultancy. Christopher O'Meara, a former chief financial officer of Lehman, is the chief executive.

"I do think it's remarkable both how significant Lehman's assets have turned out to be and how much they still have," said David Skeel, a professor at University of Pennsylvania Law School.

The First Data deal is not even the largest investment by the bankrupt firm. In 2012, it ponied up about $3 billion to buy two minority positions held by other banks in Archstone, an owner of apartment complexes, giving it full ownership. It later sold Archstone for $6.5 billion.

Lehman had teamed up with Tishman Speyer to acquire Archstone for $22.2 billion, including debt, in 2007.

In total, Lehman's bankruptcy estate has distributed $105.4 billion to creditors. Of that, $77.2 billion was paid to third-party claims, with the rest paid to other Lehman affiliates. While more than $1 trillion of claims were filed, the estate will recognize about $330 billion, according to court documents.

Jonathan Lipson, a professor at Temple University School of Law, said the case could still require years of work as the estate pursues lingering litigation and awaits overseas affiliates to complete their liquidations.

"Enron's estate lasted forever and ever," Lipson said, referring to the power company that filed in 2001 and closed its bankruptcy case only last year. "That's what happens with really complex cases."

source: interaksyon.com

Wall St. drops as China data rattles investors

NEW YORK - US stocks fell sharply in afternoon trading on Monday and were set for their worst third-quarter performance in four years as investors worried about the health of China's economy and its potential impact on the timing of a U.S. interest rate increase.

The Nasdaq composite and S&P 500 both dropped more than 2 percent.

Much of the damage came from pharmaceutical and biotech stocks, including Allergan and Gilead Sciences, with the sector still bleeding a week after Democratic presidential candidate Hillary Clinton criticized drug pricing.

The Nasdaq biotechnology index fell 6 percent following its worst week in seven years. Among the S&P sectors, the health care index was the deepest decliner, down 3.66 percent.

"The broad healthcare sector and China are hurting the market. It's time for risk-off and there's no place to hide," said Richard Weeks, managing director at HighTower Advisors in Vienna, Virginia.

Profits at Chinese industrial companies fell 8.8 percent, fresh data showed, pushing down shares of raw material producers and energy companies. Oil prices fell more than 2 percent.

U.S. consumer spending rose more than expected in August, data showed on Monday, appearing to add to the case for an interest rate increase this year.

However, contracts to buy previously owned U.S. homes decreased, indicating the robust housing market could be losing some steam.

The Federal Reserve held off from raising rates at its September meeting, citing concerns about the global economy, notably China, among other factors.

New York Federal Reserve President William Dudley on Monday added to expectations for a rate increase, suggesting the central bank could pull the trigger as soon as October.

Several other Fed officials are scheduled to speak during the week, including Chair Janet Yellen on Wednesday.

Investors will also scrutinize September non-farm payrolls data set for release on Friday.

At 2:41 pm, the Dow Jones industrial average was down 1.65 percent at 16,045.25. The S&P 500 lost 2.23 percent, to 1,888.26 and the Nasdaq Composite dropped 2.72 percent to 4,559.05.

Billionaire investor Carl Icahn said the U.S. Federal Reserve's low interest rates are creating bubbles in markets for art, property and high-yield "junk" bonds, in a video to be released on Tuesday.

The CBOE Volatility index, known as Wall Street's "fear gauge", jumped 16 percent to 27.37, well above its long-term average of 20.

Alcoa's shares jumped 2.70 percent after the aluminum producer said it would split into two publicly-traded companies.

Apple fell 1.53 percent despite reporting that it sold a record number of its new iPhones in their first weekend.

Declining issues outnumbered advancing ones on the NYSE by 2,744 to 337. On the Nasdaq, 2,323 issues fell and 509 advanced.

source: interaksyon.com

Asian stocks set for worst monthly drop in three years on global rout

HONG KONG - Asian shares fell on Monday and looked set for their worst monthly performance in three years after top Federal Reserve officials kept the door open for an interest rate hike in September and Chinese stock markets took a fresh tumble.

Global markets are bracing for Chinese data on Tuesday which is expected to show the world's second-largest economy is continuing to lose momentum.

A Reuters poll showed China's official factory sector activity likely fell to a 3-year low.

U.S. business surveys, factory orders, trade data and non farm payrolls will also be released this week, keeping investors on edge after one of the wildest trading weeks of the year.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.8 percent and is set to fall 10 percent this month, its worst monthly drop since May 2012.

Japan's Nikkei was down more than 1 percent and South Korea's Kospi shed 0.6 percent. Australian shares lost 1.2 percent.

Selling intensified as China markets extended declines. By midmorning, Shanghai stocks, the epicenter of this month's whip-saw action, were down 3 percent. They have plunged more than 40 percent since mid-June.

U.S. stock futures shed 1 percent, pointing to weakness on Wall Street later in the day.

"Overall sentiment towards emerging markets continue to be quite cautious," said Frances Cheung, Asia strategist at Societe Generale in Hong Kong.

"Unless we see a decisive trend forward in the trajectory of U.S. interest rates, investors will continue to be wary of emerging market assets."

U.S. Federal Reserve Vice Chairman Stanley Fischer, speaking at the central bank's conference in Wyoming, said recent volatility in global markets could ease and possibly pave the way for a rate hike.

"The release of U.S. ADP employment on Wednesday and non-farm payrolls on Friday will be key in analyzing the quantum of a September rate hike," Angus Nicholson, market analyst at trading services provider IG in Melbourne, wrote in a note to clients.

Prospects of higher interest rates and returns in the United States combined with China's slowdown have diminished the appeal of emerging markets as investors have dumped riskier assets.

Investors sold $5.9 billion of emerging market assets between Aug 20-26, a sharp increase from $1.5 billion the week earlier, according to Nomura fund flows data.

Credit markets, often a harbinger of things to come for equities, spelt further pain in store for emerging markets.

An index for Asian high-yield credit has fallen sharply compared to a relatively steady performance in the investment grade index, according to Thomson Reuters data.

The dollar eased 0.4 percent to 121.15 yen after rising to the week's high of 121.76 on Friday following the Fed officials' comments that kept prospects of a September hike alive.

The euro was up 0.5 percent at $1.12405  after touching an eight-day low of $1.1156 on Friday.

The market will watch Thursday's policy meeting to see if the European Central Bank will be inclined to ease monetary policy further in the wake of the recent global markets turmoil, though no imminent change is expected.

U.S. crude oil prices dipped early on Monday as their biggest two-day surge in quarter of a century ran its course.

U.S. crude was down 0.8 percent at $44.86 a barrel after jumping more than 6 percent on Friday on frenetic short-covering fueled by violence in Yemen, a storm in the Gulf of Mexico and refinery outages.

The contract was still down nearly 5 percent on the month, when it hit a 6-1/2-year low last week in the wake of China-led global growth fears.

source: interaksyon.com