Hong Kong shares seen inching higher, chart level supports
Hong Kong shares could inch higher on Tuesday, though any climbs will be marginal as investors wait for a meeting of central bankers later this week for fresh signs of easing from the U.S. Federal Reserve.
Hong Kong shares could inch higher on Tuesday, though any climbs will be marginal as investors wait for a meeting of central bankers later this week for fresh signs of easing from the U.S. Federal Reserve.
Corporate earnings will stay a focus, with Air China , China Life
Insurance Co Ltd and China Mengniu Dairy Co Ltd reporting first half
results later in the day. The Hang Seng Index <.HSI> on
Monday slipped 0.4 percent to 19,798.7, finishing just above chart
support at its 200-day moving average, now at around 19,764.8. It has
finished above that technical level on all but one session since July
31.
Seoul shares seen rangebound, investors await Jackson Hole
Seoul stocks are seen rangebound on Tuesday as investors await news of possible stimulus from top central banks later this week, with support for the market from a credit rating upgrade. Moody's upgrade of South Korea's credit rating on Monday was unlikely to provide strong upward momentum in the short-term, analysts said, but rather brace the main board from drastic dips until possible central bank policies become clearer.
Seoul shares seen rangebound, investors await Jackson Hole
Seoul stocks are seen rangebound on Tuesday as investors await news of possible stimulus from top central banks later this week, with support for the market from a credit rating upgrade. Moody's upgrade of South Korea's credit rating on Monday was unlikely to provide strong upward momentum in the short-term, analysts said, but rather brace the main board from drastic dips until possible central bank policies become clearer.
The Korea Composite Stock Price Index (KOSPI)
<.KS11> edged down just 0.1 percent on Monday to close at 1,917.87
points, even as Samsung group shares fell sharply after a patent ruling
favouring rival Apple Inc.
The effect of Samsung Electronics'
tumble was limited to individual shares, unlike the widespread effect of
the European crisis or concerns over deteriorating fundamentals," said
Lee Kyung-min, an analyst at Woori Investment and Securities. Even if Samsung continues to weigh, chances are the main board will
hold at the current level or even seek positive territory.
Global stocks held on to recent gains on Monday while U.S. Treasuries
rose as investors looked ahead to a meeting of central bankers at
Jackson Hole, Wyoming, on Friday for possible stimulus clues from the
Federal Reserve and European Central Bank.
Nikkei seen boxed in range, cenbank signals eyed
Japan's Nikkei share average is expected to hold a tight range on Tuesday as investors wait on a speech by U.S. Federal Reserve Chairman Ben Bernanke later this week for hints on any further stimulus steps. The Nikkei <.N225> was likely to trade between 9,050 and 9,150, strategists said, with Nikkei futures in Chicago <0#NIY:> closing at 9,100 on Monday, up 0.2 percent from the Osaka <JNIc1> close of 9,080. "I don't see any big news overnight that could affect the market," said Eiji Kinouchi, chief technical analyst at Daiwa Securities.
Nikkei seen boxed in range, cenbank signals eyed
Japan's Nikkei share average is expected to hold a tight range on Tuesday as investors wait on a speech by U.S. Federal Reserve Chairman Ben Bernanke later this week for hints on any further stimulus steps. The Nikkei <.N225> was likely to trade between 9,050 and 9,150, strategists said, with Nikkei futures in Chicago <0#NIY:> closing at 9,100 on Monday, up 0.2 percent from the Osaka <JNIc1> close of 9,080. "I don't see any big news overnight that could affect the market," said Eiji Kinouchi, chief technical analyst at Daiwa Securities.
"Foreign investors' trading yesterday was subdued.
This is their last week of summer holiday before U.S. Labor Day. So we
are likely to see a range-bound trade today." Bernanke is due to
speak in Jackson Hole, Wyoming on Friday, while European Central Bank
chief Mario Draghi will take the podium the following day. Bernanke has
used this event in the previous two years to signal further easing.
Banking on a quick fix by the ECB to bring down high borrowing costs
for Spain and Italy, the Nikkei has rebounded 9.1 percent since hitting a
seven-week low on July 25. The index is up 7.5 percent for 2012. On Monday, the Nikkei added 0.2 percent to 9,085.39, holding below its
five-day moving average at 9,124.59 and its 26-week moving average at
9,119.58.
Euro lower versus dollar; Bernanke ahead
The euro fell against the dollar on Monday in thin trading after a bigger-than-expected drop in German business sentiment even as it raised hopes in some that the euro zone's largest economy will do more to revive the bloc's growth. Sentiment toward the euro remained uncertain as markets awaited a series of key events next month, including the European Central Bank's policy meeting on Sept. 6, followed by the German Constitutional Court's ruling on the euro zone's permanent bailout fund on Sept. 12.
Euro lower versus dollar; Bernanke ahead
The euro fell against the dollar on Monday in thin trading after a bigger-than-expected drop in German business sentiment even as it raised hopes in some that the euro zone's largest economy will do more to revive the bloc's growth. Sentiment toward the euro remained uncertain as markets awaited a series of key events next month, including the European Central Bank's policy meeting on Sept. 6, followed by the German Constitutional Court's ruling on the euro zone's permanent bailout fund on Sept. 12.
A speech by Federal Reserve Chairman Ben Bernanke due on Friday will also be keenly watched by market players for any signs of action by the U.S. central bank to spur tepid growth. German business sentiment dropped for a fourth straight month in August to reach its lowest since March 2010, the Munich-based Ifo think tank said, with the business climate hit by increasing worries about the future level of exports.
The euro hit a session high of $1.2535 <EUR=> on Reuters data after the Ifo survey was released, but gradually lost ground to trade at $1.2499, closer to the session low of $1.2488, and down 0.1 percent on the day. Volume was thin with London shut for a holiday. Against the yen, the euro was little changed at 98.44 yen <EURJPY=>. The dollar was up 0.1 percent at 78.74 yen <JPY=>.
The Australian dollar <AUD=> skidded to a one-month low and looked vulnerable to further losses on fresh concerns about China's economy. The Aussie is often used to express views on the world's second-largest economy. The Aussie dollar was last down 0.3 percent at $1.0373.
Gold eases from early 4-1/2 month high, eyes Fed
Gold hit a 4-1/2 month high before ending slightly lower on Monday, as investors took profits after an early rally on speculation that the U.S. Federal Reserve may unveil another round of monetary stimulus at a central bankers' meeting later this week. The precious metal, a traditional inflation hedge, received a boost after Fed Chairman Bernanke last week wrote to a U.S. congressional panel that the Fed has room to deliver additional monetary stimulus to boost the U.S. economy.
Bullion investors are awaiting the annual symposium of central bankers and finance ministers at Jackson Hole, Wyoming, where Bernanke is due to deliver a speech on Friday. The metal rose nearly 3.5 percent last week, its biggest one-week rise since late January, and analysts said gold looked set to rise further after breaking the top part of a four-month-old trading range.
Spot gold <XAU=> hit $1,676.45 an ounce before ended down 0.3 percent at $1,665.20 an ounce by 3:53 p.m. EDT (1953 GMT). U.S. COMEX gold futures <GCZ2> for December delivery, however, settled up $2.70 an ounce at $1,675.60, as the futures market settled prior to a wave of late selling that turned spot prices into losses. Spot silver <XAG=> eased 0.2 percent at $30.72 an ounce after hitting a near-four-month high of $31.26, building on last week's gain of nearly 10 percent which was its largest weekly rise since last October.
Wall Street ends flat but Apple notches another high
Shares of Apple hit another record on Monday to keep the Nasdaq index afloat in the lowest trading volume of the year, with investors looking ahead to a key speech by Federal Reserve Chairman Ben Bernanke on Friday.
Apple Inc <AAPL.O> hit an all-time high of $680.87 during the day after the iPad maker won a $1 billion judgment in a patent lawsuit against Samsung Electronics <005930.KS>. The Korean company said it would contest the verdict. Apple, the world's most valuable company, ended up 1.9 percent at $676.68. The verdict on Friday jolted shares of Google Inc <GOOG.O>, as the case could change the dynamics of the mobile device market. Companies using Google's Android system may have to consider design changes. Google shares declined 1.4 percent to $669.22.
Beyond the notable moves of those tech giants, investors mostly cooled their heels before Bernanke's remarks to central bankers at Jackson Hole, Wyoming, on Friday. Data showed volume was 4.46 billion shares traded on the New York Stock Exchange, the Nasdaq and the Amex. The year-to-date average is about 6.6 billion.
Expectations are for Fed action of some kind next month, but Bernanke is likely to keep markets guessing about the timing of another round of bond purchases. The Dow Jones industrial average <.DJI> was down 33.30 points, or 0.25 percent, at 13,124.67. The Standard & Poor's 500 Index <.SPX> was down 0.69 points, or 0.05 percent, at 1,410.44.The Nasdaq Composite Index <.IXIC> was up 3.40 points, or 0.11 percent, at 3,073.19.
Oil Falls on Speculation Isaac Will Have Limited Impact
Oil fell for a third day on speculation that Tropical Storm Isaac will have limited impact on production in the Gulf of Mexico. Futures dropped as forecasts called for Isaac to go ashore Aug. 29 south of New Orleans as a Category 1 storm, the weakest on the five-step Saffir-Simpson scale. Losses narrowed after the U.S. Bureau of Safety and Environmental Enforcement said Isaac has shut 78 percent of Gulf production, up from 24 percent reported yesterday.
Oil for October delivery fell 68 cents, or 0.7 percent, to settle at $95.47 a barrel on the New York Mercantile Exchange. It rose as much as 1.6 percent earlier to $97.72. The price is down 3.4 percent this year. Brent oil for October slid $1.33, or 1.2 percent, to settle at $112.26 a barrel on the London-based ICE Futures Europe exchange.
Isaac was 280 miles (450 kilometers) southeast of the mouth of the Mississippi River with top winds of 65 miles per hour and moving northwest at 14 mph, the National Hurricane Center said in an advisory at 2 p.m. East Coast time.
