Search This Blog

Search Tool

Asian Markets at Close Report

European Markets at Close Report

Feb 27, 2017

Asian Markets at Close Report & U.S. StockMarket Future Indications - February 27, 2017
Saheli Roy Choudhury

Asia markets fell on Monday, with sterling tumbling nearly 0.4 percent to the dollar.
Sterling tumbled as low as $1.2388 in early Asia trade, but later retraced some losses, with the pound/dollar pair trading at $1.2419 at 3:40 p.m. HK/SIN. That was down from levels above $1.2500 in the previous session.

Jung Yeon-je | AFP | Getty Images
Analysts pointed to a report from the Times of London that suggested Prime Minister Theresa May was preparing for the Scottish government to call a second independence referendum to coincide with the triggering of Article 50 in March.
"If that's the case, I suspect there's been a bit of an overreaction here," Ray Attrill, global co-head of foreign exchange strategy at the National Australia Bank, told CNBC.
Attrill added, "If the market does seriously think there can be another independence referendum much sooner than that, then remembering how hard the pound fell in early September 2014 just in front of the prior referendum, then the memory of that makes Sterling a fairly easy sell here."
Meanwhile, Stephen Innes, a senior trader at OANDA, told CNBC the pound's decline could have been a result of traders hedging bets that U.K. economic data will likely be on the soft side in the future and also due to the lingering uncertainty over Brexit negotiations.
"It's not as if we did not see it coming," Innes said. "I do see decent support coming in at 1.2410-25 level but the big play for the dollar remains Trump's speech tomorrow night."
President Donald Trump will address a joint session of Congress on Tuesday night.
Japan's Nikkei 225 closed down 176.07 points, or 0.91 percent, at 19,107.47, with exporters likely under pressure from a relatively stronger yen, which traded at 112.21 to the dollar at 3:43 p.m. HK/SIN, strengthening from levels above 112.80 last week. Earlier, the yen hit a session high of 111.89 against the greenback.
Major exporters closed mostly lower, with Toyota down 0.65 percent, Honda down 1.55 percent and Sony off by 0.92 percent.

-176.07 -0.91%
HSI HSI 23925.05
-40.65 -0.17%
ASX 200 S&P/ASX 200 5724.18
-14.80 -0.26%
SHANGHAI Shanghai 3229.17
-24.26 -0.75%
KOSPI KOSPI Index 2085.52
-8.60 -0.41%
CNBC 100 CNBC 100 ASIA IDX 7249.01
-44.04 -0.60%

Shares of troubled Japanese airbag maker Takata beat the generally downward trend to climb 1.10 percent, after a Wall Street Journal report that it is on the verge of hiring attorney Kenneth Feinberg to sort through claims for its $125 million compensation fund for victims of faulty air bags.
Feinberg ran a similar program for GM and oversaw compensation funds for victims of the Sept. 11, 2001, terrorist attacks and BP's Deepwater Horizon oil spill in 2010, the Journal reported.
Last month, Takata agreed to plead guilty to wire fraud and pay a total of $1 billion in criminal penalties stemming from its fraudulent conduct in relation to sales of defective airbag inflators. It announced it will establish two restitution funds: a $125 million fund for individuals physically injured by the faulty airbags who have yet to reach a settlement with Takata, as well as a $850 million fund to shoulder the airbag recall and replacement costs incurred by affected auto manufacturers.
Elsewhere, SoftBank shares fell 2.41 percent, despite news the internet and telecom giant is close to finalizing an investment in WeWork. A source told CNBC the deal is expected to be worth over $3 billion.
In South Korea, the Kospi closed down 8.60 points, or 0.41 percent, at 2,085.52. Australia's benchmark ASX 200 finished down 14.80 points, or 0.26 percent, at 5,724.18. Hong Kong's Hang Seng index fell 0.26 percent in late-afternoon trade, while Chinese mainland shares finished lower. The Shanghai composite fell 24.26 points, or 0.75 percent, to 3,229.17, while the Shenzhen composite was down 11.60 points, or 0.58 percent, at 1,988.77.
"Market positioning over the last week has been to cut back on Trump-trades," said Weiliang Chang, a currency strategy at Mizuho Bank, adding traders were beginning to doubt whether Trump will carry out his promise on infrastructure investment and the timely implementation of his tax reforms.
"Given the diminished expectations, we are hopeful that Trump, with the help of his speechwriters, could imbue optimism back into markets over his proposed tax reforms in his speech to Congress," Chang said in a note.
Samsung Electronics — the flagship brand of Samsung Group — closed down 0.42 percent, as South Korea's largest conglomerate seeks to overcome its involvement in an influence peddling scandal, while also recovering from last year's exploding Galaxy Note 7 fiasco.
On Sunday, Samsung announced its next flagship smartphone, the Galaxy S8, will be unveiled on March 29.
Meanwhile, the dollar index last traded at 101.09. Among other currency majors, the Australian dollar fetched $0.7687 at 3:47 p.m. HK/SIN.
Oil prices traded higher Monday afternoon during Asian hours, with U.S. crude up 0.7 percent at $54.37 a barrel, while global benchmark Brent gained 0.86 percent to $56.47.
Barbara Kollmeyer
Stocks looked set to take a breather on Monday ahead of data on durable goods and home sales, as well as a key speech later in the week from President Donald Trump.
Dow Jones Industrial Average futures YMH7, -0.03%  fell by 8 points, or less than 0.1%, to 20,779, while S&P 500 futures ESH7, -0.03%  shed 0.40 point to 2,364.50. Nasdaq-100 futures NQH7, -0.15%  slipped 7.75 points, or 0.2%, to 5,335.50.
The S&P 500 SPX, +0.15%  and the Nasdaq COMP, +0.17%  have gained for five weeks in a row, while the Dow industrials DJIA, +0.05%  have risen for three straight weeks.
On Friday, the Dow extended its record-setting streak to 11 sessions, though it added less than 0.1%. The S&P also closed at a record.
Read: Why the stock market’s tight trading range isn’t worrying Wall Street yet
Garnering much attention this week will be Trump’s address to Congress on Tuesday evening, in which he is expected to touch on plans for overhauling the tax code and health-care system.
“Following Trump’s recent pledge that he is going to announce a ‘phenomenal’ plan on tax reform within the next weeks, market participants will be on the edge of their seats for any details regarding the new administration’s fiscal plans,” said Marios Hadjikyriacos, analyst at IronFX, in a note to clients.
A packed week of data will kick off Monday with durable-goods and capital equipment orders for January at 8:30 a.m. Eastern Time, followed by pending-home sales at 10 a.m. Eastern. Dallas Fed president Rob Kaplan will appear in a moderated Q&A at the University of Oklahoma at 11 a.m. Eastern.
Stocks to watch: Sotheby’s BID, +0.17%  will report ahead of the market open, with Hertz Global Holdings Inc. HTZ, -0.60%  due after the close.
Warren Buffett’s Berkshire Hathaway Inc. BRK.A, +0.05% BRK.B, +0.04%  could draw attention after the conglomerate reported a 15% rise in net earnings, which were partly lifted by the stock market’s end-of-year rally.
In Buffett’s closely watched annual letter to shareholders released Saturday, he said the debate over share buybacks is getting too overheated and Berkshire has no commitment to keep any of its securities forever.
More Buffett: The difficulty with adjusted earnings and Jack Bogle is a ‘hero’ to investors
Lions Gate Entertainment Corp. LGF.A, -0.29% LGF.B, -0.75% may draw attention after “La La Land” won several Oscars on Sunday evening, including Emma Stone as best actress and Damien Chazelle for best director. The film was briefly and mistakenly declared best picture winner, when in reality “Moonlight” won.
Read: Complete list of Oscar winners
Other markets: Asian markets ADOW, -0.49%  finished lower across the board, with the Nikkei 225 index dropping 0.9%. European stocks SXXP, -0.22%  were trading largely steady.
The dollar was flat, while the British pound GBPUSD, -0.3612%  came under pressure on worries about a push for a second Scottish independence referendum. Oil prices CLJ7, +0.74%  were higher, while gold GCJ7, -0.10%  was moderately lower.