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Showing posts from February, 2019

FX | Currencies Report | Swiss franc leads gains on weak China data, trade talk fears

Kate Rooney 2 minutes Matt Cardy | Getty Images The Swiss franc rallied by half a percent against the dollar on Thursday as weak Chinese factory data and lack of progress at U.S.-China trade talks encouraged traders to take profits. The British pound also saw profit-taking, but it is still on track to lead gains against the dollar in February as fears about a no-deal Brexit fade. “The weak Chinese PMI data and concerns about the progress of U.S.-China trade talks are weighing on risk appetite, and that is pushing the franc higher,” said Esther Maria Reichelt, an FX strategist at Commerzbank. Factory activity in China reached a three-year low in February as export orders fell at the fastest pace since the global financial crisis, more evidence of an economy facing weak demand at home and abroad. Sentiment was also hurt by U.S. Trade Representative Robert Lighthizer’s comment that it was too early to predict an outcome in trade talks be

Bond Yields Report on February 28, 2019 | Treasury yields jump after fourth-quarter GDP comes in better than expected

Sam Meredith 3-4 minutes U.S. government debt yields jumped off their session lows Thursday after the first print on fourth-quarter gross domestic product growth topped Wall Street’s expectations. At around 2:03 p.m. ET, the yield on the benchmark 10-year Treasury note , which moves inversely to price, was higher at around 2.719 percent, while the yield on the 30-year Treasury bond was higher at 3.096 percent. U.S. economic growth was better than expected as 2018 came to a close, with GDP rising 2.6 percent, according to a first estimate the government released Thursday. Economists surveyed by Dow Jones expected a gain of 2.2 percent after a 3.4 percent rise in the third quarter. Worries that a global slowdown would infect the U.S intensified during the period, while investors worried that the Federal Reserve would continue to raise interest rates even as financial conditions tightened. Even with the weaker fourth quarter, economic growth w

Wall Street Closing Report | Dow falls 70 points, posts 3-day losing streak

Fred Imbert, Thomas Franck 4 minutes Stocks slipped on Thursday as stronger-than-expected economic data were offset by fruitless talks between President Donald Trump and North Korean leader Kim Jong Un. The Dow Jones Industrial Average fell just 50 points while the S&P 500 dropped about 0.15 percent. The Nasdaq Composite lost 0.1 percent as Facebook, Apple, Amazon and Netflix traded flat to lower. The U.S. economy grew at an annualized rate of 2.6 percent in the fourth quarter 2018, according to the Bureau of Economic Analysis (BEA). Economists polled by Dow Jones expected the economy to grow at a pace of 2.2 percent. "This report showed the economy is slowing, but not enough to increase investor angst," said Chris Gaffney, president of world markets at TIAA Bank. GDP data would have "have given a bigger boost to equities and other risk assets if not for the negative news coming out of Vietnam," said Gaffney, referr

Crude Oil Price Report | Oil steadies after rally as Chinese data and trade dispute create headwinds

Tom DiChristopher 4-5 minutes Oil pumpjacks in the Permian Basin oil field are getting to work as crude oil prices gain. Spencer Platt | Getty Images Oil prices were mixed on Thursday, following a volatile trading period that saw crude futures plunge more than 3 percent at the start of the week and rally more than 2 percent in the previous session. Crude futures recovered on Wednesday after Saudi Arabia’s influential oil minister brushed off pressure from President Donald Trump to “take it easy” on price-boosting production cuts. Trump’s warning to Saudi Arabia and its fellow OPEC members was the catalyst for oil’s decline earlier in the week. An unexpected plunge in U.S. crude stockpiles added fuel to Wednesday’s rally. But on Thursday, traders said the oil market was dealing with several headwinds, as U.S.-China trade tensions persisted, the Chinese economy showed signs of slowing and record U.S. production undermined OPEC-led ou

Metals Price Report | Gold near 2-week lows as dollar rebounds over trade caution

Tom DiChristopher 3-4 minutes Gold prices on Thursday held near two-week lows touched in the previous session, as the dollar recouped losses after cautious comments from U.S. Trade Representative Robert Lighthizer dented investors’ hopes for a closure to the tariff war with China. As of 1:58 p.m. ET, spot gold was down 0.39 percent at $1,314.60 per ounce. U.S. gold futures settled $5.10 lower at $1,316.10. The safe-haven metal slipped to its lowest since Feb. 15 at $1,316.43 in the previous session and dropped for the first time in five months. Lighthizer told a Congressional hearing it is too early to predict the outcome of ongoing trade talks with Beijing and the United States will need to maintain the threat of tariffs on Chinese goods for years even if the two sides strike a deal. “There is some uncertainty about the trade deal and some of the safe-haven (demand) has gone to the U.S. dollar. That has taken a bit of a bid

European Markets Closing Report | European markets close mixed after Trump-Kim summit ends abruptly; Zalando up 23%

Chloe Taylor,Silvia Amaro, Alexandra Gibbs 2-3 minutes European stocks closed mixed on Thursday, as investors kept abreast of geopolitical news taking place across the globe. European Markets : FTSE, GDAXI, FCHI, IBEX TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME FTSE FTSE 100 FTSE 7089.84 -17.36 -0.24 983044425 DAX DAX DAX 11515.64 28.31 0.25 86731904 CAC CAC CAC 5240.53 15.18 0.29 114239139 The pan-European Stoxx 600 ended the session up 0.12 percent, with sectors and major bourses in mixed territory. Basic resources were the worst performers, down by more than 2 percent, on the back of renewed trade worries and fresh data. On Wednesday, U.S. Trade Representative Robert Lighthizer stated in front of the House Ways and Means committee that he foresaw long-term hurdles ahead. On Thursday morning, Chinese factory activity numbers dropped to a three-year low in February — raising fears about economic activity in

Analysis | The Technology 202: Critics say FTC's fine against app now known as TikTok doesn't go far enough

By Cat Zakrzewski Cat Zakrzewski Technology  14-18 minutes Ctrl + N The logo of the application TikTok in Paris on Dec. 14, 2018. (Joel Saget/AFP/Getty Images) Some Federal Trade Commission officials are calling the agency's fine against Musical.ly (now known as TikTok) for children’s privacy violations a “big win.” But critics say it highlights how Washington regulators aren’t doing enough to keep kids safe online.  The fine against the app — which lets people create lip-syncing music videos — is the largest the agency has issued in a children’s privacy case. That might sound like a steep punishment, but at $5.7 million, critics say it’s actually a relatively paltry sum for a Silicon Valley darling that was acquired by the Bytedance (the Chinese maker of TikTok) for close to $1 billion.  That penalty for illegally collecting data -- such as location information -- from children under 13 must be higher to properly enforce the Chi