June 17, 2019
Asian equities trade mixed as investors await Federal Reserve meeting
Asian equities were traded in a mixed manner on Monday, June 17, with investors waiting for the U.S. Federal Reserve meeting.
Mainland Chinese equities were bearish at the end of the first part of the session. In Hong Kong, the Hang Seng index rose slightly, a day after large crowds gathered to demand the resignation of the authorities after the suspension, even if not withdrawal, of a controversial extradition bill. The Nikkei 225 in Japan traded slightly higher. In South Korea, the Kospi fell slightly, while Australia's ASX 200 did the same.
American stocks fell on Friday, June 14, with investors digesting semiconductor stock weakness along with weak Chinese data.
The U.S. currency hit a two-week high as U.S. retail sales data dampened fears of a downturn in the world's largest economy. The U.S. dollar benefited as the Federal Reserve is awaiting this week's meeting. Few expect the Fed to cut interest rates in Wednesday's monetary policy review, but traders are betting on cuts in the coming months. In addition to the positive data from the U.S., the dollar is supported by the weakness of other currencies, particularly the euro and the antipode currencies.
With growth slowing and inflation remaining well below its target, the European Central Bank has recently raised the prospect of an even greater stimulus, arguing that a rate cut or even more asset purchases may be necessary.
The central banks of Australia and New Zealand face a similar problem as the global economy prepares for the consequences of the US-China trade dispute.
Oil prices rose during Monday's Asian session after Secretary of State Mike Pompeo said Washington will take all necessary measures to ensure safe navigation in the Middle East. Prices had risen by as much as 4.5% Thursday after attacks on two oil tankers near Iran and the Strait of Hormuz. It was the second time in a month that oil tankers have been attacked in the world's most important area for transporting oil. Washington blamed Iran for Thursday's attacks, which provoked denial and harsh criticism from Tehran.
During Monday's Asian trading, gold remained stable after hitting a 14-month high. The dollar's strength is weighing on investors as they await this week's U.S. Federal Reserve meeting. Markets are betting on an early rate cut as uncertainty drives safe-haven assets. For now, gold prices remain firm.
European markets are expected to open down on Monday.
Chip manufacturers plummet
U.S. markets fall as chip manufacturers plummet and China's data disappoints.
U.S. equities fell on Friday, June 14, with investors digesting a decline in semiconductor equities along with weak Chinese data.
Chip manufacturers fell. The VanEck Vectors Semiconductor ETF fell by 2.4%, led by a 6.3% drop in Broadcom. The chip manufacturer recorded lower-than-expected revenues in the previous quarter and cut its forecasts for 2019.
Other semiconductor stocks also declined. Micron Technology, Advanced Micro Technology and Applied Materials fell more than 1%. Intel lost 0.9%.
Weak demand and pressure on Huawei from the US are the reasons for these poor results.
U.S. retail sales rose 0.5% in May, below the 0.6% expected by surveyed economists.
Sentiment on Wall Street was also affected by disappointing industrial data from China. Industrial production in China increased by 5% last month on a year-on-year basis ad is the slowest rate of growth in 17 years.
European shares close down amid tensions in the Middle East
European stocks closed on Friday 14 June in negative territory, due to increased tensions between the United States and Iran following attacks on two oil tankers in the Gulf of Oman on Thursday.
On the last negotiating day of the week world attention was focused on the Middle East, after two Norwegian and Japanese owned oil tankers respectively suffered explosions near the Strait of Hormuz on Thursday. The event pushed up oil prices sharply.
The U.S. military released images showing Iran's Revolutionary Guard Corps removing an unexploded mine from the side of one of the sinking tankers, a claim Tehran flatly denies.
The Stoxx 600 pan-European index closed down. Technology stocks performed poorly, with a 1.75% decline in the sector.
Most other sectors were trading in red. Utilities and energy, however, recorded small gains.
European economic data was also in the spotlight, as France reported that its May consumer price index was 0.9% year-on-year and the Italian CPI was 0.9% year-on-year. Both data failed to meet expectations.
Markets do not believe new stimulus warnings from the European Central Bank
Traders question whether the European Central Bank can offer the promised aid, given the proximity of Draghi's departure.
Seven years ago, words were enough for Mario Draghi to convince the markets that he would do ‘whatever is necessary’ to save the euro. Now that his eight-year term is coming to an end, investors think Draghi's words are not entirely reliable.
Last week, Draghi hinted that he was ready to stimulate the economy if the global climate of political and economic uncertainty continues to hamper growth and investment. The ECB President noted that the Governing Council had initiated discussions on how to proceed should the threats materialize.
As Draghi explained, the options include lowering interest rates and launching another round of bond purchases through a third round of quantitative easing.
On this occasion, the euro has not moved much after the release and this means that markets do not quite believe that the ECB's monetary policy will change course.
Huawei delays the launch of the folding phone until September
Huawei said his folding phone will be released in September, a little later than planned, as they perform additional tests after the debacle that Samsung had with tests of its equivalent device.
Samsung's foldable device, the Galaxy Fold, began to break when it was tested by critics in April.
A spokesman for the Chinese technology giant said the Company is trying to launch the Huawei Mate X worldwide. They will focus on markets that are deploying next-generation mobile networks known as 5G.
The Mate X, which costs about 2,299 euros, is a device with capacity for 5G.
Huawei was forced to rule out the launch of a new laptop because he could not deliver the product because the firm is on a blacklist in the United States.
Southern European countries join forces to get power in the new European Union
Leaders from Spain, France, Italy, Portugal, Greece, Malta and Cyprus come together to form a common front in the new European cycle.
With the five major posts in the EU institutions to be decided, the main issue on the table will be the formation of a common front to place these countries in strategic positions.
The representatives will discuss the Euro Summit on 20 and 21 June, at which the budget for the Eurozone will be finalised.
The priority lines of the new multiannual financial framework will also be raised and issues of greater impact on the region, such as climate change or migration, will be discussed.
Completing the banking union is another of the issues that most interests the countries of the South, and that generates more confrontation with those of the North.
Companies must put the best possible information at the fingertips of their professionals
Data revolutionizes business, but Companies must be able to incorporate it into their internal structure.
Making the best information available to professionals is fundamental for companies to develop new business models. This is a requirement in today's environment, in which digitization and the development of tools that amplify the customer's relationship with the company have revolutionized consumer habits.
Companies are looking for business analysis solutions that facilitate the massive examination of data, in order to turn them into useful information, and distribute them safely and efficiently throughout the organization itself.
The data allows you to get to know your customers better, increase their loyalty and increase sales.
Among the steps to follow is to find the essential data for the business, identify its location, develop technology capable of capturing, storing and processing them quickly. It is also necessary to find specific talent and have the support of corporate management.
One of the difficulties for companies is to combine the incorporation of the latest technologies with the maintenance of their legacy systems. Combining both aspects is essential to maintain competitiveness.
[image] The exchange rate is always given for a currency pair. A currency by itself is worthless if it is not compared to another currency or other reference, such as gold. Therefore, whether in a flexible exchange rate or fixed exchange rate...
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