Asia cautious as everything rides on dovish Powell
Asia cautious as everything rides on dovish Powell
US stocks close mixed as investors look to Powell's testimony to Congress - Xinhua | English.news.cn
12 July, 2019, 03:29
Major stock indexes have traded in a narrow range this week in anticipation of Powell's testimony before lawmakers Tuesday and Wednesday. Trump previously said he had secured a Chinese promise to buy more agricultural products, but Chinese official media says only that Trump hoped China would import more American goods as part of the trade-war truce.
Still, analysts said prices will remain volatile as investors weigh the trade row against geopolitical tensions in the Middle East. In short, a tighter labor market with fewer available workers for hire should help push up wages which ought to lead to higher prices.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.5 percent to its lowest since 20 June.
The S&P 500 Index gained 0.3 per cent as of 12:09 p.m. U.S. West Texas Intermediate (WTI) crude futures shed 0.42% to $57.42. Earlier, the S&P 500 briefly topped 3,000 for the first time after Powell signaled a willingness to lower rates, citing a slowing global economy and trade issues.
US equities rallied late to close at a record high, while Treasuries retreated after the latest American inflation reading came in hotter than anticipated.
Powell said the central bank stands ready to "act as appropriate".
Elsewhere, Kansas City Fed president Esther George said United States inflation was unlikely to surge anytime soon, but noted that keeping interest rates too low for too long could put financial stability at risk.
"Given we are in the longest expansion and have only had rates lifted to 2.5%, for me it begs the question, is a soft landing possible?" He still thought the Fed would cut by 25 basis points this month - the first U.S. cut since the financial crisis - but whether it would keep going was much less clear.
Futures 0#FF: are still fully priced for a 25-basis-point cut at the Fed's July 30-31 meeting, but have abandoned wagers on a half-point move.
The probability of a 25 bps cut was 98.5% on Wednesday, with a 1.5% chance of a 50-point cut.
However, minutes from the Fed's last meeting, in mid-June, showed some policymakers felt there was not yet a strong case for easing.
In the currency market, fading Fed cut expectations helped the dollar. The dollar index against a basket of six major currencies slipped 0.24% to 96.876, extending losses for a second straight session after reaching a three-week peak on Tuesday.
The greenback was down 0.5 per cent at 107.960 yen, forced off a six-week high of 108.990 scaled the previous day.
The dollar's gains took the shine off gold, which eased 0.3 per cent to US$1,393.14 per ounce. Two-year yields dropped two basis points to 1.81% in Asian trading after sliding eight basis points on Wednesday.
Yields on short-dated U.S. Treasuries, which had ticked higher in recent sessions after stronger-than-expected employment data on Friday, fell on Powell's remarks.
In commodity markets, oil prices rose as US crude inventories shrank more than expected and as major producers evacuated rigs in the Gulf of Mexico before a storm.
Brent crude brushed a six-week high of $67.38 per barrel and last traded at $67.23.
Futures in Japan pointed to a flat start, while contracts rose in Hong Kong and Australia.
Flight AC33 departed Vancouver International Airport late Wednesday night bound for Sydney with 269 passengers and crew onboard. The turbulence happened at 36,000 feet (10,973 meters) about 600 miles (966 kilometers) southwest of Honolulu, said U.S.
Arsenal's purse strings have been tightened by their failure to qualify for the Champions League for a second successive season. Edu was the general coordinator of the Brazil national team and helped the team to win Copa America on Monday.
Now, according to a report by TechCrunch , Apple has pushed out an update silently to the macOS which removes the Zoom web server. It seems that Zoom thinks that asking a user if they want to join a meeting is a "poor user experience".
Stephen Yaxley-Lennon, who goes by the name of Tommy Robinson, has been jailed for 9 months for contempt of court. Earlier this week, Robinson begged for political asylum from US President Donald Trump after his conviction.
Here, Megan Rapinoe smiles as she holds the FIFA Women's World Cup trophy as the team arrives at the Newark International Airport. The winning team were met with a ticket tape parade in New York City, followed by a ceremony outside City Hall.
Iglesias plans to appeal the ruling and said the case should never have gone forward because it had been previously dismissed. Three were born out of his marriage to Isabel Preysler and five with his wife Miranda Rijnsburger.
This attraction, which opened in 2012 and receives up to 6,000 visitors a day, is said to be unaffected by the blaze. The studio, which is where the Harry Potter movies were made, is also the home of the Harry Potter studio tour .
Prior to that, two small robotic rovers also launched from Hayabusa2 successfully landed on Ryugu on September 22, JAXA confirmed. Hayabusa2 is expected to leave the asteroid to return to Earth at the end of next year, with the samples for scientific study.
Furthermore, presently, they are set to take on arch-rivals Australia at Edgbaston Cricket Ground on Thursday. Unlike the first one between India and New Zealand , a full-length match can be expected on the scheduled day.
The spokesperson also said the cause of the problem is not internal but due to "one of [its] telecommunication providers". Commonwealth Bank of Australia said some services are back to normal and it thanked customers for their patience.
Japan has announced new restrictions on the export of three materials used in semiconductors and smartphones to South Korea . The remarks followed urging Monday by South Korean President Moon Jae-in for the restrictions to be withdrawn.
One other Atira asteroid has been discovered by the ZTF team, 2019 AQ3 , which orbits the Sun approximately once every 165 days. The newly discovered asteroid - now referred to as 2019 LF6, orbits the sun every 151 days, or about the last day of May.
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