Business Maverick

Business Maverick

Stocks Fall, Tensions Simmer Before Trump Presser: Markets Wrap

TOKYO, JAPAN - AUGUST 25: Pedestrians are seen reflected in an electronic screen showing global stock market information on the street in Tokyo on August 25, 2015. Japan's share prices dropped nearly 4.0 percent, closing at 17,806.70 following a 4.6% plunge on "Black Monday" to the lowest level seen since late February. (Photo by Chris McGrath/Getty Images) Photographer: Chris McGrath/Getty Images AsiaPac

Asian stocks dropped with European and U.S. equity futures as investors took a cautious stance before President Donald Trump’s anticipated address later Friday that could further stoke U.S.-China tensions. The yen edged up.

Sentiment is being tested as global equities round out a second month of gains, with Trump saying he’ll announce new U.S. steps on China on Friday, after it passed a national security law that could curb freedoms in Hong Kong. The Hang Seng opened about 1.5% lower, while Japanese shares dipped more modestly along with those in Seoul and Shanghai. U.S. contracts slid after the gauge gave up a gain of more than 1% Thursday, with the Trump announcement stoking concern Sino-American tensions will disrupt the economic reopening narrative.
U.S.-based investors turn bearish on Chinese stocks

The escalation in hostilities between Washington and Beijing is capping positive sentiment as traders weigh indications of economies healing after lockdowns. U.S. states’ jobless rolls shrank for the first time during the outbreak even as millions more Americans filed for unemployment benefits, while readings on durable goods orders and personal consumption beat forecasts.

“I’m very cautious on my medium and even long-term outlook for the markets,” Kate Jaquet, a portfolio manager at Seafarer Capital Partners LLC, said on Bloomberg TV. “I perceive there to be a very large disconnect between stock-market valuations across the globe and underlying company fundamentals.”

Meantime, clues on the next stages for Federal Reserve policy may come later Friday, when Chairman Jerome Powell participates in a virtual discussion.

The daily fixing of China’s exchange rate on Friday was broadly in line with expectations. The offshore yuan has steadied near a record low after China signaled on Thursday with a stronger-than-expected fixing on Thursday that it wants to avoid rapid depreciation.

Elsewhere, crude oil dipped after gaining Thursday. European stocks ended higher amid optimism over economies reopening and a European Union fiscal stimulus plan.

  • Euro-area data due Friday is forecast to show consumer inflation fell to 0.1% in May from 0.4% the previous month.

These are some of the main moves in markets:


  • S&P 500 futures fell 0.6% as of 10:25 a.m. in Tokyo. The S&P 500 fell 0.2% Thursday.
  • Japan’s Topix index fell 0.6%.
  • Hong Kong’s Hang Seng retreated 1.5%.
  • Shanghai Composite slipped 0.4%.
  • South Korea’s Kospi declined 0.9%.
  • Australia’s S&P/ASX 200 Index slid 1.2%.


  • The yen was little changed at 107.51 per dollar.
  • The offshore yuan was flat at 7.1719 per dollar.
  • The euro bought $1.1079, little changed.


  • The yield on 10-year Treasuries dipped one basis point to 0.68%.
  • Australia’s 10-year yield remained at 0.88%.


  • West Texas Intermediate crude fell 1.8% to $33.11 a barrel.
  • Gold slipped 0.1% to $1,716.91 an ounce.

Please peer review 3 community comments before your comment can be posted

MavericKids vol 3

How can a child learn to read if they don't have a book?

81% of South African children aged 10 can't read for meaning. You can help by pre-ordering a copy of MavericKids.

For every copy sold we will donate a copy to Gift of The Givers for children in need of reading support.

A South African Hero: You

There’s a 99.8% chance that this isn’t for you. Only 0.2% of our readers have responded to this call for action.

Those 0.2% of our readers are our hidden heroes, who are fuelling our work and impacting the lives of every South African in doing so. They’re the people who contribute to keep Daily Maverick free for all, including you.

The equation is quite simple: the more members we have, the more reporting and investigations we can do, and the greater the impact on the country.

Be part of that 0.2%. Be a Maverick. Be a Maverick Insider.

Support Daily Maverick→
Payment options