Global stocks mostly rise ahead of key Fed meeting

The world's stock markets mostly ticked upwards on Monday as investors moved cautiously at the start of a busy week packed with key interest rate decisions, in particular from the US Federal Reserve.

The indices in London and Paris closed modestly ahead after Hong Kong stocks rallied, with investors there cheering a decision by the city to suspend plans to push through a controversial extradition law.

Wall Street also advanced as traders took a breather ahead of the Group of 20 summit next week, where US President Donald Trump and his Chinese counterpart Xi Jinping are due to hold hotly-awaited talks on their long-running trade war.

One of those swirling headlines is the ongoing tension between the US and Iran. On Monday Tehran announced its uranium stockpile will soon pass the limit set under a nuclear deal that Washington abandoned last year.

The news exacerbated an already strained relationship after the US blamed Iran for two tanker attacks in the Gulf of Oman last week, claims that Tehran calls "baseless."

"Tensions in relation to trade and the Iranian situation still persist and they are hanging over stock markets," said analyst David Madden at trading firm CMC Markets UK.

- Fed U-turn? -

Naeem Aslam at London-based trading firm ThinkMarkets said this week "the focus is going to remain on central banks and their monetary policies."

The US central bank will unveil its monetary policy announcement on Wednesday, followed by both the Bank of Japan and the Bank of England on Thursday.

The Fed is not expected to shift course this week, but could signal a rate cut down the road.

"Anything less than a clear signal that the Fed is open to cutting rates soon in response to building downside risks to the US economic outlook could leave financial markets disappointed," noted MUFG currency analyst Lee Hardman.

"The US rate market is well priced for at least a (quarter-point) rate cut to be delivered by July."

- 'Cooler heads' in Hong Kong -

In Hong Kong, investors returned to buying after three days of losses that saw the Hang Seng drop more than two percent following protests against the law -- which would have allowed extradition to China -- turned violent on Wednesday.

Another peaceful demonstration Sunday saw around two million people take to the streets, according to organizers.

The plan had also spooked business leaders who feared it would damage the city's reputation as an international business hub.

Traders "will breathe a loud sigh of relief today, as on Wednesday when tear gas and rubber bullets were filling the air, the markets were getting extremely jittery that this ticking time bomb was about to explode", said Stephen Innes, managing partner at Vanguard Markets.

"Fortunately, cooler heads prevailed."

Among individual stocks, shares in Sotheby's auction house soared by more than 58 percent after the company announced it would be acquired by French telecoms and media mogul Patrick Drahi.

Facebook shares rose 4.2 percent as the world's biggest social network prepares to outline details on Tuesday of a virtual currency launching next year.

- Key figures around 2050 GMT -

New York - Dow: UP 0.1 percent at 26,112.53 (close)

New York - S&P: 500: UP 0.1 percent at 2,889.67 (close)

New York - Nasdaq: UP 0.6 percent at 7,845.02 (close)

London - FTSE 100: DOWN 0.2 percent at 7,357.31 (close)

Frankfurt - DAX 30: DOWN 0.1 percent at 12,085.82 (close)

Paris - CAC 40: UP 0.4 percent at 5,390.95 (close)

EURO STOXX 50: UP 0.1 percent at 3,383.21 (close)

Tokyo - Nikkei 225: UP less than 0.1 percent at 21,124.00 (close)

Hong Kong - Hang Seng: UP 0.4 percent at 27,227.16 (close)

Shanghai - Composite: UP 0.20 percent at 2,887.62 (close)

Euro/dollar: UP at $1.1217 from $1.1208 at 2100 GMT

Pound/dollar: DOWN at $1.2532 from $1.2589

Dollar/yen: DOWN at 108.53 yen from 108.56 yen

Oil - Brent North Sea: DOWN $1.07 at $60.94 per barrel

Oil - West Texas Intermediate: DOWN 58 cents at $51.93 per barrel



More Related News

Hong Kong Under
Hong Kong Under 'De Facto Curfew' as Subway Stations Shut Early
  • World
  • 2019-10-14 23:44:59Z

(Bloomberg) -- Hong Kong's subway system has closed early for more than a week, effectively cutting off the main mode of transportation for millions of residents. Many are now wondering how long it will last.Following unprecedented vandalism on the night of Oct. 4, when Chief Executive Carrie Lam banned face masks after invoking emergency powers last used in 1967, many stations were left in tatters. The rail operator MTR Corp. shut the entire network for a whole day for the first time since 2007 before gradually reopening damaged stations.The MTR has said it needs extra time to repair its stations. But as the service keeps getting curtailed, protesters have accused the company of helping...

Hong Kong police say homemade bomb targeted officers
Hong Kong police say homemade bomb targeted officers

A homemade, remote-controlled bomb intended to "kill or to harm" riot control officers was detonated as they deployed against renewed violence in Hong Kong over the weekend, police said Monday, in a further escalation of destructive street battles gripping the business hub. The "loud thud" Sunday night close to riot officers who had been clearing away a protester-built road block marked the first known use of an explosive device during protests that started in June over a contested extradition bill and have snowballed into an anti-government, anti-police and anti-China movement. "It exploded less than 2 meters (yards) away from a police vehicle.

China's Xi warns attempts to divide China will end in 'shattered bones'

Chinese President Xi Jinping warned on Sunday that any attempt to divide China will be crushed, as Beijing faces political challenges in months-long protests in Hong Kong and U.S. criticism over its treatment of Muslim minority groups. "Anyone attempting to split China in any part of the country will end in crushed bodies and shattered bones," he told Nepal's Prime Minister KP Sharma Oli in a meeting on Sunday, according to China's state broadcaster CCTV. "And any external forces backing such attempts dividing China will be deemed by the Chinese people as pipe-dreaming!" he was quoted as saying.

'Be water:' Police swoop as Hong Kong protests shift tactics

Tearing a page out of ancient Chinese military philosophy, black-clad protesters in Hong Kong changed tactics and wreaked havoc by popping up in small groups in multiple locations across the city Sunday, pursued by but also often eluding police who made scores of muscular arrests. Violence spiraled as protests stretched from Sunday afternoon into the night, with police struggling to restore order. Video broadcast on Hong Kong television also showed a masked, black-clad protester dropping a riot officer with a flying high kick, followed by two other protesters who beat the officer on the ground and tried unsuccessfully to snatch his gun.

In Hong Kong, all trust gone between police and protesters
In Hong Kong, all trust gone between police and protesters

In trying to end the anti-government demonstrations, which broke out in multiple locations again on Saturday and are now in their fifth month, one of the most pressing problems to solve for Hong Kong leaders will be dispelling the now widespread public scorn for police officers. Protest graffiti likening officers to dogs and worse is all over the city, and protesters Saturday chanted for the force to be disbanded. Riot police deployed but stayed far behind the day's largest rally, which drew thousands of peaceful marchers in Kowloon.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Tennis

Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.