All major Asian bourses are open again, and investors will be weighing Apple earnings and a slew of PMI reports across the region. Here are some of the things people in markets are talking about.
Managing China Trade Expectations
U.S. Commerce Secretary Wilbur Ross softened expectations of any major breakthrough from U.S. and China talks over trade issues this week. Ross is part of a delegation led by U.S. Treasury Secretary Steven Mnuchin that’s traveling to Beijing to meet with Chinese officials of equal seniority, he said in an interview on CNBC Tuesday. The meetings will start Thursday and U.S. officials plan to head home by the weekend, though the trip could be cut short “if it’s not satisfactory,” said Ross. Trump tweeted the talks have “great potential for USA!”
Dollar Rally Continues
The dollar’s rally continued, with the greenback posting its biggest advance in more than a week as it breached a number of key resistance levels. The currency’s strength weighed on commodities, with oil retreating and gold headed for the lowest since December. U.S. stocks closed mixed, with Apple leading a late afternoon rally in tech shares that helped offset a drop in industrials sparked by weak production data. Treasuries fell.
Apple Exceeds Estimates
Speaking of Apple, the tech giant reported revenue and profit that beat analysts’ estimates and projected continued sales momentum, calming concern about demand for the iPhone, its most-important product. The Cupertino, California-based company also unveiled a new plan to return more money to shareholders and said services sales jumped 31 percent. Apple shares rose in extended trading, after closing at $169.10 in New York on Tuesday. The stock had fallen in recent weeks on concern about demand for the flagship iPhone X. Apple suppliers also climbed following the results.
Nissan's U.S. Auto Sales Flop
Things weren’t as sunny for Nissan, which shocked analysts with a massive decline in U.S. sales last month, dragging down a market that may have otherwise held steady in April. The Japanese automaker’s deliveries plummeted 28 percent, as almost every model in the Nissan and Infiniti lineups declined. While Ford Motor Co. and Fiat Chrysler Automobiles NV beat analysts’ estimates, their shares reversed gains after Nissan’s report. “Our eyes are bugging out here,” Michelle Krebs, senior analyst for researcher Autotrader, said of the Nissan’s numbers. The seasonally adjusted sales pace for the month was 17.15 million, according to Autodata.
Today's the only day this week that all of Asia's main markets will be open, and there's plenty for traders to digest. A string of Asian PMI reports, led by China's Caixin, highlight the economic calendar. Korea, Taiwan, India and Malaysian PMIs are also due, as well as Indonesian CPI and New Zealand jobs. The U.S. session will bring the Treasury’s refunding announcement and the Federal Reserve’s rate decision.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Competition in Hong Kong’s $292 billion time-deposit business is intensifying.
- Goldman tells investors not to fear commodities.
- The EU warns of more market uncertainty
- You can now scrub your web history with Facebook using this button.
- Goldman will pay $110 million to resolve allegations FX trades improperly shared information about client trades.
- Facebook unveiled plans for a new dating feature, sending shares in dating app company Match Group tumbling.
- It’s time to get ready for the Kentucky Derby.
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