Why More Demand for Japanese Stocks Is Bad News for the Yen By Bloomberg



(Bloomberg) — The yen has been the worst-performing major currency in the past month as optimism over U.S.-China trade talks and Brexit sapped demand for havens. Another reason it is declining is more curious: increased trading of Japanese stocks by overseas investors.

The dynamics work like this: foreign funds have boosted trading of Japanese shares but they are unwilling to take on currency risk at the same time. For that reason they choose to hedge purchases for foreign-exchange movements, which typically involve selling yen via forward contracts that roll over periodically. This constant renewal of hedging creates a steady drip-feed of negative pressure on the yen.

“Most foreign investors in Japan’s stock market are hedge funds and their pairing of equities trading with the yen is a significant factor,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE:) Securities Co. in Tokyo. “The Japanese stock market is a great place for short-term dealing with its deep liquidity and well-established infrastructure for high-frequency trades.”

The proportion of Japanese share trading by overseas funds has climbed to the highest in almost a decade and they now account for more than 60% of transactions, according to data from Japan Exchange Group Inc. The dominance of overseas funds is even more pronounced in derivatives, where they are responsible for almost 80% equity futures transactions.

“Overseas speculators usually try to avoid taking both equity and currency risks,” said Takahiro Sekido, a former Bank of Japan official who is now a strategist at MUFG Bank Ltd. in Tokyo. “Their currency hedging supports the inverse correlation between the yen and Japanese stocks.”

Hedging is typically done by selling currency forwards or combining purchases of a currency in the spot market with a simultaneous sale in the forward market, known as a foreign-exchange swap. Such transactions between Tokyo-based banks and offshore market participants have more than doubled since 2006, data from the Tokyo Foreign Exchange Market Committee show.

The increase in hedging — along with the waning of haven demand and the Bank of Japan’s accommodative monetary policy — has seen the yen weaken 1.8% against the dollar in the past month. The currency dropped to 109.29 per dollar last week, the lowest since Aug. 1, before trading at 108.87 late on Tuesday in Tokyo.

The increase in overseas trading of Japanese stocks and the related currency hedging is playing into another long-running theme: an inverse correlation between the yen and the Stock Average.

The inverse correlation, which has prevailed almost continuously since 2006, is now close to the highest since November 2007, according to data compiled by Bloomberg.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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U.S. Dollar Rises on Upbeat Trade News By Investing.com


© Reuters.

Investing.com – The U.S. dollar was higher on Monday after upbeat trade comments helped lift sentiment.

U.S. Commerce Secretary Wilbur Ross told Bloomberg on Sunday that U.S.-based companies would be issued with licenses to sell to Chinese tech giant Huawei “very shortly,” adding that the government had received some 260 requests from U.S. suppliers for exemptions from the existing restrictions on selling to the company. Huawei had been blacklisted on national security grounds amid concerns from the White House over its connection to the Chinese government, a move that many linked to the broader trade war with China.

Meanwhile on Friday, Washington and Beijing indicated that progress had been made on agreeing to a trade deal, with U.S. officials indicating that a deal could be signed this month.

The , which measures the greenback’s strength against a basket of six major currencies, gained 0.1% to 97.160 as of 10:50 AM ET (14:50 GMT).

The safe-haven Japanese yen was lower with up 0.3% to 108.48.

Elsewhere, sterling fell as the U.K. prepared for an election in December. A spokesperson for Prime Minister Boris Johnson said the government must be prepared to leave the EU without a deal on Jan. 31 and that a Brexit transition period would not be extended after that.

fell 0.2% to 1.2911 while inched down 0.1% to 1.1153. dipped 0.1% to 0.6802, while tumbled 1.8% to 14.7513 after Moody’s held back from downgrading South Africa’s debt to junk. The outlook was instead lowered to negative, even as the country’s budget forecasts showed its financial situation is under pressure.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Gold Prices Trade Higher as Markets Digest Brexit News By Investing.com


© Reuters.

Investing.com – Gold prices traded higher on Wednesday in Asia as markets digested the latest Brexit news.

U.S. rose 0.4% to $1,492.85 by 1:33 AM ET (05:33 GMT).

On Tuesday, U.K. lawmakers rejected the government’s proposed timetable for passing legislation to ratify Prime Minster Boris Johnson’s deal to depart from the EU.

Another Brexit delay is expected now after the parliamentary defeat, but analysts remain optimistic that the worst scenario, which is the U.K. leaving the bloc without a deal, may be avoided.

On the Sino-U. trade front, Chinese Vice Foreign Minister Le Yucheng said this week that Beijing and Washington have made some progress in trade talks, adding that as long as both sides respected each other, all problem were resolvable.

Some expect U.S. President Donald Trump and Chinese leader Xi Jinping to sign the first phase of a trade agreement at the Asia-Pacific Economic Cooperation summit in Chile in mid-November.

Unrest in Hong Kong also received some attention, after the Financial Times reported overnight that Beijing is considering replacing Hong Kong’s chief executive, Carrie Lam, by March.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Oil Prices Fall Despite Positive Sino-U.S. Trade News By Investing.com


© Reuters.

Investing.com – Oil prices turned lower on Tuesday in Asia despite signs of easing tensions between China and the U.S., the world’s biggest oil importers.

U.S. lost 0.3% to $53.37 by 1:12 AM ET (05:12 GMT). International also fell 0.2% to $58.84.

Oil prices traded higher earlier in the day after U.S. President Donald Trump said during a Cabinet meeting at the White House that China has begun buying American agriculture products.

Le Yucheng, China’s Vice Foreign Minister, said the two sides have achieved some progress in trade negotiations. “The world wants China and the United States to end their trade war,” he said.

Some believe Trump and Chinese President Xi Jinping will sign a partial trade deal in Chile next month during the Asia-Pacific Economic Cooperation meetings.

“Commodity markets were cautiously optimistic amid signs that a trade deal was close to being signed by the United States and China,” ANZ bank said in a note cited by Reuters.

“Crude oil prices remained in the doldrums, with ongoing economic weakness weighing on sentiment,” ANZ Bank added.

However, oil markets gave up their gains and traded in the red on Tuesday afternoon. U.S. Commerce Secretary Wilbur Ross said overnight that the partial trade deal doesn’t necessary has to be finalised next month, emphasizing the need to get the right deal.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Gold Falls as Data, Yemen News Encourage Risk Appetite By Investing.com


© Reuters.

Investing.com — Gold prices fell on Friday and bond yields rose slightly as reports of a possible ceasefire in allowed a little risk appetite to return to markets that had been unsettled earlier this week by poor global economic data and the impeachment inquiry into President Trump.

By 10:45 AM ET (1445 GMT), for delivery on the Comex exchange had fallen back below $1,500 a troy ounce, trading at $1,498.65, a loss of 1.1% for the day and on course for their lowest close since early August.

was down 0.9% at $1,491.70.

Offering their usual mirror image, government bond yields rose, as money flowed out of haven instruments. The U.S. Treasury rose as high as 2.17%, before retreating to 2.15%, while the yield was steady at 1.66%.

That followed some relatively upbeat economic data showing U.S. and both running ahead of expectations in August.

It was a different story in Europe, where U.K. government bond yields fell to near record lows again after Bank of England policymaker warned that the U.K. economy might need lower interest rates even if it avoids a hard Brexit. The yield fell to as low as 0.47% before recovering to 0.50%. It’s still below the Bank’s 0.75% refinancing rate, however.

Low yields make gold, which offers no nominal return, relatively more attractive.

Later Friday, the CFTC will update on the speculative positioning on against amid increasing awareness that it’s been portfolio buyers, rather than central banks, who have been supporting the market in recent weeks. Speculative net long positions rose again last week and remain well above long-term averages, close to a three-year high.

Elsewhere, silver prices also stumbled, losing 2.2% to $17.52 a troy ounce, while were effectively unchanged at $936.35 a troy ounce.

futures, a rough proxy for industrial demand, rose 1.1% to $2.60 a pound.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



BP preparing to announce CEO’s plan to retire: Sky News


Group Chief Executive of BP Bob Dudley poses for a photograph at the BP International Headquarters in central London, Britain, May 16, 2018. REUTERS/Henry Nicholls

(Reuters) – BP Plc (BP.L) is preparing to announce that the British oil company’s chief executive, Bob Dudley, plans to retire within about 12 months, Sky News reported bit.ly/2nuYqLQ on Saturday.

The announcement about Dudley’s decision could be made by the end of this year or by the end of October when BP issues third-quarter results, Sky News reported, citing sources.

Reporting by Sabahatjahan Contractor in Bengaluru; Editing by Edmund Blair



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Saudi Arabia to Hold News Conference ‘Proving’ Iran Role in Attacks By Investing.com


© Reuters.

Investing.com – The threat of a sustained outage in Saudi oil supplies to the world may have receded, but the risk of a broader conflict growing out of last weekend’s attacks on its oil facilities may be about to get bigger.

The Saudi Arabian defense ministry is to hold a press conference later Wednesday detailing the extent of Iranian involvement in the attacks, Bloomberg reported a ministry spokesman as saying Wednesday.

President Donald Trump had warned over the weekend that the U.S. was “locked and loaded” as regards a possible retaliatory strike against Iran. However, Saudi Arabia had initially held off confirming U.S. analysis arguing that Iran was behind the strike, rather than the Houthi rebels in Yemen who have repeatedly claimed responsibility for it.

The press conference is expected to take place at 5:30 PM in Jeddah, or 10 AM to 10:30 AM Eastern Time, according to Bloomerg’s Salma Elwardany.

The press conference will follow a meeting between U.S. Secretary of State Mike Pompeo and Saudi Arabia’s Crown Prince Mohammed bin Salman, which was confirmed earlier Wednesday by the U.S. mission to the United Arab Emirates.

Earlier Wednesday, Iran had reportedly sent a written diplomatic note to the U.S. formally disclaiming any involvement in the attacks, which took over half of Saudi Arabia’s active production capacity offline and caused the biggest-ever one-day spike in futures.

Iran “reiterated that it was not behind attacks on Saudi Arabia’s oil facilities and it has warned that any move by America against Iran will get immediate reaction,” according to the semi-official news agency ISNA.

On Tuesday, Saudi Energy Minister Prince Abdulaziz bin Salman had said that the kingdom would restore its oil output to pre-attack levels by the end of the month, although restoring its full production capacity would take until November.

Oil prices retreated on the news in early trading Wednesday. By 8:15 AM ET, were trading at $58.70 a barrel, down 0.8% from late Thursday and more than $4 a barrel below the high they hit on Monday. The international blend was down 0.6% at $64.17 a barrel.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Parents of murdered Democratic staffer Seth Rich can sue Fox News: U.S. court By Reuters


© Reuters. Parents of murdered Democratic staffer Seth Rich can sue Fox News: U.S. court

By Jonathan Stempel

NEW YORK (Reuters) – A federal appeals court on Friday revived a lawsuit against Fox News Network over its reporting on Seth Rich, a former Democratic National Committee employee whose unsolved murder sparked uncorroborated right-wing conspiracy theories.

The 2nd U.S. Circuit Court of Appeals in Manhattan said Rich’s parents, Joel and Mary Rich, could sue Fox News for causing emotional distress by publishing a May 16, 2017, article claiming their son had leaked DNC emails to WikiLeaks, implying that the leaks were related to his death.

Fox News, a unit of Fox Corp, retracted the article a week later, saying it fell short of its standards, but some leading conservatives and on-air guests discussed it for months.

The leaked emails suggested that DNC officials favored Hillary Clinton over Bernie Sanders in the 2016 Democratic presidential nominating campaign.

Circuit Judge Guido Calabresi wrote that the Riches “sufficiently pleaded extreme and outrageous conduct” by the defendants, including reporter Malia Zimmerman, who wrote the retracted article, and Fox News guest Ed Butowsky.

The 3-0 decision overturned an August 2018 dismissal by U.S. District Judge George Daniels in Manhattan, and returned the case to him.

Seth Rich, 27, was shot and killed in July 2016 near his Washington home, in what police there consider a botched robbery.

Fox News said in a statement on Friday that it offered the Rich family its “deepest condolences for their loss,” but believed legal proceedings would show it did not engage in conduct that supported the Riches’ claims.

Asked about the decision, Butowsky, who is representing himself, said by phone: “That’s the craziest thing in the world. It has already been proven that the things they accused in the lawsuit never occurred.”

The Riches said in a statement that they looked forward to seeking justice, including at a possible trial.

“We would not wish what we have experienced upon any other parent,” they added.

The couple, from Omaha, Nebraska, had said the campaign against them included their hiring, at Butowsky’s suggestion, a private detective to investigate their son’s death.

Zimmerman later cited the detective’s findings in a discussion of Seth Rich’s alleged contacts with WikiLeaks.

Calabresi said the reporter then lent credibility to those findings by emphasizing the detective’s connection to the Riches.

“We have no trouble concluding that – taking their allegations as true – the Riches plausibly alleged what amounted to a campaign of emotional torture,” Calabresi wrote.

The Riches claimed to suffer symptoms of post-traumatic stress disorder and social anxiety disorder, and Mary Rich said she no longer feels comfortable in public.

Friday’s decision also lets the Riches sue for alleged interference with their contract with the detective, and try to revive a negligent supervision claim against Fox News.

The case is Rich et al v Fox News Network LLC et al, 2nd U.S. Circuit Court of Appeals, No. 18-2321.



Wall Street rises on strong Chinese data, Hong Kong and Brexit news


New York (Reuters) – Wall Street’s main indexes rebounded on Wednesday, after robust economic data from China, easing tensions in Hong Kong and British lawmakers’ approval of a law to delay Brexit provided a dose of optimism to investors worried about global growth.

FILE PHOTO: A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., September 3, 2019. REUTERS/Andrew Kelly

Lawmakers in Britain’s lower house of Parliament voted to approve legislation designed to prevent Prime Minister Boris Johnson’s government from taking the country out of the European Union without a deal.

In China, activity in the services sector expanded at the fastest pace in three months in August, providing a boost to the world’s second-largest economy, which has been struggling to reverse a prolonged slump in its manufacturing sector.

Hong Kong leader Carrie Lam withdrew an extradition bill that had triggered months of often violent protests in the Chinese-ruled city.

“Some of the pessimism we started the month off with has eased slightly,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, in Charlotte, North Carolina.

“Anything that happens that could possibly derail a hard Brexit is a positive for stocks,” said Zaccarelli, who also pointed to economic data from China and Germany and the news from Hong Kong.

The president of the New York Federal Reserve Bank, John Williams, said the U.S. economy appeared to be in a good place while saying that he is ready to “act as appropriate” to help avoid a downturn.

The combination of news provided some relief after investors fled equities on Tuesday following data that showed a contraction in U.S. factory activity in August and after a new round of tariffs from Washington and Beijing began over the weekend.

The Federal Reserve’s Beige Book released on Wednesday, showed that the U.S. economy grew at a modest pace in recent weeks, with manufacturing buffeted by a global slowdown while consumer purchases gave mixed signals. The report is a compendium of anecdotes from companies around the country.

The benchmark U.S. Treasury 10-year yield US10YT=RR rose on Wednesday, with the yield curve at its steepest in more than two weeks.

At 3:27PM, the Dow Jones Industrial Average .DJI rose 217.91 points, or 0.83%, to 26,335.93, the S&P 500 .SPX gained 28.92 points, or 1.00%, to 2,935.19 and the Nasdaq Composite .IXIC added 96.59 points, or 1.23%, to 7,970.74.

Technology stocks .SPLRCT provided the biggest boost of the S&P’s 11 major sectors with a 1.5% gain. The only sector in the red was healthcare .SPXHC, which was down 0.3%.

Tyson Foods Inc (TSN.N) shares fell 7% after the biggest U.S. meat processor cut its 2019 earnings forecast.

Starbucks Corp (SBUX.O) dropped 0.9% after the company said it expects 2020 adjusted profit growth to be lower than 2019 as it factors in the impact of a one-time tax benefit that has inflated its bottom line this year.

Advancing issues outnumbered declining ones on the NYSE by a 3.85-to-1 ratio; on Nasdaq, a 2.08-to-1 ratio favored advancers.

The S&P 500 posted 64 new 52-week highs and three new lows; the Nasdaq Composite recorded 57 new highs and 74 new lows.

Reporting by Sinead Carew; Additional reporting by Uday Sampath and Shreyashi Sanyal in Bengaluru; Editing by Leslie Adler



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Gold Prices Inch Up as Traders Await More Trade News By Investing.com


© Reuters.

Investing.com – Gold prices inched up on Tuesday in Asia as China sent confusing signals on the trade war with the U.S. and said that it will not cave to U.S. demands.

for December delivery on the Comex division of the New York Mercantile Exchange inched up 0.1% to $1,538.25 by 12:15 AM ET (04:15 GMT).

Comments by U.S. President Donald Trump calmed nerves overnight as he said Beijing had gotten in touch with top U.S. trade officials and was ready to come “back to the table” for negotiations.

Traders were also relieved to hear Beijing’s top trade negotiator Liu He said China is ready to talk to the U.S. “with a calm attitude” in order to resolve the trade dispute.

However, Hu Xijin, editor-in-chief of China’s state-owned media Global Times, said that trade negotiators from the two sides hadn’t spoken by phone in recent days and that Trump was exaggerating the significance of the trade contacts.

Hu also stated that China did not change its position on trade issues and that it would not cave to U.S. pressure.

The ongoing trade war has damaged global growth and raised concerns of a potential recession.

Officials from both sides are set to resume in-person talks next month.

Asian equity markets traded mostly in the green today, with China’s and the jumping 1.7% and 2.3% respectively in morning trade.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.