Asian shares extend rally, U.S. earnings to test optimism By Reuters



© Reuters. A man wearing protective face mask walks in front of a stock quotation board outside a brokerage in Tokyo

By Wayne Cole

SYDNEY (Reuters) – Asian shares crept toward five-month peaks on Monday as investors wagered the U.S. earnings season would see most companies beat forecasts given expectations had been lowered so far by coronavirus lockdowns.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.15%, having climbed sharply last week on the back of surging Chinese stocks, which added another 1% on Monday..

gained 1.7% and South Korea 1.2%. E-Mini futures for the S&P 500 rose 0.5% even as some U.S. states reported record new cases of COVID-19, a divergence that shows no sign of stopping.

EUROSTOXX 50 futures added 1.1% and futures 0.8%.

“Ongoing grim U.S. COVID-19 infection news continues to be summarily ignored in favour of ongoing optimism regarding the time-line for the discovery and rapid roll-out of an effective vaccine and/or more policy support for asset prices and the U.S. economy,” said Ray Attrill, head of FX strategy at NAB.

“JP Morgan, Citigroup (NYSE:), and Wells Fargo (NYSE:) all report on Tuesday and there’s a view that the bar has been set pretty low for them to report the almost obligatory ‘better than expected’ results – the absence of forward guidance from many firms notwithstanding.”

Wednesday sees Goldman Sachs (NYSE:) and Bank of NY report, while Thursday has Netflix (NASDAQ:) and Morgan Stanley (NYSE:).

While bank shares rose sharply on Friday they have been badly lagging technology stocks, with analysts at Bank of America (NYSE:) noting tech outperformance in the past six months was greatest since the 1999 tech bubble and the 2008 global financial crisis.

If the S&P 500 was just “tech, health care, Amazon (NASDAQ:), Google (NASDAQ:)” the index would now be 4,173, they wrote in a note, way above the current level of 3,185. If made up of everything else, it would be 2,924.

“Central banks are crushing rate expectations, forcing risk-taking in credit markets,” they added.

Yields on U.S. 10-year notes came close to record lows last week at 0.569% and were last at 0.63%.

Super-low rates have in turn been a boon for non-yielding gold which hit a near nine-year high after five straight weeks of gains. The metal was last at $1,803 an ounce, just off a $1,817.17 top.

The hunt for yield has tended to benefit emerging market currencies and those leveraged to commodities such as the Australian dollar, while weighing on the U.S dollar.

Against a basket of currencies, the dollar was off at 96.585 on Monday and not far from the June trough of 95.714. The dollar was a fraction softer on the yen at 106.88, while the euro held at $1.1309.

Oil prices eased in early trade, although that followed a sharp rise on Friday when the International Energy Agency (IEA) bumped up its 2020 demand forecast. [O/R]

futures dipped 41 cents to $42.83 a barrel, while lost 40 cents to $40.15.

Graphic: Asian stock markets https://product.datastream.com/dscharting/gateway.aspx?guid=516bc8cb-b44e-4346-bce3-06590d8e396b&action=REFRESH



Asian shares hit speed bump, China extends sharp rally By Reuters



© Reuters. An SGX sign is pictured at Singapore Stock Exchange

By Hideyuki Sano and John McCrank

TOKYO/NEW YORK (Reuters) – Asian shares paused for breath on Tuesday following a surge sparked by speculation Beijing is trying to orchestrate a major domestic bull run to support an economy hit by the coronavirus and a standoff with Washington.

MSCI’s broadest index of Asia-Pacific shares outside Japan was last down 0.25%, a seemingly inevitable correction after sharp gains of 7% in just five days that took it to a 4-1/2-month high.

gave up 0.7% while U.S. stock futures shed 0.3% in Asia after hefty gains on Monday in the wake of surging Chinese shares.

Analysts say jawboning by the Chinese government through a state-sponsored journal on the importance of “fostering a healthy bull market” is spurring the buying binge in mainland Chinese shares.

Bluechip CSI300 index of Shanghai and Shenzhen shares, which had gained more than 13 in the past five sessions, gained another 1.7%, led by rises in tech sector.

“China is now trying to put all its resources on the semi-conductor and the IT sector so it can stand on its own feet in the area,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ (NYSE:) Morgan Stanley (NYSE:) Securities.

“Given this whole project is likely spearheaded by (Chinese leader) Xi Jinping, the rally could have a long leg to go, even though it does feel a bit risky and could be prone to setbacks.”

China’s moves came as the Sino-U.S. disagreements have gone beyond trade and tariff to include a whole gamut of issues, such as the status of Hong Kong, signalling to some investors that Beijing may be aiming to reduce its dependence on the West.

The current China rally has echoes of the past, especially during 2007 and in the buying binge that followed the crash in 2015 that was largely driven by Chinese retail investors.

“Shades of John F. Kennedy’s ‘Ask not what your country can do for you’ inauguration speech here and as close as you might get to a Chinese government ‘put’ as anything the Fed has done to date vis-à-vis the U.S. stock (and credit) markets,” said Ray Attrill, head of FX strategy at NAB, in a research note.

A sharp rebound in U.S. services industry activity in June, almost returning to pre-pandemic levels, also helped to whet investors’ risk appetite.

Still, new coronavirus cases surged in several states, forcing some restaurants and bars to close again in a setback to the budding recovery, keeping gains in risk assets in check.

In the currency market, the made headway, hitting its highest levels in nearly four months. The renminbi rose 0.1% to 7.0115 per dollar.

“The yuan is supported by the risk-on mood in the Chinese share market despite lingering uncertainties over the U.S.-China relations and an anticipated slow pace of recovery,” said Ei Kaku, senior strategist at Nomura Securities.

“Nor have we seen large capital flows that would boost the yuan,” she said.

Other major currencies were little changed, with the yen flat at 107.37 to the dollar and the euro unchanged at $1.1312.

The Reserve Bank of Australia is expected to hold its cash rate at 0.25% and make no changes to policy at Tuesday’s board meeting, leaving markets to focus on the accompanying statement. There will be particular attention on whether the central bank notes the Australian dollar’s rise.

The was steady at $0.6964.

Gold held steady near 8-year peak, changing hands at $1,783.3 per ounce.

Oil prices eased in tandem with the pullback in stocks.

lost 0.66% to $42.83 per barrel, while U.S. West Texas Intermediate crude fell 0.64% to $40.37.

Graphic: Asian stock markets https://product.datastream.com/dscharting/gateway.aspx?guid=516bc8cb-b44e-4346-bce3-06590d8e396b&action=REFRESH



Aeromexico shares rise for second day despite missed debt payment By Reuters



© Reuters. An Aeromexico airplane prepares to land on the airstrip at Benito Juarez international airport in Mexico City

MEXICO CITY (Reuters) – Shares in airline Aeromexico closed up 4.48% on Friday, rising for a second straight day even as the company missed a debt payment after filing for bankruptcy protection.

Aeromexico (MX:), part-owned by Delta Air Lines Inc (N:), this week became the third airline in Latin America to file for Chapter 11 bankruptcy protection after the business took a huge hit from the coronavirus pandemic.

Late on Thursday, bank CIBanco said Aeromexico had failed to make interest payments worth some 1.01 million pesos ($45,000) on local stock certificates AEROMEX 01119.

CIBanco, representing holders of the securities, said it would convene a meeting of investors to resolve the matter.

Aeromexico shares traded has high as 5.35 pesos a share on Friday before trimming gains to close at 5.17 pesos.

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.



Asian shares inch higher as data drives rebound hopes By Reuters



© Reuters. An SGX sign is pictured at Singapore Stock Exchange

By Shriya Ramakrishnan

(Reuters) – Asian stocks struggled for headway on Wednesday as the second half of the year got underway, with improving economic data offset by worries that surging coronavirus cases in the United States could derail the world’s recovery before it properly begins.

Following firm U.S. housing data and signs of a rebound in Europe’s economy, the latest boost to sentiment came from Chinese factory activity gathering steam in June, with the Caixin/Markit manufacturing PMI rising to 51.2 compared with expectations for 50.5.

But virus cases surged, too, with the U.S. recording 47,000 infections on Tuesday, its biggest single-day spike since the pandemic began.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4%, led by gains in Korea and China.

slipped 0.2%, though, U.S. stock futures fell 0.3% and gold sat close to an eight-year peak, pointing to elevated caution.

The moves follow a strong finish to the quarter on Wall Street and also a loss of momentum in recent weeks as U.S. infection rates have surged, with some states reimposing restrictions on business and personal activity.

The S&P 500 index rose 1.5% for an almost 20% gain over the past three months, fuelled by unprecedented central bank stimulus and hopes for a swift pandemic recovery, but it rose only 1.8% in June.

Coronavirus cases more than doubled in 14 U.S. states last month, a Reuters analysis showed, and fears are growing that the caseload could prompt fresh lockdowns.

“Clearly we are not in total control right now,” the country’s top infectious disease expert, Anthony Fauci, told a Senate committee on Tuesday, adding that cases could increase by as much as 100,000 daily if the outbreak is not contained.

The surge has prompted California, Texas and Florida to shut recently re-opened bars in the last few days, while Australia has locked-down parts of its second-biggest city, Melbourne, to try and stop a spike in cases there.

“The rise in COVID-19 infections is now triggering a reversal on the reopening strategy,” said Rodrigo Catril, senior FX strategist at National Australia Bank (OTC:) in Sydney.

“It remains to be seen if the U.S economy will continue to surprise over the coming month.”

The U.S. government bond market remains in a cautious mood. Yields on benchmark 10-year government debt rose overnight to 0.6774%, but finished the quarter steady. [US/]

UNWELCOME DEVELOPMENTS

On top of virus worries, China’s introduction of sweeping new laws to crack down on dissent in Hong Kong also has investors eying geopolitical tensions with trepidation.

The laws have already prompted Washington to begin dismantling Hong Kong’s special status under U.S. law.

“It has not taken people by surprise, but it’s an unwelcome development,” said Imre Speizer, a foreign exchange strategist at Westpac in Auckland. “It’s one of a number of geopolitical factors which is a negative for some asset classes now.”

Currency markets were in a holding pattern ahead of the next slew of data due to provide a snapshot of the U.S. recovery.

The dollar held gains against most majors and slipped on the safe-haven yen, last buying 107.68 yen and trading at $0.6909 per Australian dollar. [FRX/]

U.S. manufacturing activity data due later in the day,is forecast to show a recovery from a 11-year low in April while the non-farm payrolls report on Thursday is expected to show the economy added 3 million jobs in June.

Elsewhere sterling rebounded from near a one-month low on Tuesday and hung on to most of that ground at $1.2382.

Gold hovered near an 8-year high at $1780.64 an ounce. rose 43 cents or 1% to $41.70 a barrel, while was up 1.3% at $39.76 a barrel.



Crypto Users Can Now Buy Fractional Shares in Google, Tesla & More By Cointelegraph



Crypto Users Can Now Buy Fractional Shares in Google, Tesla & More

On June 25, Uphold announced that they will allow users in Latin America to use cryptocurrency to acquire fractional ownership of the world’s leading companies.

Uphold supports dozens of cryptocurrencies, including (BTC). In theory, its users could acquire a stake in Amazon (NASDAQ:), Apple (NASDAQ:), Google (NASDAQ:) or Tesla (NASDAQ:) for as little as 10,000 Satoshis.

Continue Reading on Coin Telegraph

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.



Someone Is Buying Shares in Grayscale’s Ether Trust for More Than $2,000 By Cointelegraph



Someone Is Buying Shares in Grayscale’s Ether Trust for More Than $2,000

Shares in Grayscale Investments’ Investment Trust, or ETHE, are trading at a 750% premium over the market rate of their underlying asset on the secondary markets, according to data published by crypto analysis firm Messari.

The premium on Grascale’s fund has aggressively widened since the start of the year, with ETHE shares trading at 220% the spot price of Ether (ETH) in February.

Continue Reading on Coin Telegraph

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.



United States Oil Fund receives green light to issue new shares By Reuters



© Reuters.

By April Joyner

NEW YORK (Reuters) – The United States Oil Fund (NYSE:) LP, the largest U.S. oil-focused exchange-traded product, stated on Friday in a regulatory filing https://www.sec.gov/ix?doc=/Archives/edgar/data/1327068/000117120020000430/i20391_uso-8k.htm that it has gained approval to resume offering new shares.

USO’s registration of 1 billion new shares has been declared effective by the Securities and Exchange Commission, the fund said, and hence it can once again allow authorized purchasers, or market makers for exchange-traded products, to issue new USO shares.

USO shares were little changed on Friday at $26.35.

On April 21, the fund stated that it had issued all of its registered shares and was thus suspending the creation of new shares. As a result of the suspension, there was a significant discrepancy between the fund’s trading price and the performance of the oil futures it held.

Following a sharp plunge in oil, in which expiring May contracts traded at negative prices, USO took in heavy inflows from investors betting on a rebound.

Oil prices have in fact risen substantially since then. Even with losses this week, U.S. crude was trading near $36 a barrel on Friday, about $10 higher than a month ago.

Even so, because later-dated oil futures are currently trading at higher prices than nearer-dated futures – a phenomenon called contango – USO’s structure requires it to sell cheaper futures to buy more expensive ones as nearer-dated contracts expire. As a result, investors who hold USO could wind up with losses.

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.



American Airlines expects to halt cash burn by year-end, shares jump


FILE PHOTO: An American Airlines Boeing 737 jet sits at a gate at Washington’s Reagan National airport with the U.S. Capitol building in the background. U.S. April 29, 2020. REUTERS/Kevin Lamarque/File Photo

(Reuters) – American Airlines Group Inc (AAL.O) said on Friday it expects to halt its daily cash burn by the end of 2020 thanks to cost-cutting measures and an improvement in travel demand, easing concerns about its short-term liquidity.

American’s stock, which had underperformed peers among concerns about the company’s heavy debt load, rose 18% to $17.06 in early trading on the Nasdaq.

Among the other large U.S. carriers, Delta Air Lines (DAL.N) has also said that it expects its daily cash burn rate to reach zero by the end of the year.

U.S. airlines were collectively bleeding about $10 billion a month as the coronavirus pandemic prompted more passengers to cancel their flights and seek refunds rather than book new travel.

“The company has recently experienced improving demand conditions and has passed the peak in cash refund activity,” American Airlines said in a filing with the U.S. Securities and Exchange Commission.

However, as the duration and severity of the COVID-19 pandemic remain uncertain, the company said it expects its fiscal 2020 results to be materially impacted, the . (bit.ly/3cXRVp3)

American joined Delta in saying it expects its revenues to be 90% lower in the second quarter than a year ago.

Reporting by Sanjana Shivdas in Bengaluru and Tracy Rucinski in Chicago; Editing by Krishna Chandra Eluri, Amy Caren Daniel and Jonathan Oatis



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World shares advance on surprise U.S. job recovery


TOKYO (Reuters) – U.S. stock futures and Asian shares advanced on Monday after a surprise recovery in U.S. employment gave further confidence of a quick economic recovery after many weeks of lockdowns aimed at controlling the coronavirus pandemic.

FILE PHOTO: A passerby wearing a protective face mask, following an outbreak of the coronavirus, walks past an electronic board showing the graphs of the recent movements of Japan’s Nikkei share average outside a brokerage in Tokyo, Japan March 6, 2020. REUTERS/Issei Kato

U.S. S&P500 futures rose 0.5% to stand near their highest levels since late February while Japan’s Nikkei opened more than 1% higher.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3% in early trade, with South Korea’s Kospi rising 1.4%. The Australian share market was closed for a holiday.

U.S. nonfarm payrolls rose by 2.509 million jobs last month – in contrast with consensus estimates of a fall in 8 million jobs after a record plunge of 20.687 million in April.

The Labor Department’s closely watched employment report also showed the jobless rate falling to 13.3% last month from 14.7% in April, a post-World War Two high. Economists had forecast the rate jumping to 19.8%.

“Although there are some risk factors such as weekend demonstrations in the United States and concerns about the second wave of the coronavirus, hopes of economic reopening are taking the lead,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

U.S. bond prices have tumbled, with the 10-year Treasuries yield rising to as high as 0.959% on Friday, a level last seen in mid-March.

The sharp gains in U.S. bond yields over the last couple of days put more focus on the U.S. central bank, which will hold a two-day policy meeting ending on Wednesday.

Fed Chair Jerome Powell has said the U.S. economy could feel the weight of the economic shutdown for more than a year.

Chinese trade data published on Sunday also showed the ongoing impact from the epidemic.

Exports contracted in May as global coronavirus lockdowns continued to devastate demand, while a sharper-than-expected fall in imports pointed to mounting pressure on manufacturers as global growth stalls.

Oil prices rose after OPEC, Russia and allies agreed on Saturday to extend record oil production cuts until the end of July.

OPEC+ had initially agreed in April that it would cut supply by 9.7 million barrels per day (bpd) during May-June to prop up prices that collapsed due to the coronavirus crisis. Those cuts were due to taper to 7.7 million bpd from July to December.

Brent crude rose more than 2% to $43.32 per barrel while U.S. crude futures gained 2% to $40.36.

Gold slipped to $1,681.0 per ounce, near its lowest levels since late April.

In the currency market, safe-haven currencies were softer while risk-sensitive ones outperformed.

The Japanese yen stood at 109.67 to the dollar, near Friday’s 10-week low of 109.85.

The euro changed hands at $1.1303, not far off three-month high of $1.1384 touched on Friday while the Australian dollar stood at $0.6993, near its highest this year.

The offshore Chinese yuan hit its highest level in five weeks at 7.0669 to the dollar.

Reporting by Hideyuki Sano; Editing by Lincoln Feast.



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‘Never say never’ on ECB buying shares, Holzmann tells newspaper By Reuters


2/2

© Reuters. FILE PHOTO: Outbreak of the coronavirus disease (COVID-19) in Frankfurt

2/2

VIENNA (Reuters) – “Never say never” on the European Central Bank one day buying shares rather than government or corporate bonds, but it has not discussed the idea yet, ECB Governing Council member Robert Holzmann said in comments published on Sunday.

The ECB on Thursday announced a bigger-than-expected expansion of its stimulus package to prop up an economy plunged by the coronavirus pandemic into its worst recession since World War Two.

Holzmann took over as head of the Austrian National Bank just last year but has already been outspoken on various issues, calling for the ECB to lower its often-undershot inflation target and warning against negative rates. He also says he initially suggested that Thursday’s decision be put off.

“Never say never. If the need is there, this discussion will definitely have to take place. But currently that discussion does not exist,” Holzmann told newspaper Die Presse when asked if the ECB could start buying shares.

On lowering the inflation target from just under 2%, Holzmann said he could still change his stance in a discussion that the ECB has pushed back because of the pandemic.

“If it is difficult to get from 1.5% to 1.9%, then in a time of low inflation expectations one can also set oneself a different target, although I myself have not yet formed a final opinion here,” Holzmann said.

“The fundamental discussion on ECB strategy has been postponed because of the crisis and should be taken up again as of the summer,” he added.

ECB President Christine Lagarde has made a greater focus on climate change a priority, but Holzmann urged caution.

“There are thoughts about becoming greener. One must, however, be very careful because with these instruments the market is often still very small and illiquid,” he said, apparently referring to green bonds.

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.