Fund investors continue retreat from U.S. stocks


FILE PHOTO: Street signs for Broad St. and Wall St. are seen outside of the New York Stock Exchange (NYSE) in New York, U.S., March 7, 2019. REUTERS/Brendan McDermid/File Photo

NEW YORK (Reuters) – Investors pulled approximately $3.4 billion out of mutual funds and exchange traded funds that hold U.S. equities last week, extending the largest sustained pullback from the domestic stock market in more than a year, according to data released Wednesday by the Investment Company Institute.

The outflows marked the seventh out of the last eight weeks that investors have pulled money out of U.S. stocks, pushing year-to-date losses for the category to nearly $129.7 billion.

Those declines have come despite the benchmark S&P 500 hitting a series of record highs due to optimism over a deal that could end the trade war between the U.S. and China. But concerns over the relatively high valuation of U.S. stocks during a rally in which the S&P 500 is up nearly 24% since the start of January have weighed on long-term investor sentiment.

Investors instead appeared to be seeking out more attractive valuations in world stock funds, which took in about $4.9 billion in new assets. The inflows were the largest weekly gain since March 2018, and marked the second straight week of inflows.

Fixed-income funds, meanwhile, added nearly $12.7 billion in new assets as investors sought out the perceived safety of bonds. The weekly inflow was the largest since early September and brought the year-to-date gain for the category to slightly more than $378 billion.

Reporting by David Randall; Editing by Nick Zieminski



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U.S. business inventories unchanged; retail stocks revised down By Reuters


U.S. business inventories unchanged; retail stocks revised down

WASHINGTON, (Reuters) – U.S. business inventories were unexpectedly flat in September as stocks at retailers were not as large as initially thought.

The Commerce Department said on Friday that the unchanged reading in business inventories followed a 0.1% dip in August. Inventories are a key component of gross domestic product.

Economists polled by Reuters had forecast inventories edging up 0.1% in September.

Retail inventories rose 0.2% in September instead of increasing 0.3% as estimated in an advance report published last month. That followed a 0.2% drop in August.

Motor vehicle inventories gained 0.2% in September as previously reported. Retail inventories excluding autos, which go into the calculation of GDP, increased 0.2%, instead of climbing 0.3% as reported last month.

The pace of inventory accumulation has been slowing after stocks surged from the third quarter of 2018 through the first quarter of this year. The inventory overhang has led to businesses placing fewer orders at factories, contributing to a downturn in manufacturing activity.

The government reported last month that inventory investment subtracted a marginal 0.05 percentage point from GDP growth in the third quarter. The economy grew at a 1.9% annualized rate in the July-September quarter, driven by consumer spending.

Wholesale inventories dropped 0.4% in September, while stocks at manufacturers increased 0.3%.

Business sales fell 0.2% in September after edging up 0.1% in the prior month. At September’s sales pace, it would take 1.40 months for businesses to clear shelves, unchanged from August.

Motor vehicle sales declined 1.3% in September after advancing 2.0% in August. The auto inventory-to-sales ratio rose to 2.35 months from 2.31 months in August.

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.



Like FAANG Stocks, BTC Will Hit $25K Due to ‘Network Value’ By Cointelegraph


© Reuters. Tom Lee: Like FAANG Stocks, BTC Will Hit $25K Due to ‘Network Value’

Fundstrat’s Tom Lee believes (BTC) will accrue price value following a similar logic to the Silicon Valley tech titans.

During an interview for CNBC’s Street Signs Asia on show on Nov. 15, Lee argued that cryptocurrencies “are network value assets” — and share this with the world’s most successful tech stocks.

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.



Oil gains on U.S. crude stocks fall, OPEC comments on slower U.S. shale growth By Reuters


© Reuters. An oil pump is seen just after sunset outside Saint-Fiacre

By Florence Tan

SINGAPORE (Reuters) – Oil rose on Thursday after industry data showed a surprise drop in U.S. crude inventories, while comments from an OPEC official about lower-than-expected U.S. shale production growth in 2020 also provided some support.

Prices, however, were capped by mixed signs for oil demand in China, the world’s biggest crude importer, as industrial output rose more slowly than expected in October, but oil refinery throughput hit the second-highest level ever.

Brent futures () rose 47 cents, or 0.8%, to $62.84 per barrel by 0808 GMT, while U.S. West Texas Intermediate crude () gained 47 cents, or 0.8%, to reach $57.59.

The Secretary General of the Organization of the Petroleum Exporting Countries (OPEC) Mohammad Barkindo said on Wednesday that there would likely be downward revisions of supply going into 2020, especially from United States shale, adding that some U.S. shale oil firms see output growing by only 300,000-400,000 barrels per day (bpd).

While Barkindo’s comments supported oil prices, there is not a clear way for OPEC to forecast oil production outside the group, Howie Lee, an economist at Singapore’s OCBC bank said.

“I don’t see much changes in supply so prices are still trading within the same range from the start of November,” he said.

Barkindo’s comments were also in contrast with forecasts by the U.S. Energy Information Administration (EIA) on Wednesday that U.S. oil production is on course to hit new records this year and next.

The American Petroleum Institute reported on Wednesday an unexpected drop in crude stockpiles by 541,000 barrels in the week to Nov. 8, against analysts’ expectations of an increase of 1.6 million barrels. Gasoline and distillates inventories increased, the API data showed. [API/S]

Official weekly EIA data is due at 11:00 a.m. EST (1600 GMT) on Thursday. Both reports were delayed a day for the U.S. Veterans Day holiday on Monday.

OPEC and its allies, including Russia, meet on Dec. 5-6 to discuss output policy and production curbs of 1.2 million bpd that have been in place since January with the aim of supporting crude prices. The pact runs to March 2020.

Barkindo said on Wednesday it was too early to say if further output cuts would be needed.

“They have made it quite clear that they are not reducing production further,” said OCBC’s Lee. “What Saudi can do now is to urge compliance among members especially Iraq and Nigeria. If they can comply, then they can talk about cuts.”

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.



Saudi Arabia stocks higher at close of trade; Tadawul All Share up 0.98% By Investing.com


© Reuters. Saudi Arabia stocks higher at close of trade; Tadawul All Share up 0.98%

Investing.com – Saudi Arabia stocks were higher after the close on Sunday, as gains in the , and sectors led shares higher.

At the close in Saudi Arabia, the rose 0.98%.

The best performers of the session on the were Gulf General Cooperative Insurance (SE:), which rose 8.79% or 0.96 points to trade at 11.88 at the close. Meanwhile, The Saudi Investment Bank (SE:) added 3.84% or 0.58 points to end at 15.68 and The Saudi British Bank (SE:) was up 3.77% or 1.20 points to 33.00 in late trade.

The worst performers of the session were Leejam Sports Company SJSC (SE:), which fell 5.19% or 4.00 points to trade at 73.00 at the close. Al-Ahlia Insurance Company (SE:) declined 4.13% or 0.50 points to end at 11.60 and Lazurde for Jewelry Co (SE:) was down 4.03% or 0.62 points to 14.78.

Rising stocks outnumbered declining ones on the Saudi Arabia Stock Exchange by 127 to 58 and 11 ended unchanged.

Shares in Lazurde for Jewelry Co (SE:) fell to all time lows; down 4.03% or 0.62 to 14.78.

Crude oil for December delivery was up 0.51% or 0.29 to $57.44 a barrel. Elsewhere in commodities trading, Brent oil for delivery in January rose 0.51% or 0.32 to hit $62.61 a barrel, while the December Gold Futures contract fell 0.46% or 6.80 to trade at $1459.60 a troy ounce.

EUR/SAR was down 0.25% to 4.1326, while USD/SAR rose 0.01% to 3.7504.

The US Dollar Index Futures was up 0.23% at 98.218.

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.



Record highs not enough to lure fund investors to U.S. stocks


NEW YORK (Reuters) – U.S. investors last week pulled $4.1 billion from mutual funds and exchange-traded funds that hold domestic stocks, extending a pullback from the U.S. equities market that has now lasted for five of the last six weeks, according to data released Wednesday by the Investment Company Institute.

The withdrawals came during a week in which the Federal Reserve continued its pace of equity-friendly interest rate cuts, helping propel the benchmark S&P 500 to record highs. Yet concerns over the trade war between the United States and China and the possibility of a recession over the next 12 months have weighed on investor sentiment, pushing investors into the perceived safety of bonds.

For the year to date, investors have pulled nearly $118.5 billion from U.S. stock funds. Over the same time, bond funds have brought in nearly $366.1 billion in new assets despite yields that are historically low. The $11.3 billion investors deposited into the category last week continued a winning streak for bond funds that began in early August.

World stock funds, meanwhile experienced approximately $2.7 billion in outflows, the largest weekly drop since late August. For the year to date, investors have pulled nearly $46 billion from the category.

Reporting by David Randall



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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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Japan stocks higher at close of trade; Nikkei 225 up 1.76% By Investing.com


© Reuters. Japan stocks higher at close of trade; Nikkei 225 up 1.76%

Investing.com – Japan stocks were higher after the close on Tuesday, as gains in the , and sectors led shares higher.

At the close in Tokyo, the added 1.76% to hit a new 52-week high.

The best performers of the session on the were Yahoo Japan Corp. (T:), which rose 16.21% or 53.5 points to trade at 383.5 at the close. Meanwhile, Yamaha Corp. (T:) added 11.95% or 600.0 points to end at 5620.0 and Ricoh Co., Ltd. (T:) was up 8.65% or 83.0 points to 1042.0 in late trade.

The worst performers of the session were Mitsui Engineering & Shipbuilding (T:), which fell 21.62% or 240.0 points to trade at 870.0 at the close. Konica Minolta, Inc. (T:) declined 10.80% or 86.0 points to end at 710.0 and Konami Corp. (T:) was down 7.66% or 390.0 points to 4700.0.

Rising stocks outnumbered declining ones on the Tokyo Stock Exchange by 2694 to 893 and 196 ended unchanged.

Shares in Yahoo Japan Corp. (T:) rose to 52-week highs; rising 16.21% or 53.5 to 383.5. Shares in Konica Minolta, Inc. (T:) fell to 5-year lows; down 10.80% or 86.0 to 710.0.

The , which measures the implied volatility of Nikkei 225 options, was unchanged 0.00% to 14.27.

Crude oil for December delivery was down 0.16% or 0.09 to $56.45 a barrel. Elsewhere in commodities trading, Brent oil for delivery in January unchanged 0.00% or 0.00 to hit $62.13 a barrel, while the December Gold Futures contract fell 0.17% or 2.55 to trade at $1508.55 a troy ounce.

USD/JPY was up 0.23% to 108.81, while EUR/JPY rose 0.31% to 121.15.

The US Dollar Index Futures was down 0.04% at 97.328.

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.



U.S. stocks higher at close of trade; Dow Jones Industrial Average up 0.42% By Investing.com


© Reuters. U.S. stocks higher at close of trade; Dow Jones Industrial Average up 0.42%

Investing.com – U.S. stocks were higher after the close on Monday, as gains in the , and sectors led shares higher.

At the close in NYSE, the gained 0.42% to hit a new 5-year high, while the index gained 0.37%, and the index gained 0.56%.

The best performers of the session on the were Chevron Corp (NYSE:), which rose 4.61% or 5.36 points to trade at 121.57 at the close. Meanwhile, Walgreens Boots Alliance Inc (NASDAQ:) added 3.96% or 2.27 points to end at 59.65 and Dow Inc (NYSE:) was up 3.56% or 1.86 points to 54.17 in late trade.

The worst performers of the session were Procter & Gamble Company (NYSE:), which fell 3.88% or 4.80 points to trade at 119.07 at the close. McDonald’s Corporation (NYSE:) declined 2.72% or 5.28 points to end at 188.66 and Coca-Cola Company (NYSE:) was down 1.41% or 0.76 points to 53.14.

The top performers on the S&P 500 were Cimarex Energy Co (NYSE:) which rose 7.03% to 47.07, Pioneer Natural Resources Co (NYSE:) which was up 6.66% to settle at 136.06 and Devon Energy Corporation (NYSE:) which gained 6.61% to close at 22.57.

The worst performers were Under Armour Inc A (NYSE:) which was down 18.92% to 17.14 in late trade, Under Armour Inc C (NYSE:) which lost 18.35% to settle at 15.440 and PulteGroup Inc (NYSE:) which was down 4.70% to 38.15 at the close.

The top performers on the NASDAQ Composite were Asta Funding Inc (NASDAQ:) which rose 46.47% to 10.18, Wright Medical Group NV (NASDAQ:) which was up 31.94% to settle at 29.04 and Agile Thrpe (NASDAQ:) which gained 31.85% to close at 1.78.

The worst performers were iFresh Inc (NASDAQ:) which was down 56.00% to 0.77 in late trade, AVEO Pharmaceuticals Inc (NASDAQ:) which lost 36.68% to settle at 0.5665 and Ceragon Networks Ltd (NASDAQ:) which was down 35.47% to 1.910 at the close.

Rising stocks outnumbered declining ones on the New York Stock Exchange by 1775 to 1047 and 102 ended unchanged; on the Nasdaq Stock Exchange, 1610 rose and 1015 declined, while 83 ended unchanged.

Shares in Asta Funding Inc (NASDAQ:) rose to 52-week highs; up 46.47% or 3.23 to 10.18. Shares in iFresh Inc (NASDAQ:) fell to all time lows; falling 56.00% or 0.98 to 0.77. Shares in Agile Thrpe (NASDAQ:) rose to 52-week highs; up 31.85% or 0.43 to 1.78. Shares in Ceragon Networks Ltd (NASDAQ:) fell to 52-week lows; falling 35.47% or 1.050 to 1.910.

The , which measures the implied volatility of S&P 500 options, was up 4.31% to 12.83.

Gold Futures for December delivery was down 0.20% or 3.00 to $1508.95 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in December rose 0.09% or 0.05 to hit $56.58 a barrel, while the January Brent oil contract rose 0.73% or 0.45 to trade at $62.14 a barrel.

EUR/USD was up 0.02% to 1.1128, while USD/JPY rose 0.13% to 108.70.

The US Dollar Index Futures was up 0.32% at 97.347.

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.



Saudi Arabia stocks lower at close of trade; Tadawul All Share down 1.99% By Investing.com


© Reuters. Saudi Arabia stocks lower at close of trade; Tadawul All Share down 1.99%

Investing.com – Saudi Arabia stocks were lower after the close on Sunday, as losses in the , and sectors led shares lower.

At the close in Saudi Arabia, the fell 1.99%.

The best performers of the session on the were Saudi Automotive Services Co. (SE:), which rose 6.59% or 1.70 points to trade at 27.50 at the close. Meanwhile, Saudi Real Estate Co. (SE:) added 2.52% or 0.32 points to end at 13.00 and Aldrees Petroleum & Transport Svcs (SE:) was up 2.48% or 1.40 points to 57.80 in late trade.

The worst performers of the session were Saudi Company for Hardware (SE:), which fell 6.63% or 3.80 points to trade at 53.50 at the close. Al-Ahlia Insurance Company (SE:) declined 5.62% or 0.72 points to end at 12.10 and Al Baha Investment and Development Company SJSC (SE:) was down 5.31% or 0.80 points to 14.28.

Falling stocks outnumbered advancing ones on the Saudi Arabia Stock Exchange by 172 to 19 and 6 ended unchanged.

Shares in Saudi Automotive Services Co. (SE:) rose to 3-years highs; gaining 6.59% or 1.70 to 27.50. Shares in Saudi Company for Hardware (SE:) fell to 52-week lows; falling 6.63% or 3.80 to 53.50. Shares in Aldrees Petroleum & Transport Svcs (SE:) rose to 3-years highs; rising 2.48% or 1.40 to 57.80. Shares in Al Baha Investment and Development Company SJSC (SE:) fell to 52-week lows; losing 5.31% or 0.80 to 14.28.

Crude oil for December delivery was up 3.67% or 1.99 to $56.17 a barrel. Elsewhere in commodities trading, Brent oil for delivery in January rose 3.37% or 2.01 to hit $61.63 a barrel, while the December Gold Futures contract rose 0.12% or 1.85 to trade at $1516.65 a troy ounce.

EUR/SAR was up 0.14% to 4.1875, while USD/SAR unchanged 0.00% to 3.7502.

The US Dollar Index Futures was down 0.14% at 97.018.

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.