Report: Asia markets gain amid hopes of US-China trade deal

Here’s the latest market updates from CNBC:

  • Shares in Japan, South Korea and Australia advanced in morning trade.
  • The Wall Street Journal reported Sunday that the U.S. and China are “in the final stage of completing a trade deal,” with Beijing offering to lower tariffs on U.S. products in categories ranging from chemicals to autos.
Image source: pixabay.com

Stocks in Asia rose on Monday morning following a report that China is offering to lower tariffs on certain U.S. products as part of a trade deal with America.

Japan’s Nikkei 225 advanced 0.83 percent in early trade while the Topix gained 0.77 percent as shares of robot maker Fanuc jumped 2.15 percent.

Over in South Korea, the Kospi advanced 0.72 percent as industry heavyweight Samsung Electronics saw its stock rise 1.77 percent.

In Australia, the ASX 200 rose 0.58 percent in morning trade, with almost all sectors advancing.

Symbol
Name
Price
Change
%Change
NIKKEI Nikkei 225 Index 21758.24
155.55 0.72%
HSI Hang Seng Index 28852.22
40.05 0.14%
ASX 200 S&P/ASX 200 6233.20
40.50 0.65%
SHANGHAI Shanghai 3019.12
25.12 0.84%
KOSPI KOSPI Index 2199.27
3.83 0.17%
CNBC 100 CNBC 100 ASIA IDX 7957.54
13.28 0.17%

US-China trade deal progress

The Wall Street Journal reported Sunday that the U.S. and China are “in the final stage of completing a trade deal,” with Beijing offering to lower tariffs on U.S. products in categories ranging from chemicals to autos. For its part, Washington is considering eliminating most if not all of the trade sanctions placed on Chinese goods last year, according to the Journal.

Bloomberg News reported Friday that the final deal is being prepared and that the pact could be signed by President Donald Trump and Chinese leader Xi Jinping within weeks.

A summit between the two leaders could happen sometime in March, according to both Bloomberg and the Journal.

 

Continue reading HERE.

 

Fascinating Reasons Why Millennials Should Invest in the Stock Market

Income-driven millennials will likely become multi-millionaire investors in the future. However, venturing into the risky world of investing can be a great challenge for the young generations. Nonetheless, the market sector has higher earning potential among other investment options, below are some of the many compelling reasons why the young demographics must invest in the stock market:

Image source: pexels.com

 

Easier Access

Apart from global economic growth, the rapid pace of technology advancement has transformed the way we trade stocks, today. Millennial investors can take advantage of the efficient trading tools such as cloud-based software and online trading platforms, developed to provide easier access to investors and keep track their investments anytime, anywhere.

 

Has a Variety of Safe and Profitable Investments

Alongside with Finance, the Tech sector has been one of the best-performing stocks in the market, for years. In terms of revenue, large companies like Microsoft, Apple, and Amazon are highly recognized as the most dominant tech stocks in the market. As they remain robust and successful despite economic crisis and uncertainties.

 

A Great Wealth Builder

Saving earlier for stable and financially secured golden years can be the best thing every millennial should learn. For instance, Warren Buffet, widely acclaimed as the richest business tycoon in the investment history was known to have built his fortune by trading in the stock market decades back until to date, following Benjamin Graham’s principles of value investing, according to Forbes.

 

 

 

Repost: Global Markets Rally

Check out the latest stock market performance from LOM Financial, today:

Image source: LOM Financial

Markets ended the abbreviated week as a warning of a global slowdown was offset by strong earnings. The MSCI World Index ended the week up 0.07% while the S&P 500 lost -0.21%.

 

IMF Warns of a Global Slowdown

The International Monetary Fund cut 2019 global growth estimates by 0.2% to 3.5%, citing risks of a more significant downward correction was rising. In the US, the effects of fiscal stimulus are expected to unwind. Mexico experienced a significant downgrade to growth reflecting lower private investment. The high levels of public and private debt mean capital markets should be more sensitive to downturns than they have been historically.

 

The IMF report mirrors the World Bank January 2019 assessment (published on 1/8/19), which sees headwinds from the removal of accommodative policies that supported the protracted recovery along with more extreme weather events creating challenges in developed and developing countries. Lax credit markets have resulted in a growing number of developing countries holding questionable levels of debt.

 

Market Wrap Up

Earnings releases have been mixed but strong positive revenues and EPS surprises on Wednesday from Proctor and Gamble, Comcast, and United Tech Corp marked the turnaround that helped bring markets back to levels near the beginning of the week.

 

Continue reading HERE.

Repost: December Slide Tumbles Markets for the 2018 Year

Here’s an update for December’s Stock Market performance and global economic concerns from LOM Financial:

The month of December was once again dominated by troubling economic headlines ranging from disruptive global trade negotiations to disturbing U.S. central bank commentary. On top of the steady drum beat of what some are calling dysfunctional political behavior, the U.S. Government’s partial shutdown has added to the negative investor sentiment which has been building all year. Sliding stock prices over the last month of the year added to the fourth quarter market woes, notwithstanding a sharp equity market reversal on the day after Christmas. For the month of December, the S&P 500 declined by -9.03% and the MSCI World Stock index fell by -7.57%. These results capped an overall tumultuous year where the MSCI World declined by 8.19% for the period as a whole.

 

Since the U.S. and China met during the G20 meeting at the beginning of December, China has implemented multiple policies addressing major issues in trade war negotiations. China agreed to cut tariffs on more than 700 goods in sectors such as agriculture, pharmaceutical, manufacturing and materials. Despite the progress, most products will still be subject to the retaliatory tariffs until there is a breakthrough in the trade deal. Furthermore, China has drafted a law to prevent forced technology transfers, which is a main complaint by Washington. However, critics question whether the new law will be enforced successfully. U.S. trade representatives will travel to China in January for another round of negotiations and any update from their talk will likely affect markets early in the New Year.

 

Despite the ongoing risk market selloff in during the fourth quarter, the Fed still decided to raise the Fed Fund rate for the fourth time in 2018, to a range between 2.25% and 2.5%. However, the Federal Open Market Committee (FOMC) did adjust next year’s projected base rate move downward to just two hikes, in the face of market volatility. However, Fed Chairman, Jerome Powell reiterated the plan for balance sheet runoff. As the Fed downplayed risks to the economic outlook, investors worry that a hawkish central bank will ultimately slow the economy and send markets into another tail spin. As interest rates continues to climb, consumers will feel even more pressure on mortgages and auto loan payments. Overall, businesses have begun to experience a higher interest burden.

 

Continue reading HERE for more insights.

Repost: Votes of Confidence

LOM Financial has an update regarding the Brexit’s effect on the stock market’s performance lately:

A mixed week ended down on Friday. The MSCI World Index closed down -1.13% while the S&P 500 lost -1.22%. The generic 30-year index rose 0.10%.

 

May Survives No Confidence Vote

The pound rallied 1.42% on Wednesday following Theresa May successful defense against a no-confidence vote. Prime Minister May benched a vote on the Brexit terms noting that it would not pass an approval vote if it were to go to Parliament. The EU has been vocal in dismissing calls for a better deal being negotiable but affirmed that Britain could elect to remain part of the EU without approval from other EU members. While remaining would likely be better for the country, another Brexit vote seems unlikely given the challenges related to setting a precedent of voting until you get a desired outcome. If the UK were to enter a hard Brexit, Britain would default to the WTO rules of trade with higher tariffs and barriers to entry. We are now within 100 days of the March Brexit deadline.

 

Google Visits Washington DC

Google’s CEO, Sundar Pichai, went to Capitol Hill to address questions of political bias in their search engine. The discussion basically broke down to senators being concerned that searches for conservative topics tended to be less prevalent and more negatively biased. Pichai tried to explain that their algorithm uses user feedback to determine various factors like relevance, freshness, popularity and how other people are using it. Perhaps the surprising fact was that 15% of daily searches Google sees are have never been seen by the algorithm before.

 

Continue reading HERE.

Repost: The Most-Bought Tech Stocks Of Investment Gurus

Technology stocks are extremely attractive for many investors, nowadays. Recently, Some of the world’s largest tech giants are listed on Forbes as the most-bought stocks in the tech sector:

Fund managers in the third quarter continued buying tech stocks, a sector that outperformed all others over the past five years.

The S&P 500 Technology SPDR returned 89.84% over the past half decade, more than double the rise in the S&P 500 index. Companies in the sector glided on innovations in the Internet of Things (IoT), cloud computing, artificial intelligence and consumer electronics.

Facebook was the third most-bought stock of investment gurus during the third quarter. The tech sector was the best performing over the past five years. Photographer: David Paul Morris/Bloomberg© 2018 Bloomberg Finance LP

 

Their ability to generate a profit spurred investor interest. The sector’s net profit margins expanded to 22.1% in the third quarter, their highest since FactSet began tracking data in 2008. It also saw all of its constituents report earnings above estimates.

Nevertheless, some wind left the sector’s sails in this year. It has achieved only a 2.53% gain year to date, making it the fourth-best performer in the S&P 500, though it beat the index’s decline of 1.38%.

Meanwhile, its valuations have fallen, potentially making it more attractive to some investors. GuruFocus calculates its price-earnings ratio at 27.1, significantly below its peak of 39.4 from June and its lowest since March. It has the fourth-highest price-earnings ratio of the 11 sectors in the index.

Analysts have attributed the sector’s drop to lower demand, trade uncertainty with China and overvaluation. Earnings growth is expected to reach 9.8% for 2019, according to FactSet, which in September revised its estimate up from 6.9% in June. Bloomberg data forecasts earnings growth for the sector at 9.7% for 2019 and 10% for 2020.

In the third quarter, the most investors GuruFocus tracks bought shares of the following tech companies: Microsoft, Apple, Facebook, Electronic Arts and Alphabet. This data was found using GuruFocus S&P 500 Screener.

 

Continue reading HERE.