Borneo Bulletin, Tuesday 28 February 2017
DAILY STOCK INDICES AND SECURITIES MARKET NEWS WATCH
MAJOR STOCK INDICES
: 20,821.76 ( +11.44 )
S&P 500 : 2,367.34 (+3.53)
: 23,925.05 (-40.65)
: 3,109.02 (-8.01)
: 1,696.13 (-2.22)
SHCOMP : 3,228.660 (-24.773)
Major US stock indexes spent most of Friday with declines,
before a buying spree
in the last half-hour of trading buoyed shares. The Dow Jones Industrial Average fell
as much as 76 points before closing up 11.44 points, extending its streak of records
to 11 consecutive days. It is the longest streak of records for the blue-chip index since
1987. A drop in government-bond yields sent money into stocks with relatively high
dividends. Bonds strengthened for a third consecutive session, with the yield on the
10-year Treasury note slipping to 2.317%—its lowest since late November.
Futures pointed to a slightly lower open for Asian markets on Monday,
companies continue to report their earnings. In company news, troubled Japanese
airbag maker Takata is setting up a compensation fund for victims of faulty air bags,
according to a report from the Wall Street Journal. The WSJ said Takata’s $125 million
program will steer money to consumers harmed when the air bags ruptured and
sprayed shrapnel. Elsewhere, Japanese internet and telecom giant SoftBank is close
to inalising an investment in WeWork, with the deal expected to be worth over $3
billion, a source told CNBC.
Gold reached its highest in 31/2 months on Friday
as the dollar fell to a one-week
low after the new US Treasury chief poured cold water on the “Trumplation trade”
that had boosted the greenback this year. Treasury Secretary Steven Mnuchin said
on Thursday that any steps US President Donald Trump’s administration takes on
policy would probably have only limited impact this year, though he wants to see tax
reform passed by August. Spot gold XAU= was up 0.6 per cent at $1,256.75 an ounce
by 2.26pm EST (1926 GMT), having touched its highest since Nov 11 at $1,260.10
earlier, zeroing in on the 200-day moving average. It was on track to inish the week
higher for the fourth straight week.
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Published from Tuesday to Saturday
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TENOR SGD USD
CRUDE AND GOLD PRICES
1,255.05 ( 2.14 )
DAILY INTERBANK FOREX & MONEY MARKET COMMENTARY
The pound fell against all its major peers after The Times reported that UK Prime
Minister Theresa May’s team is preparing for Scotland to potentially call for an
independence referendum in March. Sterling fell as much as 0.6 per cent after
the newspaper cited unidentiied government sources as saying May could
agree to a new Scottish vote, but on condition it is held after the UK leaves
the European Union. Leveraged and macro funds hit bids in response to the
report, an Asia-based foreign-exchange trader said. Scotland voted 55 per cent
to 45 per cent in September 2014 to stay inside the UK The House of Lords also
begins Monday a detailed examination of the bill authorizing May to trigger the
nation’s withdrawal from the bloc.
“If the market does seriously think there can be another independence
referendum much sooner than that, then remembering how hard the pound
fell in early September 2014 just in front of the prior referendum, the memory
of that makes sterling a fairly easy sell here,” said Ray Attrill, global co-head of
foreign exchange at National Australia Bank Ltd in Sydney. “I suspect there’s
been a bit of an overreaction here.”
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information, please call our Treasury Department on 226 8307.
TOKYO (AFP) - Negotiators from 16 Asia-Pacific
countries on Monday held their first round of
free-trade talks since hopes faded of reaching a
separate regional deal after the US pulled out.
Economic Partnership (RCEP) talks in the western
Japanese city of Kobe are being attended by senior
officials from the 16 countries involved, a Ministry
of Economy, Trade and Industry (METI) official
The United States is not part of RCEP, which
has been pushed by China. Apart from Beijing,
the planned pact would group the 10 members
of the Association of Southeast Asian Nations
plus India, Japan, South Korea, Australia and
Within days of taking office, President Donald
Trump pulled out of the separate Trans-Pacific
Partnership (TPP), an ambitious free-trade
agreement championedbyhis predecessor Barack
Obama but which Trump claimed was harmful to
The move fulfilled a key campaign promise
but left allies in Asia on the back foot. The TPP
had been seen as an economic guarantee of
US commitment to the region in the face of the
growing influence of China, which was not a
RCEP is seen as a more modest deal that calls
for lower and more limited regulatory standards.
During themeeting - the 17
round - participants
are aiming to “push negotiations forward broadly
in the fields of goods, services, investment,
intellectual property, rules of origin, competition
and electronic commerce,” the METI official said.
“It is important to strike a quality deal in RCEP
at a time when protectionism is emerging around
Asia trade talks resume after US
exit dashes hopes for TPP deal
HONG KONG (AFP) - Asian markets kicked the
week off with losses Monday, with Tokyo hit by
a stronger yen, as the global Trump rally shows
signs of fragility before a key speech by the new
president to Congress.
A record 11
successive all-time high close
for New York’s Dow was not enough to inspire
investors who are growing worried that the recent
buying - fuelled by expectations Donald Trump
will introduce economy-boosting measures - may
have gone too far.
Treasury Secretary Steven Mnuchin’s warning
that growth might not hit the four percent Trump
promised, as well as uncertainty around the new
president’s plans to slash taxes and spend big on
infrastructure, sent the dollar tumbling Friday.
And it struggled again on Monday, sitting at
around 112 yen - levels not seen since the end
of November and more than five per cent down
from highs touched at the start of the year.
The greenback was also lower against the euro
but climbed against the pound after Britain’s
Sunday Times reported Prime Minister Theresa
May was preparing for Scotland’s leaders to call
for another independence referendum following
last year’s Brexit vote. The majority of Scots voted
to remain in the European Union.
The sharp advance in the yen hit Japan’s
exporters, sending the Nikkei 0.9 per cent down,
while Hong Kong lost 0.2 per cent, Sydney sank
0.3 per cent and Seoul was 0.4 per cent lower.
Singapore gave up 0.4 per cent.
Shanghai shed 0.8 per cent. China’s top
securities regulator on Sunday pledged to speed
up approvals of initial public offerings as the
government seeks to attract capital and encourage
But in early European trade London and
Frankfurt each rose 0.5 per cent, while Paris
added 0.4 per cent.
“This week it’s really about President Trump,
his address to a joint sitting of Congress and his
tax plan,” Greg McKenna, chief market strategist
at CFD and FX provider AxiTrader, said in a note.
“I get a sense traders want to believe in him
- hence the stocks rally - but gold up and rates
down suggest there is some fraying at the edges of
Markets are hoping the speech on Tuesday
will provide more details about Trump’s tax
pledge, which he said this month would be
‘phenomenal’ tax plan won’t be something that
beats market expectations,” Shinichi Yamamoto,
a senior strategist at Okasan Securities, told
Also in traders’ sights this week are the release
of revised fourth-quarter US growth data, the
Federal Reserve’s Beige Book report on the
economy, a string of Japanese data and factory
activity figures from China.
Asian markets start
week with fresh losses
An electric quotation board lashing the Nikkei key index of the Tokyo Stock Exchange is displayed
at a securities company in Tokyo