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SATURDAY, FEBRUARY 8, 2020 Business
DAILY STOCK INDICES AND SECURITIESMARKET NEWSWATCH
(07/02/20)
MAJOR STOCK INDICES
DJIA : 29379.77 (+ 88.92)
S&P 500 : 3,345.78 (+ 11.09)
HSI : 27404.27 (- 89.43)
STI : 3,177.29 (- 52.26)
KLSE : 1,554.49 (+ 1.72)
SHCOMP : 2875.96 (+ 9.45)
REVIEW
UnitedStates(US)stocksrose to all-time highs on Thursday after China announced
it will halve tariffs on a slew of US products which will take effect on February
14. That decision was made as part of a broader “phase one” trade deal between
China and the US putting their trade war, which had been hurting global growth
prospects, on hold. Strong corporate earnings results and solid economic data also
gave the major indexes a boost. The Dow Jones Industrial Average closed 88.92
points higher, or 0.3 per cent, to 29,379.77. The S&P 500 also climbed 0.3 per cent
to close at 3,345.78. The Nasdaq Composite advanced 0.7 per cent to 9,572.15.
Boeing shares led the Dow higher with a 3.6 per cent gain. Microsoft contributed to
the advance, rising more than two per cent. Communication services and tech were
the best-performing sectors in the S&P 500, rising more than 0.8 per cent each.
Asia markets mostly fell yesterday, following three sessions of broad gains, as
investors waited for the release of China’s January trade numbers and reacted to the
impact of the coronavirus outbreak. Mainland Chinese shares bucked the downward
trend to bounce back slightly from declines earlier. The Shanghai composite rose
0.33 per cent to close at 2,875.96. The Shenzhen component edged up slightly to
10,611.55, while the Shenzhen composite bounced 0.49 per cent to 1,735.63. In Hong
Kong, the Hang Seng index dropped 0.5 per cent in the afternoon. Japan’s Nikkei 225
reversed gains and declined 0.19 per cent to 23,827.98, while the Topix was down
0.28 per cent to 1,732.14. Elsewhere, South Korea’s Kospi dropped 1.02 per cent.
Gold prices edged higher yesterday as fears over a rapidly spreading coronavirus
outbreak and its economic impact fuelled safe-haven buying. However, China’s
move to cut tariffs on some US imports that sent global stock markets higher in
the previous session weighed on bullion prices. Spot gold was up 0.1 per cent to
USD1,568.76 per ounce by 0052 GMT. The metal has fallen 1.3 per cent so far this
week, heading for its worst week since November 8. US gold futures were ¢lat at
USD1,570.70. “
Disclaimer: All information is not intended as professional advice to users. All investment
products and services are not obligations of or guaranteed by Baiduri Capital and are subject
to investment risks.
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Bank Group. Baiduri Capital offers a wide range of investment services as below:
• Equities Trading • Exchange Traded Fund • Bonds • Unit Trust
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Published from Tuesday to Saturday
Published from Tuesday to Saturday
CCY BID OFFER TENOR SGD USD
EUR/USD
USD/JPY
GBP/USD
USD/CHF
AUD/USD
NZD/USD
USD/CAD
USD/HKD
USD/SGD
USD/MYR
USD/THB
USD/IDR
USD/PHP
USD/KRW
1.0979
109.95
1.2942
0.9751
0.6719
0.645
1.3292
7.7615
1.3863
4.1330
31.18
13670
50.73
1186.34
1.098
109.97
1.2946
0.9752
0.6721
0.6452
1.3293
7.7618
1.3867
4.1360
31.22
13680
50.75
1186.48
Overnight
1 week
1 mth
3 mth
6 mth
9 mth
12 mth
0.70
1.35
1.40
1.55
1.50
1.50
1.50
1.50
1.57
1.59
1.66
1.69
1.69
1.71
CRUDE AND GOLD PRICES
USD
Gold: 1,563.45 -0.2
Brent: 55.77 (0.22)
DAILY INTERBANK FOREX &MONEYMARKET COMMENTARY
(07/02/20)
FX REVIEW
Asian currencies weakened as the rising death toll and economic damage from
the coronavirus epidemic cast a concern on the global economic outlook. The
Chinese central bank warned that the domestic economy could be disrupted in
the ¢irst quarter due to the outbreak, adding that a recovery could be expected
once the virus is brought under control. Sterling nursed losses against euro and
continued to closely watched negotiations between Britain and European Union
(EU) for a post Brexit trade deal.
FX OUTLOOK
“There is a perception that the United States (US) economy will be less affected
by the virus than China or other countries, so that is a factor for dollar strength,”
said chief currency strategist at Mizuho Securities in Tokyo Masafumi Yamamoto.
“Risk-off trades could take a break because we won’t know the true state of China’s
economy until we see data for February. There could be some big declines in the
numbers for China and other Asian countries.”
All information provided is not intended as professional advice to users. This daily
commentary and opinion is subject to change without notice. For the latest information,
please call our Treasury Department on 226 8307.
Website: Email:
HONGKONG(AFP) - Asianmarkets
mostly fell yesterday after a
week-long rally as investors take
pro¢its and assess developments
in China’s deadly corona-
virus crisis.
Strong United States (US)
data, Chinese ¢inancial support
and a broadly healthy earnings
season have provided a much-
needed boost to equities after
last week’s sell-off, while there is
a sense that the economic impact
of the outbreak globally could
be limited.
China’s decision on Thursday
to halve tariffs on USD75 billion
of US goods as part of their
trade detente has also cheered
the mood.
Observers said the virus,
which has killed more than 600
people and infected 31,000, will
batter Chinese growth in the ¢irst
quarter but it could rebound later
in the year, as it did after SARS.
“If the pattern of the SARS
impacts are a guide, there
is potential for the Chinese
economy to rebound with an
above-potential growth rate
once the outbreak subsides,”
said T Rowe Price Analyst
Chris Kushlis.
“In 2003, China’s growth rate
climbed to 15.5 per cent in the
third quarter as pent-up demand
saw consumption rebound as
the SARS outbreak waned. A
similar rebound following the
coronavirus could help keep
the longer term track of the
Chinese economy on a relatively
even keel.”
Heading into the weekend,
dealers were taking a step back
after the week’s strong gains
across the world, which has seen
all three main indexes on Wall
Street chalk up record highs.
Hong Kong, which has
climbed around 4.5 per cent this
week, dipped 0.3 per cent, while
Tokyo eased 0.2 per cent.
Singapore and Taipei both
fell more than one per cent,
while Seoul slipped 0.7 per cent,
Sydney shed 0.4 per cent and
Mumbai eased 0.5 per cent.
Manila and Bangkok were ¢lat.
However, Shanghai added 0.3
per cent to extend a rebound to
four straight days as it recovers
from a near eight per cent drop
suffered on Monday, when it
reopened after the Lunar New
Year break.
The gains have been greatly
helped by central bank cash
injections into the ¢inancial
market, while there is speculation
that government agencies are
also buying up shares to prevent
a rout.
Stephen Innes, of AxiCorp,
said that while the virus outbreak
seems to be stabilising in the
epicentre of China’s Hubei
province, “the disruption to
China’s economy will likely
continue in the short term”.
A man walks past an electronic stock board showing Japan’s Nikkei 225 index at a securities irm in Tokyo.
PHOTO: AP
Asian markets mostly
down after healthy week,
eyes on virus
LONDON (AFP) - Poverty in
Britain has risen among workers
despite the country’s lowest
unemployment in 45 years, an
organisation for social change
said yesterday, while urging the
new government to take action.
“Although employment has
increased, in-work poverty has
also gone up because often
people’s pay, hours, or both are
not enough,” said the Joseph
Rowntree Foundation (JRF).
JRF’s ‘state of the nation’
report on poverty in the United
Kingdom (UK) revealed also that
poverty had risen for children
and pensioners over the last ¢ive
years. In total, 14 million people
in the UK were living in poverty,
it said.
JRF added that a single
person or family was deemed to
be in poverty should they have an
income that is less than 60 per
cent of their family type’s median
earnings after housing costs such
as rent.
“The new government has a
once-in-a-generation opportunity
to make historic progress and
enable people and communities
to truly level-up,” JRF said.
Its Executive Director Claire
Ainsley added, “As a nation we
have made progress before and
we can and must do so again with
this new government and a new
settlement after Brexit.”
British Prime Minister Boris
Johnson’s Conservative party
convincingly won a general elec-
tion last December that helped to
unlock Brexit.
Recent of¢icial data mean-
while showed that Britain’s un-
employment rate stands at 3.8
per cent, the lowest level since
1975. The employment rate is at
a record-high 76.3 per cent. How-
ever JRF said that 56 per cent
of people in poverty come from
a UK working family, compared
with 39 per cent 20 years ago.
UK poverty increases despite low
unemployment