iFund- Daily Market Commentary

2019-03-19 10:37
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19/2/2019

It is reported that the United States put pressure on China to maintain the stability of the Renminbi in trade negotiations, saying that any currency devaluation in China will incur higher tariffs. The EU reiterated that the Brexit agreement could not be renegotiated, and European Commission President Juncker predicted that the talks with Theresa May on Wednesday were unlikely to make a breakthrough. China’s stock market has performed best in the past year, and its valuation continues to rise, relying on profitability.

  • The Dow Jones Industrial Average closed at 25,891.32 points, increased by 8.07 points or 0.03%. The Standard & Poor’s 500 Index closed at 2,779.76 points, increased by 4.16 points or 0.15%. The Nasdaq index closed at 7,486.77 points, increased by 14.36 points or 0.19%.
  • Trump said that the negotiations with China went well, involving various proposals for exporting US corn to China. At the same time, he said that March 1 was not a magic day for a trade agreement with China, and the negotiations were very complicated.
  • According to informed sources, as part of the trade negotiations, the United States requires China to maintain the stability of the Renminbi. It is reported that any currency depreciation in China aimed at offsetting the impact of US tariffs on Chinese exports will incur higher tariffs.
  • The UK’s FTSE 100 index closed at 7,179.17 points, decreased by 40.30 points or 0.56%. The Frankfurt DAX index closed at 11,309.21 points, increased by 10.01 points or 0.09%. The French CAC40 index closed at 5,160.52 points, decreased by 8.02 points or 0.16%.
  • EU’s chief Brexit negotiator said that the Brexit agreement cannot be renegotiated and is waiting for the UK to propose a clear plan to break the deadlock in the negotiations.
  • The UK admits that it is unlikely to reach a trade agreement with Japan and South Korea before the planned Brexit date of  March 29.
  • Japan’s Nikkei 225 index closed at 21,302.65 points, increased by 20.80 points or 0.10%. The yen closed at 110.810 against the US dollar, decreased by 0.235%.
  • According to the Reuters Tankan survey, Japan’s manufacturing sentiment judgment index of February 2019 fell by more than four months, is the lowest level since two years, and continued to fall to 13 from January 18, the lowest since October 2016.
  • The Shanghai Composite Index closed at 2,755.65 points, increased by 1.29 points or 0.05%. The Shanghai and Shenzhen 300 Index closed at 3,439.61 points, decreased by 6.13 points or 0.18%. The RMB closed at 6.736 against 1 US dollar, increased by 0.015%.
  • China’s stock market has performed best in the past decade, and the Shanghai Composite Index has risen above the half-year line for the first time in a year, which also issues a signal of overheating. The analysis showed that this round of gains was mainly based on risk appetite and valuation repair, and the performance reversal remains to be seen.
  • China will expand imports of scarce agricultural products and improve subsidies for corn and soybean producers.



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