iFund- Daily Market Commentary

2019-05-10 01:15
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At a time when the tariff threat to China is approaching, Trump said that he may still reach a trade agreement with China this week. After Liu He arrived the United States, he said that the tariff increase is not a solution. Besides, the Chinese central bank adviser Ma Jun believes that the impact of trade conflict towards Chinese economy is limited. US overnight economic data showed that the trade deficit with China has fell to a new low since 2016, and the PPI was still weak.

      • The Dow Jones Industrial Average closed at 25,828.36 points, down 138.97 points or 0.54%. The Standard & Poor’s 500 Index closed at 2.870.72 points, down 8.70 points or 0.30%. The Nasdaq index closed at 7,910.59 points, down 32.73 points or 0.41%.
      • On the occasion of the US tariff threat to China, Trump said on Thursday that it may still reach a trade agreement with China this week, and said that Xi Jinping sent a letter to him calling for close cooperation between the two sides in order to ease trade tensions.
      • The US trade deficit with China in March narrowed to a new low since 2016. When the negotiations between China and the United States entered a critical stage, this data provided Trump a opportunity to declare that the tariff war is bringing ideal results.

      • The UK’s FTSE 100 index closed at 7,207.41 points, down 63.59 points or 0.87%. The Frankfurt DAX index closed at 11,973.92 points, down 206.01 points or 1.69%. The French CAC40 index closed at 5,313.16 points, down 104.43 points or 1.93%.
      • According to IHS Markit data, the Construction Industry Purchasing Managers’ Index (PMI) for the Eurozone fell slightly from 52.2 in March to 52.1 in April. Among the three key economies in Eurozone, the growth rate of Germany economy is the fastest, followed by Italy and France.
      • According to IHS Markit data, after the seasonal adjustment, Italy’s Construction Industry Purchasing Managers’ Index (PMI) rose from 51.2  in March to 52.5 in April, hitting a four-month high.

      • Japan’s Nikkei 225 index closed at 21,402.13 points, down 200.46 points or 0.93%. The yen closed at 109.880 against the US dollar, up 0.118%.
      • Japan’s Cabinet Office announced that after seasonal adjustment, Japanese Household Consumer Confidence Index fell for seven consecutive months, from 40.5 in March to 40.4 in April, hitting a new low since February 2016, but still slightly higher than market expectations 40.3.

      • The Shanghai Composite Index closed at 2,850.95 points, down 42.80 points or 1.48%. The Shanghai and Shenzhen 300 Index closed at 3,599.70 points, down 67.76 points or 1.85%. The RMB closed at 6.824 against 1 US dollar, down 0.605%.
      • China Mobile’s application for telecommunications services in the United States was rejected by the US Federal Communications Commission on the grounds of national security concerns raised by the company. This has added more conflicts to US-China trade relations.
      • China’s Financial Times reported that China’s central bank adviser Ma Jun believes that the impact of trade conflict towards China’s economy is limited. Even if the Sino-US trade conflict escalate, China will adopt corresponding counter-measures. These measures will not have much impact on the real economy.

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