European Stocks Advance With Oil, Banks on U.S. Stimulus Bets

Daniel Fowler
August 11, 2020

Trump has signed executive orders banning Chinese social media platforms WeChat - owned by Chinese tech giant Tencent - and TikTok starting next month, and imposed sanctions on 11 Hong Kong and Chinese officials.

The S&P 500 now sits fewer than 1% underneath a record higher strike in February, although in Asia the MSCI ex-Japan index is in 2% of a January all-time peak.

USA regulators have also recommended overseas firms listed in the U.S. should be subject to local public audit reviews from 2022, which could cause Chinese firms to delist. The rally in USA equities has been driven by tech giants, such as Inc. and Apple Inc., while the European market doesn't have such an extensive presence of technology companies.

Silver dropped 1 per cent to $28.86 per ounce and platinum fell 0.8 per cent to $979.12, while palladium rose 0.7 per cent to $2,234.90.

"The running assumption in markets has been President Trump needed the phase one deal to succeed, as much as China, this side of the November elections".

But he added: "At the same time President Trump is running a hard China line into the elections".

China's blue-chip CSI300 was down a shade and Hong Kong's Hang Seng index fell 0.36% after the arrest of a high profile Hong Kong media tycoon under a new national security law.

China's industrial output is steadily returning to levels seen before the pandemic paralysed huge swathes of the economy, as pent-up demand, government stimulus and surprisingly resilient exports propel a recovery. To portray the same, MSCI's index of Asia-Pacific shares outside Japan prints 0.92% gains while Japan's Nikkei 225 surges over 1.85% to 22,745 ahead of Tuesday's European session.

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Since the accident, a restriction on the landing of large aircraft at the Calicut worldwide airport has also been imposed. The 30-member team will be headed by Malappuram Additional Superintendent of Police G Sabu, a government release said .

The orders would provide an extra $400 per week in unemployment payments, less than the $600 per week passed earlier in the crisis.

The euro was down 0.2% versus the dollar, at $1.17685, while the safe-haven Swiss franc was had also slipped 0.2% versus the US currency to 0.914. The euro paused at US$1.1789 to hover near its highest since May 2018.

Stock markets largely shrugged off Monday the latest spike in United States and Chinese tensions as a review of a crucial trade deal approaches.

"Right now, you'll probably going to see a little more consolidation this week of the big FX moves".

Hong Kong edged lower with Tencent shedding almost five per cent after a similar drop on Friday in reaction to the US WeChat move.

"I view this as another step in negotiations rather than a cessation of negotiations, with a still unknown timeline", JPMorgan analyst Andrew Tyler wrote in a note.

Technology stocks fell after a run of recent gains, while crude oil prices jumped. U.S. gold futures fell 0.6 per cent to $2,026.90 per ounce.

Spot gold was down 0.5 per cent at $2,017.53 per ounce by 0447 GMT (10:17 am in India), retreating from a record high of $2,072.50 hit last week. Also supporting the mood could be the Japanese traders' reaction to the recently increasing expectations of the United States coronavirus (COVID-19) phase 4 stimulus package.

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