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Finance Update – Markets Get Jittery


Asia – Australia/China tensions on the rise

With the US-China trade deal review postponed, Asian indices are mixed this morning, New Zealand staring with a 1.65% increase while Taiwan and the China A50 are in the red. Both the Hang Seng and Nikkei are slightly down, as the yen adds nearly a half per cent.

The Australian Dollar is up a quarter per cent after launching an appeal against new Chinese tariffs on barley shipments, this as China on its part announced this morning an anti-dumping probe into Australian wine imports.

Overnight meeting minutes reveal the RB’s endorsement of the government’s extension of income support measures.

Europe – UK keeps upper lip

European indices were slightly up yesterday, the FTSE gaining 0.61% but the IBEX losing nearly a full per cent.

The pound is up 0.4% and the Euro 0.5 after the Daily Mail this morning reported that the UK would most probably not agree to align itself with EU alignment rules as talks recommence today.

Americas – Dollar weakness endemic

US indices continue defying logic, the Nasdaq adding a per cent, the S&P nearly a third and only the DOW losing 0.31%.

The dollar continues south after the Empire State Manufacturing Index plunged to 3.7 in August from 17.2 the month before, but the NAHB housing market index improved by 6 points to 78.

North of the divide, the CAD is up 0.16% as Finance Minister Bill Morneau resigns over pandemic spending tussles with PM Trudeau. Morneau is a leading candidate to hear the OECD.

Commodities – Chevron expanding

The WTI-Brent spread widened overnight as Texas Crude gained a quarter per cent on OPEC’s reported 95% compliance level with production cuts targeted in July.

Meanwhile, Chevron (+0.46%), after clinching a natural gas deal with Nobel Energy in the Mediterranean, is slated to investing in oil field development in Iraq, following a meeting between US Pres Trump and Iraqi PM al-Khadhimi scheduled for Thursday.

Bitcoin overnight surged past the 12K mark for the 2nd time this year, this as gold hesitantly inched past $2000 overnight thanks to a dollar weakened by soaring COVID deaths and unemployment, and dysfunctional partisanship in US politics.

Corporate – Walmart & Depot earnings

Tesla (+11.2%) shares continue soaring –26% for the week, so far – following its announcement of its upcoming 5-for-1 stock split on August 31.

And Reuters reports this morning that Oracle (-0.39%) has entered the fray of potential TikTok buyers alongside Twitter (+0.18%) and Microsoft (+0.66%).

On the earnings front, we’re winding down with reports today from Home Depot, Walmart, Advance Auto Parts, Agilent Technologies, Amcor PLC, Pandora and Jyske Bank. Microchip Technologies will be holding a shareholders meeting and ING Group will be paying dividends.


12:30 PM GMT US Housing & Building Permits & starts. Redbook Index at 12:55
08:30 PM GMT OIL API Weekly Crude Oil Stock
10:45 PM GMT NZ PPIs
11:50 PM GMT Japan Trade Balance & Machinery orders.
00:30 AM GMT (+1) Australia Westpac Leading Index
06:00 AM GMT (+1) UK CPIs, PPIs & Retail Price Index


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