Most emerging Asian currencies barely changed levels on Wednesday as the dollar eased fractionally after a series of gains, while caution about global economic health kept investors from making large moves. Risk appetites for emerging markets were largely subdued ahead of employment numbers from the United States later in the week. A stronger showing could increase the chances of four rate hikes by the Federal Reserve this year. Investors were also wary about the prospect of fresh U.S tariffs on another $200 billion of Chinese goods that could be unveiled after a public comment period on such a proposal end on Thursday. Sentiment was further hurt after news that South Africa had slipped into recession, joining Turkey and Argentina. "I think we're just seeing a little bit of a pullback or profit taking after a strong run in the dollar earlier in the week," said Khoon Goh, ANZ's Singapore-based head of Asia research. "At this point there's still further pressure on EM generally, and … [Read more...] about Asian currencies largely stationary as U.S. tariff news awaited
U s economic news
Investors hide in U.S. as Washington stirs markets abroad
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By Riva Gold The Wall Street Journal Wed., Aug. 15, 2018 U.S. foreign policy has driven sharp swings in European and Asian markets this summer, drawing investors into the safety of the U.S. It is also raising questions about how long U.S. markets can continue to outpace the rest of the world. The White House’s recent actions on trade and international sanctions have amplified steep declines across markets in Turkey, Russia and China at a time emerging economies were already grappling with a stronger dollar and decelerating global growth. U.S. stocks have beaten foreign stocks in part as investors seek a more stable market during the rocky period, analysts say. Strong U.S. economic and earnings growth has helped. While the S&P 500 has risen 4.5% this quarter and is trading within roughly 1% of its all time high, the MSCI AC World ex-USA Index has fallen 1.3% this quarter and is down nearly 7% for the year so far. “Whether it’s sanctions, tariffs … [Read more...] about Investors hide in U.S. as Washington stirs markets abroad
Trudeau’s reaction to U.S. economic policy looms over G-7 summit
By David Olive Business Columnist Mon., June 11, 2018 The global buying opportunity in the loonie Global investors in loonie-denominated investments have to be thinking of the loonie’s upside potential over the next few months. The Bank of Canada is getting bolder in its expectations of stronger than earlier forecast GDP growth this year, justifying a string of hikes in its key lending rate. A strengthening loonie is, of course, a kicker for any security, property or industrial investment whose value is measured in Canadian currency. One of the year’s biggest under-reported stories is the extraordinary performance of the loonie: It has been the best-performing currency among 16 advanced economies for the past two months. The optimism flavouring the BoC’s most recent rate decision last week suggests a considerable further hike in the loonie’s value in the medium term, even as global investors have already begun pushing up the yield on … [Read more...] about Trudeau’s reaction to U.S. economic policy looms over G-7 summit
Canada probably won’t be excluded from U.S. tariffs on steel and aluminum, White House says
By Alexander Panetta The Canadian Press Sun., March 4, 2018 WASHINGTON—The Trump administration is coming under political pressure at home to exclude Canada from global tariffs on steel and aluminum, and while stating its preference for a hard line, it's leaving the door open just the tiniest crack to the possibility of adjustments. Lawmakers, businesses and hosts on the Sunday political talk-shows all challenged the logic of slapping a national-security tariff on a peaceful next-door neighbour, pushing the administration to justify its move. Read more: Bush’s steel tariffs in 2002 didn’t crush the economy, but they didn’t work for him either Steel tariff will have ‘huge ripple effect’ on Hamilton Article Continued Below Trudeau calls Trump’s trade war ‘unacceptable’ as Canadian officials reach out to U.S. administration The administration says a final announcement is coming next week. On Sunday, it … [Read more...] about Canada probably won’t be excluded from U.S. tariffs on steel and aluminum, White House says
Putin claims new nuclear weapons render NATO’s U.S.-led missile defences useless
By Vladimir Isachenkov The Associated Press Thu., March 1, 2018 MOSCOW—Russian President Vladimir Putin on Thursday boasted of new nuclear weapons and set a series of ambitious goals for Russia, vowing to boost living standards, improve health care and education and build modern infrastructure in a state-of-the-nation address. The televised speech was timed to closely precede the March 18 election, in which Putin is set to easily win a fourth term. The Russian leader’s approval ratings top 80 per cent despite an economic slowdown caused by continuing tensions with the West and a drop in global oil prices. Putin used the occasion to announce that Russia has developed a slew of new strategic nuclear weapons that he said render NATO’s U.S.-led missile defences useless. “You have failed to contain Russia,” he said in a reference to what he described as Western efforts to impede Russia’s development with sanctions and military … [Read more...] about Putin claims new nuclear weapons render NATO’s U.S.-led missile defences useless