Archives of “September 10, 2019” day

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Nikkei 225 closes higher by 0.35% at 21,392.10

  
Analysis, Global Indices

Tokyo’s main index closes a little higher amid mixed sentiment in Asia

Nikkei 10-09
Chinese stocks are mildly weaker but the overall risk mood remains more cautious and flat with US futures and Treasury yields not doing much as we begin European trading.
USD/JPY holds a little higher still at 107.36 but with the risk mood as such, price has little conviction to run much further to the upside for the time being.

Sky reports China threatens military response if UK warships go near disputed islands

  
Analysis, Politics

Via Sky comes a report that says China has warned Britain against sailing ships through disputed waters in the South China Sea

  • such a move would be “hostile”
  • hinting that Beijing would be forced to responded militarily
Reacting to a suggestion that the UK might send its aircraft carrier close to the contested Spratly Islands, with US jets onboard, China’s Ambassador to the UK said Britain “should not do this dirty job for somebody else”.
Via Sky comes a report that says China has warned Britain against sailing ships through disputed waters in the South China Sea
Huh. The South China Sea is a potential flashpoint for sure.

ICYMI: Mnuchin says yuan will be in focus in next round of China talks

  
  Analysis
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An overnight report on comments from US Treasury Secretary Mnuchin

  • “I expect the governor of the People’s Bank of China to come over for these talks,” Mnuchin told reporters Monday. “So part of the conversations we will be having with them is around currency and currency manipulation.”
Via Politico (more at the link, but the quote above is the gist of it)
An overnight report on comments from US Treasury Secretary Mnuchin

Fitch slash growth rate forecasts for China, US, , and Eurozone

  
  Analysis

Fitch ratings with their analysis

  • protectionism choking global growth prospects
  • China’s growth rate is now expected to fall to 6.1% in 2019 and 5.7% in 2020, down from 6.2% and 6.0%, respectively
  • primary cause of deteriorating outlook in China for next 12-18 months is trade policy
  • Eurozone growth is now forecast at 1.1% in both 2019 and 2020 compared to 1.2% for 2019 and 1.3% for 2020 in June
  • Update of global economic outlook forecasts, it has made significant downward revisions to China, Eurozone GDP growth forecasts over next 18 months
  • US growth forecasts have been lowered to 2.3% in 2019 and 1.7% in 2020 compared to 2.4% and 1.8% respectively, in June
  • Eurozone growth prospects are at risk from real possibility of a ‘no-deal’ Brexit, a scenario that could spark a significant UK recession in 2020
  • Intensification of downside global risks since fed cut interest rates in July now looks likely to prompt another 25bp cut in December 2019
  • ecbb European Central Bank likely to announce significant fresh accommodation measures very soon, which will include a restart of asset purchases in October
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