Stock Market News Today 2018/08/03
Japan Stock Market News Today. For first time China has ceded the title since it overtook Japan for the number two spot in November 2014. The fall also underscores how the ongoing trade spat with the US, Beijing’s campaign to temper debt-fueled growth and signs of slowing domestic demand have combined to dampen investor sentiment for Chinese assets.
The CSI 300 index of major stocks listed on the Shanghai and Shenzhen exchanges is down by more than 17 per cent year to date, while the onshore renminbi exchange rate has weakened 5.3 per cent against the dollar.
By comparison, Tokyo’s Topix index has fallen just 4 per cent in 2018, while Japan’s yen has gained nearly 1 per cent on the greenback.
Apple News Today. Apple won the race to become the first company to reach a trillion-dollar market capitalisation, beating Microsoft, Amazon and Alphabet to the finish line. Here’s a great interactive chart on how Apple’s worth stacks up against other companies and entire industries (add Disney and Bank of America and you’re only halfway there).
Brexit News Today. The Bank of England’s decision to raise interest rates on Thursday was seen in some quarters as a welcome step on the road to post-financial crisis normality. For others, it was a reckless misjudgment, given the growing risks of a no-deal Brexit. The FT editorial calls it a “false step”. Our FT Money reporters have also broken down what a no-deal outcome would mean for your finances.
Trump News Today. Top US intelligence chiefs issued a stark warning about ongoing Russian efforts to interfere in upcoming US elections. Donald Trump is focusing elsewhere: on China. Barely a week after the US president agreed to a ceasefire in his trade war with Europe, he has dramatically upped the ante in his battle with Beijing.
China News Today. Has China lost its ranking as the world’s number two stock market? After a Thursday slump, Chinese equities were worth $6.09tn, according to data compiled by Bloomberg. That compared with $6.17tn in Japan. Chinese equities and the nation’s currency have taken a beating this year amid a trade spat with the Trump administration.
US Jobs Report News Today. The US jobs report for July is expected to be positive, but what many observers will be looking at is wage growth. Are companies paying workers more because of the tight labour market? So far, not as much as past economic good times.
Stocks to Watch News Today. JPMorgan Cazenove raised Elementis, the chemical maker to “overweight” from “neutral” with a 290p target. Its upgrade follows Elementis last month announcing the $600m acquisition of Mondo, then saying earlier this week that it was exploring options for the deal after major shareholders expressed concerns.
Either a significant price cut or a deal termination “should be incrementally positive” for Elementis, JPMorgan said. “We believe an acquisition price of $450m to $500m versus the $600m proposed currently might make the deal more palatable to investors [and] substantially improve deal economics,” it said. And on a standalone basis, Elementis has priced in “a material deal-related discount” to its long-term valuation average of about 17 times earnings even allowing for an $18m termination fee.
In brief: Biffa upgraded to “buy” at Peel Hunt; Royal Dutch Shell cut to “equal-weight” at Morgan Stanley; Asos and Zalando rated new “outperform”, Boohoo rated new “market perform” at Wells Fargo; Scor upgraded to “buy” at HSBC; Sodexo downgraded to “market perform” at Bernstein; Lloyds Banking Group upgraded to “neutral” at Citigroup; Sabadell raised to “sector perform” at RBC.
Commodities News Today. Gold has touched its lowest level in over a year at $1,205.95 per troy ounce, after slipping on dollar strength.
Oil prices are mixed. Brent crude is down 0.1 per cent at $73.40 a barrel while West Texas Intermediate is up 0.1 per cent at $69.04.