Aug 27 2020 0
There has been a lot of interesting events around the world for the last 24 hours. Let's dive in to see what they are and choose our forex trading strategy accordingly.
US-China tensions over the South China Sea or Vietnam's East Sea escalated on Wednesday with Beijing firing four missiles at disputed waterways. The United States, for its part, announced trade and visa restrictions on 24 companies in an effort to help China "regain and militarize disputed outposts" on the disputed waterway. Meanwhile, China has said it has given in on a proposal to have US regulators examine some of their most sensitive companies and is now calling for direct talks to resolve disagreements.
US officials have recently stepped up promoting access to documents needed to audit financial statements for Chinese companies doing business in the United States, which could lead to delisting. stocks - such as that of Alibaba and Baidu - if the request is not met. Fang Xinghai, vice chairman of the Securities Regulatory Commission of China, said he contacted the United States to hold a video or phone meeting, but has yet to receive a response.
Asian equities are likely to continue their rally as global stocks hit record highs amid rising expectations for easing monetary policy and positive US economic data. The dollar weakened and gold appreciated. Futures markets are higher in Japan, Hong Kong and Australia. Tech stocks soared to push the S&P 500 and Nasdaq Composite to new highs for the fourth straight day, while the MSCI All-Country World Index climbed to record highs. US durable goods orders are more than twice as high as estimates, suggesting factories will help support the economy recover in the coming months. Treasury bonds are stable. The overseas yuan (CNH) was trading at its highest level since January amid renewed tensions between the US and China. In another development, crude oil was trading near a five-month high when Hurricane Laura hit major refineries on the US Gulf Coast.
While coronavirus is still likely to cost China's biggest airlines at a loss in the most recent quarter when they reported earnings this weekend, the trio's financial report called the Big Three could point out an early rebound in the air travel industry, thanks to demand in their large domestic market. July traffic figures are promising, with passenger numbers for the three airlines up about 25% from June. The trio served a total of 22 million domestic passengers last month, 500 times more than Hong Kong-based Cathay Pacific, which has no domestic market.
What a start
Betting on ESG, coupled with Japanese investors rushing to own foreign shares in the tech sector, has proven to be a winning combination for a fund managed there by Morgan Stanley. Launched last month, the ESG Global High Quality Growth Investment Fund, run by a U.S. asset manager and owned by Japan's Asset Management One, has raised the initial funds. is 383 billion yen ($3.6 billion), the most for a new Japanese offering in 20 years, according to Bloomberg data. It also made the second largest launch among all equity funds nationwide, following the Japan Nomura Joint Stock Strategy Fund, which in 2000 had an initial value of 792.5 billion yen (7.5 billion USD).