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The administration of President Donald Trump has ceased to assign China as a currency manipulator, contributing to removing an obstacle to the trade agreement that the two countries are preparing to sign this week. The Chinese government has made "effective commitments" to not devalue the yuan and has agreed to publish information about exchange rates. Finance Minister, Steven Mnuchin, first officially assigned his nickname to China in August, a move that made the trade war with Beijing escalate.
Asian stocks are expected to rise on US stocks today thanks to optimism from the signing of the US-China trade agreement. The Renminbi is trading near the highest level since July. The futures markets in Japan, Hong Kong and South Korea all increased. Technology stocks helped the S&P 500 and the Nasdaq Composite close at an all-time high. Treasury Bond yields increased. The yen fell, while the dollar price rose. As investors look to the results of a "first phase" trade agreement on Wednesday in Washington, the focus of attention is beginning to be on the performance of businesses. Some of the largest US banks will kick off their earnings reporting season today, amid the forecast that total corporate profits will show the smallest growth in 3 years.
After a turbulent start year, at least one thing is clear: For stock investors, the "big" stock has never been so good. Yesterday, Morgan Stanley said, when the S&P 500 once again reached its record high, the top 5 listed companies in the US accounted for 18% of the benchmark market capitalization - higher than the bubble. technology ball. Shares of highly capitalized US companies have jumped nearly to their highest level in more than 10 years compared to those with low capitalization since the beginning of this new decade.
Companies that have made a lot of capital from abroad have almost reached the highest level since April compared to their domestic peers. The increase in the stock prices of Apple, Microsoft, Alphabet, Amazon and Facebook is good news for anyone who simply pursues an increase in the index's price, but for some strategists it is a sign for Seeing that investors have just lost their appetite and risky assets amid worries about an economic cycle will slow down.
Yesterday, for the first time, Tesla's stock rose above $ 500, causing analytical goals to wobble to keep up with the price of the electric car-maker's stock price - doubling from October. Colin analyst Oppenheimer's Rusch raised its stock price target to a high of $ 612 from $ 385 on Monday, arguing that after the initial stumbling block, Tesla has "reached the scale needed to support free cash flow." lasting". Rusch's remarks marked the latest increase in a series of similar price increases from Tesla analysts over the past week. The company's stock continued to rise after the delivery in the fourth quarter exceeded expectations.
According to experts, the protests in Hong Kong are prompting many property managers from the city to open an office in Singapore. While instability is not the only factor, the current developments show signs that Singapore is a business choice in part because of the protests in Hong Kong. Clients and parents in Hong Kong have been looking for logistics as well as schools in Singapore.
Global corporate finance and valuation adviser Duff & Phelps saw an increase in requests from Hong Kong asset managers to open offices in Singapore, and law firm Shook Lin & Bok LLP also has noticed "an increase in real questions and guides" from Hong Kong companies setting up a fund management company in Singapore since August. Protests in Hong Kong have lasted more than 6 months and The Hong Kong government forecasts that the economy will decline by 1.3% in 2020.