Daily Morning Note – 8 February 2019
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YOUR PHILLIP SUMMARY
Investors focused on U.S.-China trade tensions, highlighting widespread worries over slower global economic growth.
The Dow Jones Industrial Average slid 220.77 points, or 0.9%, to 25,169.53, while the S&P retreated 25.56 points, or 0.9%, to 2,706.05. The Nasdaq Composite Index fell 86.93 points, or 1.2%, to 7,288.35.
Trade-war jitters resurfaced after National Economic Council Director Larry Kudlow said during an interview with Fox Business Network that there is still a long way to go before the U.S. will strike a trade deal with China.
CNBC also reported that a meeting between President Donald Trump and China’s Xi Jinping isn’t likely before a March 1 deadline, but the U.S. is likely to keep tariffs at 10% rather than raise them to 25% as scheduled.
A round of weak data from the European Union underscored concerns that slowing growth in China has impacted Europe, fuelling concerns about a slowing global economy.
German industrial production unexpectedly fell by 0.4% in December from the month before, reinforcing concerns over the health of the eurozone’s largest economy. Meanwhile, the European Commission cut its growth forecast for the shared currency bloc Thursday, predicting that the 19-member eurozone will collectively grow by just 1.3% this year, down from the 1.9% forecast in November.
The U.S. envoy to the European Union said that any Western country allowing Huawei Technologies Co. or other Chinese equipment to be used in critical infrastructure projects will face the risk of U.S. countermeasures.
Sony Corp. is buying back as much as 100 billion yen ($910 million) of its own shares, the electronics maker’s first-ever large scale repurchase.
TSH Corporation on Friday said it has completed the acquisition of Sloshed! Pte Ltd, a company in the business of operating pubs and bars, and the import, export and distribution of spirits, wines and liquors, for about S$18.8 million in a reverse takeover (RTO) deal.
The Reserve Bank of Australia downgraded its growth and inflation forecasts Friday, following the central bank governor’s declaration of a shift to a neutral policy stance earlier in the week.
Crude slumped below $53 a barrel in New York and gold edged higher. Iron ore futures topped $90 a ton to hit the highest level since 2014 on concern that the increasingly severe crisis at top producer Vale SA will reduce global supplies.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
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