Investors also seemed to draw cheer from the latest earnings season as it drew to a close, bringing a mix of strong results as well as a few signs of caution.
With increased tariffs off the table for now and U. A placid Fed that reiterated its decision to keep rate hikes on pause might also have contributed to the rally that began at the start of the year. Stocks in Europe and Asia, which had been under pressure last year even before the U.
Meanwhile, crude oil prices continued to climb for most of this past month, though they have eased in recent days. And for most of the month, year U. Treasury yields held in a narrow range of between about 2. One possible question is what might happen to stocks once the good news runs out.
Can the markets continue their momentum and resist negative news? Or will investors reverse course and show hair-trigger reactions to any potential bad news in March?
The U. There still seems to be plenty of investor uncertainty despite the recent decline in volatility, and that uncertainty might be showing up in heightened gold, U. Treasury note prices. While the U. The Shanghai Composite rose 5. As the two countries continue trying to hash out a deal, consider that the market may already be pricing in a resolution.
As the latest earnings season wound down, investors seemed to have absorbed the generally positive results that helped keep stocks climbing, although they apparently found a few signs of caution among the numbers. Amid what seems to be a softening retail scene lately, Walmart NYSE: WMT shares rallied on Q4 results that beat third-party consensus estimates as it raised its dividend.
Still M is on track to end February in the red. In other key earnings in February, DE reported Q1 results that missed the Street view, saying it took a hit from trade policies as well as rising costs of raw materials.
Year to date, DE is still up about 6.
Mining Industry Insight | Summer 2019
Kraft-Heinz Co. KHC was among the companies with earnings that hit shares hard. February brought mixed economic data.While iron ore prices will see a correction in the coming months, Fitch analysts do not expect a strong collapse. Economic stimulus provided by the Chinese government to stabilize growth has and will continue to keep steel production strong in andespecially with the re-escalation of the trade war with the U.
A price rally in the second quarter that resulted from supply disruptions and strong demand served to move the year-to-date average higher. In addition, extreme weather in Australia led to the closure of important ports following which BHP and Rio Tinto revised their production guidance downwards, resulting in further price rallies.
Fitch believes that the iron ore price rally has reached its pinnacle and prices will now embark on a correction as exports from supplying countries revive and a weakening yuan dampens Chinese demand. InFitch expects prices to hold up as Chinese demand remains strong as a result of infrastructure project constructions rolling on.
Undersea Mining Could Provide Vast Resources: Undersea mining is beginning to look like a lucrative option for many companies. Certain precious metals are becoming expensive and rare earth elements that are much more common in the seafloor than underground are vitally important to new technologies. The combination of technological advancements and depletion of land resources has made undersea mining a viable alternative.
There is no doubt companies see money that can be made. Rare earth elements play key roles in new technologies, and it takes a lot of work to extract them from land deposits. For example, neodymium and dysprosium make powerful magnets for wind turbines, and tellurium is a key component in solar cells. Geological Survey. The process for extracting them is expensive, inefficient, and dirty. Countries that can instead harvest those rare elements by way of undersea mining will be at a distinct advantage.
Mining, no matter where it is, comes with environmental questions. At the same time, an argument can be made that undersea mining is less harmful to the environment than terrestrial mining. Mining equipment varies by type based on the specific activities that are being carried out such as mining above or below ground or mining for gold, metals, coal or crude oil.
Drilling machines, excavators, crushing and grinding equipment are some of the more common types of equipment. The global mining equipment market is being driven by the increasing demand for advanced mining equipment.
The population growth rate, urbanization in China and other Asian countries, and continued needs in developed countries have resulted in high demand for minerals and metals, thus propelling the market. Those in the mining industry are increasingly investing in new mining equipment with advanced technological sensors, cameras and automation systems that enable the operator to work more efficiently and improve production with fewer human resources.
The automation of physical mining jobs is playing a vital role in easing day-to-day operations in the industry. Innovative mining equipment like self-driving ore trucks and robotic mining drills and assistants, is becoming much more prevalent.
However, while the trend toward automation is helping to expand the mining equipment market, the adverse effects on the environment and stringent government policies regarding mining activities may potentially hamper that growth.
On August 13, top officials from the U. According to a Bloomberg survey, expectations of declining U. With the news of the postponement, optimism swept across financial markets and the price of New York-traded crude rose 4. Veteran Investor Encourages Purchase of Gold: Mark Mobius, former Executive Chairman of Templeton Emerging Markets Group, has given a blanket endorsement to buying gold, believing accumulating bullion will reap long-term rewards as leading central banks loosen monetary policy and the rise of cryptocurrencies serves only to reinforce the demand for genuinely hard assets.
With the U. Treasury market signaling that a recession may be on the horizon, investors have been swarming into bullion-backed exchange-traded funds.Donald Trump said he is fully recovered from COVID and will not be a transmission risk to others, freeing him to return to holding big campaign rallies during the final weeks of the race for the White House.
Gulf Coast on Sunday, two days after Hurricane Delta barreled through the area. Spaniard Rafael Nadal inflicted one of the most humiliating defeats on great rival Novak Djokovic in the French Open final on Sunday, thrashing the world number one to lift a record-equalling 20th Grand Slam men's singles title. Triller Inc, a budding competitor to popular short-video app TikTok, is in discussions with blank-check acquisition companies about a merger which would take the U.
Security forces in Belarus detained dozens of protesters on Sunday and used force, including water cannon and batons, to break up crowds demanding a new presidential election, TV footage showed. Lithuania's main opposition party, the centre-right Homeland Union, appeared likely to win Sunday's first round of a national election, in what is seen as a backlash to Prime Minister Saulius Skvernelis' handling of the coronavirus crisis.
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World Home U. Markets Home U. Supreme Court nominee Barrett pledges fealty to law as Senate hearing looms. White House seeks limited coronavirus relief bill, promises further talks on broader stimulus.
Stocks creep higher on U. North Korea hosts 'Mass Games' for 75th anniversary of ruling party. Truce under severe strain as both sides allege violations. Louisiana residents return home to assess Hurricane Delta damage. Floods kill 17 people in central Vietnam. Texas' limit on drop boxes for absentee ballots stays on for now.
Pennsylvania judge tosses Trump mail-voting lawsuit. Take Five: Banks, bottom lines, Brexit. Lakers beat the Heat to claim record-tying 17th NBA title. King Nadal continues Paris reign with record-equalling 20th Slam. Exclusive: TikTok rival Triller explores deal to go public - sources. Police in Belarus crack down on protesters, detain dozens. Lithuanian opposition Homeland Union says on track to win election.
Hurricane Delta slams storm-battered Louisiana. Photos of the week. Gulf crude oil production remains shut after hurricane EU trade chief calls on U.The recent fall of natural gas prices to extraordinary lows attests to a misunderstanding of how precarious supply remains, and it has poised the market for potentially explosive price increases in the near term.
Years of waning interest in natural gas simplified the public discussion of gas prices to a single factor: gas in storage compared to five-year average. This spring and summer as storage trended up toward, but still below the five-year average, prices swooned to levels only touched briefly since the early s. Supply stepped up to match demand in an elegant choreography of production, pipelines, and plants with only minor missteps along the way, sparing the market of shortages for many years.
If demand were as stable as in those times past, then the current change in storage trajectory could portend a glut. However, neither storage nor demand is what it used to be. While the seasonal swings in gas demand for heating have not grown, the overall demand has. Storage crucially if less visibly also buffers the multi-year choreography of growth. Storage volumes, though, have not grown with production volumes. For a better frame of reference, the chart below shows nearly 20 years of volumes in storage normalized to dry gas production.
It shows how for the better part of the last three years storage trended down as demand chronically exceeded supply. On a longer time frame, normalized storage volumes have trended downward for nearly 10 years as storage did not expand with production.
These overlaying trends caused last heating season to end with only 12 days of supply in storage. Click to enlarge. During the few times that normalized storage previously reached the nadir seen this spring, the drop caused headline-grabbing leaps in price. This time prices hardly moved. When the depletion trend finally reversed, the market did not see the change as partial abatement of a critical shortage but instead as evidence of a glut.
Hardly a bearish signal. What is more, the market seems not to understand that gas demand will continue to grow aggressively this year and into next. Seven large trains and two clusters of smaller trains of LNG export totaling 5.
The delay sent the available gas into storage, but that excess supply was always only temporary. Indeed most of the delayed projects are now ramping up. Demand from all of various new industrial and export projects should be inelastic. Even if completed late, the projects will demand gas even if spot prices rise.
To supply needed gas in the near term some modest volume will be recaptured in the Permian as flaring turns to gathering, but mostly the new lines will redirect and not replenish supply. Gas DUCs, especially in Appalachiahave now fallen to the lowest number since the EIA began counting, and new well starts, which exhibit a four- to six-month delay to first production, have been falling since April.
Even an eventual increased rig count may provide limited relief since Haynesville pipelines are already full and since unused capacity from Appalachia is limited. Gas prices reacted irrationally this spring and summer.
Prices dipped to some of the lowest figures in twenty years at the same time that storage tightened to near its leanest in the same twenty years even while facing stiff near-term demand growth. Instead of a price increase due to a chronic shortage during breathless demand growth, prices fell on a temporary relief from its paper-thin margins.
Demand growth will arrive about the time supply contracts, and the briefly-increased gas storage may be insufficient to negotiate the swing, especially if winter also arrives with its own aggressive demands.The decision was made in an effort to support demand for consumer goods — from mobile phones to clothing — during the New Year holiday season.
This news provoked a strong positive reaction from the markets, allowing the U. The psychological effect is also important for the markets.
Many times, we have seen how a sharp escalation of trade disputes is replaced with some relief. However, the general trend is still in the direction of tightening, although the mood is still far from panic. Indeed, the tariffs would be bad news in light of the already rising inflation. Fresh estimates of consumer inflation in the U. The core price index excluding food and energy grew 0. Separately from the U. The data that came out of China in the morning is also more pessimistic: after the spike in June, the growth rate of the production sector slowed down to 4.
Investment and retail sales also disappointed, returning to a slowdown. In normal times, rising inflation is an important indicator of economic health and consumer demand.
However, in this case, there is a risk of a soft form of stagflation developing, as price increases are spurred by tariffs. At the same time, central banks are unable to hold back price rises through rate increases, so as not to hamper the already weak economic growth. Separately from the inflation and production sector, the budget policy should be mentioned.
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Global stocks hurt by escalating trade threats, falling bond yields
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While that may create some good will in Washington, China is keeping the pressure on U. An editorial Wednesday in the Communist Party-controlled Global Times newspaper said the exemptions were a goodwill gesture that would benefit some Chinese and U.
Welcome this decision. It should be seen as a goodwill gesture the US side made for creating good vibes for the trade talks scheduled in early October. Yesterday China announced to remove 16 categories of US products from tariff list. Hope reciprocity of goodwill can continue. Trump escalated the U. Further increases are planned for December.Stock markets rally as Trump delays tariffs on some Chinese imports
Are you looking for a stock? Try one of these. News Video. News Video Berman's Call. Related Video Up Next. Now Showing. The information you requested is not available at this time, please check back again soon. Trump realDonaldTrump September 11, Negotiators are due to meet in Washington in coming weeks to push forward talks to end the trade war, which is causing increasing economic damage as it stretches into its second year.
China starts tariff exemptions, but keeps pressure on U.Treasury yields hit multi-week highs after record supply at a year bond auction drew poor demand. Initial claims for U. Data showed the world's largest economy regained only 9. Stocks have soared but the economy — it's improved, yes — but a million initial claims is still not good," said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina.
In the currency and bond markets, faltering hopes for a compromise between Republicans and Democrats over additional stimulus for the U. The Japanese yen weakened 0. A sell-off in benchmark government bond markets also eased, as investors digested the biggest-ever year U. Treasury yields rose to multi-week highs after the Treasury auction of a record amount of year bonds. In Asia, Japanese stocks were the main mover, soaring 1. Oil prices eased after underwhelming data, but the weak dollar limited losses.
Traders kept an eye on U. Out on Wall Street, elections are the talk of the town. Against this backdrop, fears of a blue wave a Democrat-controlled presidency, Senate and House are washing onto the Street.
However, Goldman Sachs believes a blue wave might not be such a bad thing for the U. Bearing this in mind, our focus shifted to two stocks flagged by Goldman Sachs as strong value plays. General Electric GE First up we have General Electric, which has been a pioneer in the transportation, power, environmental and healthcare industries for the last years. According to Goldman Sachs, the future looks bright for this name.
Admittedly, we might be a little early on the turn in the stock, but we believe we are at a bottom from both a fundamental and sentiment perspective, and that is typically the best time to own industrial cyclicals. To this end, the analyst thinks HSD industrial free cash flow margins could be achieved by However, these expectations could be conservative should commercial aerospace rebound more quickly than Ritchie anticipates.
Writing for the firm, analyst Terence Flynn points to its lead candidate, MRT, a codon-optimized human CFTR mRNA, which is formulated in lipid nanoparticles that are delivered via a nebulizer, as a key component of his bullish thesis.
Looking at early clinical data, the asset generated an initial signal of clinical activity. Despite the early nature of the data, Flynn sees the next data readout, which is slated foras a major possible catalyst.
VRTX has developed several oral drugs called CF correctors or potentiators, that when used in combination improve the function of the existing CFTR protein in the majority of CF patients and thus, drive improved outcomes, which has made them the standard of care.
To this end, data could come by 1H As part of this collaboration, the companies are also advancing preclinical development vaccine programs against several other targets including influenza, viral pathogens and bacterial pathogens.
They are. Only Buy ratings, 5 to be exact, have been issued in the last three months. See Translate Bio stock analysis on TipRanks Disclaimer: The opinions expressed in this article are solely those of the featured analysts.
The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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