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Investors shrugged off trade tensions and look ahead to the FOMC meeting

Investors are getting more positive, shrugging off trade tensions and looking ahead to the FOMC meeting and another debate on Brexit for directional cues.


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Investors are getting more positive, shrugging off trade tensions and looking ahead to the FOMC meeting and another debate on Brexit for directional cues.

Trade talks between the US and China are likely to begin Wednesday in Washington despite the US government filing criminal charges against Huawei.

The US has filed charges against Huawei and its chief financial Meng Wanzhou. The country’s Justice Department unsealed a number of criminal charges against the technology giant, two of its subsidiaries and a senior executive.

The company has also been charged in a separate case with stealing trade secrets from T-Mobile, according to federal prosecutors.

Prosecutors are seeking to extradite the company’s chief financial officer, Meng Wanzhou, and allege she committed fraud by misleading banks about Huawei’s business dealings in Iran.

Asian markets recap

The main stock indexes in the Asia-Pacific region ended without single direction, against the backdrop of the official accusations that the US has filed against the Chinese technology company Huawei. Meanwhile, the investors continue to worry about the slowdown in Chinese economic growth caused by the trade war with Washington.

On Chinese markets, the continental index Shanghai Composite rose by 0.10% and ended the day at 2,594.25 points. Hong Kong’s benchmark Hang Seng fell by 0.16% to 27,531.68 points. The focus of investors was the news of the official allegations the US made to Huawei, the world’s largest telecoms maker. The US files charges against Chinese tech giant Huawei and its chief financial officer, Meng Wanzhou, of actions that have led to a violation of Washington’s sanctions against Iran by doing business in Tehran via another company.

Shanghai Composite

In Japan, the blue-chip index Nikkei 225 finished with an increase of 0.08% to 20,664.64 points. Shares of the SoftBank Group rose by 1.54%.

South Korean index Kospi also managed to grow 0.28% to 2,183.36 points, supported by Posco’s and SK Telecom’s good performance.

In Australia, S&P ASX 200 declined of 0.53% to 5,874.20 points. The shares of Australia and New Zealand Banking Group and Commonwealth Bank of Australia declined by 2.33% and 1.64%, respectively, while Westpac and National Australia Bank declined by 2.28% and 1.94% respectively.

Investors did not remain indifferent to the negative performance during the last session of the New York Stock Exchange of Nvidia and Caterpillar.

European markets mid-session recap

German stocks recovered after the initial drop at the beginning of the Tuesday trading session, as profit warnings from US multinational companies added to investor worries over slowing global growth. The index DAX 30 is trading with an increase of 0.11% to 11,223.07 points at 10:45 GMT. Automakers BMW and Daimler fell around half a percent while Volkswagen declined more than 1% on concerns over the fate of US-China trade talks after the Trump administration unveiled criminal charges against Huawei. Software giant SAP declined by 1.2% after its fourth-quarter profit after tax, on IFRS basis, dropped by 9% to 1.69 billion EUR. The stocks of the laboratory and pharmaceutical equipment provider Sartorius jumped by nearly 11% after reporting that its fiscal 2018 net profit grew by 21.9% to 175.6 million EUR.

French stocks were moving higher on Tuesday with CAC 40 appreciating by 0.63% to 4,919.35 points at mid-session. Automakers Renault and Peugeot were trading mixed on tariff worries. Luxury goods group LVMH recovered from an early slide to trade half a percent higher ahead of its 2018 results.

CAC 40

British index FTSE 100 jumped strongly at the beginning of the Tuesday trading, appreciating by 1.33% to 6,836.96 points. British American Tobacco jumped nearly 5% and was the biggest blue-chip gainer. However, fund supermarket Hargreaves Lansdown slid near 7% to be the worst faller on the main index after it reported a drop in assets under administration due to market losses.

Wall Street pre-session recap

Wall Street stock index futures pointed to a lower open on Tuesday morning as investors monitored global trade developments and looked ahead to earnings releases from companies like Apple.

As of 6:20 a.m. ET, Dow futures traded 10 points lower, indicating a negative open of 30.22 points. S&P 500 and Nasdaq futures were also in the red, with an expected negative start of -2.75 points and -13.84 points respectively.

In terms of economic data, there will be consumer confidence numbers out at 10 a.m. ET as well as fourth-quarter housing vacancies. The Dallas Fed services numbers will be out at 10.30 a.m. ET.

The Federal Reserve is due to start its two-day meeting Tuesday with a decision on interest rates due Wednesday.