Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Uncategorized

Asia shares stumble on China anxiety; gold and bitcoin rally

Silhouetted figures in front of stock market display.

Published : , on

 

By Rae Wee

SINGAPORE (Reuters) -Asia shares eased on Wednesday on the back of weakness in China, as investors brace for a tightly contested U.S. election that could have huge ramifications for the world’s second-largest economy, even as Beijing steps up efforts to shore up growth.

Gold rose to an all-time high of $2,784.82 an ounce as jitters over the close U.S. presidential race supported the yellow metal. Bitcoin also flirted with a record peak as markets weigh the prospect of a victory by Republican candidate Donald Trump.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell to a one-month trough and last traded 1% lower, tracking a decline in Chinese assets.

The CSI300 blue-chip index slumped 1.3%, while the Shanghai Composite Index lost 1%. Hong Kong’s Hang Seng Index slid 1.82%.

The moves came even as Reuters reported on Tuesday that China is considering approving next week the issuance of more than 10 trillion yuan ($1.4 trillion) in extra debt in the next few years to revive its fragile economy.

China’s latest stimulus package appears underwhelming, with 60% allocated to local government debt relief,” said Saxo’s chief investment strategist Charu Chanana.

“While there’s a stronger focus on supporting the property sector, urgency around broader structural issues – such as debt, deflation, and demographics – remains limited.

“Foreign investors are still highly concerned about potential tariff threats if next week’s U.S. elections result in a Republican sweep.”

China’s new energy vehicles index fell 1.9%, weighed down in part by news that the European Union has decided to increase tariffs on Chinese-built electric vehicles to as much as 45.3%.

Elsewhere, EUROSTOXX 50 futures fell 0.42% and FTSE futures lost 0.45% ahead of a UK budget expected later in the day, where finance minister Rachel Reeves will announce what may be the biggest tax hikes in three decades.

U.S. stock futures ticked higher, buoyed by a solid result from Google-parent Alphabet, which reported quarterly revenue that beat estimates.

Nasdaq futures edged up 0.06%, while S&P 500 futures tacked on 0.07%.

Meta Platforms and Microsoft report their earnings later in the day, followed by Apple and Amazon.com on Thursday. [.N]

In Asia, Japan’s Nikkei rose 0.9%, riding on the momentum of a weaker yen. [.T]

U.S. FOCUS

Bitcoin stood just a whisker away from its peak of $73,803.25 and last bought $72,479.00, on track to gain 13% for the month.

The world’s largest cryptocurrency has been bolstered by trades betting that Trump could be president again, although he is still neck and neck with Vice President Kamala Harris in several polls.

Trump is seen taking a more favourable stance towards digital assets.

“Bitcoin’s strength should persist if the odds for a Republican sweep continue to grow, as a less likely Democratic sweep might meet a generalised sell-off,” said Manuel Villegas, digital assets analyst at Julius Baer.

On the economic front, investors were also bracing for a slew of U.S. data this week that could guide the outlook for Federal Reserve policy.

The ADP National Employment Report is due later in the day alongside advance third quarter GDP estimates, which will come ahead of Friday’s nonfarm payrolls figures.

Data on Tuesday showed U.S. job openings dropped to more than a 3-1/2-year low in September.

“The U.S. data is still important for this week, there’s no doubt about it,” said Khoon Goh, head of Asia research at ANZ.

“We saw the JOLTS data out last night, it showed continued moderation of the labour market … Today we have ADP, Q3 GDP, PCE deflator tomorrow and then payrolls Friday. So that will still be really important, particularly for the long-end yields and the impact on the dollar.”

The dollar strayed not too far from a three-month high against a basket of currencies on Wednesday, though a stall in its recent rally gave sterling some respite above the $1.30 level.

The yen languished near a three-month low as it continued to feel the pressure from the loss of a parliamentary majority for Japan’s ruling coalition in weekend elections.

The Aussie was little changed in the wake of domestic inflation data and last edged 0.26% lower to $0.6543.

In commodities, Brent crude futures ticked up 0.62% to $71.56 a barrel, while U.S. West Texas Intermediate crude futures rose 0.76% to $67.72 per barrel. [O/R]

(Reporting by Rae Wee; Editing by Jacqueline Wong)

 

Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post