· The Dow Rose 60 Points Because Tension With China Over Huawei Seems Like Old Times
U.S. stocks recovered from earlier losses on Friday to finish the day with gains. The Dow Jones Industrial Average edged up 60.08 points, or 0.25%, to close at 23,685.42. The S&P 500 added 11.20 points, or 0.39%, to end at 2863.70, and the Nasdaq Composite finished up 70.84 points, or 0.79%, to close at 9014.56.
Stocks started the day in the red in response to April’s worse-than-expected U.S. retail sales , and a report that the U.S. is attempting to prevent China’s Huawei Technologies from using American technology .
Huawei could be required to obtain a license from the U.S. government to continue receiving certain chips or semiconductor designs from American tech companies.
Hu Xijin, the editor of China’s Global Times wrote in a tweet that China may retaliate by activating an “unreliable entity list” to restrict or investigate U.S. companies such as Qualcomm (ticker: QCOM), Cisco Systems (CSCO), and Apple (AAPL), and by suspending Boeing (BA) airplane purchases. Qualcomm shares tumbled 5.1% on Friday, while Apple and Cisco stocks were affected less, falling 0.6% and rising 1%, respectively.
The latest developments added to fears of renewed U.S.-China tensions . Earlier this week, President Donald Trump threatened to “cut off” the relationship with Beijing and said he wasn’t interested in negotiating with the country right now.
· Dow futures jump 200 points, rebounding from last week’s losses
Futures contracts tied to the major U.S. stock indexes rose at the start of the overnight session Sunday evening as investors pored over comments on the state of the American economy from Federal Reserve Chairman Jerome Powell in light of last week’s market losses.
Dow Jones Industrial Average futures climbed 205 points, implying an opening gain of 0.5%. S&P 500 and Nasdaq futures were also slightly higher and pointed to modest advances of 0.5% and 0.3%, respectively, at Monday’s open.
· European markets close higher as euro area economic data shows coronavirus toll
European markets closed slightly higher on Friday, as investors monitored news about efforts to reopen economies and digested harrowing economic data.
The pan-European Stoxx 600 pared earlier gains to provisionally close up 0.5%. Basic resources led the gains, nearly 3% higher, while retail stocks dropped 0.4%.
· Asia stocks little changed; Fed Chair Powell assesses prospects of U.S. economic recovery
Stocks in Asia were little changed in Monday morning trade as U.S. Federal Reserve Chairman Jerome Powell said the economy stateside may need a coronavirus vaccine to fully recover.
Japan’s Nikkei 225 added 0.13% in early trade while the Topix index gained 0.18%. South Korea’s Kospi, on the other hand, dipped fractionally.
Meanwhile in Australia, the S&P/ASX 200 jumped 1.1%.
Overall, the MSCI Asia ex-Japan index traded 0.08% higher.
Reference: Barrons, CNBC, Reuters
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