AS DOLLAR POSTS RAISED ON POSITIVE U.S. ECONOMIC GROWTH DATA, ASIAN STOCKS FACE DOWNFALL

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Friday, on the final day of the quarter, investors balanced their positions and Asian shares face downfall. With this, dollar rises up on positive, whereas euro was slow after it faced overnight losses that resulted in slowing down the increase in Europe.

It has been a slow start for European shares and. FCHI, the France’s CAC 40 started with 0.1 % on the day and DAX .GDAXI of Germany was little changed. On the other hand, .HSI, which are Hong Kong’ shares fell by 0.6 %, but they were still ahead by 9.8 % in the quarterly jump, while China is on track with its 4.2 percent quarterly rise.

James Woods, global investment analyst at Rivkin Securities in Sydney said, “Asia saw some pretty healthy profit-taking after a few sessions of solid gains, and as investors await Eurozone and U.S. inflation data tonight.”

In an official survey on Friday, it has been noticed that manufacturing sector of China is beating the expectations and growing at the fastest speed in nearly five years.

This data come after President of U.S. Donald Trump indicated a meeting next week with Chinese President Xi Jinping. In his tweet Trump said, U.S. cannot tolerate massive job losses and trade deficits.

“China does not have a policy to devalue its currency to promote exports, and neither does it seek a trade surplus with the United States,” said Chinese vice Foreign Minister Zheng Zeguang said on Friday.

Trump’s top trade officials said, on Friday, President will sign some executive orders that are causing deficits. Also, he can also clamp down anti-subsidy and anti-dumping duties due to non-payment on imports.

“Looking forward, this is important,” said Gluskie, managing director at White Funds Management in Sydney. “The stability of the Trump administration appears to be critical to markets. As markets have shown over recent weeks, if Trump’s position is undermined by security issues or a reticent right wing Congress, investors are likely to respond negatively.”

The downfall of 0.2 and 0.3 percent was faced by U.S. stock futures ESc1 in Asian trade.

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Alec Robins

For any feedback and suggestions contact author at Alec.Robins@themarketdigest.org

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