Egypt's PM inspects restoration work at Ramses Exchange after fire    Egypt, Pakistan boost healthcare ties – Cabinet    Egyptian pound stable in July 9 morning trading    Egypt's electricity, public enterprises ministers discuss expanding renewables in energy-intensive industries    Escalation in Gaza as ceasefire talks remain fragile amid mounting humanitarian crisis    Egyptian authorities race to contain fallout from fatal telecom fire    UK, Egypt strengthen cooperation on green transition, eco-tourism, and environmental investments    CPME shareholders approve EGP 2.8bn acquisition of Qardy, Catalyst Partners Holding    Philippines' unemployment rate falls in May '25    Egypt, Somalia leaders discuss strategic partnership, counterterrorism in New Alamein    Egypt, UNDP discuss expanded cooperation on medical waste management, human development    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Egypt's PM, Uruguay's president discuss Gaza, trade at BRICS summit    Egypt, Uruguay eager to expand trade across key sectors    Egypt, Norway hold informal talks ahead of global plastic treaty negotiations    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    Global tour for Korean 'K-Comics' launches in Cairo with 'Hellbound' exhibition    Egypt teams up with private sector to boost university rankings    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Egypt condemns deadly terrorist attack in Niger        Egypt's EHA, Schneider Electric sign MoU on sustainable infrastructure    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Egypt's FM inspects Julius Nyerere Dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Asian stocks slip as oil skids; dollar steady
Published in Amwal Al Ghad on 21 - 03 - 2016

Most Asian stock markets slipped on Monday after three consecutive weeks of gains as a retreat in oil prices made investors cautious, but losses were tempered by hopes that China may soon cut interest rates again as pressure on the yuan eases.
In line with a cautious Asian session, European shares were seen opening slightly lower.
The wobbles in the oil market, a general downturn in commodities and cooling growth in China have rattled financial markets in recent months.
Fears about the outlook for global growth were also instrumental in the U.S. Federal Reserve's move last week indicating a slower path for future rate increases.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.2 percent after entering positive territory for the first time this year on Friday. It is up 16 percent from January's lows. Japanese markets were closed for a holiday.
"Despite the current rally in risk, we are more inclined to be broadly bearish on emerging markets given the underlying weakening trend," said Frances Cheung, head of rates strategy, Asia ex-Japan at Societe Generale in Hong Kong.
Stocks in China and Hong Kong rose, but equity markets elsewhere in the region edged lower with Taiwan .TW11 and Australia leading losses.
In the absence of any fresh major economic data in a holiday-shortened week, investors were left to ponder the softer tightening bias from the Fed even as the U.S. economic recovery appeared to be gathering fresh steam.
Dollar bulls were hit hard last week after the Fed's less hawkish stance which cut the projected rate hikes for the rest of the year by half to only two. Financial markets, as seen by money market futures, are barely pricing in one.
Fed Chair Janet Yellen sounded doubtful that a recent firming in U.S. inflation would be sustained, suggesting the central bank is in no hurry to tighten policy.
Some market watchers such as Francis Cheung, China strategist at brokerage CLSA, said the Fed's renewed caution would encourage Beijing to pursue with its own stimulus measures to boost the economy. He expects an interest rate cut in the second quarter.
"We see this rally continuing until the second quarter with property materials, internet and industrials sectors in demand," CLSA's Cheung said pointing to relatively cheap valuations.
On a trailing price-to-earnings basis, the MSCI Asia ex-Japan is trading at 12.3 times, nearly one standard deviation below its 20-year average. At 9.3 times, Hong Kong's stock market .HSI was trading comfortably below one standard deviation to its 20-year average.
China's economy is showing signs of improvement while capital outflows from the country are moderating, top Chinese officials said on Sunday.
Easing outflows and the softer dollar are resulting in less pressure on the yuan currency, which could give the central bank more confidence to cut interest rates and banks' reserve requirements again after largely weak data in January and February, some market watchers say.
However, softer oil prices dampened sentiment.
Oil slipped for a second session, extending Friday's slide of over 1 percent after the U.S rig count rose for the first time since December, renewing worries of a supply glut after an output freeze proposal had helped boost the market to 2016 highs. [O/R]
U.S. West Texas Intermediate (WTI) futures CLc1 fell more than 1 percent to $38.85 per barrel after briefly topping $41, its highest since last December.
Brent crude LCOc1 edged lower to $40.89 per barrel after hitting this year's peak of $42.54 per barrel.
Rate markets also cheered the Fed's cautiousness with 10-year and two-year U.S. yields down by 14 and 16 basis points since the U.S. central bank's meeting last week.
Credit markets basked in the afterglow of the recent rally with an index of high-yield credit (HYG) extending gains to be up 9 percent in roughly a month.
In currencies, the dollar index .DXY was little changed at 95.17, not far from a five-month trough of 94.578 set on Friday.
The greenback fetched 111.48 yen JPY=, still within reach of Friday's 17-month low of 110.67. The euro, which last week scaled a one-month peak of $1.1342, stood at $1.12620 EUR=.
The Australian dollar AUD=D4 consolidated gains after hitting its highest level in nine months last week at 0.7681 per dollar. It was changing hands at 0.7591 on Monday.
Source: Reuters


Clic here to read the story from its source.