Asian stocks pushed higher on Wednesday amid advances in the Sino-US trade saga, while the dollar reached double-month highs on the euro as investors wagered on a dovish result from the forthcoming policy conference of the European Central Bank.
A Bloomberg study assisted the sentiment that US Trade Representative Robert Lighthizer would travel to Shanghai next week for conferences with the Chinese office.
Economic consultant to the White House Larry Kudlow on Tuesday called it a nice sign and said he was expecting Beijing to begin purchasing U.S. agricultural products quickly. Japan’s Nikkei added 0.4 percent in early trade, while Australian stocks increased 0.6 percent. MSCI’s largest Asia-Pacific share index outside Japan earned 0.04 percent.
Not so welcome was news that the U.S. Justice Department opened an antitrust inquiry of significant digital tech companies and possible anti-competitive practices.
The DoJ quoted issues about search, social media, and some internet retail facilities an obvious reference to Alphabet Inc, Amazon.com Inc, and Facebook Inc.
Nasdaq futures dropped 0.45 percent in early Asian trade, while E-Mini futures for the S&P 500 dropped 0.15 percent. The news took off a bit of the gloss from a strong overnight meeting for Wall Street, where upbeat quarterly reports from Coca-Cola and United Technologies helped alleviate some income issues.
Stocks are just a whisker from all-time highs bolstered by worldwide central banks ‘ expectations of a wave of policy stimulus and resulting in a sharp decrease in bond returns. At its conference on Thursday, the ECB is believed likely to give at least a nod to simpler strategy.
Euro Breaks Down
The prospect of large-scale central bank largesse helped take the sting out of the IMF’s recent downgrade to its worldwide development forecasts. While returns moved up to 1,837 percent overnight on two-year treasuries, they stay well below the money level and down 66 basis points for the year so far.