All three of Wall Street's main indices popped to fresh records on Friday, ending the week on an emphatic note as investors grew increasingly confident the <a href="https://www.wionews.com/business-economy/dow-ends-above-27000-points-for-first-time-sp-500-hits-record-on-federal-reserve-rate-cut-optimism-235154">Federal Reserve will cut </a>interest rates at the end of the month.

In congressional testimony this week, Federal Reserve Chairman Jerome Powell told lawmakers "crosscurrents" increased risks to the US economic outlook -- strongly suggesting a rate cut was in the cards at the Fed's next policy meeting in less than three weeks.

The broad-based S&amp;P 500 closed above the 3,000-mark for the first time ever.

Jack Ablin of Cresset Wealth Advisors said investors also were encouraged by the outlook for what could be better-than-expected corporate revenue.

However, with corporate earnings season set to begin in earnest, S&amp;P 500 companies are forecast to see weaker profit growth compared to last year, according to FactSet. It would be the second consecutive quarter of slowing profit, something that has not happened in three years.

"But the next question we expect is,&nbsp;where do we go from there?" he said.

"The market needs to feed on something. The appetite of the market for low rates is insatiable. The question now is can they shift their attention to earnings."

While the positive sentiment initially filtered through to Asia and Europe on Friday, the momentum petered out in late European trading.

Meanwhile, China's economy grew at its slowest rate in nearly three decades in the second quarter, hit by the US-China trade war and weakening global demand, according to an AFP survey of analysts.

The world's second-largest economy likely expanded 6.2 per cent in April-June, according to the poll of 10 economists ahead of the official gross domestic product report Monday.

Oil prices rise

Elsewhere, geopolitical tensions rose after armed Iranian boats threatened a British oil tanker earlier in the week provided support for oil prices, although gains were limited by longer-term oversupply concerns.

Iran's menacing of the BP supertanker on Wednesday appeared to be in retaliation for Britain's seizure of the Iranian Grace 1 tanker off Gibraltar on July 4.

"With Iran seeking retribution for the UK's actions around Gibraltar, there is a distinct possibility that we could see an upside shock to prices," said IG trading group analyst Joshua Mahony.&nbsp;

Britain said it will send a second warship to the Gulf, while the Pentagon said it was discussing military escorts for vessels in the Gulf.

But the rises in oil prices as a result of the incident have been capped by an oversupplied oil market, according to traders.

And the IEA on Friday said the recent decision by oil-producing countries to prolong cuts in output will not fundamentally change the outlook for the market.&nbsp;

All three of Wall Street's main indices popped to fresh records on Friday, ending the week on an emphatic note as investors grew increasingly confident the Federal Reserve will cut interest rates at the end of the month.

All three of Wall Street's main indices popped to fresh records on Friday, ending the week on an emphatic note as investors grew increasingly confident the Federal Reserve will cut interest rates at the end of the month. In congressional testimony this week, Federal Reserve Chairman Jerome Powell told lawmakers "crosscurrents" increased risks to the US economic outlook -- strongly suggesting a rate cut was in the cards at the Fed's next policy meeting in less than three weeks. The broad-based S&P 500 closed above the 3,000-mark for the first time ever. Jack Ablin of Cresset Wealth Advisors said investors also were encouraged by the outlook for what could be better-than-expected corporate revenue. However, with corporate earnings season set to begin in earnest, S&P 500 companies are forecast to see weaker profit growth compared to last year, according to FactSet. It would be the second consecutive quarter of slowing profit, something that has not happened in three years. "But the next question we expect is, where do we go from there?" he said. "The market needs to feed on something. The appetite of the market for low rates is insatiable. The question now is can they shift their attention to earnings." While the positive sentiment initially filtered through to Asia and Europe on Friday, the momentum petered out in late European trading. Meanwhile, China's economy grew at its slowest rate in nearly three decades in the second quarter, hit by the US-China trade war and weakening global demand, according to an AFP survey of analysts. The world's second-largest economy likely expanded 6.2 per cent in April-June, according to the poll of 10 economists ahead of the official gross domestic product report Monday. Oil prices rise Elsewhere, geopolitical tensions rose after armed Iranian boats threatened a British oil tanker earlier in the week provided support for oil prices, although gains were limited by longer-term oversupply concerns. Iran's menacing of the BP supertanker on Wednesday appeared to be in retaliation for Britain's seizure of the Iranian Grace 1 tanker off Gibraltar on July 4. "With Iran seeking retribution for the UK's actions around Gibraltar, there is a distinct possibility that we could see an upside shock to prices," said IG trading group analyst Joshua Mahony. Britain said it will send a second warship to the Gulf, while the Pentagon said it was discussing military escorts for vessels in the Gulf. But the rises in oil prices as a result of the incident have been capped by an oversupplied oil market, according to traders. And the IEA on Friday said the recent decision by oil-producing countries to prolong cuts in output will not fundamentally change the outlook for the market.

Wall Street notches all-time highs as rate cut hopes lift investor spirits

Wall Street stocks set new records Thursday for a second straight session, with the Dow finishing above 27,000 points -- a first -- over an expected Federal Reserve interest rate cut later this month.

The latest new landmark, which was accompanied by a fresh record for the <a href="https://www.wionews.com/world/sp-500-hits-3000-for-the-first-time-as-fed-signals-possible-rate-cut-234770">S&amp;P 500</a>, came as Fed Chair Jerome Powell completed the second day of congressional testimony at which he emphasised economic risks in remarks that were widely interpreted as signalling a likely interest rate cut.&nbsp;

The new high drew a cheer from US President Donald Trump, who has repeatedly <a href="https://www.wionews.com/world/trump-bashes-stubborn-child-federal-reserve-as-economy-shows-signs-of-weakness-230162">criticised Powell on monetary policy</a>. Trump extolled the latest new peak on Twitter, saying "Dow just hit 27,000 for the first time EVER!" &nbsp;

The <a href="https://www.wionews.com/business-economy/nasdaq-ends-at-record-high-dollar-falls-as-us-fed-signals-possible-rate-cut-234814">Nasdaq, which had closed at a record</a> following Powell's testimony on Wednesday, pulled back slightly.&nbsp;

It was joined lower by European bourses, which were pressured by stronger currencies after Powell's remarks weighed on the dollar.&nbsp;

"It's safe to say that investors were pleased with Jerome Powell's first day of testimony on Wednesday, with equity markets jumping on his dovish assessment," said Oanda analyst Craig Erlam.

"The Fed Chairman doesn't typically provide strong and direct messages on policy direction, which makes predicting future rate movements all the more difficult. But Wednesday's message was clear, the data is softening -- particularly on the inflation side -- and downside risks are significant," Erlam said.

Fresh trade discord

But Thursday's records came amid fresh signs of trade policy discord that have troubled investors over the last year.

Trump, also on Twitter, accused China Beijing of backsliding on a recent pledge to buy more US farm exports. "Hopefully they will start soon!"&nbsp;

Trump's latest tweet on China "means we are not closer to a deal with China," said Art Hogan, chief market strategist at National Securities.

There were also fresh signs of tension between the US and Europe.

On Wednesday, officials said US President Donald Trump had ordered an investigation into France's planned tax on internet services. The French parliament passed the tax anyway on Thursday, making Google, Apple, Facebook and Amazon principal targets of the higher taxes.

Among individual companies, Delta Air Lines climbed 1.2 percent as it reported a nearly 40 per cent surge in second-quarter profits to $1.4 billion on strong flying demand.

The company also benefited from its lack of exposure to the Boeing 737 MAX, which has been grounded following two crashes. Delta does not own any of planes.

Wall Street stocks set new records Thursday for a second straight session, with the Dow finishing above 27,000 points -- a first -- over an expected Federal Reserve interest rate cut later this month.

Wall Street stocks set new records Thursday for a second straight session, with the Dow finishing above 27,000 points -- a first -- over an expected Federal Reserve interest rate cut later this month. The latest new landmark, which was accompanied by a fresh record for the S&P 500, came as Fed Chair Jerome Powell completed the second day of congressional testimony at which he emphasised economic risks in remarks that were widely interpreted as signalling a likely interest rate cut. The new high drew a cheer from US President Donald Trump, who has repeatedly criticised Powell on monetary policy. Trump extolled the latest new peak on Twitter, saying "Dow just hit 27,000 for the first time EVER!" The Nasdaq, which had closed at a record following Powell's testimony on Wednesday, pulled back slightly. It was joined lower by European bourses, which were pressured by stronger currencies after Powell's remarks weighed on the dollar. "It's safe to say that investors were pleased with Jerome Powell's first day of testimony on Wednesday, with equity markets jumping on his dovish assessment," said Oanda analyst Craig Erlam. "The Fed Chairman doesn't typically provide strong and direct messages on policy direction, which makes predicting future rate movements all the more difficult. But Wednesday's message was clear, the data is softening -- particularly on the inflation side -- and downside risks are significant," Erlam said. Fresh trade discord But Thursday's records came amid fresh signs of trade policy discord that have troubled investors over the last year. Trump, also on Twitter, accused China Beijing of backsliding on a recent pledge to buy more US farm exports. "Hopefully they will start soon!" Trump's latest tweet on China "means we are not closer to a deal with China," said Art Hogan, chief market strategist at National Securities. There were also fresh signs of tension between the US and Europe. On Wednesday, officials said US President Donald Trump had ordered an investigation into France's planned tax on internet services. The French parliament passed the tax anyway on Thursday, making Google, Apple, Facebook and Amazon principal targets of the higher taxes. Among individual companies, Delta Air Lines climbed 1.2 percent as it reported a nearly 40 per cent surge in second-quarter profits to $1.4 billion on strong flying demand. The company also benefited from its lack of exposure to the Boeing 737 MAX, which has been grounded following two crashes. Delta does not own any of planes.

Dow ends above 27,000 points for first time, S&P 500 hits record on Federal Reserve rate cut optimism

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July.

Those views were bolstered after solid gains in US jobs for June and pushed down Wall Street for the second straight day.

MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1% in early trade, after falling 0.6% the previous day. Japan's Nikkei rose 0.5% thanks in part to the yen's retreat against the dollar.

On Wall Street, the S&amp;P 500 lost 0.48% while the Nasdaq Composite dropped 0.78%, led by fall in Apple Inc.

Money market futures are still fully pricing in a 25 basis point cut at the Fed's next policy meeting on July 30-31, but have almost priced out a larger 50 basis point reduction.

"The headline payrolls figures was pretty strong but wages were tepid, so, on the whole, a 25 basis-point cut would be justified as a pre-emptive move and I think the current market pricing is fair," said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management.

Investors' focus is shifting to Fed Chairman Jerome Powell's testimony before Congress later in the week for clues on monetary policy.

In the currency market, fading expectations of aggressive easing by the Fed helped the dollar.

The euro traded at $1.1215, near Monday's low of $1.1207, its weakest level since June 19.

The dollar changed hands at 108.75 yen, having risen up to 108.81 yen in the previous session, its highest in more than a month.

The British pound stood at 1.2518, not far from six-month lows of $1.2481 touched on Friday.

Oil prices were slightly softer as concerns about whether slowing global economic growth would hit oil demand eclipsed tensions over Iran's nuclear programme.

Brent crude futures fell 23 cents, or 0.36% to settle at $63.88 a barrel. US West Texas Intermediate (WTI) crude futures shed 19 cents, or 0.33% to settle at $57.47 a barrel.

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July.

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July. Those views were bolstered after solid gains in US jobs for June and pushed down Wall Street for the second straight day. MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1% in early trade, after falling 0.6% the previous day. Japan's Nikkei rose 0.5% thanks in part to the yen's retreat against the dollar. On Wall Street, the S&P 500 lost 0.48% while the Nasdaq Composite dropped 0.78%, led by fall in Apple Inc. Money market futures are still fully pricing in a 25 basis point cut at the Fed's next policy meeting on July 30-31, but have almost priced out a larger 50 basis point reduction. "The headline payrolls figures was pretty strong but wages were tepid, so, on the whole, a 25 basis-point cut would be justified as a pre-emptive move and I think the current market pricing is fair," said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management. Investors' focus is shifting to Fed Chairman Jerome Powell's testimony before Congress later in the week for clues on monetary policy. In the currency market, fading expectations of aggressive easing by the Fed helped the dollar. The euro traded at $1.1215, near Monday's low of $1.1207, its weakest level since June 19. The dollar changed hands at 108.75 yen, having risen up to 108.81 yen in the previous session, its highest in more than a month. The British pound stood at 1.2518, not far from six-month lows of $1.2481 touched on Friday. Oil prices were slightly softer as concerns about whether slowing global economic growth would hit oil demand eclipsed tensions over Iran's nuclear programme. Brent crude futures fell 23 cents, or 0.36% to settle at $63.88 a barrel. US West Texas Intermediate (WTI) crude futures shed 19 cents, or 0.33% to settle at $57.47 a barrel.

Asian stocks hobbled by fading expectations for aggressive Fed rate cut

World stocks fell for a third straight day on Tuesday, as a stinging warning came from German chemicals giant BASF about the effects of the global trade war and traders hedged bets on a hefty US interest rate cut later this month.

With global macroeconomic clouds looming and critical policy signals due from <a href="https://www.wionews.com/world/herman-cain-withdraws-from-consideration-for-federal-reserve-board-seat-donald-trump-212699">US Federal Reserve</a> chief Jerome Powell on Wednesday, the headlines and mood focused on three individual stocks.

Shares in BASF slumped almost 6 per cent in Europe after the German chemicals giant issued what one trader described as a "shocking" profit warning, blaming a global slowdown and trade war between the United States and China.

<a href="https://www.wionews.com/business-economy/deutsche-bank-to-cut-18000-jobs-in-74-billion-euro-overhaul-233820">Deutsche Bank</a> tumbled 4 per cent - having already dropped 5.4 per cent the previous day after it axed 18,000 staff - while Apple's overnight drop of more than 2 per cent on Wall Street after a broker downgrade dragged the tech sector lower.

"Both from a bottom-up and top-down perspective, equity market valuations appear far too ambitious," analysts at Morgan Stanley wrote in a note.

It was particularly stark, they said, as the US business cycle was in a downturn and both forward-looking indicators like global PMIs and global trade are now in contraction territory.

"Indeed, companies have begun cutting their 2019 profit forecasts, citing the trade conflict as a reason."

In the currency markets, the big question remained the potential reaction to the weaker outlook from the world's top central banks.

US Fed chairman Powell gives testimony before Congress on Wednesday. Money market futures are still fully pricing in a 25 basis point (bps) cut at the Fed's July 30-31 meeting, but have almost priced out a larger 50 bps move that had been seen as a real possibility a couple of weeks ago.

The dollar changed hands at 108.78 yen, having risen in the previous session to its highest in more than a month.

The dollar index versus a basket of six major currencies was also a touch higher at 97.432, while the euro dropped as low as 1.1204, its weakest level since mid-June.

"It would be pretty disruptive at this stage for Powell to rule out a cut in July or dampen expectations of a cut in July," said Michael Metcalfe, head of global macro strategy at State Street Global Markets.

"The last few Fed speakers, albeit non-voting speakers, have suggested July is not a done deal... and even now, if you look at economists' forecasts, there is not a consensus that there will be a move, and yet the market is 100 per cent priced."

World stocks fell for a third straight day on Tuesday, as a stinging warning came from German chemicals giant BASF about the effects of the global trade war and traders hedged bets on a hefty US interest rate cut later this month.

With global macroeconomic clouds looming and critical policy signals due from US Federal Reserve chief Jerome Powell on Wednesday, the headlines and mood focused on three individual stocks.

Shares in BASF slumped almost 6 per cent in Europe after the German chemicals giant issued what one trader described as a "shocking" profit warning, blaming a global slowdown and trade war between the United States and China.

Deutsche Bank tumbled 4 per cent - having already dropped 5.4 per cent the previous day after it axed 18,000 staff - while Apple's overnight drop of more than 2 per cent on Wall Street after a broker downgrade dragged the tech sector lower.

"Both from a bottom-up and top-down perspective, equity market valuations appear far too ambitious," analysts at Morgan Stanley wrote in a note.

It was particularly stark, they said, as the US business cycle was in a downturn and both forward-looking indicators like global PMIs and global trade are now in contraction territory.

"Indeed, companies have begun cutting their 2019 profit forecasts, citing the trade conflict as a reason."

In the currency markets, the big question remained the potential reaction to the weaker outlook from the world's top central banks.

US Fed chairman Powell gives testimony before Congress on Wednesday. Money market futures are still fully pricing in a 25 basis point (bps) cut at the Fed's July 30-31 meeting, but have almost priced out a larger 50 bps move that had been seen as a real possibility a couple of weeks ago.

The dollar changed hands at 108.78 yen, having risen in the previous session to its highest in more than a month.

The dollar index versus a basket of six major currencies was also a touch higher at 97.432, while the euro dropped as low as 1.1204, its weakest level since mid-June.

"It would be pretty disruptive at this stage for Powell to rule out a cut in July or dampen expectations of a cut in July," said Michael Metcalfe, head of global macro strategy at State Street Global Markets.

"The last few Fed speakers, albeit non-voting speakers, have suggested July is not a done deal... and even now, if you look at economists' forecasts, there is not a consensus that there will be a move, and yet the market is 100 per cent priced."

Brexit Factor

Elsewhere, the pound stood at 1.2485, not far from six-month lows of $1.2481 touched on Friday. Britain's parliament will weigh an amendment later aimed at ensuring it cannot be sidestepped if the next UK prime minister wants to pursue a no-deal Brexit divorce from the European Union.

Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.4 per cent but pared earlier losses, having traded at its lowest level since June 19.

Chinese blue-chips ended down 0.3 per cent, while Hong Kong's Hang Seng fell by 0.7 per cent. Japan's Nikkei was the only outlier as gains in a few heavyweights in the index helped it edge up 0.1 per cent.

Apple's suppliers, such as Murata Manufacturing and Taiyo Yuden, fell 2 per cent and 4 per cent, however, after Rosenblatt Securities cited a "fundamental deterioration" for the US gadget giant over the next 6-12 months.

In Greater China, suppliers from Hon Hai to AAC Tech also lost between 1.4 per cent and 3.1 per cent and in Europe Infineon, ASM and STMicroelectronics slipped about 2 per cent.

Among commodities, oil prices were slightly softer as concerns about whether slowing global growth would hit demand eclipsed tensions over Iran's nuclear programme.

Brent crude futures fell 0.2 per cent to $64.01 a barrel. US West Texas Intermediate (WTI) crude futures shed 0.4 per cent to $57.46.

Gold prices also ticked lower, as the dollar scaled its multi-week highs. Spot gold was down 0.2 per cent at $1,393.03 per ounce and US gold futures fell 0.3 per cent to $1,395.70 an ounce.

Wall Street futures were 0.4 per cent to 0.6 percent lower.

Elsewhere, the pound stood at 1.2485, not far from six-month lows of $1.2481 touched on Friday. Britain's parliament will weigh an amendment later aimed at ensuring it cannot be sidestepped if the next UK prime minister wants to pursue a no-deal Brexit divorce from the European Union.

Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.4 per cent but pared earlier losses, having traded at its lowest level since June 19.

Chinese blue-chips ended down 0.3 per cent, while Hong Kong's Hang Seng fell by 0.7 per cent. Japan's Nikkei was the only outlier as gains in a few heavyweights in the index helped it edge up 0.1 per cent.

Apple's suppliers, such as Murata Manufacturing and Taiyo Yuden, fell 2 per cent and 4 per cent, however, after Rosenblatt Securities cited a "fundamental deterioration" for the US gadget giant over the next 6-12 months.

In Greater China, suppliers from Hon Hai to AAC Tech also lost between 1.4 per cent and 3.1 per cent and in Europe Infineon, ASM and STMicroelectronics slipped about 2 per cent.

Among commodities, oil prices were slightly softer as concerns about whether slowing global growth would hit demand eclipsed tensions over Iran's nuclear programme.

Brent crude futures fell 0.2 per cent to $64.01 a barrel. US West Texas Intermediate (WTI) crude futures shed 0.4 per cent to $57.46.

Gold prices also ticked lower, as the dollar scaled its multi-week highs. Spot gold was down 0.2 per cent at $1,393.03 per ounce and US gold futures fell 0.3 per cent to $1,395.70 an ounce.

Wall Street futures were 0.4 per cent to 0.6 percent lower.

World stocks fell for a third straight day on Tuesday, as a stinging warning came from German chemicals giant BASF about the effects of the global trade war and traders hedged bets on a hefty US interest rate cut later this month.

World stocks fell for a third straight day on Tuesday, as a stinging warning came from German chemicals giant BASF about the effects of the global trade war and traders hedged bets on a hefty US interest rate cut later this month. With global macroeconomic clouds looming and critical policy signals due from US Federal Reserve chief Jerome Powell on Wednesday, the headlines and mood focused on three individual stocks. Shares in BASF slumped almost 6 per cent in Europe after the German chemicals giant issued what one trader described as a "shocking" profit warning, blaming a global slowdown and trade war between the United States and China. Deutsche Bank tumbled 4 per cent - having already dropped 5.4 per cent the previous day after it axed 18,000 staff - while Apple's overnight drop of more than 2 per cent on Wall Street after a broker downgrade dragged the tech sector lower. "Both from a bottom-up and top-down perspective, equity market valuations appear far too ambitious," analysts at Morgan Stanley wrote in a note. It was particularly stark, they said, as the US business cycle was in a downturn and both forward-looking indicators like global PMIs and global trade are now in contraction territory. "Indeed, companies have begun cutting their 2019 profit forecasts, citing the trade conflict as a reason." In the currency markets, the big question remained the potential reaction to the weaker outlook from the world's top central banks. US Fed chairman Powell gives testimony before Congress on Wednesday. Money market futures are still fully pricing in a 25 basis point (bps) cut at the Fed's July 30-31 meeting, but have almost priced out a larger 50 bps move that had been seen as a real possibility a couple of weeks ago. The dollar changed hands at 108.78 yen, having risen in the previous session to its highest in more than a month. The dollar index versus a basket of six major currencies was also a touch higher at 97.432, while the euro dropped as low as 1.1204, its weakest level since mid-June. "It would be pretty disruptive at this stage for Powell to rule out a cut in July or dampen expectations of a cut in July," said Michael Metcalfe, head of global macro strategy at State Street Global Markets. "The last few Fed speakers, albeit non-voting speakers, have suggested July is not a done deal... and even now, if you look at economists' forecasts, there is not a consensus that there will be a move, and yet the market is 100 per cent priced." World stocks fell for a third straight day on Tuesday, as a stinging warning came from German chemicals giant BASF about the effects of the global trade war and traders hedged bets on a hefty US interest rate cut later this month. With global macroeconomic clouds looming and critical policy signals due from US Federal Reserve chief Jerome Powell on Wednesday, the headlines and mood focused on three individual stocks. Shares in BASF slumped almost 6 per cent in Europe after the German chemicals giant issued what one trader described as a "shocking" profit warning, blaming a global slowdown and trade war between the United States and China. Deutsche Bank tumbled 4 per cent - having already dropped 5.4 per cent the previous day after it axed 18,000 staff - while Apple's overnight drop of more than 2 per cent on Wall Street after a broker downgrade dragged the tech sector lower. "Both from a bottom-up and top-down perspective, equity market valuations appear far too ambitious," analysts at Morgan Stanley wrote in a note. It was particularly stark, they said, as the US business cycle was in a downturn and both forward-looking indicators like global PMIs and global trade are now in contraction territory. "Indeed, companies have begun cutting their 2019 profit forecasts, citing the trade conflict as a reason." In the currency markets, the big question remained the potential reaction to the weaker outlook from the world's top central banks. US Fed chairman Powell gives testimony before Congress on Wednesday. Money market futures are still fully pricing in a 25 basis point (bps) cut at the Fed's July 30-31 meeting, but have almost priced out a larger 50 bps move that had been seen as a real possibility a couple of weeks ago. The dollar changed hands at 108.78 yen, having risen in the previous session to its highest in more than a month. The dollar index versus a basket of six major currencies was also a touch higher at 97.432, while the euro dropped as low as 1.1204, its weakest level since mid-June. "It would be pretty disruptive at this stage for Powell to rule out a cut in July or dampen expectations of a cut in July," said Michael Metcalfe, head of global macro strategy at State Street Global Markets. "The last few Fed speakers, albeit non-voting speakers, have suggested July is not a done deal... and even now, if you look at economists' forecasts, there is not a consensus that there will be a move, and yet the market is 100 per cent priced." Brexit Factor Elsewhere, the pound stood at 1.2485, not far from six-month lows of $1.2481 touched on Friday. Britain's parliament will weigh an amendment later aimed at ensuring it cannot be sidestepped if the next UK prime minister wants to pursue a no-deal Brexit divorce from the European Union. Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.4 per cent but pared earlier losses, having traded at its lowest level since June 19. Chinese blue-chips ended down 0.3 per cent, while Hong Kong's Hang Seng fell by 0.7 per cent. Japan's Nikkei was the only outlier as gains in a few heavyweights in the index helped it edge up 0.1 per cent. Apple's suppliers, such as Murata Manufacturing and Taiyo Yuden, fell 2 per cent and 4 per cent, however, after Rosenblatt Securities cited a "fundamental deterioration" for the US gadget giant over the next 6-12 months. In Greater China, suppliers from Hon Hai to AAC Tech also lost between 1.4 per cent and 3.1 per cent and in Europe Infineon, ASM and STMicroelectronics slipped about 2 per cent. Among commodities, oil prices were slightly softer as concerns about whether slowing global growth would hit demand eclipsed tensions over Iran's nuclear programme. Brent crude futures fell 0.2 per cent to $64.01 a barrel. US West Texas Intermediate (WTI) crude futures shed 0.4 per cent to $57.46. Gold prices also ticked lower, as the dollar scaled its multi-week highs. Spot gold was down 0.2 per cent at $1,393.03 per ounce and US gold futures fell 0.3 per cent to $1,395.70 an ounce. Wall Street futures were 0.4 per cent to 0.6 percent lower. Elsewhere, the pound stood at 1.2485, not far from six-month lows of $1.2481 touched on Friday. Britain's parliament will weigh an amendment later aimed at ensuring it cannot be sidestepped if the next UK prime minister wants to pursue a no-deal Brexit divorce from the European Union. Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.4 per cent but pared earlier losses, having traded at its lowest level since June 19. Chinese blue-chips ended down 0.3 per cent, while Hong Kong's Hang Seng fell by 0.7 per cent. Japan's Nikkei was the only outlier as gains in a few heavyweights in the index helped it edge up 0.1 per cent. Apple's suppliers, such as Murata Manufacturing and Taiyo Yuden, fell 2 per cent and 4 per cent, however, after Rosenblatt Securities cited a "fundamental deterioration" for the US gadget giant over the next 6-12 months. In Greater China, suppliers from Hon Hai to AAC Tech also lost between 1.4 per cent and 3.1 per cent and in Europe Infineon, ASM and STMicroelectronics slipped about 2 per cent. Among commodities, oil prices were slightly softer as concerns about whether slowing global growth would hit demand eclipsed tensions over Iran's nuclear programme. Brent crude futures fell 0.2 per cent to $64.01 a barrel. US West Texas Intermediate (WTI) crude futures shed 0.4 per cent to $57.46. Gold prices also ticked lower, as the dollar scaled its multi-week highs. Spot gold was down 0.2 per cent at $1,393.03 per ounce and US gold futures fell 0.3 per cent to $1,395.70 an ounce. Wall Street futures were 0.4 per cent to 0.6 percent lower.

World stocks drop for third day, BASF warning stings Europe

&nbsp;Global stocks were in a muted mood on Monday after strong US job gains tempered expectations the Federal Reserve will deliver a large rate cut, while <a href="https://www.wionews.com/world/deutsche-bank-says-to-slash-18000-jobs-by-2022-233897">Deutsche Bank </a>shares turned negative as it launched a major restructuring.

The sentiment was also dampened by US investment bank Morgan Stanley's decision to reduce its exposure to global equities due to misgivings about the ability of policy easing to offset weaker economic data.

In Turkey, the lira, stocks and government dollar bonds weakened after President Tayyip Erdogan dismissed the central bank governor, a move that fuelled worries about monetary policy independence.

After earlier touching their highest level since early May, Deutsche Bank shares slumped 3.3% as investor enthusiasm fizzled out for the bank's move to cut 18,000 jobs around the world as part of a restructuring plan that will cost 7.4 billion euros.

European stocks moved little, with the pan-European STOXX 600 index adding 0.04%.

Among top movers on the STOXX 600 were TGS Nopec, up 6.7% on a well-received earnings update.

US futures pointed to a lower opening for Wall Street, with E-Minis for the S&amp;P500 at -0.2%.

In Asia, there was a wide sell-off in stocks, with MSCI's broadest index of Asia-Pacific shares outside Japan losing 1.4% and China's blue-chip CSI300 index down 2.32%, its biggest daily loss since May 17.

"We are lowering our exposure to global equities to the range we consider 'underweight'," Morgan Stanley's London-based strategist Andrew Sheets said in a note. The previous range was "neutral".

Expensive valuations and pressure on earnings were among the reasons for the downgrade, Sheets said, while the bank increased its exposure to emerging markets sovereign credit and safe haven <a href="https://www.wionews.com/business-economy/asian-shares-fall-as-bets-off-on-sharp-us-rate-cuts-233889">Japanese government bonds</a>.

Since the start of the year, global equities have generally been bolstered by expectations that central banks will keep interesting rates at or near record lows to boost economic growth.

Those expectations were tempered by a US labour report on Friday that showed nonfarm payrolls jumped 224,000 in June, beating forecasts for 160,000, in a sign the world's largest economy still had some fire.

Given the strength shown in that data, investors now expect US Federal Reserve Chairman Jerome Powell to go slow on rate cuts this year.

"The re-adjustment in expectations did push the dollar higher and had a negative effect on Asia but Europe has been supported by investors saying 'whatever the Fed does, the ECB (European Central Bank) will still cut'," said Andrew Milligan, head of global strategy at Aberdeen Standard Investments.

Trading is expected to be subdued ahead of Powell's semi-annual testimony to the US Congress on Wednesday, which will provide further clues on the near-term outlook for monetary policy.

The Greek stock index rallied at the open to hit a new February 2015 high before erasing gains and slipping 1.3% as traders booked profits after Greece's opposition conservatives returned to power with a landslide victory in snap elections on Sunday.

Greek 10-year bond yields fell by 14 basis points in early trade to hit new all-time lows of 2.016%, reversing the 12 basis point yield rise on Friday.

Currencies and geopolitics

There was some positive news on the protracted China-US trade war, with White House Economic adviser Larry Kudlow confirming that top representatives from the United States and China will meet in the coming week for trade talks.

"Whether the negotiators can find a solution to the difficult structural issues that remain between the two sides is another matter, and Kudlow cautioned there was 'no timeline' to reach an agreement," National Australia Bank strategist Rodrigo Catril said.

In currency markets, the action was in the Turkish lira which weakened as much as 2% against the dollar after Turkey's central bank governor Murat Cetinkaya, whose four-year term was due to run until 2020, was replaced by his deputy Murat Uysal.

Erdogan sacked Cetinkaya for refusing the government's repeated demands for rate cuts, laying bare differences between them over the timing of interest rate cuts to revive the recession-hit economy.

The dollar index stood at 97.233, down marginally on the day but near the 3-week high of 97.443 hits on Friday.

The euro, which dropped to $1.1208 on Friday, traded at $1.1225, unchanged on the day.

After hitting a six-month low to the dollar on Friday as a result of poor economic data and a rise in expectations that the Bank of England will cut interest rates, the British pound edged down to $1.2530.

Geopolitics may be in focus this week following news on Sunday that Iran will boost its uranium enrichment, in breach of a cap set by a landmark 2015 nuclear deal.

"So far US.-Iran tensions have not had a material impact on markets, but if tensions escalate it could be a different story," said NAB's Catril.

In commodity markets, oil prices edged down with Brent crude futures down 0.09% to $64.18. USA West Texas Intermediate (WTI) was 0.12% down at $57.44 a barrel.

Spot gold gained 0.4% to $1,404.48 an ounce.

Global stocks were in a muted mood on Monday after strong US job gains tempered expectations the Federal Reserve will deliver a large rate cut, while Deutsche Bank shares turned negative as it launched a major restructuring.

Global stocks were in a muted mood on Monday after strong US job gains tempered expectations the Federal Reserve will deliver a large rate cut, while Deutsche Bank shares turned negative as it launched a major restructuring. The sentiment was also dampened by US investment bank Morgan Stanley's decision to reduce its exposure to global equities due to misgivings about the ability of policy easing to offset weaker economic data. In Turkey, the lira, stocks and government dollar bonds weakened after President Tayyip Erdogan dismissed the central bank governor, a move that fuelled worries about monetary policy independence. After earlier touching their highest level since early May, Deutsche Bank shares slumped 3.3% as investor enthusiasm fizzled out for the bank's move to cut 18,000 jobs around the world as part of a restructuring plan that will cost 7.4 billion euros. European stocks moved little, with the pan-European STOXX 600 index adding 0.04%. Among top movers on the STOXX 600 were TGS Nopec, up 6.7% on a well-received earnings update. US futures pointed to a lower opening for Wall Street, with E-Minis for the S&P500 at -0.2%. In Asia, there was a wide sell-off in stocks, with MSCI's broadest index of Asia-Pacific shares outside Japan losing 1.4% and China's blue-chip CSI300 index down 2.32%, its biggest daily loss since May 17. "We are lowering our exposure to global equities to the range we consider 'underweight'," Morgan Stanley's London-based strategist Andrew Sheets said in a note. The previous range was "neutral". Expensive valuations and pressure on earnings were among the reasons for the downgrade, Sheets said, while the bank increased its exposure to emerging markets sovereign credit and safe haven Japanese government bonds. Since the start of the year, global equities have generally been bolstered by expectations that central banks will keep interesting rates at or near record lows to boost economic growth. Those expectations were tempered by a US labour report on Friday that showed nonfarm payrolls jumped 224,000 in June, beating forecasts for 160,000, in a sign the world's largest economy still had some fire. Given the strength shown in that data, investors now expect US Federal Reserve Chairman Jerome Powell to go slow on rate cuts this year. "The re-adjustment in expectations did push the dollar higher and had a negative effect on Asia but Europe has been supported by investors saying 'whatever the Fed does, the ECB (European Central Bank) will still cut'," said Andrew Milligan, head of global strategy at Aberdeen Standard Investments. Trading is expected to be subdued ahead of Powell's semi-annual testimony to the US Congress on Wednesday, which will provide further clues on the near-term outlook for monetary policy. The Greek stock index rallied at the open to hit a new February 2015 high before erasing gains and slipping 1.3% as traders booked profits after Greece's opposition conservatives returned to power with a landslide victory in snap elections on Sunday. Greek 10-year bond yields fell by 14 basis points in early trade to hit new all-time lows of 2.016%, reversing the 12 basis point yield rise on Friday. Currencies and geopolitics There was some positive news on the protracted China-US trade war, with White House Economic adviser Larry Kudlow confirming that top representatives from the United States and China will meet in the coming week for trade talks. "Whether the negotiators can find a solution to the difficult structural issues that remain between the two sides is another matter, and Kudlow cautioned there was 'no timeline' to reach an agreement," National Australia Bank strategist Rodrigo Catril said. In currency markets, the action was in the Turkish lira which weakened as much as 2% against the dollar after Turkey's central bank governor Murat Cetinkaya, whose four-year term was due to run until 2020, was replaced by his deputy Murat Uysal. Erdogan sacked Cetinkaya for refusing the government's repeated demands for rate cuts, laying bare differences between them over the timing of interest rate cuts to revive the recession-hit economy. The dollar index stood at 97.233, down marginally on the day but near the 3-week high of 97.443 hits on Friday. The euro, which dropped to $1.1208 on Friday, traded at $1.1225, unchanged on the day. After hitting a six-month low to the dollar on Friday as a result of poor economic data and a rise in expectations that the Bank of England will cut interest rates, the British pound edged down to $1.2530. Geopolitics may be in focus this week following news on Sunday that Iran will boost its uranium enrichment, in breach of a cap set by a landmark 2015 nuclear deal. "So far US.-Iran tensions have not had a material impact on markets, but if tensions escalate it could be a different story," said NAB's Catril. In commodity markets, oil prices edged down with Brent crude futures down 0.09% to $64.18. USA West Texas Intermediate (WTI) was 0.12% down at $57.44 a barrel. Spot gold gained 0.4% to $1,404.48 an ounce.

Global shares muted as prospect of sharp United States rate cut fades

<a href="https://www.wionews.com/business-economy/gold-prices-subdued-on-firmer-dollar-fed-meeting-in-focus-227905">Gold prices</a> rose on Monday, shaking off early losses to consolidate above the $1,400 pivot, as focus shifted to global growth concerns and interest rate cuts by major central banks.

Spot gold was up 0.5% at $1,406.79 per ounce, as of 0721 GMT. US &nbsp;gold futures climbed 0.6% to $1,408.90 an ounce.

Also helping gold, the dollar eased from multi-week highs and global stock markets were in red, helping the metal reverse course following a more than 1% fall on Friday after strong US jobs data lowered the likelihood of an aggressive rate cut by the US Federal Reserve.

"Despite the strong (US jobs) numbers, the market is expecting a rate cut, just not as aggressive it would have been. We are still in a rate easing cycle right now," said Howie Lee, an economist at OCBC Bank.

"Additionally, $1,400 is a pretty strong support level for gold. Also, growth remains weak globally and we have geopolitical tension between the <a href="https://www.wionews.com/opinions/us-iran-tensions-and-why-india-needs-to-step-up-its-game-230035">US and Iran</a>. Overall factors are still supportive of higher gold prices," he added.

US non-farm payrolls rebounded in June to 224,000, the most in five months, data showed on Friday, beating economists' consensus estimate of 160,000.

Fed Chairman Jerome Powell is expected to provide further cues on the near-term outlook for monetary policy this week at his semi-annual testimony to the US Congress on the economy.

However, persistent moderate wage gains and mounting evidence the economy was losing momentum could still encourage the Fed to cut interest rates this month.

A rate cut by the Fed could also prompt China's central bank to cut its benchmark policy rate for the first time in four years to support the slowing economy, analysts say.

Lower interest rates would support gold because they reduce the opportunity cost of holding non-yielding bullion.

Also on investors' radar is US-Iran tensions, with Tehran saying on Sunday it will shortly boost its uranium enrichment above a cap set by a landmark 2015 nuclear deal, prompting a warning 'to be careful' from US President Donald Trump.

Meanwhile, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.18% to 796.97 tonnes on Friday from 798.44 tonnes on Wednesday.

On the technical front, spot gold may retest a resistance at $1,439 per ounce and as long as the metal stays above the support at $1,387, it may resume its uptrend towards $1,497, according to Reuters technical analyst Wang Tao.

Among other precious metals, silver gained 0.6% to $15.06 per ounce, while palladium dipped 0.3% to $1,562.41.

Platinum rose 0.7% to $809.26, edging away from a more than one-week low touched in the previous session.

Gold prices rose on Monday, shaking off early losses to consolidate above the $1,400 pivot, as focus shifted to global growth concerns and interest rate cuts by major central banks.

Gold prices rose on Monday, shaking off early losses to consolidate above the $1,400 pivot, as focus shifted to global growth concerns and interest rate cuts by major central banks. Spot gold was up 0.5% at $1,406.79 per ounce, as of 0721 GMT. US gold futures climbed 0.6% to $1,408.90 an ounce. Also helping gold, the dollar eased from multi-week highs and global stock markets were in red, helping the metal reverse course following a more than 1% fall on Friday after strong US jobs data lowered the likelihood of an aggressive rate cut by the US Federal Reserve. "Despite the strong (US jobs) numbers, the market is expecting a rate cut, just not as aggressive it would have been. We are still in a rate easing cycle right now," said Howie Lee, an economist at OCBC Bank. "Additionally, $1,400 is a pretty strong support level for gold. Also, growth remains weak globally and we have geopolitical tension between the US and Iran. Overall factors are still supportive of higher gold prices," he added. US non-farm payrolls rebounded in June to 224,000, the most in five months, data showed on Friday, beating economists' consensus estimate of 160,000. Fed Chairman Jerome Powell is expected to provide further cues on the near-term outlook for monetary policy this week at his semi-annual testimony to the US Congress on the economy. However, persistent moderate wage gains and mounting evidence the economy was losing momentum could still encourage the Fed to cut interest rates this month. A rate cut by the Fed could also prompt China's central bank to cut its benchmark policy rate for the first time in four years to support the slowing economy, analysts say. Lower interest rates would support gold because they reduce the opportunity cost of holding non-yielding bullion. Also on investors' radar is US-Iran tensions, with Tehran saying on Sunday it will shortly boost its uranium enrichment above a cap set by a landmark 2015 nuclear deal, prompting a warning 'to be careful' from US President Donald Trump. Meanwhile, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.18% to 796.97 tonnes on Friday from 798.44 tonnes on Wednesday. On the technical front, spot gold may retest a resistance at $1,439 per ounce and as long as the metal stays above the support at $1,387, it may resume its uptrend towards $1,497, according to Reuters technical analyst Wang Tao. Among other precious metals, silver gained 0.6% to $15.06 per ounce, while palladium dipped 0.3% to $1,562.41. Platinum rose 0.7% to $809.26, edging away from a more than one-week low touched in the previous session.

Gold rises as focus returns to growth concerns, Fed rate cut

Most Asian markets drifted lower in subdued trade Friday as investors steeled themselves for the release of a crucial US jobs report that could have a major bearing on the size of an expected Federal Reserve interest rate cut.

With uncertainty over the China-US trade row put aside for now, this week has been dominated by speculation about the US central bank's plans to address a weakening economic outlook, both at home and globally.

The jobs report is a closely watched gauge of the state of the world's biggest economy and a below-forecast reading would ramp up hopes the Fed will announce a 50-basis-point reduction.

"A number in line with consensus probably delivers that July cut and I think that's what the market wants to see," Pepperstone Group head of research Chris Weston told Bloomberg Television.&nbsp;

But he warned: "If we get a really strong number, I think risk could really come off the table."

The clamour for a Fed rate cut comes as central banks around the world take a more accommodative footing to offset economic weakness blamed on trade uncertainty, particularly the China-US standoff.

Equity traders were shifting uneasily ahead of the jobs release, with Hong Kong and Shanghai each down 0.3 per cent and Tokyo ending the morning 0.1 per cent lower.

Singapore, Taipei and Seoul were each 0.1 per cent off as well, but Sydney, Wellington, Manila and Jakarta edged up slightly.

Oil prices struggle

Adding to the soft trading environment was the lack of a lead from Wall Street, which was closed for the Independence Day celebrations.

"If there is one thing financial markets hate it's a delicate balance between risk-on and off, suggesting something will give shortly," said Stephen Innes at Vanguard Markets.

"Over the short run, 'risk-on' sentiment should prevail on the back of the deluge on central banks easing. The Fed is critical to the 'risk-on' &nbsp;fever," he said, adding that "now is the time to shift easing policy into high gear".

Oil prices edged down as traders fret over the impact of weak global growth on demand, which is overshadowing this week's agreement by OPEC and Russia to extend their output caps.

Even the US-Iran crisis has been unable to perk up the commodity, with news that Britain had intercepted an Iranian oil tanker near Gibraltar -- suspected of carrying crude to Syria -- providing only a little support.

The US praised the move but Tehran called it an "illegal interception", adding to geopolitical tensions.

However, while Brent was slightly lower, WTI shed more than one per cent, hit by an increase in US production.

"The US is now positioned to become a net exporter and is not bound by the (OPEC-Russia) production limit agreement. This could further drive prices lower," said OANDA senior market analyst Alfonso Esparza.

Most Asian markets drifted lower in subdued trade Friday as investors steeled themselves for the release of a crucial US jobs report that could have a major bearing on the size of an expected Federal Reserve interest rate cut.

Most Asian markets drifted lower in subdued trade Friday as investors steeled themselves for the release of a crucial US jobs report that could have a major bearing on the size of an expected Federal Reserve interest rate cut. With uncertainty over the China-US trade row put aside for now, this week has been dominated by speculation about the US central bank's plans to address a weakening economic outlook, both at home and globally. The jobs report is a closely watched gauge of the state of the world's biggest economy and a below-forecast reading would ramp up hopes the Fed will announce a 50-basis-point reduction. "A number in line with consensus probably delivers that July cut and I think that's what the market wants to see," Pepperstone Group head of research Chris Weston told Bloomberg Television. But he warned: "If we get a really strong number, I think risk could really come off the table." The clamour for a Fed rate cut comes as central banks around the world take a more accommodative footing to offset economic weakness blamed on trade uncertainty, particularly the China-US standoff. Equity traders were shifting uneasily ahead of the jobs release, with Hong Kong and Shanghai each down 0.3 per cent and Tokyo ending the morning 0.1 per cent lower. Singapore, Taipei and Seoul were each 0.1 per cent off as well, but Sydney, Wellington, Manila and Jakarta edged up slightly. Oil prices struggle Adding to the soft trading environment was the lack of a lead from Wall Street, which was closed for the Independence Day celebrations. "If there is one thing financial markets hate it's a delicate balance between risk-on and off, suggesting something will give shortly," said Stephen Innes at Vanguard Markets. "Over the short run, 'risk-on' sentiment should prevail on the back of the deluge on central banks easing. The Fed is critical to the 'risk-on' fever," he said, adding that "now is the time to shift easing policy into high gear". Oil prices edged down as traders fret over the impact of weak global growth on demand, which is overshadowing this week's agreement by OPEC and Russia to extend their output caps. Even the US-Iran crisis has been unable to perk up the commodity, with news that Britain had intercepted an Iranian oil tanker near Gibraltar -- suspected of carrying crude to Syria -- providing only a little support. The US praised the move but Tehran called it an "illegal interception", adding to geopolitical tensions. However, while Brent was slightly lower, WTI shed more than one per cent, hit by an increase in US production. "The US is now positioned to become a net exporter and is not bound by the (OPEC-Russia) production limit agreement. This could further drive prices lower," said OANDA senior market analyst Alfonso Esparza.

Asian markets down as dealers bide time ahead of jobs report

Asian markets rose Thursday, tracking a record performance on Wall Street, as investors turned their focus to the upcoming release of US jobs data while hoping for a big Federal Reserve interest rate cut.

US traders went on a pre-July 4 spending spree Wednesday to push all three main indexes to their all-time highs as a string of weak economic indicators reinforced the case for the Fed to reduce borrowing costs.

With the relief-rally from Donald Trump and Xi Jinping's trade war ceasefire running its course, dealers were turning their attention to the global outlook and pinning their hopes on central bank support.

The release Friday of US non-farm payroll figures is key, analysts say, with a weak reading likely to reinforce expectations of a rate cut.&nbsp;

Talk of a reduction and concerns about the economy have seen the yield on safe haven 10-year Treasuries fall below two per cent.

"A lot of US economic data is wavering, as most key indicators are falling below trend, but the recent standouts have been labour and wage data," said OANDA senior market analyst Edward Moya.

"If the pillars of the economy begin to show some signs of weakness, this will disrupt the US consumer and support the calls for the Fed to cut in July and signal an additional one is on the way."

Dollar dips

In early Asian business, Hong Kong was up 0.5 per cent, Shanghai added 0.1 per cent, Tokyo climbed 0.3 per cent by the break and Sydney jumped 0.6 per cent.

Singapore was up 0.3 per cent, Wellington added 0.2 per cent and Taipei was 0.4 per cent stronger though Seoul was marginally lower.

Stephen Innes, at Vanguard Markets, said the fall in yields across several asset classes "has increased investor appetite for high dividend-yielding equity risk".

Investors were "hoping that this next wave central bank monetary infusion will provide a foundation to ensure the global cyclical bottom is set while offering a welcoming climate to extend this bullish trading cycle," he said.

The increasing likelihood of a Fed cut weighed on the dollar, with riskier currencies such as the South Korean won, Australian dollar and Indonesian rupiah all strengthening.

The Chinese yuan was also slightly higher.

However, Trump hit out at China on Wednesday in a Twitter rant, accusing it and Europe of artificially keeping the yuan and euro weak to gain an advantage over the US.

He said they were playing a "big currency manipulation game" and "pumping money into their system", adding that the US should step up to the fight by matching them.

Asian markets rose Thursday, tracking a record performance on Wall Street, as investors turned their focus to the upcoming release of US jobs data while hoping for a big Federal Reserve interest rate cut.

Asian markets rose Thursday, tracking a record performance on Wall Street, as investors turned their focus to the upcoming release of US jobs data while hoping for a big Federal Reserve interest rate cut. US traders went on a pre-July 4 spending spree Wednesday to push all three main indexes to their all-time highs as a string of weak economic indicators reinforced the case for the Fed to reduce borrowing costs. With the relief-rally from Donald Trump and Xi Jinping's trade war ceasefire running its course, dealers were turning their attention to the global outlook and pinning their hopes on central bank support. The release Friday of US non-farm payroll figures is key, analysts say, with a weak reading likely to reinforce expectations of a rate cut. Talk of a reduction and concerns about the economy have seen the yield on safe haven 10-year Treasuries fall below two per cent. "A lot of US economic data is wavering, as most key indicators are falling below trend, but the recent standouts have been labour and wage data," said OANDA senior market analyst Edward Moya. "If the pillars of the economy begin to show some signs of weakness, this will disrupt the US consumer and support the calls for the Fed to cut in July and signal an additional one is on the way." Dollar dips In early Asian business, Hong Kong was up 0.5 per cent, Shanghai added 0.1 per cent, Tokyo climbed 0.3 per cent by the break and Sydney jumped 0.6 per cent. Singapore was up 0.3 per cent, Wellington added 0.2 per cent and Taipei was 0.4 per cent stronger though Seoul was marginally lower. Stephen Innes, at Vanguard Markets, said the fall in yields across several asset classes "has increased investor appetite for high dividend-yielding equity risk". Investors were "hoping that this next wave central bank monetary infusion will provide a foundation to ensure the global cyclical bottom is set while offering a welcoming climate to extend this bullish trading cycle," he said. The increasing likelihood of a Fed cut weighed on the dollar, with riskier currencies such as the South Korean won, Australian dollar and Indonesian rupiah all strengthening. The Chinese yuan was also slightly higher. However, Trump hit out at China on Wednesday in a Twitter rant, accusing it and Europe of artificially keeping the yuan and euro weak to gain an advantage over the US. He said they were playing a "big currency manipulation game" and "pumping money into their system", adding that the US should step up to the fight by matching them.

Asian markets track record lead from Wall Street, focus on jobs

Federal Reserve chairman Jerome Powell said Tuesday the US central bank will be closely scrutinizing Facebook's newly announced <a href="https://www.wionews.com/world/creating-g7-task-force-to-ensure-facebooks-libra-governed-by-regulations-france-229231">cryptocurrency Libra</a> with an eye toward potentially regulating the virtual coin.

Powell became the latest official to voice concern over the global virtual currency unveiled last week by <a href="https://www.wionews.com/world/in-a-world-first-facebook-to-give-data-on-hate-speech-suspects-to-french-courts-230477">Facebook</a> and an array of partners which aims to lower transaction costs and bring more services to people without access to the banking system.

"We're looking at it very carefully," Powell said at an event sponsored by the Council on Foreign Relations. "Given the possible scale of it, I think that our expectations from a consumer protection standpoint, from a regulatory standpoint, are going to be very, very high."

The Libra coin plan, backed by financial and nonprofit partners, represents an ambitious new initiative for the world's biggest social network with the potential to bring crypto-money out of the shadows and into the mainstream.

But the plan has already prompted calls in Europe for close regulatory scrutiny and several US lawmakers have said they more information from Facebook.

Several analysts have said the new currency could create a regulatory conundrum due to the global reach of Facebook, which has more than two billion users.

Powell, speaking at the forum in New York, said that "authority for overseeing Libra is going to be in a number of places but I think the big picture is we're going to be looking really carefully at it."

Facebook said the new virtual coin would be overseen by a nonprofit Libra Association based in Geneva which would maintain a real-world asset reserve to keep its value stable.

Federal Reserve chairman Jerome Powell said Tuesday the US central bank will be closely scrutinizing Facebook's newly announced cryptocurrency Libra with an eye toward potentially regulating the virtual coin.

Federal Reserve chairman Jerome Powell said Tuesday the US central bank will be closely scrutinizing Facebook's newly announced cryptocurrency Libra with an eye toward potentially regulating the virtual coin. Powell became the latest official to voice concern over the global virtual currency unveiled last week by Facebook and an array of partners which aims to lower transaction costs and bring more services to people without access to the banking system. "We're looking at it very carefully," Powell said at an event sponsored by the Council on Foreign Relations. "Given the possible scale of it, I think that our expectations from a consumer protection standpoint, from a regulatory standpoint, are going to be very, very high." The Libra coin plan, backed by financial and nonprofit partners, represents an ambitious new initiative for the world's biggest social network with the potential to bring crypto-money out of the shadows and into the mainstream. But the plan has already prompted calls in Europe for close regulatory scrutiny and several US lawmakers have said they more information from Facebook. Several analysts have said the new currency could create a regulatory conundrum due to the global reach of Facebook, which has more than two billion users. Powell, speaking at the forum in New York, said that "authority for overseeing Libra is going to be in a number of places but I think the big picture is we're going to be looking really carefully at it." Facebook said the new virtual coin would be overseen by a nonprofit Libra Association based in Geneva which would maintain a real-world asset reserve to keep its value stable.

United States Federal to look 'carefully' at Facebook virtual coin Libra

US President Donald Trump on Monday lashed out at the Federal Reserve, accusing the central bank of standing in the way of major economic expansion by refusing to cut interest rates.

The president's Twitter outburst was only his latest episode of rock throwing at policymakers who are meant to be shielded from political pressure but who have contended with his barbs since last year.

However, economists say it is in fact in large part because of Trump's own trade policies that the central bank is now considering cutting rates for the first time in a decade as the risks of recession grow.

"Despite a Federal Reserve that doesn't know what it is doing... we are on course to have one of the best Months of June in US history," Trump tweeted.

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet" data-lang="en">
Despite a Federal Reserve that doesn’t know what it is doing - raised rates far too fast (very low inflation, other parts of world slowing, lowering &amp; easing) &amp; did large scale tightening, $50 Billion/month, we are on course to have one of the best Months of June in US history...
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1143140105076563970?ref_src=twsrc%5Etfw">June 24, 2019</a></blockquote>
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"Think of what it could have been if the Fed had gotten it right. (...) Now they stick, like a stubborn child, when we need rate cuts &amp; easing, to make up for what other countries are doing against us. Blew it!"

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
Despite a Federal Reserve that doesn’t know what it is doing - raised rates far too fast (very low inflation, other parts of world slowing, lowering &amp; easing) &amp; did large scale tightening, $50 Billion/month, we are on course to have one of the best Months of June in US history...
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1143140105076563970?ref_src=twsrc%5Etfw">June 24, 2019</a></blockquote>
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According to Trump, if not for the Fed, the US economy would be expanding by an annual rate of four or five per cent while the Dow Jones Industrial Average, a marquee of Wall Street success, would be "thousands of points higher."

With 10 years of growth, the world's largest economy next month will mark its longest period of expansion on record.

At the same time, it has begun to give off mixed signals.

On one hand, surveys of consumer confidence and business activity are running hot, unemployment is still near 50-year lows, and consumer spending has been strong in recent months.

But other more worrisome signs are afoot, as the boost from 2017's tax cuts fades along with that of last year's fiscal stimulus.

Growth in the second quarter is forecast to be about half the pace of the first, manufacturing has continued to weaken and business investment has declined.

'Risk of a pronounced slowdown'

And Trump has threatened to jack up tariffs on another $300 billion in Chinese imports, which could send shockwaves through the global economy.

As a result, the Fed last week left benchmark US lending rates untouched for the fourth time this year and the bank is signalling it could cut soon rates exactly as Trump wants.

But, rather than aiming to unleash pent-up US economic might, a cut will be warranted if the economic outlook deteriorates, according to Fed Chairman Jerome Powell.

Persistent trade friction and slowing global growth, among other factors, had "strengthened" the case for looser monetary policy, he said.

Oxford Economics on Monday predicted the Fed will in fact cut rates three times by next year, noting that "with fiscal stimulus dissipating and global growth waning amid elevated trade tensions, the risk of a pronounced slowdown into 2020 is non-negligible."

The spectre of higher and higher tariffs has weighed on investment decisions, dented confidence and helped slow global manufacturing.

Douglas Holtz-Eakin, a Republican economist and former director of the Congressional Budget Office, told AFP the US economy has seen a sudden and unexplained bout of weakness in the first half or 2019.

"The biggest thing that's happened in there is a whole series of tariff moves by the president," said Holtz-Eakin. "That's the only real policy move we've had."

The United States has not seen back-to-back quarters of GDP growth greater than five per cent since 1999, a time when the Fed had interest rates around five per cent -- or twice what they are now.

And many economists say returning to such levels is simply not in the cards, given the country's ageing population and sluggish productivity growth.

Holtz-Eakin, who publicly argued in favour of congressional Republicans' 2017 tax cuts, doubted the Fed was blocking the breakout of growth that Trump described, describing five per cent growth as "implausible."

"When the prior administration had rates at zero per cent for a decade, why didn't the economy grow at seven per cent?" he said.

"This is convenient logic but I don't think it is grounded by anything in fact."

US President Donald Trump on Monday lashed out at the Federal Reserve, accusing the central bank of standing in the way of major economic expansion by refusing to cut interest rates.

US President Donald Trump on Monday lashed out at the Federal Reserve, accusing the central bank of standing in the way of major economic expansion by refusing to cut interest rates. The president's Twitter outburst was only his latest episode of rock throwing at policymakers who are meant to be shielded from political pressure but who have contended with his barbs since last year. However, economists say it is in fact in large part because of Trump's own trade policies that the central bank is now considering cutting rates for the first time in a decade as the risks of recession grow. "Despite a Federal Reserve that doesn't know what it is doing... we are on course to have one of the best Months of June in US history," Trump tweeted. Despite a Federal Reserve that doesn’t know what it is doing - raised rates far too fast (very low inflation, other parts of world slowing, lowering & easing) & did large scale tightening, $50 Billion/month, we are on course to have one of the best Months of June in US history... — Donald J. Trump (@realDonaldTrump) June 24, 2019 × "Think of what it could have been if the Fed had gotten it right. (...) Now they stick, like a stubborn child, when we need rate cuts & easing, to make up for what other countries are doing against us. Blew it!" Despite a Federal Reserve that doesn’t know what it is doing - raised rates far too fast (very low inflation, other parts of world slowing, lowering & easing) & did large scale tightening, $50 Billion/month, we are on course to have one of the best Months of June in US history... — Donald J. Trump (@realDonaldTrump) June 24, 2019 × According to Trump, if not for the Fed, the US economy would be expanding by an annual rate of four or five per cent while the Dow Jones Industrial Average, a marquee of Wall Street success, would be "thousands of points higher." With 10 years of growth, the world's largest economy next month will mark its longest period of expansion on record. At the same time, it has begun to give off mixed signals. On one hand, surveys of consumer confidence and business activity are running hot, unemployment is still near 50-year lows, and consumer spending has been strong in recent months. But other more worrisome signs are afoot, as the boost from 2017's tax cuts fades along with that of last year's fiscal stimulus. Growth in the second quarter is forecast to be about half the pace of the first, manufacturing has continued to weaken and business investment has declined. 'Risk of a pronounced slowdown' And Trump has threatened to jack up tariffs on another $300 billion in Chinese imports, which could send shockwaves through the global economy. As a result, the Fed last week left benchmark US lending rates untouched for the fourth time this year and the bank is signalling it could cut soon rates exactly as Trump wants. But, rather than aiming to unleash pent-up US economic might, a cut will be warranted if the economic outlook deteriorates, according to Fed Chairman Jerome Powell. Persistent trade friction and slowing global growth, among other factors, had "strengthened" the case for looser monetary policy, he said. Oxford Economics on Monday predicted the Fed will in fact cut rates three times by next year, noting that "with fiscal stimulus dissipating and global growth waning amid elevated trade tensions, the risk of a pronounced slowdown into 2020 is non-negligible." The spectre of higher and higher tariffs has weighed on investment decisions, dented confidence and helped slow global manufacturing. Douglas Holtz-Eakin, a Republican economist and former director of the Congressional Budget Office, told AFP the US economy has seen a sudden and unexplained bout of weakness in the first half or 2019. "The biggest thing that's happened in there is a whole series of tariff moves by the president," said Holtz-Eakin. "That's the only real policy move we've had." The United States has not seen back-to-back quarters of GDP growth greater than five per cent since 1999, a time when the Fed had interest rates around five per cent -- or twice what they are now. And many economists say returning to such levels is simply not in the cards, given the country's ageing population and sluggish productivity growth. Holtz-Eakin, who publicly argued in favour of congressional Republicans' 2017 tax cuts, doubted the Fed was blocking the breakout of growth that Trump described, describing five per cent growth as "implausible." "When the prior administration had rates at zero per cent for a decade, why didn't the economy grow at seven per cent?" he said. "This is convenient logic but I don't think it is grounded by anything in fact."

Trump bashes 'stubborn child' Federal Reserve as economy shows signs of weakness

Oil prices rose on Monday to extend gains from last week, bolstered as <a href="https://www.wionews.com/world/us-not-trying-to-set-up-negotiation-with-iran-trump-220237">tensions remain high between Iran and the United States</a> after US Secretary of State Mike Pompeo said "significant" sanctions would be announced on Tehran.

Brent futures were up 26 cents, or 0.4%, at $65.46 a barrel by 0544 GMT. 
West Texas Intermediate crude was up 40 cents, or 0.7%, at $57.83 a barrel.

<a href="https://www.wionews.com/world/donald-trump-says-attacks-on-oil-tankers-very-minor-228446">US President Donald Trump</a> said last week that he called off a military strike to retaliate for Iran's downing of an unmanned US drone, and he said on Sunday that he was not seeking war with Iran.

But Pompeo also said "significant" sanctions on Iran would be announced on Monday aimed at further choking off resources that Tehran uses to fund its activities in the region.

"There's a very firm tone to trading on well above average volumes," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

"We've got concerns about the sanctions against Iran, (but) we are seeing a better demand picture because of the actions of central banks, which is benefiting all commodities ... and we have got a weaker US dollar."

Oil is usually priced in dollars, so a weaker greenback makes it cheaper for holders of other currencies.

The US Federal Reserve is expected to cut interest rates soon to bolster the US economy, while the European Central Bank President Mario Draghi last week called for additional stimulus to boost growth.

Oil prices surged last week after Iran shot down a drone that the United States claimed was in international airspace and Tehran said was over its territory.

Amid the escalating tensions, Brent racked up a gain of about 5% last week, its first weekly gain in five weeks, and WTI jumped about 10%, its biggest weekly percentage gain since December 2016.

Trump said he had aborted a military strike on Iran because such a response to Tehran's downing of the unmanned US surveillance drone would have caused a disproportionate loss of life.

Iranian officials told Reuters that Tehran had received a message from Trump through Oman overnight warning that a US attack on Iran was imminent.

Meanwhile, US energy companies last week increased the number of oil rigs operating for the first time in three weeks.

Companies added one oil rig in the week to June 21, bringing the total count to 789, Baker Hughes said in a closely followed report on Friday.

Oil prices rose on Monday to extend gains from last week, bolstered as tensions remain high between Iran and the United States after US Secretary of State Mike Pompeo said "significant" sanctions would be announced on Tehran.

Oil prices rose on Monday to extend gains from last week, bolstered as tensions remain high between Iran and the United States after US Secretary of State Mike Pompeo said "significant" sanctions would be announced on Tehran. Brent futures were up 26 cents, or 0.4%, at $65.46 a barrel by 0544 GMT. West Texas Intermediate crude was up 40 cents, or 0.7%, at $57.83 a barrel. US President Donald Trump said last week that he called off a military strike to retaliate for Iran's downing of an unmanned US drone, and he said on Sunday that he was not seeking war with Iran. But Pompeo also said "significant" sanctions on Iran would be announced on Monday aimed at further choking off resources that Tehran uses to fund its activities in the region. "There's a very firm tone to trading on well above average volumes," said Michael McCarthy, chief market strategist at CMC Markets in Sydney. "We've got concerns about the sanctions against Iran, (but) we are seeing a better demand picture because of the actions of central banks, which is benefiting all commodities ... and we have got a weaker US dollar." Oil is usually priced in dollars, so a weaker greenback makes it cheaper for holders of other currencies. The US Federal Reserve is expected to cut interest rates soon to bolster the US economy, while the European Central Bank President Mario Draghi last week called for additional stimulus to boost growth. Oil prices surged last week after Iran shot down a drone that the United States claimed was in international airspace and Tehran said was over its territory. Amid the escalating tensions, Brent racked up a gain of about 5% last week, its first weekly gain in five weeks, and WTI jumped about 10%, its biggest weekly percentage gain since December 2016. Trump said he had aborted a military strike on Iran because such a response to Tehran's downing of the unmanned US surveillance drone would have caused a disproportionate loss of life. Iranian officials told Reuters that Tehran had received a message from Trump through Oman overnight warning that a US attack on Iran was imminent. Meanwhile, US energy companies last week increased the number of oil rigs operating for the first time in three weeks. Companies added one oil rig in the week to June 21, bringing the total count to 789, Baker Hughes said in a closely followed report on Friday.

Oil prices extend gains, United States-Iran tensions in focus

Asian shares hit five-week highs on Wednesday as investors hoped the Federal Reserve would follow the lead of the European Central Bank and open the door to future rate cuts at its policy meeting later in the day.

Indeed, ECB President Mario Draghi's shock about-face on easing fuelled talk of a worldwide wave of central bank stimulus, firing up stocks, bonds and commodities.

Adding to the cheer was news US President Donald Trump would meet with Chinese President Xi Jinping at the G20 summit later this month, and that trade talks would restart after a recent lull. But most analysts do not expect a decisive breakthrough.

"We expect no real change following the G20 sideline meeting. (But) the fact that both sides are talking should at least postpone thoughts of a further increase in tariffs, for a while at least...," ING's Greater China economist Iris Pang said in a note.

MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1.5% to a five-week top. Shanghai blue chips firmed 1.7% to a six-week peak.

Japan's Nikkei rose 1.6%, while Australia added 1% to its highest in 11 years. E-Mini futures for the S&amp;P 500 were a fraction firmer after an upbeat Wall Street session.

The Dow ended Tuesday with gains of 1.35%, while the S&amp;P 500 rose 0.97% and the Nasdaq 1.39%. The S&amp;P 500 has surged 6% so far this month to be 1% from the all-time high hit in early May.

All eyes are now upon the Fed which is scheduled to release a statement at 1800 GMT on Wednesday, followed by a press conference by Chairman Jerome Powell shortly after.

Yet the heightened anticipation also creates risks the Fed might fail to meet investors' high expectations.

"Market expectations for a dovish shift are nearly universal, the only question seems to be the degree," said Blake Gwinn, head of front-end rates at NatWest Markets.

Futures are almost fully priced for a quarter-point easing in July and imply more than 60 basis points of cuts by Christmas.

"Markets will be looking for validation of this pricing," he added. "We think this represents a fairly high bar for the Fed to deliver a dovish surprise."

Sub-zero yields

BofA Merrill Lynch's latest fund manager survey spoke volumes about the sea change in sentiment.

Allocation to global equities dropped 32 points to a net 21% underweight, the lowest since March 2009, while the bond allocation hit the highest since September 2011.

Interest rate expectations collapsed, while concerns about a trade war soared to be the top risk for investors, ahead of monetary policy impotence, US politics and a slower China.

The shift was clear in bond markets where German yields hit record lows deep in negative territory, while Japanese yields sank to the lowest since August 2016 at -0.145%.

Yields on the US 10-year note reached the lowest since September 2017 at 2.016%, a world away from the 3.25% top touched in November last year.

The fallout in currencies was significantly less, in large part because it was hard for one to gain when all the major central banks were under pressure to ease.

The euro did pull back a bit after Draghi's comments, but at $1.1192 was still well within the recent trading range of $1.1106-$1.1347.

The dollar remained sidelined against the yen at 108.49, and a shade firmer on a basket of currencies at 97.657. The yuan picked up to 6.905 to the dollar on the trade news.

In commodity markets, the rate-cut buzz kept gold near 14-month highs at $1,344.20 per ounce.

Michael Hsueh, an analyst at Deutsche, noted the decisively dovish shift in central bank expectations was bullish for gold.

"This provides the desired backdrop - one in which investors are less likely to be concerned about the opportunity cost of holding a non-yielding asset, particularly versus the increasing stock of negative-yielding debt," he said.

Reflation trades helped steady oil prices, as did hopes for a thaw in Sino-US tensions.

Brent crude futures were off 6 cents at $62.06, while US crude firmed 3 cents to $53.93 a barrel.

Confidence among Asian companies in the second quarter fell to its lowest since the 2008-09 financial crisis, as the trade war disrupts global supply chains and shows little sign of easing soon, a Thomson Reuters/INSEAD survey found.

Asian shares hit five-week highs on Wednesday as investors hoped the Federal Reserve would follow the lead of the European Central Bank and open the door to future rate cuts at its policy meeting later in the day.

Asian shares hit five-week highs on Wednesday as investors hoped the Federal Reserve would follow the lead of the European Central Bank and open the door to future rate cuts at its policy meeting later in the day. Indeed, ECB President Mario Draghi's shock about-face on easing fuelled talk of a worldwide wave of central bank stimulus, firing up stocks, bonds and commodities. Adding to the cheer was news US President Donald Trump would meet with Chinese President Xi Jinping at the G20 summit later this month, and that trade talks would restart after a recent lull. But most analysts do not expect a decisive breakthrough. "We expect no real change following the G20 sideline meeting. (But) the fact that both sides are talking should at least postpone thoughts of a further increase in tariffs, for a while at least...," ING's Greater China economist Iris Pang said in a note. MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1.5% to a five-week top. Shanghai blue chips firmed 1.7% to a six-week peak. Japan's Nikkei rose 1.6%, while Australia added 1% to its highest in 11 years. E-Mini futures for the S&P 500 were a fraction firmer after an upbeat Wall Street session. The Dow ended Tuesday with gains of 1.35%, while the S&P 500 rose 0.97% and the Nasdaq 1.39%. The S&P 500 has surged 6% so far this month to be 1% from the all-time high hit in early May. All eyes are now upon the Fed which is scheduled to release a statement at 1800 GMT on Wednesday, followed by a press conference by Chairman Jerome Powell shortly after. Yet the heightened anticipation also creates risks the Fed might fail to meet investors' high expectations. "Market expectations for a dovish shift are nearly universal, the only question seems to be the degree," said Blake Gwinn, head of front-end rates at NatWest Markets. Futures are almost fully priced for a quarter-point easing in July and imply more than 60 basis points of cuts by Christmas. "Markets will be looking for validation of this pricing," he added. "We think this represents a fairly high bar for the Fed to deliver a dovish surprise." Sub-zero yields BofA Merrill Lynch's latest fund manager survey spoke volumes about the sea change in sentiment. Allocation to global equities dropped 32 points to a net 21% underweight, the lowest since March 2009, while the bond allocation hit the highest since September 2011. Interest rate expectations collapsed, while concerns about a trade war soared to be the top risk for investors, ahead of monetary policy impotence, US politics and a slower China. The shift was clear in bond markets where German yields hit record lows deep in negative territory, while Japanese yields sank to the lowest since August 2016 at -0.145%. Yields on the US 10-year note reached the lowest since September 2017 at 2.016%, a world away from the 3.25% top touched in November last year. The fallout in currencies was significantly less, in large part because it was hard for one to gain when all the major central banks were under pressure to ease. The euro did pull back a bit after Draghi's comments, but at $1.1192 was still well within the recent trading range of $1.1106-$1.1347. The dollar remained sidelined against the yen at 108.49, and a shade firmer on a basket of currencies at 97.657. The yuan picked up to 6.905 to the dollar on the trade news. In commodity markets, the rate-cut buzz kept gold near 14-month highs at $1,344.20 per ounce. Michael Hsueh, an analyst at Deutsche, noted the decisively dovish shift in central bank expectations was bullish for gold. "This provides the desired backdrop - one in which investors are less likely to be concerned about the opportunity cost of holding a non-yielding asset, particularly versus the increasing stock of negative-yielding debt," he said. Reflation trades helped steady oil prices, as did hopes for a thaw in Sino-US tensions. Brent crude futures were off 6 cents at $62.06, while US crude firmed 3 cents to $53.93 a barrel. Confidence among Asian companies in the second quarter fell to its lowest since the 2008-09 financial crisis, as the trade war disrupts global supply chains and shows little sign of easing soon, a Thomson Reuters/INSEAD survey found.

Asian shares climb, wager all on dovish Fed, trade hopes revive

Global stocks rallied on Tuesday and benchmark government bond yields tumbled after <a href="https://www.wionews.com/world/european-central-bank-will-ease-policy-if-inflation-doesnt-pick-up-draghi-228287">European Central Bank President Mario Draghi</a> hinted at economic stimulus, with equities getting an extra boost from confirmation that <a href="https://www.wionews.com/world/us-china-rekindle-trade-talks-ahead-of-donald-trump-xi-jinping-g20-meeting-228545">US President Donald Trump</a> would meet China's president to talk about trade.

The euro also weakened after Draghi said the ECB will ease policy again if inflation fails to accelerate, signalling one of the biggest policy reversals of his eight-year tenure.

Draghi's comments spurred talk that the Federal Reserve would also soon start easing monetary policy by cutting interest rates, with the US central bank set to give its policy statement on Wednesday.

"In the US, it got translated into, 'Oh great, this means the Fed will have to cut,'" said Carol Schleif, deputy chief investment officer with Abbot Downing in Minneapolis. "But we don’t necessarily think they have to or should this soon."

The Fed is expected to leave borrowing costs unchanged at its meeting this week but possibly lay the groundwork for a rate cut later this year.

<a href="https://www.wionews.com/world/trump-to-meet-chinas-top-trade-negotiator-as-deadline-presses-199044">Trump</a> has sought to influence the Fed to cut rates. In response to Draghi's comments, Trump on Tuesday accused the ECB president of trying to weaken the euro to gain an unfair competitive advantage.

Trump also said he would have an extended meeting with Chinese President Xi Jinping at the G20 summit later this month, as the world's two largest economies rekindle trade talks. China, which previously declined to say whether the two leaders would meet, confirmed the get-together.

"There had been some question in markets in the last few days about whether or not that meeting was going to happen," Schleif said. "It remains to be seen what comes out of that meeting."

MSCI's gauge of stocks across the globe gained 1.04%.

On Wall Street, the Dow Jones Industrial Average rose 353.01 points, or 1.35%, to 26,465.54, the S&amp;P 500 gained 28.08 points, or 0.97%, to 2,917.75 and the Nasdaq Composite added 108.86 points, or 1.39%, to 7,953.88.

The pan-European STOXX 600 index rose 1.67%, its best day since January.

Benchmark bond yields fell globally following Draghi's hints of more stimulus, with German bond yields hitting record lows deep in negative territory, around -0.32%, and French 10-year yields turning negative for the first time.

Benchmark US 10-year notes last rose 8/32 in price to yield 2.0578%, from 2.086% late on Monday.

"Draghi was extremely dovish and this had a big impact on Treasuries as we anticipate the Federal Reserve," said Ellis Phifer, market strategist at Raymond James in Memphis, Tennessee.

The dollar index, which measures the greenback against a basket of currencies, rose 0.06%, with the euro down 0.18% to $1.1197.

Oil prices rose sharply after Trump confirmed his meeting with Xi.

US crude settled up 3.8% at $53.90 a barrel, while Brent settled at $62.14 a barrel, up 2%.

Global stocks rallied on Tuesday and benchmark government bond yields tumbled after European Central Bank President Mario Draghi hinted at economic stimulus, with equities getting an extra boost from confirmation that US President Donald Trump would meet China's president to talk about trade.

Global stocks rallied on Tuesday and benchmark government bond yields tumbled after European Central Bank President Mario Draghi hinted at economic stimulus, with equities getting an extra boost from confirmation that US President Donald Trump would meet China's president to talk about trade. The euro also weakened after Draghi said the ECB will ease policy again if inflation fails to accelerate, signalling one of the biggest policy reversals of his eight-year tenure. Draghi's comments spurred talk that the Federal Reserve would also soon start easing monetary policy by cutting interest rates, with the US central bank set to give its policy statement on Wednesday. "In the US, it got translated into, 'Oh great, this means the Fed will have to cut,'" said Carol Schleif, deputy chief investment officer with Abbot Downing in Minneapolis. "But we don’t necessarily think they have to or should this soon." The Fed is expected to leave borrowing costs unchanged at its meeting this week but possibly lay the groundwork for a rate cut later this year. Trump has sought to influence the Fed to cut rates. In response to Draghi's comments, Trump on Tuesday accused the ECB president of trying to weaken the euro to gain an unfair competitive advantage. Trump also said he would have an extended meeting with Chinese President Xi Jinping at the G20 summit later this month, as the world's two largest economies rekindle trade talks. China, which previously declined to say whether the two leaders would meet, confirmed the get-together. "There had been some question in markets in the last few days about whether or not that meeting was going to happen," Schleif said. "It remains to be seen what comes out of that meeting." MSCI's gauge of stocks across the globe gained 1.04%. On Wall Street, the Dow Jones Industrial Average rose 353.01 points, or 1.35%, to 26,465.54, the S&P 500 gained 28.08 points, or 0.97%, to 2,917.75 and the Nasdaq Composite added 108.86 points, or 1.39%, to 7,953.88. The pan-European STOXX 600 index rose 1.67%, its best day since January. Benchmark bond yields fell globally following Draghi's hints of more stimulus, with German bond yields hitting record lows deep in negative territory, around -0.32%, and French 10-year yields turning negative for the first time. Benchmark US 10-year notes last rose 8/32 in price to yield 2.0578%, from 2.086% late on Monday. "Draghi was extremely dovish and this had a big impact on Treasuries as we anticipate the Federal Reserve," said Ellis Phifer, market strategist at Raymond James in Memphis, Tennessee. The dollar index, which measures the greenback against a basket of currencies, rose 0.06%, with the euro down 0.18% to $1.1197. Oil prices rose sharply after Trump confirmed his meeting with Xi. US crude settled up 3.8% at $53.90 a barrel, while Brent settled at $62.14 a barrel, up 2%.

Stocks lifted by hopes for monetary policy, US-China trade

Investor caution ahead of the Federal Reserve's interest rate meeting capped Asian stocks on Tuesday, while crude oil prices retreated as global growth worries overshadowed supply concerns stemming from recent Middle East tensions.

MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.05%.

Australian stocks added 0.1% while Japan's Nikkei dipped 0.05%.

The Fed, facing fresh demands by US President Donald Trump to cut interest rates, begins a two-day meeting later on Tuesday. The central bank is expected to leave borrowing costs unchanged this time but possibly lay the groundwork for a rate cut later this year.

Fresh hopes for looser US monetary policy have been a tonic for risk assets markets, which were buffeted last month by an escalation in the trade conflict between Washington and Beijing. The S&amp;P 500 has gained 5% this month after sliding in May on trade war fears.

Focus is now on how close the Fed could be to cutting interest rates amid the raging US-China trade war, signs of the economy losing steam and pressure by President Trump to ease policy.

"The FOMC (Federal Open Market Committee) meeting is the week's biggest event so there will be a degree of caution prevailing in the markets," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

"Expectations for a rate cut in July have increased significantly, so the markets could experience disappointment if the Fed does not send strong signals of impending easing."

US Treasury yields dipped on Monday after the New York Fed's "Empire" gauge of business growth in the state showed a fall this month to its weakest in more than 2-1/2-years, fanning rate cut expectations.

The dollar index against a basket of six major currencies stood little changed at 97.507 after pulling back from a two-week high on the decline in Treasury yields.

The pound traded at $1.2542 after retreating overnight to a six-month low of $1.2532 on Monday on concerns that arch-Brexiteer Boris Johnson will replace Theresa May as prime minister.

The euro was a shade higher at $1.1224 after spending the previous day confined to a narrow range.

US crude oil futures shed 0.08% to $51.89 per barrel after retreating 1.1% the previous day.

Oil prices had slipped on Monday as weak Chinese economic data released at the end of last week led to fears of lower global demand for the commodity.

Concerns over weakening demand overshadowed tensions in the Middle East, which remained high following last week's attacks on two oil tankers in the Gulf of Oman.

Investor caution ahead of the Federal Reserve's interest rate meeting capped Asian stocks on Tuesday, while crude oil prices retreated as global growth worries overshadowed supply concerns stemming from recent Middle East tensions.

Investor caution ahead of the Federal Reserve's interest rate meeting capped Asian stocks on Tuesday, while crude oil prices retreated as global growth worries overshadowed supply concerns stemming from recent Middle East tensions. MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.05%. Australian stocks added 0.1% while Japan's Nikkei dipped 0.05%. The Fed, facing fresh demands by US President Donald Trump to cut interest rates, begins a two-day meeting later on Tuesday. The central bank is expected to leave borrowing costs unchanged this time but possibly lay the groundwork for a rate cut later this year. Fresh hopes for looser US monetary policy have been a tonic for risk assets markets, which were buffeted last month by an escalation in the trade conflict between Washington and Beijing. The S&P 500 has gained 5% this month after sliding in May on trade war fears. Focus is now on how close the Fed could be to cutting interest rates amid the raging US-China trade war, signs of the economy losing steam and pressure by President Trump to ease policy. "The FOMC (Federal Open Market Committee) meeting is the week's biggest event so there will be a degree of caution prevailing in the markets," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management. "Expectations for a rate cut in July have increased significantly, so the markets could experience disappointment if the Fed does not send strong signals of impending easing." US Treasury yields dipped on Monday after the New York Fed's "Empire" gauge of business growth in the state showed a fall this month to its weakest in more than 2-1/2-years, fanning rate cut expectations. The dollar index against a basket of six major currencies stood little changed at 97.507 after pulling back from a two-week high on the decline in Treasury yields. The pound traded at $1.2542 after retreating overnight to a six-month low of $1.2532 on Monday on concerns that arch-Brexiteer Boris Johnson will replace Theresa May as prime minister. The euro was a shade higher at $1.1224 after spending the previous day confined to a narrow range. US crude oil futures shed 0.08% to $51.89 per barrel after retreating 1.1% the previous day. Oil prices had slipped on Monday as weak Chinese economic data released at the end of last week led to fears of lower global demand for the commodity. Concerns over weakening demand overshadowed tensions in the Middle East, which remained high following last week's attacks on two oil tankers in the Gulf of Oman.

Asia stocks capped ahead of Fed, oil on defensive

Asian shares got off to a shaky start on Monday as investors were cautious ahead of a closely-watched Federal Reserve meeting, while political tensions in the Middle East and Hong Kong kept risk-appetite in check.

MSCI's broadest index of Asia-Pacific shares outside Japan opened slightly lower and was last little changed, while Japan's Nikkei average stood flat.

Wall Street stocks ended lower on Friday as investors turned cautious before this week's Fed meeting, while a warning from Broadcom on slowing demand weighed on chipmakers and added to US-China trade worries.

"The week ahead is likely to provide some clarification for investors on three fronts that have been a source of uncertainty. The FOMC meeting, with updated forecasts, is centre stage," said Marc Chandler, chief market strategist at Bannockburn Global Forex.

A private gauge on eurozone's manufacturing sector as well as US-China trade frictions will also be watched closely, Chandler said.

Financial markets have been sideswiped since a sudden escalation in Sino-US&nbsp;trade tensions in early May, with growing anxiety among investors that a protracted standoff could tip the global economy into recession.

Adding to the tensions between the world's two biggest economies, US Secretary of State Mike Pompeo told Fox News on Sunday that US President Donald Trump would raise the issue of Hong Kong's human rights with China's President Xi Jinping at a potential meeting of the two leaders at the G20 summit in Japan later this month.

On Sunday, hundreds of thousands of black-clad protesters in Hong Kong demanded that Beijing-backed city leader Carrie Lam step down over her handling of a bill that would have allowed extradition to China, resulted her to issue a rare apology.

Geopolitical tensions in the Middle East added another layer of uncertainty for investors after the United States blamed Iran for attacks on two oil tankers in the Gulf of Oman last week.

Hopes that global central banks will keep the money spigot open have helped to temper some of the fears, and all eyes are on the Fed's two-day meeting starting on Tuesday.

Strong US retail sales data on Friday rolled back expectations of a Fed rate cut at this week's meeting to 21.7%, from 28.3% on Thursday, according to CME Group's FedWatch tool. But bets of an easing at the July meeting remain high at 85%.

The Bank of Japan also meets this week and is widely expected to reinforce its commitment to retain a massive stimulus program for some time to come.

The retail report also sent short-dated US Treasury yields higher, flattening the yield curve.

Benchmark 10-year notes was last at 2.091%, while two-year bond yield edged up, shrinking the spread between two- and 10-year yields to 23.6 basis points compared to more than 30 earlier this month.

A Reuters poll showed a growing number of economists expect the Fed policymakers to cut interest rates this year, although the majority still see it holding steady.

In currency markets, the dollar index against a basket of six major currencies climbed to 97.583 on Friday, its highest level in almost two weeks, after the US retail sales data eased fears that the world's largest economy is slowing sharply.

The index last stood at 97.511, while the euro fetched $1.1220, near the lower end of its weekly trading range.

Oil extended gains on Monday after the attacks on two oil tankers last week raised concerns about potential supply disruptions, but prices remained on track for a weekly loss on fears that trade disputes will dent global oil demand.

Brent futures rose 0.2% to $62.13 a barrel, while US West Texas Intermediate (WTI) crude futures rose 0.2% to $52.60.

Spot gold eased 0.1% to $1,340.25 an ounce after hitting a 14-month peak on Friday.

Bitcoin jumped overnight to $9,391.85, its highest level in 13 months. It was last quoted at $9150.15.

Asian shares got off to a shaky start on Monday as investors were cautious ahead of a closely-watched Federal Reserve meeting, while political tensions in the Middle East and Hong Kong kept risk-appetite in check.

Asian shares got off to a shaky start on Monday as investors were cautious ahead of a closely-watched Federal Reserve meeting, while political tensions in the Middle East and Hong Kong kept risk-appetite in check. MSCI's broadest index of Asia-Pacific shares outside Japan opened slightly lower and was last little changed, while Japan's Nikkei average stood flat. Wall Street stocks ended lower on Friday as investors turned cautious before this week's Fed meeting, while a warning from Broadcom on slowing demand weighed on chipmakers and added to US-China trade worries. "The week ahead is likely to provide some clarification for investors on three fronts that have been a source of uncertainty. The FOMC meeting, with updated forecasts, is centre stage," said Marc Chandler, chief market strategist at Bannockburn Global Forex. A private gauge on eurozone's manufacturing sector as well as US-China trade frictions will also be watched closely, Chandler said. Financial markets have been sideswiped since a sudden escalation in Sino-US trade tensions in early May, with growing anxiety among investors that a protracted standoff could tip the global economy into recession. Adding to the tensions between the world's two biggest economies, US Secretary of State Mike Pompeo told Fox News on Sunday that US President Donald Trump would raise the issue of Hong Kong's human rights with China's President Xi Jinping at a potential meeting of the two leaders at the G20 summit in Japan later this month. On Sunday, hundreds of thousands of black-clad protesters in Hong Kong demanded that Beijing-backed city leader Carrie Lam step down over her handling of a bill that would have allowed extradition to China, resulted her to issue a rare apology. Geopolitical tensions in the Middle East added another layer of uncertainty for investors after the United States blamed Iran for attacks on two oil tankers in the Gulf of Oman last week. Hopes that global central banks will keep the money spigot open have helped to temper some of the fears, and all eyes are on the Fed's two-day meeting starting on Tuesday. Strong US retail sales data on Friday rolled back expectations of a Fed rate cut at this week's meeting to 21.7%, from 28.3% on Thursday, according to CME Group's FedWatch tool. But bets of an easing at the July meeting remain high at 85%. The Bank of Japan also meets this week and is widely expected to reinforce its commitment to retain a massive stimulus program for some time to come. The retail report also sent short-dated US Treasury yields higher, flattening the yield curve. Benchmark 10-year notes was last at 2.091%, while two-year bond yield edged up, shrinking the spread between two- and 10-year yields to 23.6 basis points compared to more than 30 earlier this month. A Reuters poll showed a growing number of economists expect the Fed policymakers to cut interest rates this year, although the majority still see it holding steady. In currency markets, the dollar index against a basket of six major currencies climbed to 97.583 on Friday, its highest level in almost two weeks, after the US retail sales data eased fears that the world's largest economy is slowing sharply. The index last stood at 97.511, while the euro fetched $1.1220, near the lower end of its weekly trading range. Oil extended gains on Monday after the attacks on two oil tankers last week raised concerns about potential supply disruptions, but prices remained on track for a weekly loss on fears that trade disputes will dent global oil demand. Brent futures rose 0.2% to $62.13 a barrel, while US West Texas Intermediate (WTI) crude futures rose 0.2% to $52.60. Spot gold eased 0.1% to $1,340.25 an ounce after hitting a 14-month peak on Friday. Bitcoin jumped overnight to $9,391.85, its highest level in 13 months. It was last quoted at $9150.15.

Asian shares wobble on trade, political tensions; focus turns to Fed meet

<a href="https://www.wionews.com/business-economy/european-stocks-gain-on-eu-election-relief-and-auto-shares-surge-221981">European</a> shares tip-toed higher alongside government bond yields on Monday, as investors braced for what is shaping up to be a crucial week for global monetary policy.

With the US Federal Reserve likely to signal on Wednesday whether it is readying its first interest rate cut since the financial crisis and oil still choppy after last week's Gulf tanker attacks, most markets were the hesitant first thing.

The focus was still the dollar's surge on Friday after above-forecast US industrial output and retail sales data and upbeat consumer confidence soundings pushed back futures markets expectations of any quick Fed rate cut.

The greenback held its gains as most major currencies trod water, while the pan-European STOXX 600 index was also barely moved as a profit warning from Germany's Lufthansa hit airlines and cancelled out a 0.8% rise in banking stocks.

"A (US) rate cut this week seems extremely premature," said Royal Bank of Canada's Global Head of FX Strategy Elsa Lignos.

"But the Fed can make some communications tweaks that at least open up the possibility for a cut in July. The question is how flexible that messaging will be."

Traders are pricing a high probability of a July rate cut, despite there being unusually high uncertainty, particularly around trade, Lignos added. She said a G20 meeting late this month could also change the narrative again.

The main concern though is if tensions do continue, the trade war could tip the US and other economies into recession.

The dollar index against a basket of six major currencies The index last stood at 97.510 near a two-week high, while the euro fetched $1.1216, near the lower end of its recent trading range.

With long-term inflation expectations at an all-time low again, eurozone bond yields held close to their multi-year trough, despite inching fractionally higher early on.

European Central Bank board member Benoit Coeure said in an interview that the bank's already sub-zero interest rates could be cut again if needed. It could also restart the quantitative easing programme it wound down at the end of last year.

"The question is not whether we have instruments; we do have instruments. We can change our guidance. We can cut rates. We can restart QE," Coeure told the Financial Times.

"The question is which instrument, or combination of instruments, would be best suited to the circumstances."

<a href="https://www.wionews.com/world/joshua-wong-poster-child-of-hong-kongs-umbrella-movement-227835">Hong Kong</a>

The dollar index against a basket of six major currencies climbed to 97.583 on Friday, its highest level in almost two weeks, after the US retail sales data eased fears that the world's largest economy is slowing sharply.

The index last stood at 97.510, while the euro fetched $1.1216, near the lower end of its weekly trading range.

MSCI's broadest index of Asia-Pacific shares outside Japan had ended slightly weaker overnight while Japan's Nikkei average had closed flat.

The Bank of Japan is widely expected to reinforce its commitment this week to a massive stimulus program for some time to come.

There had been something of a boost from Hong Kong's Hang Seng Index which finished 0.4% higher. At the weekend, the territory's leader Carrie Lam backed down over a bill that would have allowed extradition to China.

The Hang Seng fell for three sessions in a row through Friday, after the extradition bill triggered mass protests and some of the worst unrest seen in the territory since Britain handed it back to Chinese rule in 1997.

"Last week the issue looked as if it would become another thorny point between the United States and China. As the bill is now being postponed indefinitely, things will likely calm down, which is good for markets," said Hiroyuki Ueno, senior strategist at Sumitomo Mitsui Trust Asset Management.

Mainland Chinese shares traded within a tight range, with the benchmark Shanghai Composite up 0.2% and the blue-chip CSI 300 barely budging.

US Secretary of State Mike Pompeo told Fox News on Sunday that President Donald Trump would raise the issue of Hong Kong's human rights with China's President Xi Jinping at a potential meeting of the two leaders at the G20 summit in Japan later this month.

Geopolitical tensions in the Middle East added another layer of uncertainty after the United States blamed <a href="https://www.wionews.com/world/as-iran-nuclear-deal-flounders-france-turns-to-saudi-for-oil-226889">Iran</a> for attacks on two <a href="https://www.wionews.com/business-economy/oil-prices-rise-after-tanker-attacks-stoke-middle-east-tensions-227817">oil tankers</a> in the <a href="https://www.wionews.com/business-economy/oil-prices-surge-over-tanker-attack-in-gulf-of-oman-226990">Gulf of Oman</a> last week.

US Secretary of State Pompeo said Washington will take all actions necessary to guarantee safe navigation in the Middle East, though oil prices slipped again as worries about the broader slowdown in the global economy returned.

Brent futures fell 25 cents, or 0.4%, to $61.76 a barrel by 0900 GMT, after gaining 1.1% on Friday while logging their fourth consecutive weekly fall.

US West Texas Intermediate (WTI) crude futures were down 22 cents, or 0.4%, at $52.29, having firmed by 0.4% in the previous session.

"Today, oil markets will have to digest more demand concerns as India implemented retaliatory tariffs on a number of US goods yesterday," consultancy JBC Energy said in a note.

Also sapping prices was the dim outlook for oil demand growth in 2019 projected by the International Energy Agency (IEA) on Friday, citing worsening prospects for global trade.

Bitcoin jumped overnight to $9,391.85, its highest level in 13 months. It was last quoted at $9,195.62, up 2.4%.

European shares tip-toed higher alongside government bond yields on Monday, as investors braced for what is shaping up to be a crucial week for global monetary policy.

European shares tip-toed higher alongside government bond yields on Monday, as investors braced for what is shaping up to be a crucial week for global monetary policy. With the US Federal Reserve likely to signal on Wednesday whether it is readying its first interest rate cut since the financial crisis and oil still choppy after last week's Gulf tanker attacks, most markets were the hesitant first thing. The focus was still the dollar's surge on Friday after above-forecast US industrial output and retail sales data and upbeat consumer confidence soundings pushed back futures markets expectations of any quick Fed rate cut. The greenback held its gains as most major currencies trod water, while the pan-European STOXX 600 index was also barely moved as a profit warning from Germany's Lufthansa hit airlines and cancelled out a 0.8% rise in banking stocks. "A (US) rate cut this week seems extremely premature," said Royal Bank of Canada's Global Head of FX Strategy Elsa Lignos. "But the Fed can make some communications tweaks that at least open up the possibility for a cut in July. The question is how flexible that messaging will be." Traders are pricing a high probability of a July rate cut, despite there being unusually high uncertainty, particularly around trade, Lignos added. She said a G20 meeting late this month could also change the narrative again. The main concern though is if tensions do continue, the trade war could tip the US and other economies into recession. The dollar index against a basket of six major currencies The index last stood at 97.510 near a two-week high, while the euro fetched $1.1216, near the lower end of its recent trading range. With long-term inflation expectations at an all-time low again, eurozone bond yields held close to their multi-year trough, despite inching fractionally higher early on. European Central Bank board member Benoit Coeure said in an interview that the bank's already sub-zero interest rates could be cut again if needed. It could also restart the quantitative easing programme it wound down at the end of last year. "The question is not whether we have instruments; we do have instruments. We can change our guidance. We can cut rates. We can restart QE," Coeure told the Financial Times. "The question is which instrument, or combination of instruments, would be best suited to the circumstances." Hong Kong The dollar index against a basket of six major currencies climbed to 97.583 on Friday, its highest level in almost two weeks, after the US retail sales data eased fears that the world's largest economy is slowing sharply. The index last stood at 97.510, while the euro fetched $1.1216, near the lower end of its weekly trading range. MSCI's broadest index of Asia-Pacific shares outside Japan had ended slightly weaker overnight while Japan's Nikkei average had closed flat. The Bank of Japan is widely expected to reinforce its commitment this week to a massive stimulus program for some time to come. There had been something of a boost from Hong Kong's Hang Seng Index which finished 0.4% higher. At the weekend, the territory's leader Carrie Lam backed down over a bill that would have allowed extradition to China. The Hang Seng fell for three sessions in a row through Friday, after the extradition bill triggered mass protests and some of the worst unrest seen in the territory since Britain handed it back to Chinese rule in 1997. "Last week the issue looked as if it would become another thorny point between the United States and China. As the bill is now being postponed indefinitely, things will likely calm down, which is good for markets," said Hiroyuki Ueno, senior strategist at Sumitomo Mitsui Trust Asset Management. Mainland Chinese shares traded within a tight range, with the benchmark Shanghai Composite up 0.2% and the blue-chip CSI 300 barely budging. US Secretary of State Mike Pompeo told Fox News on Sunday that President Donald Trump would raise the issue of Hong Kong's human rights with China's President Xi Jinping at a potential meeting of the two leaders at the G20 summit in Japan later this month. Geopolitical tensions in the Middle East added another layer of uncertainty after the United States blamed Iran for attacks on two oil tankers in the Gulf of Oman last week. US Secretary of State Pompeo said Washington will take all actions necessary to guarantee safe navigation in the Middle East, though oil prices slipped again as worries about the broader slowdown in the global economy returned. Brent futures fell 25 cents, or 0.4%, to $61.76 a barrel by 0900 GMT, after gaining 1.1% on Friday while logging their fourth consecutive weekly fall. US West Texas Intermediate (WTI) crude futures were down 22 cents, or 0.4%, at $52.29, having firmed by 0.4% in the previous session. "Today, oil markets will have to digest more demand concerns as India implemented retaliatory tariffs on a number of US goods yesterday," consultancy JBC Energy said in a note. Also sapping prices was the dim outlook for oil demand growth in 2019 projected by the International Energy Agency (IEA) on Friday, citing worsening prospects for global trade. Bitcoin jumped overnight to $9,391.85, its highest level in 13 months. It was last quoted at $9,195.62, up 2.4%.

Global stocks, dollar hold gains with all eyes on Fed meeting

Asian stock markets edged up on Monday after surprising strong US first-quarter economic growth boosted the S&amp;P 500 index to a record high, but gains were capped by caution over less upbeat aspects in the GDP report which pointed to some weakening ahead.

Investors were also awaiting a meeting of the US Federal Reserve this week and Chinese factory data for further clues on policy direction in the world's biggest economies.

MSCI's broadest index of Asia-Pacific shares outside Japan was up less than 0.1 per cent, edging higher after posting its biggest weekly drop in more than a month last week.

Australian shares were down 0.26 per cent, while Seoul's KOSPI was up 0.4 per cent.

Japan's financial markets are closed for a long national holiday this week, but Nikkei 225 futures in Singapore were 0.72 per cent higher.

In contrast with weakness in Asian markets last week, Wall Street ended Friday on a high note following data showing US gross domestic product grew at a faster 3.2 per cent annualised rate in the first quarter.

The Dow Jones Industrial Average rose 0.31 per cent to 26,543.33 and the Nasdaq Composite added or 0.34 per cent to 8,146.40.

The S&amp;P 500 gained 0.47 per cent to 2,939.88, its second record closing high for the week.

Stephen Innes, managing partner at SPI Asset Management, said that despite stronger-than-expected earnings helping to lift markets, he sees "overly extended" S&amp;P positioning.

"We have flipped from a state where it is a stock rally no one wants to take part in, to a frenzied paced splurge where hedge funds and investors alike continue to chase markets like greyhounds to the mechanical rabbit," he said in a note.

While the strong GDP data helped to ease fears of an imminent recession, investors noted that it was driven by a smaller trade deficit and a large accumulation of unsold merchandise, as consumer and business spending slowed sharply.

In a morning note to clients, analysts at National Australian said the strong GDP has a "soft underbelly", noting weak inflation.

"It is the thought that a downturn in inflation could have the Fed cutting rates before 2019 is out – at a time when the Fed is openly discussing wanting to tolerate a period of above-target inflation to make up for past shortfalls – that had the interest rate markets moving the implied probability of 2019 easing out," they said.

The March reading for core personal consumption expenditures (PCE), the Fed's favoured inflation measure, is due later on Monday. The central bank will announce its policy decision on Wednesday, with Chairman Jerome Powell expected to balance the strong growth data against persistent concerns over the outlook for global growth.

Markets will also be looking to global factory activity surveys this week, particularly official and private readings on Chinese manufacturing which will both be released Tuesday.

While better-than-expected March data from China have helped eased fears of a sharp global slowdown, it has also touched off an intense debate over how much more stimulus Beijing can roll out without risking a rapid build-up in debt and potential asset bubbles.

In currency markets, the dollar was flat against the yen at 111.61. The euro was also barely changed, rising 0.02 per cent to $1.1150.

The dollar index, which tracks the greenback against a basket of six major rivals, inched higher to 98.033.

US crude dipped 0.7 per cent at $62.86 a barrel, continuing lower after US President Donald Trump on Friday pressured the Organization of the Petroleum Exporting Countries to raise crude production to ease gasoline prices.

Brent crude fell to $71.6 per barrel.

Spot gold was slightly lower, trading at $1,285.29 per ounce.

Asian stock markets edged up on Monday after surprising strong US first-quarter economic growth boosted the S&P 500 index to a record high, but gains were capped by caution over less upbeat aspects in the GDP report which pointed to some weakening ahead.

Asian stock markets edged up on Monday after surprising strong US first-quarter economic growth boosted the S&P 500 index to a record high, but gains were capped by caution over less upbeat aspects in the GDP report which pointed to some weakening ahead. Investors were also awaiting a meeting of the US Federal Reserve this week and Chinese factory data for further clues on policy direction in the world's biggest economies. MSCI's broadest index of Asia-Pacific shares outside Japan was up less than 0.1 per cent, edging higher after posting its biggest weekly drop in more than a month last week. Australian shares were down 0.26 per cent, while Seoul's KOSPI was up 0.4 per cent. Japan's financial markets are closed for a long national holiday this week, but Nikkei 225 futures in Singapore were 0.72 per cent higher. In contrast with weakness in Asian markets last week, Wall Street ended Friday on a high note following data showing US gross domestic product grew at a faster 3.2 per cent annualised rate in the first quarter. The Dow Jones Industrial Average rose 0.31 per cent to 26,543.33 and the Nasdaq Composite added or 0.34 per cent to 8,146.40. The S&P 500 gained 0.47 per cent to 2,939.88, its second record closing high for the week. Stephen Innes, managing partner at SPI Asset Management, said that despite stronger-than-expected earnings helping to lift markets, he sees "overly extended" S&P positioning. "We have flipped from a state where it is a stock rally no one wants to take part in, to a frenzied paced splurge where hedge funds and investors alike continue to chase markets like greyhounds to the mechanical rabbit," he said in a note. While the strong GDP data helped to ease fears of an imminent recession, investors noted that it was driven by a smaller trade deficit and a large accumulation of unsold merchandise, as consumer and business spending slowed sharply. In a morning note to clients, analysts at National Australian said the strong GDP has a "soft underbelly", noting weak inflation. "It is the thought that a downturn in inflation could have the Fed cutting rates before 2019 is out – at a time when the Fed is openly discussing wanting to tolerate a period of above-target inflation to make up for past shortfalls – that had the interest rate markets moving the implied probability of 2019 easing out," they said. The March reading for core personal consumption expenditures (PCE), the Fed's favoured inflation measure, is due later on Monday. The central bank will announce its policy decision on Wednesday, with Chairman Jerome Powell expected to balance the strong growth data against persistent concerns over the outlook for global growth. Markets will also be looking to global factory activity surveys this week, particularly official and private readings on Chinese manufacturing which will both be released Tuesday. While better-than-expected March data from China have helped eased fears of a sharp global slowdown, it has also touched off an intense debate over how much more stimulus Beijing can roll out without risking a rapid build-up in debt and potential asset bubbles. In currency markets, the dollar was flat against the yen at 111.61. The euro was also barely changed, rising 0.02 per cent to $1.1150. The dollar index, which tracks the greenback against a basket of six major rivals, inched higher to 98.033. US crude dipped 0.7 per cent at $62.86 a barrel, continuing lower after US President Donald Trump on Friday pressured the Organization of the Petroleum Exporting Countries to raise crude production to ease gasoline prices. Brent crude fell to $71.6 per barrel. Spot gold was slightly lower, trading at $1,285.29 per ounce.

Asian shares rise on strong US GDP, eyes on Federal Reserve, China

Asian shares hit 6-1/2-month highs on Friday after upbeat US data and optimism in the tech sector lifted Wall Street stocks, helping calm some of the jitters sparked by the Federal Reserve's cautious outlook on the world's biggest economy.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent, led by 0.5 per cent gains in the infotech sector, while Japan's Nikkei bucked the trend and lost 0.2 per cent.

On Wall Street, the S&amp;P 500 gained 1.09 per cent while the Nasdaq Composite rallied 1.42 per cent, both hitting five-month highs.

Apple Inc led the tech sector's advance, rising 3.7 per cent, ahead of the company's expected streaming service debut next week.

The Philadelphia SE Semiconductor Index soared 3.5 per cent, coming within a striking distance from its all-time high marked about a year ago.

"I'd think optimism in the tech sector is the biggest driver now. It reflects expectations that the US and China will eventually reach a trade deal," said Soichiro Monji, senior economist at Daiwa SB Investments.

A US trade delegation headed by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will visit China on March 28-29, which will be followed by a trip by Chinese Vice Premier Liu He to Washington in early April.

Thursday's US economic data was also upbeat as initial claims for jobless benefits fell more than expected and mid-Atlantic factory activity rebounded sharply.

The figures mollified worries about the US economic outlook after the Fed on Wednesday surprised investors by adopting a sharp dovish stance, anticipating no further interest rate hikes this year and ending its balance sheet rolloffs.

The dollar also jumped back, with its index against a basket of six major currencies rising to 96.327 from Wednesday's 1-1/2-month low of 95.735.

The euro traded at $ 1.1374, flat on the day and off Wednesday's 1-1/2-month high of $1.14485.

The dollar stood at 110.74 yen, having hit a five-week low of 110.30 on Thursday.

The benchmark US 10-year notes yield stood at 2.530 per cent after having slipped to as low as 2.500 per cent on Thursday, its lowest since early January last year.

The five-year yield dropped to 2.34 per cent, below the current Fed funds rate around 2.40 per cent, as fed funds rate futures price in about 50 per cent chances of a rate cut this year.

"The main market reaction to the Fed's announcement was that it has become a consensus that the Fed's next move is a rate cut," said Naoya Oshikubo, senior manager at Sumitomo Mitsui Trust Asset.

"As economic data from China and elsewhere has not bottomed out yet, investors will be looking at economic fundamentals for now. If there are improvements, then markets could roll back expectations of a Fed rate cut," he said.

DoubleLine Capital's chief executive Jeffrey Gundlach, known as the "Bond King," said on Thursday that the stock market "likes the fact that they (the Fed) aren't going to give them any problems," for now.

He added, however, the Fed's cautious stance on raising rates could backfire by creating uncertainty in the economy and hurt the U.S. central bank's credibility.

Another cloud hanging over markets was Britain's fraught moves to exit from the European Union, as the British pound was bruised anew by rising worries about a no-deal Brexit.

EU leaders said Britain could leave the European Union without a deal on April 12 if lawmakers fail next week to back Prime Minister Theresa May's agreement with Brussels.

EU leaders gave May an extra two months, until May 22, to leave if she wins next week's vote in parliament.

The pound traded at $1.3136, having dropped to $1.3004 the previous day. Against the euro, it hit one-month low of 0.8722 to euro on Thursday and last stood at 0.8664.

Oil dipped but held near 2019 highs reached the previous day, supported by a broad risk-on mood, OPEC production cuts and US sanctions on key producers Iran and Venezuela.

Brent crude oil futures edged down 0.3 per cent to $67.65 per barrel while US crude futures fell 0.3 per cent to $59.81.

Asian shares hit 6-1/2-month highs on Friday after upbeat US data and optimism in the tech sector lifted Wall Street stocks, helping calm some of the jitters sparked by the Federal Reserve's cautious outlook on the world's biggest economy.

Asian shares hit 6-1/2-month highs on Friday after upbeat US data and optimism in the tech sector lifted Wall Street stocks, helping calm some of the jitters sparked by the Federal Reserve's cautious outlook on the world's biggest economy. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent, led by 0.5 per cent gains in the infotech sector, while Japan's Nikkei bucked the trend and lost 0.2 per cent. On Wall Street, the S&P 500 gained 1.09 per cent while the Nasdaq Composite rallied 1.42 per cent, both hitting five-month highs. Apple Inc led the tech sector's advance, rising 3.7 per cent, ahead of the company's expected streaming service debut next week. The Philadelphia SE Semiconductor Index soared 3.5 per cent, coming within a striking distance from its all-time high marked about a year ago. "I'd think optimism in the tech sector is the biggest driver now. It reflects expectations that the US and China will eventually reach a trade deal," said Soichiro Monji, senior economist at Daiwa SB Investments. A US trade delegation headed by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will visit China on March 28-29, which will be followed by a trip by Chinese Vice Premier Liu He to Washington in early April. Thursday's US economic data was also upbeat as initial claims for jobless benefits fell more than expected and mid-Atlantic factory activity rebounded sharply. The figures mollified worries about the US economic outlook after the Fed on Wednesday surprised investors by adopting a sharp dovish stance, anticipating no further interest rate hikes this year and ending its balance sheet rolloffs. The dollar also jumped back, with its index against a basket of six major currencies rising to 96.327 from Wednesday's 1-1/2-month low of 95.735. The euro traded at $ 1.1374, flat on the day and off Wednesday's 1-1/2-month high of $1.14485. The dollar stood at 110.74 yen, having hit a five-week low of 110.30 on Thursday. The benchmark US 10-year notes yield stood at 2.530 per cent after having slipped to as low as 2.500 per cent on Thursday, its lowest since early January last year. The five-year yield dropped to 2.34 per cent, below the current Fed funds rate around 2.40 per cent, as fed funds rate futures price in about 50 per cent chances of a rate cut this year. "The main market reaction to the Fed's announcement was that it has become a consensus that the Fed's next move is a rate cut," said Naoya Oshikubo, senior manager at Sumitomo Mitsui Trust Asset. "As economic data from China and elsewhere has not bottomed out yet, investors will be looking at economic fundamentals for now. If there are improvements, then markets could roll back expectations of a Fed rate cut," he said. DoubleLine Capital's chief executive Jeffrey Gundlach, known as the "Bond King," said on Thursday that the stock market "likes the fact that they (the Fed) aren't going to give them any problems," for now. He added, however, the Fed's cautious stance on raising rates could backfire by creating uncertainty in the economy and hurt the U.S. central bank's credibility. Another cloud hanging over markets was Britain's fraught moves to exit from the European Union, as the British pound was bruised anew by rising worries about a no-deal Brexit. EU leaders said Britain could leave the European Union without a deal on April 12 if lawmakers fail next week to back Prime Minister Theresa May's agreement with Brussels. EU leaders gave May an extra two months, until May 22, to leave if she wins next week's vote in parliament. The pound traded at $1.3136, having dropped to $1.3004 the previous day. Against the euro, it hit one-month low of 0.8722 to euro on Thursday and last stood at 0.8664. Oil dipped but held near 2019 highs reached the previous day, supported by a broad risk-on mood, OPEC production cuts and US sanctions on key producers Iran and Venezuela. Brent crude oil futures edged down 0.3 per cent to $67.65 per barrel while US crude futures fell 0.3 per cent to $59.81.

Asian shares hit 6-1/2-month high on tech hopes

The rupee strengthened by 6 paise to 71.01 against the US dollar in early trade Wednesday at the interbank forex market on some selling of the greenback by exporters and banks amid sustained foreign fund inflows.

A positive opening for the stock markets also boosted the domestic currency, dealers said.

On Tuesday, the rupee snapped its gains of previous two sessions and closed 10 paise lower at 71.07 to the US dollar amid fears of escalation in geopolitical tensions following Indian fighter jets' air strike on a Pakistan-based terror camp.

Foreign institutional investors (FIIs) bought shares worth Rs 1,674.17 crore Tuesday, as per provisional data.

In global trade, the US dollar fell to a three-week low after Federal Reserve chairman reinforced the US central bank's recent shift toward a more "patient" approach on policy in the face of slowing economy.

Meanwhile, the benchmark <a href="http://www.wionews.com/business-economy/sensex-rebounds-256-points-nifty-above-10900-mark-199967">BSE Sensex</a> rose 218.81 points, or 0.61 per cent, to 36,192.52 points in early trade.&nbsp;

The rupee strengthened by 6 paise to 71.01 against the US dollar in early trade Wednesday at the interbank forex market on some selling of the greenback by exporters and banks amid sustained foreign fund inflows.

The rupee strengthened by 6 paise to 71.01 against the US dollar in early trade Wednesday at the interbank forex market on some selling of the greenback by exporters and banks amid sustained foreign fund inflows. A positive opening for the stock markets also boosted the domestic currency, dealers said. On Tuesday, the rupee snapped its gains of previous two sessions and closed 10 paise lower at 71.07 to the US dollar amid fears of escalation in geopolitical tensions following Indian fighter jets' air strike on a Pakistan-based terror camp. Foreign institutional investors (FIIs) bought shares worth Rs 1,674.17 crore Tuesday, as per provisional data. In global trade, the US dollar fell to a three-week low after Federal Reserve chairman reinforced the US central bank's recent shift toward a more "patient" approach on policy in the face of slowing economy. Meanwhile, the benchmark BSE Sensex rose 218.81 points, or 0.61 per cent, to 36,192.52 points in early trade.

Rupee recovers 6 paise against US dollar in early trade

The US Senate Finance Committee has launched an inquiry into meetings in 2015 between top Obama administration officials, a Russian central banker and Maria Butina, who has pleaded guilty to conspiring to work as a Russian agent to influence American foreign policy.

The bipartisan inquiry, announced jointly by the panel's Chairman Charles Grassley and ranking Democrat Ron Wyden, was sparked by an exclusive Reuters article from July.

That report revealed details about previously unreported meetings in 2015 set up by the Centre for the National Interest, a Washington foreign policy think tank that is supportive of efforts to improve US-Russia relations.

In two separate meetings, Butina, a former graduate student who advocated for gun rights, and Russian Central Bank deputy governor Alexander Torshin together met Stanley Fischer, then Federal Reserve vice chairman, and Nathan Sheets, then Treasury undersecretary for international affairs.

The meetings were documented in a Centre for the National Interest report seen by Reuters which discussed arranging the meetings to bring together "leading figures from the financial institutions of the United States and Russia."

Torshin was sanctioned last April by the Treasury Department, and he is referenced in court records as an unindicted co-conspirator who worked with Butina to infiltrate the National Rifle Association (NRA) and make inroads in conservative political circles to help benefit Russia.

A spokeswoman for the Russian central bank has previously said that Torshin declines to comment on the subject.

The Senate panel earlier this week sent letters to Treasury Secretary Steve Mnuchin, Federal Reserve Chairman Jerome Powell and the Centre for the National Interest's Russian-born CEO, Dimitri Simes, seeking additional information about meetings with top Russian government officials.

"A critical issue facing the Committee and the country is the extent to which the Russian government engaged in efforts designed to undermine our political system and governmental policy through obfuscation and manipulation," Grassley and Wyden wrote in their letters.

A Federal Reserve spokesman confirmed receiving the letter and said the Fed intends to respond.

Spokespeople for the Treasury Department and the think tank did not immediately respond to requests for comment. Butina's attorney could not be immediately reached.

In July, Fischer told Reuters he recalled having one meeting with Torshin and his interpreter about the Russian economy and said Torshin also mentioned plans to attend an NRA convention.

Sheets previously declined to comment and a spokesman for him did not have any immediate comment on Friday.

Paul Saunders, the Centre for the National Interest's executive director, previously told Reuters it was unaware of any inappropriate conduct or connections to Russian intelligence services involving Butina and Torshin.

In their letters, Grassley and Wyden said they are asking the think tank for records related to meetings it organised.

"It is concerning that Ms Butina and Mr Torshin were able to gain access to high-level administration officials responsible for US economic and monetary policy to reportedly discuss US Russian economic relations," the lawmakers wrote.

Butina, who is cooperating with prosecutors, is slated to appear in court later this month for a status conference.

The US Senate Finance Committee has launched an inquiry into meetings in 2015 between top Obama administration officials, a Russian central banker and Maria Butina, who has pleaded guilty to conspiring to work as a Russian agent to influence American foreign policy.

The US Senate Finance Committee has launched an inquiry into meetings in 2015 between top Obama administration officials, a Russian central banker and Maria Butina, who has pleaded guilty to conspiring to work as a Russian agent to influence American foreign policy. The bipartisan inquiry, announced jointly by the panel's Chairman Charles Grassley and ranking Democrat Ron Wyden, was sparked by an exclusive Reuters article from July. That report revealed details about previously unreported meetings in 2015 set up by the Centre for the National Interest, a Washington foreign policy think tank that is supportive of efforts to improve US-Russia relations. In two separate meetings, Butina, a former graduate student who advocated for gun rights, and Russian Central Bank deputy governor Alexander Torshin together met Stanley Fischer, then Federal Reserve vice chairman, and Nathan Sheets, then Treasury undersecretary for international affairs. The meetings were documented in a Centre for the National Interest report seen by Reuters which discussed arranging the meetings to bring together "leading figures from the financial institutions of the United States and Russia." Torshin was sanctioned last April by the Treasury Department, and he is referenced in court records as an unindicted co-conspirator who worked with Butina to infiltrate the National Rifle Association (NRA) and make inroads in conservative political circles to help benefit Russia. A spokeswoman for the Russian central bank has previously said that Torshin declines to comment on the subject. The Senate panel earlier this week sent letters to Treasury Secretary Steve Mnuchin, Federal Reserve Chairman Jerome Powell and the Centre for the National Interest's Russian-born CEO, Dimitri Simes, seeking additional information about meetings with top Russian government officials. "A critical issue facing the Committee and the country is the extent to which the Russian government engaged in efforts designed to undermine our political system and governmental policy through obfuscation and manipulation," Grassley and Wyden wrote in their letters. A Federal Reserve spokesman confirmed receiving the letter and said the Fed intends to respond. Spokespeople for the Treasury Department and the think tank did not immediately respond to requests for comment. Butina's attorney could not be immediately reached. In July, Fischer told Reuters he recalled having one meeting with Torshin and his interpreter about the Russian economy and said Torshin also mentioned plans to attend an NRA convention. Sheets previously declined to comment and a spokesman for him did not have any immediate comment on Friday. Paul Saunders, the Centre for the National Interest's executive director, previously told Reuters it was unaware of any inappropriate conduct or connections to Russian intelligence services involving Butina and Torshin. In their letters, Grassley and Wyden said they are asking the think tank for records related to meetings it organised. "It is concerning that Ms Butina and Mr Torshin were able to gain access to high-level administration officials responsible for US economic and monetary policy to reportedly discuss US Russian economic relations," the lawmakers wrote. Butina, who is cooperating with prosecutors, is slated to appear in court later this month for a status conference.

US Senate inquiry to probe Russian agent's meetings with Treasury, Fed

The US economy will post strong growth in the first quarter, despite negative effects from the extended government shutdown, top White House economist Kevin Hassett said Monday.

He said the year started off strong, with the blockbuster January jobs gain of over 300,000 pointing to expansion of more than three per cent in the first quarter.

While he recently acknowledged that his office had underestimated the impact on the economy of idling 800,000 federal workers, Hassett was upbeat about the outlook.

"My thought is the negative effects we talked about from the shutdown will be very, very hard to see in the data," he said on CNBC.&nbsp;

"I think Q1 has got to be well north of two and maybe even north of three"per cent growth, given the momentum from employment.

And due to the stimulus provided by 2017's massive corporate tax cuts, the economy is seeing "a tax-induced supply shock" that will boost growth without increasing prices, he said.

"So I think we could go forward with a great deal of confidence that the high growth isn't pushing an enormous amount on inflation."

Hassett said he got a "fist bump" from President Donald Trump on Friday after the January employment report provided "good news the White House needed."

However, financial markets have become increasingly concerned that despite strong jobs growth the economy will slow this year.&nbsp;

And those fears prompted the Federal Reserve to signal clearly that it intends to pause its interest rate increases.

The US trade war with China also has created uncertainty and threatened to slow both economies.

Hassett said he remained "hopeful" Washington and Beijing could reach an agreement but cautioned that "there's still a lot of work to do."

The US will more than double the punitive tariffs on $200 billion in Chinese goods if no deal is agreed by March 1.

The sides held a second round of talks in Washington last week and are expected to meet again in Beijing later this month.

The US economy will post strong growth in the first quarter, despite negative effects from the extended government shutdown, top White House economist Kevin Hassett said Monday.

The US economy will post strong growth in the first quarter, despite negative effects from the extended government shutdown, top White House economist Kevin Hassett said Monday. He said the year started off strong, with the blockbuster January jobs gain of over 300,000 pointing to expansion of more than three per cent in the first quarter. While he recently acknowledged that his office had underestimated the impact on the economy of idling 800,000 federal workers, Hassett was upbeat about the outlook. "My thought is the negative effects we talked about from the shutdown will be very, very hard to see in the data," he said on CNBC. "I think Q1 has got to be well north of two and maybe even north of three"per cent growth, given the momentum from employment. And due to the stimulus provided by 2017's massive corporate tax cuts, the economy is seeing "a tax-induced supply shock" that will boost growth without increasing prices, he said. "So I think we could go forward with a great deal of confidence that the high growth isn't pushing an enormous amount on inflation." Hassett said he got a "fist bump" from President Donald Trump on Friday after the January employment report provided "good news the White House needed." However, financial markets have become increasingly concerned that despite strong jobs growth the economy will slow this year. And those fears prompted the Federal Reserve to signal clearly that it intends to pause its interest rate increases. The US trade war with China also has created uncertainty and threatened to slow both economies. Hassett said he remained "hopeful" Washington and Beijing could reach an agreement but cautioned that "there's still a lot of work to do." The US will more than double the punitive tariffs on $200 billion in Chinese goods if no deal is agreed by March 1. The sides held a second round of talks in Washington last week and are expected to meet again in Beijing later this month.

White House economist says economy strong despite shutdown

President Donald Trump has no intention of firing the <a href="http://www.wionews.com/world/as-markets-slump-trump-calls-fed-only-problem-in-us-economy-186249">chairman of the Federal Reserve</a>, despite his barrages of criticism against the central bank, White House economic advisor Kevin Hassett said Wednesday.

"Yes, of course, 100 per cent," Hassett said when asked on ABC television whether Fed boss Jerome Powell would keep his job.

Hassett also downplayed jitters over the economic outlook, following plummeting stock market prices.

"All the anecdotal information we're getting is that the fundamentals remain extremely sound," Hassett said, as Wall Street bounced back from its most recent losses.

Hassett said that Christmas-period shopping had been "through the roof" and that the economy was still expanding at a good pace, with "the momentum that we saw this year... carrying over to next year."

The Trump advisor likewise sought to calm nerves triggered by revelations that Treasury Secretary Steve Mnuchin phoned the CEOs of America's biggest banks last weekend to check that they have healthy liquidity levels.

The calls -- apparently meant to demonstrate the White House's grip on the volatile situation -- backfired by sparking concerns that the government might be worried about a run on the banks.

"Secretary Mnuchin talks to bankers all the time, practically every day and you know, the markets clearly are focused on downside risk for next year and it's important to gather information from the normal sources and from informal sources and you know," Hassett said.

"We've all been doing that really quite a bit over the few weeks."

Hassett said that the ongoing budget impasse in which swaths of the federal government are going without funding, due to Congress' refusal to authorize Trump's demand for more money on a US-Mexico border barrier, would not harm the economy.

"A few weeks shutdown is not going to be something that has any kind of significant effect on the outlook," he said.

The White House did not respond to a request for comment on reports that Trump is planning to meet with the Fed's Powell in the near future. Trump has repeatedly and publicly lambasted Powell over the central bank's raising of interest rates.

President Donald Trump has no intention of firing the chairman of the Federal Reserve, despite his barrages of criticism against the central bank, White House economic advisor Kevin Hassett said Wednesday.

President Donald Trump has no intention of firing the chairman of the Federal Reserve, despite his barrages of criticism against the central bank, White House economic advisor Kevin Hassett said Wednesday. "Yes, of course, 100 per cent," Hassett said when asked on ABC television whether Fed boss Jerome Powell would keep his job. Hassett also downplayed jitters over the economic outlook, following plummeting stock market prices. "All the anecdotal information we're getting is that the fundamentals remain extremely sound," Hassett said, as Wall Street bounced back from its most recent losses. Hassett said that Christmas-period shopping had been "through the roof" and that the economy was still expanding at a good pace, with "the momentum that we saw this year... carrying over to next year." The Trump advisor likewise sought to calm nerves triggered by revelations that Treasury Secretary Steve Mnuchin phoned the CEOs of America's biggest banks last weekend to check that they have healthy liquidity levels. The calls -- apparently meant to demonstrate the White House's grip on the volatile situation -- backfired by sparking concerns that the government might be worried about a run on the banks. "Secretary Mnuchin talks to bankers all the time, practically every day and you know, the markets clearly are focused on downside risk for next year and it's important to gather information from the normal sources and from informal sources and you know," Hassett said. "We've all been doing that really quite a bit over the few weeks." Hassett said that the ongoing budget impasse in which swaths of the federal government are going without funding, due to Congress' refusal to authorize Trump's demand for more money on a US-Mexico border barrier, would not harm the economy. "A few weeks shutdown is not going to be something that has any kind of significant effect on the outlook," he said. The White House did not respond to a request for comment on reports that Trump is planning to meet with the Fed's Powell in the near future. Trump has repeatedly and publicly lambasted Powell over the central bank's raising of interest rates.

US Fed chairman's job '100%' safe: Trump's advisor

<a href="http://www.wionews.com/south-asia/gunmen-kill-at-least-28-in-raid-on-afghan-government-building-186252">Gunmen kill at least 28 in </a><a href="http://www.wionews.com/south-asia/gunmen-kill-at-least-28-in-raid-on-afghan-government-building-186252">raid</a><a href="http://www.wionews.com/south-asia/gunmen-kill-at-least-28-in-raid-on-afghan-government-building-186252"> on </a><a href="http://www.wionews.com/south-asia/gunmen-kill-at-least-28-in-raid-on-afghan-government-building-186252">Afghan</a><a href="http://www.wionews.com/south-asia/gunmen-kill-at-least-28-in-raid-on-afghan-government-building-186252"> government building</a>

Gunmen who raided a government building in the Afghan capital killed at least 28 people - mostly government employees - and wounded more than 20 others in a seven-hour standoff with police that ended on Monday night, Afghan authorities said.

 
<a href="http://www.wionews.com/world/as-markets-slump-trump-calls-fed-only-problem-in-us-economy-186249">Trump attacks US central bank, says it is 'only problem' in economy</a>

President Donald Trump blasted the Federal Reserve on Monday, describing it as the "only problem" for the US economy, as top officials convened to discuss the growing rout in stock markets caused in part by the president's attacks on the central bank.

 
<a href="http://www.wionews.com/world/democrats-say-trump-plunging-country-into-chaos-with-multiple-crises-186247">'Trump is plunging the country into chaos'</a>

US Democratic leaders charged Monday that President Donald Trump was "plunging the country into chaos" with multiple crises and said he was offering no way to end a government shutdown.

 
<a href="http://www.wionews.com/india-news/pm-modi-to-inaugurate-indias-longest-rail-road-bridge-today-186250">Modi to inaugurate India's longest </a><a href="http://www.wionews.com/india-news/pm-modi-to-inaugurate-indias-longest-rail-road-bridge-today-186250">rail-road</a><a href="http://www.wionews.com/india-news/pm-modi-to-inaugurate-indias-longest-rail-road-bridge-today-186250"> bridge today in Assam</a>

Prime Minister Narendra Modi will inaugurate the Bogibeel bridge in Dibrugarh, Assam today. Bogibeel will be the country longest rail-road bridge.&nbsp;

The first passenger train passing through Bogibeel will be flagged off by Modi.&nbsp;

 
<a href="http://www.wionews.com/world/on-christmas-pope-assails-insatiable-greed-of-todays-consumerism-186257">On Christmas, Pope assails 'insatiable greed' of today's consumerism</a>

Pope Francis assailed the "insatiable greed" of today's consumerism at the Vatican and pilgrims crowded into the church at the traditional site of Jesus's birth in Bethlehem on Tuesday as Christmas celebrations began worldwide.

Gunmen kill at least 28 in raid on Afghan government building Gunmen who raided a government building in the Afghan capital killed at least 28 people - mostly government employees - and wounded more than 20 others in a seven-hour standoff with police that ended on Monday night, Afghan authorities said.

Gunmen kill at least 28 in raid on Afghan government building Gunmen who raided a government building in the Afghan capital killed at least 28 people - mostly government employees - and wounded more than 20 others in a seven-hour standoff with police that ended on Monday night, Afghan authorities said. Trump attacks US central bank, says it is 'only problem' in economy President Donald Trump blasted the Federal Reserve on Monday, describing it as the "only problem" for the US economy, as top officials convened to discuss the growing rout in stock markets caused in part by the president's attacks on the central bank. 'Trump is plunging the country into chaos' US Democratic leaders charged Monday that President Donald Trump was "plunging the country into chaos" with multiple crises and said he was offering no way to end a government shutdown. Modi to inaugurate India's longest rail-road bridge today in Assam Prime Minister Narendra Modi will inaugurate the Bogibeel bridge in Dibrugarh, Assam today. Bogibeel will be the country longest rail-road bridge. The first passenger train passing through Bogibeel will be flagged off by Modi. On Christmas, Pope assails 'insatiable greed' of today's consumerism Pope Francis assailed the "insatiable greed" of today's consumerism at the Vatican and pilgrims crowded into the church at the traditional site of Jesus's birth in Bethlehem on Tuesday as Christmas celebrations began worldwide.

News brief: Big stories of the day

The US central bank sent a strong signal on Friday that it would be willing to reconsider expected <a href="http://www.wionews.com/business-economy/us-federal-reserve-hikes-interest-rates-wall-street-stocks-tumble-185385">interest rate hikes </a>amid new data showing President Donald Trump's multi-front trade wars are dragging on the economy and shaking up investors.

The message, from the senior Federal Reserve official with the closest links to US financial markets, sent the Dow Jones Industrial Average surging 300 points. But the index later turned negative once again, and closed with yet another steep decline, its worst week in 10 years.

"I think we are hearing something important for markets and that is a concern around risks to the economy and potential slowdown," New York Federal Reserve Bank President John Williams said Friday on CNBC.

He stressed that the Fed is listening to the fears about the risks and will "be ready to reassess and re-evaluate our views and our policy stance."

It was a remarkable comment coming just two days after the Fed raised the key borrowing rate on Wednesday and signalled it will continue to hike next year, albeit at a slower pace, with only two increases projected.

Economist Chris Low lambasted the Fed's "epic post-meeting communications bungle," and cited the "glaring omission" of the Fed failing to recognize a global manufacturing slowdown, and continuing to believe the labour market is the main factor behind inflation.

The Fed has continued to forecast strong growth, which would support their case for tightening monetary policy, but the expected inflation spurt and rise in wages have not materialized.&nbsp;

New data Friday showed the Fed's preferred inflation index slowed to 1.8 per cent in November, below the central bank's target.

"It's hard to imagine anyone would think it's acceptable to signal three rate hikes when inflation is below target," Low said, noting the Fed forecast see two hikes in 2019 and one in 2020.

Trump effect?&nbsp;

Williams tried to correct the market impression that two interest rate increases are set in stone for next year, highlighting a slight change of language in the policy statement issued Wednesday.&nbsp;

The Fed's November statement said rate increases were expected, while now it "judges that some further gradual" hikes are in store, which Williams said, "is not a commitment or promise in any way."

"Clearly the Fed is changing its tone and it's getting a little more dovish following the market reaction this week," said Adam Sarhan of 50 Park Investments.

"The Fed is blinking"

Of course, there were many who criticized the Fed for not raising interest rates fast enough in the past two years.

While the Fed continues to forecast solid growth, new government data released Friday revealed that falling exports and slower consumer spending and business investment are putting the brakes on economic growth in the second half of the year, while inflation is again falling.

US growth in the July-September quarter was slightly slower than previously reported, at 3.4 per cent, dragged down by the large drop in exports, the Commerce Department reported.

With hundreds of billions of dollars in goods hit by retaliatory tariffs, US exports fell by the largest amount since early 2009 at the height of the global financial crisis, according to the report, the third and final reading on third-quarter GDP.

Trump's aggressive trade policies, and especially the tariff retaliation from China, has impeded exports, with soybean sales nearly grinding to a halt.&nbsp;

The strong US dollar also has made American goods more expensive.

The dispute with China, even with a ceasefire declared until March 1 for negotiations, has created fears of slowing US and global growth, and caused stock markets to retreat, with Wall Street wiping out all of the 2018 gains.

Sluggish Q4&nbsp;

White House trade advisor Peter Navarro helped fuel the Wall Street downturn Friday with more hardline comments about China in an interview with Nikkei, saying Beijing is "trying to steal the future."

He also said two rate hikes by the Fed would be "two too many." &nbsp;

"We don't understand why the Fed is acting so contractionary, at a time when there's no inflation to worry about."

Gregory Daco of Oxford Economics said the data added to "evidence that business investment momentum continues to gradually cool."

Other data show fourth-quarter growth is shaping up to be even more sluggish.

Purchases of durable goods — big-ticket items like appliances, vehicles and machinery — rose in November compared to October, but much less than expected. That follows a big drop in October and will drag on GDP in the final quarter of 2018.

The US central bank sent a strong signal on Friday that it would be willing to reconsider expected interest rate hikes amid new data showing President Donald Trump's multi-front trade wars are dragging on the economy and shaking up investors.

The US central bank sent a strong signal on Friday that it would be willing to reconsider expected interest rate hikes amid new data showing President Donald Trump's multi-front trade wars are dragging on the economy and shaking up investors. The message, from the senior Federal Reserve official with the closest links to US financial markets, sent the Dow Jones Industrial Average surging 300 points. But the index later turned negative once again, and closed with yet another steep decline, its worst week in 10 years. "I think we are hearing something important for markets and that is a concern around risks to the economy and potential slowdown," New York Federal Reserve Bank President John Williams said Friday on CNBC. He stressed that the Fed is listening to the fears about the risks and will "be ready to reassess and re-evaluate our views and our policy stance." It was a remarkable comment coming just two days after the Fed raised the key borrowing rate on Wednesday and signalled it will continue to hike next year, albeit at a slower pace, with only two increases projected. Economist Chris Low lambasted the Fed's "epic post-meeting communications bungle," and cited the "glaring omission" of the Fed failing to recognize a global manufacturing slowdown, and continuing to believe the labour market is the main factor behind inflation. The Fed has continued to forecast strong growth, which would support their case for tightening monetary policy, but the expected inflation spurt and rise in wages have not materialized. New data Friday showed the Fed's preferred inflation index slowed to 1.8 per cent in November, below the central bank's target. "It's hard to imagine anyone would think it's acceptable to signal three rate hikes when inflation is below target," Low said, noting the Fed forecast see two hikes in 2019 and one in 2020. Trump effect? Williams tried to correct the market impression that two interest rate increases are set in stone for next year, highlighting a slight change of language in the policy statement issued Wednesday. The Fed's November statement said rate increases were expected, while now it "judges that some further gradual" hikes are in store, which Williams said, "is not a commitment or promise in any way." "Clearly the Fed is changing its tone and it's getting a little more dovish following the market reaction this week," said Adam Sarhan of 50 Park Investments. "The Fed is blinking" Of course, there were many who criticized the Fed for not raising interest rates fast enough in the past two years. While the Fed continues to forecast solid growth, new government data released Friday revealed that falling exports and slower consumer spending and business investment are putting the brakes on economic growth in the second half of the year, while inflation is again falling. US growth in the July-September quarter was slightly slower than previously reported, at 3.4 per cent, dragged down by the large drop in exports, the Commerce Department reported. With hundreds of billions of dollars in goods hit by retaliatory tariffs, US exports fell by the largest amount since early 2009 at the height of the global financial crisis, according to the report, the third and final reading on third-quarter GDP. Trump's aggressive trade policies, and especially the tariff retaliation from China, has impeded exports, with soybean sales nearly grinding to a halt. The strong US dollar also has made American goods more expensive. The dispute with China, even with a ceasefire declared until March 1 for negotiations, has created fears of slowing US and global growth, and caused stock markets to retreat, with Wall Street wiping out all of the 2018 gains. Sluggish Q4 White House trade advisor Peter Navarro helped fuel the Wall Street downturn Friday with more hardline comments about China in an interview with Nikkei, saying Beijing is "trying to steal the future." He also said two rate hikes by the Fed would be "two too many." "We don't understand why the Fed is acting so contractionary, at a time when there's no inflation to worry about." Gregory Daco of Oxford Economics said the data added to "evidence that business investment momentum continues to gradually cool." Other data show fourth-quarter growth is shaping up to be even more sluggish. Purchases of durable goods — big-ticket items like appliances, vehicles and machinery — rose in November compared to October, but much less than expected. That follows a big drop in October and will drag on GDP in the final quarter of 2018.

US Federal could rethink rate hikes as Trump trade wars drag on economy

<a href="http://www.wionews.com/india-news/firm-dollar-weighs-on-gold-amid-global-growth-risks-184712">Gold prices rose </a>slightly on Tuesday ahead of a key US Federal Reserve meeting, as speculation that signs of economic turbulence may prompt the central bank to put brakes soon on its monetary tightening cycle kept the dollar under pressure.

The Federal Open Market Committee (FOMC) is widely expected to raise interest rates at its two-day meeting starting later in the day, but the focus will be on its outlook for 2019.

"Investors are hoping gold prices will go up further after the meeting," said Brian Lan, managing director at dealer GoldSilver Central in Singapore, adding that $1,251 would be the next level that gold will likely test with support at $1,245.

Spot gold was up 0.2 per cent at $1,248.14 per ounce at 0436 GMT, while US gold futures inched 0.1 per cent higher to $1,252.2 per ounce.

Meanwhile, the dollar index inched lower after losing 0.4 per cent on Monday, amid speculation the Fed will soon hit the pause button to its monetary tightening cycle in the face of rising risks to global growth.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar.

"The US dollar remains the prime mover for gold prices in the current term," Benjamin Lu, a commodities analyst with Phillip Futures in Singapore, said in a note.

"Though upside potential for gold prices faces impediment from a vigorous dollar, looming economic uncertainties will present optimistic conditions for safe-haven assets beyond 2018."

Also supporting the bullion, <a href="http://www.wionews.com/business-economy/asia-stocks-slide-as-global-growth-worries-deepen-184957">Asian share markets slumped </a>on Tuesday, while Wall Street stocks skidded to their lowest levels in more than a year in the previous session.

Spot gold may rise into a range of $1,253-$1,258 per ounce, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.

Among other precious metals, silver was up 0.1 per cent at $14.67 per ounce, while platinum fell 0.3 per cent, to $791.10 per ounce

Spot palladium slipped 0.2 per cent to $1,255.95 per ounce after touching a record high of $1,269.5 in the previous session.

Gold prices rose slightly on Tuesday ahead of a key US Federal Reserve meeting, as speculation that signs of economic turbulence may prompt the central bank to put brakes soon on its monetary tightening cycle kept the dollar under pressure.

Gold prices rose slightly on Tuesday ahead of a key US Federal Reserve meeting, as speculation that signs of economic turbulence may prompt the central bank to put brakes soon on its monetary tightening cycle kept the dollar under pressure. The Federal Open Market Committee (FOMC) is widely expected to raise interest rates at its two-day meeting starting later in the day, but the focus will be on its outlook for 2019. "Investors are hoping gold prices will go up further after the meeting," said Brian Lan, managing director at dealer GoldSilver Central in Singapore, adding that $1,251 would be the next level that gold will likely test with support at $1,245. Spot gold was up 0.2 per cent at $1,248.14 per ounce at 0436 GMT, while US gold futures inched 0.1 per cent higher to $1,252.2 per ounce. Meanwhile, the dollar index inched lower after losing 0.4 per cent on Monday, amid speculation the Fed will soon hit the pause button to its monetary tightening cycle in the face of rising risks to global growth. Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar. "The US dollar remains the prime mover for gold prices in the current term," Benjamin Lu, a commodities analyst with Phillip Futures in Singapore, said in a note. "Though upside potential for gold prices faces impediment from a vigorous dollar, looming economic uncertainties will present optimistic conditions for safe-haven assets beyond 2018." Also supporting the bullion, Asian share markets slumped on Tuesday, while Wall Street stocks skidded to their lowest levels in more than a year in the previous session. Spot gold may rise into a range of $1,253-$1,258 per ounce, according to Wang Tao, a Reuters market analyst for commodities and energy technicals. Among other precious metals, silver was up 0.1 per cent at $14.67 per ounce, while platinum fell 0.3 per cent, to $791.10 per ounce Spot palladium slipped 0.2 per cent to $1,255.95 per ounce after touching a record high of $1,269.5 in the previous session.

Gold ticks up as dollar stays under pressure ahead of Fed meeting

<a href="http://www.wionews.com/business-economy/asian-markets-rise-ahead-of-key-meetings-in-china-and-us-184789">Asian share markets </a>slumped on Tuesday as heightened concerns about a <a href="http://www.wionews.com/business-economy/imf-says-trade-war-already-hurting-asia-may-cut-global-growth-forecasts-184777">slowing global economy</a> sent Wall Street stocks skidding to their lowest levels in more than a year.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.3 per cent in mid-morning trade while Japan's Nikkei tumbled 1.2 per cent by the midday break.

Chinese shares opened in negative territory with the blue-chip index down 0.3 per cent and Hong Kong's Hang Seng index flat, while Australian shares fell 0.8 per cent.

MSCI's broadest gauge of the world's stock markets, ACWI, was down 0.05 per cent on Tuesday, after having hit its weakest level since May 2017 the previous day. It has declined 16 per cent from a top hit on January 29.

US stock futures rose 0.4 per cent in Asia following the previous session's sharp sell-off.

On Monday, the S&amp;P 500 lost 2.08 per cent to hit its lowest since October 2017 as it breached lows reached during a sell-off in February, having wiped out about $3.4 trillion of market value since late September.

The Nasdaq Composite dropped 2.27 per cent, with Amazon, one of the best performing shares this year, sliding 4.5 per cent.

A profit warning from ASOS, a previously high-flying UK online-clothing retailer, shocked investors, sending US consumer discretionary shares down 2.8 per cent

"US retailers have been stocking up consumer goods from China before hikes in tariff, piling up inventories. From now their costs are seen rising next year. That may have been kind of known to everyone but it's becoming reality," said Tatsushi Maeno, senior strategist at Okasan Asset Management.

In addition, the National Association of Home Builders Housing Market Index indicated U.S. homebuilder sentiment had fallen to a three-and-a-half-year low. It was the second consecutive month of disappointing reading.

The gloomy data came after weak economic news from China and Europe late last week.

The 10-year US&nbsp;Treasuries yield dropped to 2.853 per cent, edging near a Dec. 10 low of 2.825 per cent, its lowest level since late August.

FOCUS SHIFTS TO FED

The Federal Reserve is widely expected to raise interest rates on Wednesday, which would be its fourth hike this year.

But many investors now expect signs of economic turbulence to prompt the Fed to signal a slowdown in the pace of tightening next year.

On Monday, US President Donald Trump and his top trade adviser ratcheted up their criticism of the central bank's monetary tightening.

"It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!" Trump wrote in a tweet.

White House trade adviser Peter Navarro amplified those remarks a few hours later, calling the Fed "crazy" for having signalled that it would continue to raise rates next year.

The Fed said in September that its policymakers see three more rate hikes in 2019 while money market futures are pricing in less than one such move.

"The major event between now and the end of the year is going to be what the Fed does tomorrow," said Jim McCafferty, Hong Kong-based head of Asia-ex-Japan equity research at Nomura.

"Given the pace of change of sentiment seen from not just companies but (also) from major macro-economies, I think there might be an outside chance that the Fed gives a more muted message in terms of growth and how aggressive it will be in terms of future rate hikes," he added.

The spectre of a "dovish rate hike" kept the dollar in check.

The euro traded slightly higher at $1.1355, after having gained 0.40 per cent on Monday.

The greenback gave up 0.1 per cent against the Japanese yen to 112.70 yen, adding to Monday's fall of nearly half a per cent.

The offshore Chinese yuan was slightly stronger at 6.8900 to the dollar.

Investors are awaiting details of a speech by President Xi Jinping to mark the 40th anniversary of China's market reforms.

China is also expected to hold its annual Central Economic Work Conference later this week, where key growth targets and policy goals for 2019 will be discussed.

Oil prices extended losses on signs of oversupply in the United States and as investor sentiment remained under pressure from concern over global economic growth and fuel demand.

<a href="http://www.wionews.com/business-economy/rupee-rises-37-paise-to-7119-against-us-dollar-on-falling-crude-prices-184949">US crude fell as low</a> as $49.01 per barrel on Monday, its lowest since September last year and last stood at $49.37, down 1.0 per cent on the day.

Brent crude oil futures lost 65 cents, or 1.1 percent, to $58.96 per barrel.

Asian share markets slumped on Tuesday as heightened concerns about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year.

Asian share markets slumped on Tuesday as heightened concerns about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year. MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.3 per cent in mid-morning trade while Japan's Nikkei tumbled 1.2 per cent by the midday break. Chinese shares opened in negative territory with the blue-chip index down 0.3 per cent and Hong Kong's Hang Seng index flat, while Australian shares fell 0.8 per cent. MSCI's broadest gauge of the world's stock markets, ACWI, was down 0.05 per cent on Tuesday, after having hit its weakest level since May 2017 the previous day. It has declined 16 per cent from a top hit on January 29. US stock futures rose 0.4 per cent in Asia following the previous session's sharp sell-off. On Monday, the S&P 500 lost 2.08 per cent to hit its lowest since October 2017 as it breached lows reached during a sell-off in February, having wiped out about $3.4 trillion of market value since late September. The Nasdaq Composite dropped 2.27 per cent, with Amazon, one of the best performing shares this year, sliding 4.5 per cent. A profit warning from ASOS, a previously high-flying UK online-clothing retailer, shocked investors, sending US consumer discretionary shares down 2.8 per cent "US retailers have been stocking up consumer goods from China before hikes in tariff, piling up inventories. From now their costs are seen rising next year. That may have been kind of known to everyone but it's becoming reality," said Tatsushi Maeno, senior strategist at Okasan Asset Management. In addition, the National Association of Home Builders Housing Market Index indicated U.S. homebuilder sentiment had fallen to a three-and-a-half-year low. It was the second consecutive month of disappointing reading. The gloomy data came after weak economic news from China and Europe late last week. The 10-year US Treasuries yield dropped to 2.853 per cent, edging near a Dec. 10 low of 2.825 per cent, its lowest level since late August. FOCUS SHIFTS TO FED The Federal Reserve is widely expected to raise interest rates on Wednesday, which would be its fourth hike this year. But many investors now expect signs of economic turbulence to prompt the Fed to signal a slowdown in the pace of tightening next year. On Monday, US President Donald Trump and his top trade adviser ratcheted up their criticism of the central bank's monetary tightening. "It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!" Trump wrote in a tweet. White House trade adviser Peter Navarro amplified those remarks a few hours later, calling the Fed "crazy" for having signalled that it would continue to raise rates next year. The Fed said in September that its policymakers see three more rate hikes in 2019 while money market futures are pricing in less than one such move. "The major event between now and the end of the year is going to be what the Fed does tomorrow," said Jim McCafferty, Hong Kong-based head of Asia-ex-Japan equity research at Nomura. "Given the pace of change of sentiment seen from not just companies but (also) from major macro-economies, I think there might be an outside chance that the Fed gives a more muted message in terms of growth and how aggressive it will be in terms of future rate hikes," he added. The spectre of a "dovish rate hike" kept the dollar in check. The euro traded slightly higher at $1.1355, after having gained 0.40 per cent on Monday. The greenback gave up 0.1 per cent against the Japanese yen to 112.70 yen, adding to Monday's fall of nearly half a per cent. The offshore Chinese yuan was slightly stronger at 6.8900 to the dollar. Investors are awaiting details of a speech by President Xi Jinping to mark the 40th anniversary of China's market reforms. China is also expected to hold its annual Central Economic Work Conference later this week, where key growth targets and policy goals for 2019 will be discussed. Oil prices extended losses on signs of oversupply in the United States and as investor sentiment remained under pressure from concern over global economic growth and fuel demand. US crude fell as low as $49.01 per barrel on Monday, its lowest since September last year and last stood at $49.37, down 1.0 per cent on the day. Brent crude oil futures lost 65 cents, or 1.1 percent, to $58.96 per barrel.

Asia stocks slide as global growth worries deepen

Asian markets mostly rose Monday as traders look ahead to a key meeting of the Federal Reserve, and a Chinese policy-setting conference this week.

However, there is <a href="http://www.wionews.com/business-economy/imf-says-trade-war-already-hurting-asia-may-cut-global-growth-forecasts-184777">still caution on trading floors </a>after Friday's sharp sell-off fuelled by concerns over China's economy, and despite a tweet from Donald Trump suggesting a trade deal could be hammered out between Washington and Beijing.

While there are signs the world's top two economies are beginning to move towards a resolution in their bitter tariffs spat, there are increasing concerns about the global outlook following another dour set of indicators out of China.

A string of below-par readings this year have highlighted a slowdown in the Asian giant and observers are forecasting leaders will unveil fresh measures to pep up the economy, which is on course for another year of relatively weak growth.

A speech from President Xi Jinping on Tuesday to mark 40 years since China's economy began opening up will be closely watched, and that is expected to be followed by the start of a conference setting out the country's 2019 economic plan.

"We should expect a raft of stimulus measures from China policymakers in an attempt to stabilise the domestic economy," said Stephen Innes, head of Asia-Pacific trade at OANDA.

The Fed will conclude its rate-setting policy meeting Wednesday and while expectations are for another hike in borrowing costs, comments from chairman Jerome Powell will be closely watched for an idea of its plans for 2019.

'A lot of volatility'

In light of the <a href="http://www.wionews.com/world/the-trump-china-trade-war-how-will-it-end-171248">China-US trade</a> row and signs of weakness in the global economy, the bank has sounded a little more dovish in recent weeks, fuelling speculation it will slow down its pace of rate hikes -- which has provided some much-needed support to equities.

"The upcoming (Fed) meeting and China's policy-setting meeting have been the most actively discussed topics around the markets," Innes added. "And both events have a smoothing effect on risk sentiment."

Shanghai climbed 0.2 per cent and Tokyo finished 0.6 per cent higher, while Sydney put on one per cent and Singapore jumped 1.2 per cent.

Seoul and Taipei each gained 0.1 per cent while Wellington added 0.3 per cent. There were also gains in Mumbai and Manila, though Hong Kong inched down marginally.

In early European trade London dipped 0.1 per cent, Paris dropped 0.3 per cent and Frankfurt eased 0.2 per cent.

Steve Goldman, fund manager at Kapstream Capital, told Bloomberg TV in Sydney that "we're going to see a lot of volatility" in the new year because of global uncertainty.

Hopes that China and the US can reach a deal to end their trade war were given a boost by Trump on Friday when he tweeted: "China wants to make a big and very comprehensive deal. It could happen, and rather soon!"&nbsp;

That came after China earlier in the day backed off fresh levies imposed this summer on US-made cars and auto parts.

While a full-blown deal is some way off, the developments have provided some hope to dealers.

On currency markets, the pound remains bogged down around 20-month lows as Prime Minister Theresa May struggles to win concessions from EU leaders over her <a href="http://www.wionews.com/opinions/brexit-vote-postponed-what-parliament-must-do-now-to-fix-theresa-mays-mess-183154">Brexit agreement</a>, which a majority of lawmakers in Westminster oppose.

Facing growing calls for another referendum to break the deadlock, May is expected to tell MPs that such a move will do "irreparable damage" to British politics.

However, with her agreement all but dead in the water, there is a growing expectation Britain will leave the EU without a deal, which commentators warn could hammer the British economy.

Asian markets mostly rose Monday as traders look ahead to a key meeting of the Federal Reserve, and a Chinese policy-setting conference this week. However, there is still caution on trading floors after Friday's sharp sell-off fuelled by concerns over China's economy, and despite a tweet from Donald Trump suggesting a trade deal could be hammered out between Washington and Beijing.

Asian markets mostly rose Monday as traders look ahead to a key meeting of the Federal Reserve, and a Chinese policy-setting conference this week. However, there is still caution on trading floors after Friday's sharp sell-off fuelled by concerns over China's economy, and despite a tweet from Donald Trump suggesting a trade deal could be hammered out between Washington and Beijing. While there are signs the world's top two economies are beginning to move towards a resolution in their bitter tariffs spat, there are increasing concerns about the global outlook following another dour set of indicators out of China. A string of below-par readings this year have highlighted a slowdown in the Asian giant and observers are forecasting leaders will unveil fresh measures to pep up the economy, which is on course for another year of relatively weak growth. A speech from President Xi Jinping on Tuesday to mark 40 years since China's economy began opening up will be closely watched, and that is expected to be followed by the start of a conference setting out the country's 2019 economic plan. "We should expect a raft of stimulus measures from China policymakers in an attempt to stabilise the domestic economy," said Stephen Innes, head of Asia-Pacific trade at OANDA. The Fed will conclude its rate-setting policy meeting Wednesday and while expectations are for another hike in borrowing costs, comments from chairman Jerome Powell will be closely watched for an idea of its plans for 2019. 'A lot of volatility' In light of the China-US trade row and signs of weakness in the global economy, the bank has sounded a little more dovish in recent weeks, fuelling speculation it will slow down its pace of rate hikes -- which has provided some much-needed support to equities. "The upcoming (Fed) meeting and China's policy-setting meeting have been the most actively discussed topics around the markets," Innes added. "And both events have a smoothing effect on risk sentiment." Shanghai climbed 0.2 per cent and Tokyo finished 0.6 per cent higher, while Sydney put on one per cent and Singapore jumped 1.2 per cent. Seoul and Taipei each gained 0.1 per cent while Wellington added 0.3 per cent. There were also gains in Mumbai and Manila, though Hong Kong inched down marginally. In early European trade London dipped 0.1 per cent, Paris dropped 0.3 per cent and Frankfurt eased 0.2 per cent. Steve Goldman, fund manager at Kapstream Capital, told Bloomberg TV in Sydney that "we're going to see a lot of volatility" in the new year because of global uncertainty. Hopes that China and the US can reach a deal to end their trade war were given a boost by Trump on Friday when he tweeted: "China wants to make a big and very comprehensive deal. It could happen, and rather soon!" That came after China earlier in the day backed off fresh levies imposed this summer on US-made cars and auto parts. While a full-blown deal is some way off, the developments have provided some hope to dealers. On currency markets, the pound remains bogged down around 20-month lows as Prime Minister Theresa May struggles to win concessions from EU leaders over her Brexit agreement, which a majority of lawmakers in Westminster oppose. Facing growing calls for another referendum to break the deadlock, May is expected to tell MPs that such a move will do "irreparable damage" to British politics. However, with her agreement all but dead in the water, there is a growing expectation Britain will leave the EU without a deal, which commentators warn could hammer the British economy.

Asian markets rise ahead of key meetings in China and US

US President Donald Trump launched a fresh assault Tuesday against Federal Reserve chairman Jerome Powell, saying he threatened economic growth and seemed to enjoy raising interest rates.

In an interview with the Wall Street Journal, Trump hinted that he regretted nominating Powell in the first place.

"Every time we do something great, he raises the interest rates," Trump told the Journal.

He "almost looks like he's happy raising interest rates," the president added.

The criticism comes after <a href="http://www.wionews.com/world/trump-widens-fed-critique-calls-it-my-biggest-threat-172018">Trump last week called the Federal Reserve his "biggest threat"</a> and said Powell was moving "too fast" in hiking rates.&nbsp;

The Fed has raised interest rates three times this year as it seeks to prevent a vibrant economy from overheating, and it is widely expected to raise rates again by 0.25 per cent in December.

US presidents usually remain silent on such issues in respect toward the Fed's independence. Trump has previously called Fed policies "crazy."

Trump told the Journal it was "too early to say, but maybe" he regretted nominating Powell for the four-year term he started in February. 
"He was supposed to be a low-interest-rate guy. It's turned out that he's not," Trump added.

It is unclear whether the president would have the authority to remove Powell.

The Federal Reserve Act says the president can remove Fed governors "for cause," but that provision does not apply to the chairman, according to the Journal.

Trump said the Fed poses the biggest risk to the US economy, adding that higher interest rates would slow growth and add to the national debt.

"To me the Fed is the biggest risk, because I think interest rates are being raised too quickly," Trump said.

US growth reached 4.2 per cent year-on-year in the second quarter, its strongest pace in four years.

On Friday, the government is set to publish the first estimate for the third quarter, which is expected to be 3.3 per cent, according to analysts.

US President Donald Trump launched a fresh assault Tuesday against Federal Reserve chairman Jerome Powell, saying he threatened economic growth and seemed to enjoy raising interest rates.

US President Donald Trump launched a fresh assault Tuesday against Federal Reserve chairman Jerome Powell, saying he threatened economic growth and seemed to enjoy raising interest rates. In an interview with the Wall Street Journal, Trump hinted that he regretted nominating Powell in the first place. "Every time we do something great, he raises the interest rates," Trump told the Journal. He "almost looks like he's happy raising interest rates," the president added. The criticism comes after Trump last week called the Federal Reserve his "biggest threat" and said Powell was moving "too fast" in hiking rates. The Fed has raised interest rates three times this year as it seeks to prevent a vibrant economy from overheating, and it is widely expected to raise rates again by 0.25 per cent in December. US presidents usually remain silent on such issues in respect toward the Fed's independence. Trump has previously called Fed policies "crazy." Trump told the Journal it was "too early to say, but maybe" he regretted nominating Powell for the four-year term he started in February. "He was supposed to be a low-interest-rate guy. It's turned out that he's not," Trump added. It is unclear whether the president would have the authority to remove Powell. The Federal Reserve Act says the president can remove Fed governors "for cause," but that provision does not apply to the chairman, according to the Journal. Trump said the Fed poses the biggest risk to the US economy, adding that higher interest rates would slow growth and add to the national debt. "To me the Fed is the biggest risk, because I think interest rates are being raised too quickly," Trump said. US growth reached 4.2 per cent year-on-year in the second quarter, its strongest pace in four years. On Friday, the government is set to publish the first estimate for the third quarter, which is expected to be 3.3 per cent, according to analysts.

Trump launches fresh attack against Fed chairman

President Donald Trump renewed his attacks on the US central bank on Thursday, saying it was "out of control" in raising interest rates but that he had no plans to dismiss Federal Reserve Chairman Jerome Powell.

Trump blamed the Federal Reserve for the global stocks rout that continued Thursday for a second day amid concerns about rising interest rates.

"It is a correction that I think it is caused by the Federal Reserve, with interest rates," Trump told reporters at the White House. "I think the Fed is out of control."

However, asked about Powell's future, Trump said, "I'm not going to fire him."

Trump named Powell to lead the central bank but can only fire him for cause.

Earlier in the day, Trump told the Fox &amp; Friends television broadcast that the central bank was "making a big mistake" by being "too aggressive" in raising rates.

However, he acknowledged higher rates helped savers.

The comments followed his strongest criticism of the Fed late Wednesday when he said the central bank had "gone crazy."&nbsp;

US shares fell sharply on Wednesday as the Dow Jones Industrial Average lost more than 800 points in its worst tumble since February.

The rout caused a domino effect worldwide, with losses spreading to Asia and Europe on Thursday as investors remained concerned about rising rates -- which would send more buyers out of equities and into bonds -- as well as the impact of Trump's trade conflict with China on corporate profits.

After a roller-coaster ride Thursday, the Dow lost another 545 points for a drop of more than two per cent. London also lost nearly two per cent, Frankfurt fell 1.5 per cent, and Tokyo plunged nearly four per cent.

White House economic adviser Larry Kudlow on Thursday said Trump's opinions had no weight on the Fed's actions.

"We know the Fed is independent. The president is not dictating policy to the Fed. He didn't say anything remotely like that," he said on CNBC.

And Kudlow said the Fed was managing "the transition from ultra, ultra-easy money...to something more normal," by raising rates gradually.

Trump has repeatedly touted the spate of Wall Street records as proof of the success of his economic program, including his confrontational trade strategy, and criticized the Fed for raising the benchmark interest rate -- three times this year -- saying it would undermine his efforts.

'Do the right thing'&nbsp;

In fact, it is largely his policies that are behind the changes: tax cuts and increased government spending are expected to juice the economy, adding to the Fed's justification to raise interest rates.

Meanwhile, trade conflicts raise costs for companies, which could hit the bottom line in quarterly earnings -- something analysts said had helped prompt Wednesday's sell-off.

The attacks on the Fed are another example of Trump breaking with recent norms. The Fed is an independent body and presidents in recent decades have avoided commenting publicly on its actions.

Powell has brushed off the comments, saying officials do not pay attention to politics.

"This is just who we are and I think who we will always be, which is, we're a group who -- we're quite removed from the political process," Powell said in a recent interview.

"And we just try to do the right thing for the medium and long term for the country."

International Monetary Fund chief Christine Lagarde also defended the Fed on Thursday.

Raising interest rates was justified "for those economies that are showing much-improved growth, inflation that is picking up...unemployment that is extremely low," Lagarde told a press briefing in Bali, Indonesia where the IMF is holding its annual meeting.

President Donald Trump renewed his attacks on the US central bank on Thursday, saying it was "out of control" in raising interest rates but that he had no plans to dismiss Federal Reserve Chairman Jerome Powell.

President Donald Trump renewed his attacks on the US central bank on Thursday, saying it was "out of control" in raising interest rates but that he had no plans to dismiss Federal Reserve Chairman Jerome Powell. Trump blamed the Federal Reserve for the global stocks rout that continued Thursday for a second day amid concerns about rising interest rates. "It is a correction that I think it is caused by the Federal Reserve, with interest rates," Trump told reporters at the White House. "I think the Fed is out of control." However, asked about Powell's future, Trump said, "I'm not going to fire him." Trump named Powell to lead the central bank but can only fire him for cause. Earlier in the day, Trump told the Fox & Friends television broadcast that the central bank was "making a big mistake" by being "too aggressive" in raising rates. However, he acknowledged higher rates helped savers. The comments followed his strongest criticism of the Fed late Wednesday when he said the central bank had "gone crazy." US shares fell sharply on Wednesday as the Dow Jones Industrial Average lost more than 800 points in its worst tumble since February. The rout caused a domino effect worldwide, with losses spreading to Asia and Europe on Thursday as investors remained concerned about rising rates -- which would send more buyers out of equities and into bonds -- as well as the impact of Trump's trade conflict with China on corporate profits. After a roller-coaster ride Thursday, the Dow lost another 545 points for a drop of more than two per cent. London also lost nearly two per cent, Frankfurt fell 1.5 per cent, and Tokyo plunged nearly four per cent. White House economic adviser Larry Kudlow on Thursday said Trump's opinions had no weight on the Fed's actions. "We know the Fed is independent. The president is not dictating policy to the Fed. He didn't say anything remotely like that," he said on CNBC. And Kudlow said the Fed was managing "the transition from ultra, ultra-easy money...to something more normal," by raising rates gradually. Trump has repeatedly touted the spate of Wall Street records as proof of the success of his economic program, including his confrontational trade strategy, and criticized the Fed for raising the benchmark interest rate -- three times this year -- saying it would undermine his efforts. 'Do the right thing' In fact, it is largely his policies that are behind the changes: tax cuts and increased government spending are expected to juice the economy, adding to the Fed's justification to raise interest rates. Meanwhile, trade conflicts raise costs for companies, which could hit the bottom line in quarterly earnings -- something analysts said had helped prompt Wednesday's sell-off. The attacks on the Fed are another example of Trump breaking with recent norms. The Fed is an independent body and presidents in recent decades have avoided commenting publicly on its actions. Powell has brushed off the comments, saying officials do not pay attention to politics. "This is just who we are and I think who we will always be, which is, we're a group who -- we're quite removed from the political process," Powell said in a recent interview. "And we just try to do the right thing for the medium and long term for the country." International Monetary Fund chief Christine Lagarde also defended the Fed on Thursday. Raising interest rates was justified "for those economies that are showing much-improved growth, inflation that is picking up...unemployment that is extremely low," Lagarde told a press briefing in Bali, Indonesia where the IMF is holding its annual meeting.

Federal Reserve 'out of control' but won't fire Chairman Powell: Trump

The US Federal Reserve raised interest rates on Wednesday and left intact its plans to steadily tighten monetary policy, as it forecast that the US economy would enjoy at least three more years of growth. In a statement that marked the end of the era of “accommodative” monetary policy, Fed policymakers lifted the benchmark overnight lending rate by a quarter of a percentage point to a range of 2 per cent to 2.25 per cent.

The US central bank still foresees another rate hike in December, three more next year, and one increase in 2020. That would put the benchmark overnight lending rate at 3.4 per cent, roughly half a percentage point above the Fed’s estimated “neutral” rate of interest, at which rates neither stimulate nor restrict the economy. That tight policy stance is projected to stay level through 2021, the time frame of the Fed’s latest economic projections.

“The thing that folks were watching for, which they went ahead and did, was remove the word ‘accommodative’ in regard to their monetary policy,” said Michael Arone, chief investment strategist at State Street Global Advisors. “It does seem to potentially indicate they believe monetary policy is becoming less accommodative and getting more towards that neutral rate.”

Fed Chairman Jerome Powell said the removal of the wording, which had been a staple of the central bank’s guidance for financial markets and households for much of the past decade, did not signal a policy outlook change. “Instead, it is a sign that policy is proceeding in line with our expectations,” Powell, who took over as head of the Fed earlier this year, said in a press conference after the release of the statement.

The US Treasury yield curve flattened and the US dollar briefly weakened against a basket of currencies. US stocks initially extended gains but fell later in the trading session, with the bank and financial stocks getting hit hard. The Fed sees the economy growing at a faster-than-expected 3.1 per cent this year and continuing to expand moderately for at least three more years, amid sustained low unemployment and stable inflation near its 2 per cent target.

“The labour market has continued to strengthen … economic activity has been rising at a strong rate,” it said in its statement. The Fed inserted no substitute language for the dropped ‘accommodative’ wording in its statement. That wording had become less and less accurate since the central bank began increasing rates in late 2015 from a near-zero level, and its removal means the Fed now considers rates near neutral.

New Projections

Powell declined to say whether Fed policymakers had discussed President Donald Trump’s criticism of the central bank. Last month, Trump expressed his displeasure about rising rates and said the Fed should do more to boost the economy. Powell said the central bank would remain independent.

“We don’t consider political factors or things like that,” the Fed chief said. Wednesday’s rate hike was the third this year and the seventh in the last eight quarters. Ahead of Wednesday’s statement, traders put the chance of a rate increase at 95 per cent, according to CME Group.

The Fed’s latest projections show the economy continuing at a steady pace through 2019, with gross domestic product growth seen at 2.5 per cent next year before slowing to 2.0 per cent in 2020 and to 1.8 per cent in 2021, as the impact of recent tax cuts and government spending fade.

Inflation was forecast to hover near 2 per cent over the next three years, while the unemployment rate is expected to fall to 3.5 per cent next year and remain there through 2020 before rising slightly in 2021. The jobless rate is currently 3.9 per cent. With risks described as roughly balanced, the statement left the Fed on a steady course for the next year.

Risks to the current run of economic growth, such as the threat of a damaging round of global tariff increases, were largely set aside. There were no dissents in the Fed’s policy statement.

The US Federal Reserve raised interest rates on Wednesday and left intact its plans to steadily tighten monetary policy, as it forecast that the US economy would enjoy at least three more years of growth.

The US Federal Reserve raised interest rates on Wednesday and left intact its plans to steadily tighten monetary policy, as it forecast that the US economy would enjoy at least three more years of growth. In a statement that marked the end of the era of “accommodative” monetary policy, Fed policymakers lifted the benchmark overnight lending rate by a quarter of a percentage point to a range of 2 per cent to 2.25 per cent. The US central bank still foresees another rate hike in December, three more next year, and one increase in 2020. That would put the benchmark overnight lending rate at 3.4 per cent, roughly half a percentage point above the Fed’s estimated “neutral” rate of interest, at which rates neither stimulate nor restrict the economy. That tight policy stance is projected to stay level through 2021, the time frame of the Fed’s latest economic projections. “The thing that folks were watching for, which they went ahead and did, was remove the word ‘accommodative’ in regard to their monetary policy,” said Michael Arone, chief investment strategist at State Street Global Advisors. “It does seem to potentially indicate they believe monetary policy is becoming less accommodative and getting more towards that neutral rate.” Fed Chairman Jerome Powell said the removal of the wording, which had been a staple of the central bank’s guidance for financial markets and households for much of the past decade, did not signal a policy outlook change. “Instead, it is a sign that policy is proceeding in line with our expectations,” Powell, who took over as head of the Fed earlier this year, said in a press conference after the release of the statement. The US Treasury yield curve flattened and the US dollar briefly weakened against a basket of currencies. US stocks initially extended gains but fell later in the trading session, with the bank and financial stocks getting hit hard. The Fed sees the economy growing at a faster-than-expected 3.1 per cent this year and continuing to expand moderately for at least three more years, amid sustained low unemployment and stable inflation near its 2 per cent target. “The labour market has continued to strengthen … economic activity has been rising at a strong rate,” it said in its statement. The Fed inserted no substitute language for the dropped ‘accommodative’ wording in its statement. That wording had become less and less accurate since the central bank began increasing rates in late 2015 from a near-zero level, and its removal means the Fed now considers rates near neutral. New Projections Powell declined to say whether Fed policymakers had discussed President Donald Trump’s criticism of the central bank. Last month, Trump expressed his displeasure about rising rates and said the Fed should do more to boost the economy. Powell said the central bank would remain independent. “We don’t consider political factors or things like that,” the Fed chief said. Wednesday’s rate hike was the third this year and the seventh in the last eight quarters. Ahead of Wednesday’s statement, traders put the chance of a rate increase at 95 per cent, according to CME Group. The Fed’s latest projections show the economy continuing at a steady pace through 2019, with gross domestic product growth seen at 2.5 per cent next year before slowing to 2.0 per cent in 2020 and to 1.8 per cent in 2021, as the impact of recent tax cuts and government spending fade. Inflation was forecast to hover near 2 per cent over the next three years, while the unemployment rate is expected to fall to 3.5 per cent next year and remain there through 2020 before rising slightly in 2021. The jobless rate is currently 3.9 per cent. With risks described as roughly balanced, the statement left the Fed on a steady course for the next year. Risks to the current run of economic growth, such as the threat of a damaging round of global tariff increases, were largely set aside. There were no dissents in the Fed’s policy statement.

US Federal Reserve raises rates, sees at least three more years of economic growth

Asian shares barely budged on Wednesday, lacking traction as US bond yields edged near a seven-year peak ahead of a widely expected rate hike by the Federal Reserve and as international oil prices rose to four-year highs.

MSCI's broadest index of Asia-Pacific shares outside Japan &lt;.MIAPJ0000PUS&gt; was almost flat in early trade, in part as South Korea is closed for a holiday. It stayed below a three-week high hit on Friday.

In Japan, the Nikkei &lt;.N225&gt; edged down 0.4 per cent.

Wall Street shares were mixed, as rises in energy shares on higher oil prices and gains in consumer discretionary shares following strong US consumer confidence were offset by falls in other sectors.

US consumer confidence hit an 18-year high, adding to a string of recent US data that pointed to the strong US&nbsp;economic momentum, despite concerns about trade wars US President Donald Trump is waging.

The Dow Jones Industrial Average &lt;.DJI&gt; fell 0.26 percent, the S&amp;P 500 &lt;.SPX&gt; lost 0.13 percent while the Nasdaq Composite &lt;.IXIC&gt; added 0.18 percent.

The utility sector, sometimes seen as an alternative to bonds because of the relative steadiness of their business, was the worst performer as investors braced for a rate hike by the Federal Reserve later on Wednesday.

The benchmark 10-year Treasury yield &lt;US10YT=RR&gt; rose to as high as 3.113 per cent, near its seven-year peak of 3.128 per cent touched on May 18.

Fed funds rates futures &lt;0#FF:&gt; implied traders are fully pricing in a rate hike on Wednesday, and another 85 per cent chance the Fed would raise rates again in December.

"The focus will be on whether the Fed will indicate its tightening is coming to an end. The Fed may not do so today but I expect markets will soon start looking to that scenario," said Akira Takei, bond fund manager at Asset Management One.

Takei noted that there are already signs that higher rates are starting to hurt the US economy, such as a rise in delinquencies of consumer loans, adding the dollar's softness could be an early sign of growing focus over an end to the US tightening cycle.

The dollar's index against a basket of major currencies stood at 94.169 &lt;=USD&gt;, near Friday's 93.808, a 2-1/2-month low.

The euro traded at $1.1765 &lt;EUR=&gt;, not far from three-month high of $1.18155 touched on Monday.

Many emerging market currencies, such as the Turkish lira &lt;TRYTOM=D4&gt; and the South African rand &lt;ZAR=D4&gt;, also kept some distances from lows hit last month.

A rare exception was the yen &lt;JPY=&gt;, which changed hands at 112.98 to the dollar, near six-month lows of 113.18 set in mid-July.

Oil prices slipped following data showing US crude stocks rose unexpectedly last week and renewed call from Trump on OPEC to boost crude output.

Still they were supported on the whole on concerns of tight supply on US sanctions on Iran's oil exports.

Benchmark Brent futures &lt;LCOc1&gt; hit $82.55 per barrel, its highest since Nov. 10, 2014, on Tuesday and last stood at $81.41, down 0.55 per cent on the day.

US crude futures &lt;CLc1&gt; shed 0.6 per cent to $71.87 per barrel after hitting an 11-week high of $72.78 the previous day. 
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Asian shares barely budged on Wednesday, lacking traction as US bond yields edged near a seven-year peak ahead of a widely expected rate hike by the Federal Reserve and as international oil prices rose to four-year highs.

Asian shares barely budged on Wednesday, lacking traction as US bond yields edged near a seven-year peak ahead of a widely expected rate hike by the Federal Reserve and as international oil prices rose to four-year highs. MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was almost flat in early trade, in part as South Korea is closed for a holiday. It stayed below a three-week high hit on Friday. In Japan, the Nikkei <.N225> edged down 0.4 per cent. Wall Street shares were mixed, as rises in energy shares on higher oil prices and gains in consumer discretionary shares following strong US consumer confidence were offset by falls in other sectors. US consumer confidence hit an 18-year high, adding to a string of recent US data that pointed to the strong US economic momentum, despite concerns about trade wars US President Donald Trump is waging. The Dow Jones Industrial Average <.DJI> fell 0.26 percent, the S&P 500 <.SPX> lost 0.13 percent while the Nasdaq Composite <.IXIC> added 0.18 percent. The utility sector, sometimes seen as an alternative to bonds because of the relative steadiness of their business, was the worst performer as investors braced for a rate hike by the Federal Reserve later on Wednesday. The benchmark 10-year Treasury yield <US10YT=RR> rose to as high as 3.113 per cent, near its seven-year peak of 3.128 per cent touched on May 18. Fed funds rates futures <0#FF:> implied traders are fully pricing in a rate hike on Wednesday, and another 85 per cent chance the Fed would raise rates again in December. "The focus will be on whether the Fed will indicate its tightening is coming to an end. The Fed may not do so today but I expect markets will soon start looking to that scenario," said Akira Takei, bond fund manager at Asset Management One. Takei noted that there are already signs that higher rates are starting to hurt the US economy, such as a rise in delinquencies of consumer loans, adding the dollar's softness could be an early sign of growing focus over an end to the US tightening cycle. The dollar's index against a basket of major currencies stood at 94.169 <=USD>, near Friday's 93.808, a 2-1/2-month low. The euro traded at $1.1765 <EUR=>, not far from three-month high of $1.18155 touched on Monday. Many emerging market currencies, such as the Turkish lira <TRYTOM=D4> and the South African rand <ZAR=D4>, also kept some distances from lows hit last month. A rare exception was the yen <JPY=>, which changed hands at 112.98 to the dollar, near six-month lows of 113.18 set in mid-July. Oil prices slipped following data showing US crude stocks rose unexpectedly last week and renewed call from Trump on OPEC to boost crude output. Still they were supported on the whole on concerns of tight supply on US sanctions on Iran's oil exports. Benchmark Brent futures <LCOc1> hit $82.55 per barrel, its highest since Nov. 10, 2014, on Tuesday and last stood at $81.41, down 0.55 per cent on the day. US crude futures <CLc1> shed 0.6 per cent to $71.87 per barrel after hitting an 11-week high of $72.78 the previous day.

Asian shares hover below 3-week high as Fed rate hike looms

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