Tokyo, Oct 15 (AP/UNB) — Global stocks slipped Monday as investor worries continued about global trade tensions and prospects for economic growth.
KEEPING SCORE: France's CAC 40 lost 0.3 percent in early trading to 5,079.25, while Britain's FTSE 100 was down less than 0.1 percent at 6,995.44. U.S. shares were also set to drift lower, with Dow futures losing 0.5 percent to 25,182. S&P 500 futures dipped 0.6 percent to 2,753.
ASIA'S DAY: Japan's benchmark Nikkei 225 dipped 1.9 percent to finish at 22,271.30, while Australia's S&P/ASX 200 slipped nearly 1 percent to 5,837.10. South Korea's Kospi edged down 0.8 percent to 2,145.12. Hong Kong's Hang Seng fell 1.5 percent to 25,411.64, while the Shanghai Composite shed 1.5 percent to 2,568.10.
TRADE WORRIES: Investors are growing worried that U.S.-China trade tensions are impairing global economic growth. The International Monetary Fund cut its forecast for global economic growth last week because of trade tensions and rising interest rates.
THE QUOTE: "The repercussions of trade tensions that had plagued global equity markets persist," said Jingyi Pan, market strategist at IG in Singapore.
CHINA MEETING: News that Chinese President Xi Jinping and President Donald Trump may meet has sparked hope that tensions in the trade war between the world's two largest economies might ease. But worries about the increased tariffs the two sides have imposed on each other's goods, a move that tends to dampen growth, are contributing to volatility in financial markets.
SOFTBANK SLIDE: Shares in SoftBank skidded more than 7 percent. The Japanese technology company's brand is getting slammed because of its link with a major investment fund centered around Saudi government financing called the Vision Fund. The kingdom may be involved in the disappearance and suspected murder of Jamal Khashoggi, a journalist who wrote for the Washington Post. The kingdom has poured $100 billion into the firm's tech investing and has suggested it may put another $45 billion into it.
ENERGY: U.S. benchmark crude gained 19 cents to $71.53. It added 0.5 percent to $71.34 a barrel in New York on Friday. Brent crude, the international standard, added 40 cents to $80.83.
CURRENCIES: The dollar slipped to 111.81 yen from 112.33 yen late Friday. The euro fell to $1.1570 from $1.1602.
Tokyo, Oct 15 (AP/UNB) — Asian stocks slipped Monday, as investor worries continued about global trade tensions and prospects for economic growth.
KEEPING SCORE: Japan's benchmark Nikkei 225 dipped 1.2 percent to 22,426.32, while Australia's S&P/ASX 200 slipped nearly 1.1 percent in early trading to 5,832.00. South Korea's Kospi inched down 0.2 percent to 2,156.56. Hong Kong's Hang Seng fell nearly 1.0 percent to 25,553.41, while the Shanghai Composite edged down 0.4 percent to 2,597.15.
WALL STREET: The S&P 500 index rose 38.76 points, or 1.4 percent, to 2,767.13 to end a six-day losing streak last week. The benchmark index tumbled 4.1 percent during the week, and it's down 5.6 percent since from its latest record high, set Sept. 20. The Nasdaq composite jumped 167.83 points, or 2.3 percent, to 7,496.89. The Dow Jones Industrial Average finished with a gain of 287.16 points, or 1.1 percent, at 25,339.99.
TRADE WORRIES: Investors are growing worried that U.S.-China trade tensions are impairing global economic growth. The International Monetary Fund cut its forecast for global economic growth last week because of trade tensions and increased interest rates.
THE QUOTE: "The repercussions of trade tensions that had plagued global equity markets persist," said Jingyi Pan, market strategist at IG in Singapore.
CHINA MEETING: News that Chinese President Xi Jinping and President Donald Trump may meet have set off some hope that tensions in the trade war between the world's two largest economies might ease. But worries about the increased tariffs the two sides have imposed on each other's goods, a move that tends to dampen growth, are contributing to volatility in financial markets.
ENERGY: U.S. benchmark crude gained 79 cents to $72.13. It added 0.5 percent to $71.34 a barrel in New York Friday. Brent crude, the international standard, added 98 cents to $81.41.
CURRENCIES: The dollar slipped to 112.14 yen from 112.33 yen late Friday. The euro fell to $1.1553 from $1.1602.
Istanbul, Oct 14 (AP/UNB) — President Donald Trump says "we would be punishing ourselves" by canceling arms sales to Saudi Arabia over the disappearance of Saudi journalist Jamal Khashoggi.
Trump says the sale is a "tremendous order for our companies." He says if the kingdom doesn't buy its weaponry from the United States, they will buy it from Russia.
Trump also said on Saturday that he would meet with Khashoggi's family. But he says he has not discussed Khashoggi with Saudi King Salman as he said Friday he would do.
Khashoggi, a fierce critic of the Saudi ruling family, disappeared more than a week ago after he was last seen on video entering the Saudi consulate in Istanbul.
Published reports based on anonymous sources say he was killed by the Saudis.
Saudi has said the claim is "baseless."
Turkey's top diplomat has reiterated a call to Saudi Arabia to allow Turkish authorities to enter the kingdom's consulate in Istanbul for an investigation on missing Saudi journalist Jamal Khashoggi.
Foreign Minister Mevlut Cavusoglu said on Saturday that Saudi Arabia had not yet cooperated with Turkey on the search for Khashoggi.
He says that Turkish "prosecutors and technical friends must enter" the consulate "and Saudi Arabia must cooperate with us on this."
His comments come days after Saudi Arabia said it would open its consulate for a search but that is yet to happen. The journalist was last seen there on Oct. 2.
Cavusoglu said Turkey would share information with Saudi Arabia in a "joint working group" but stressed the Turkish investigation would continue separately.
President Donald Trump says Saudi leaders, as of now, "deny it every way you can imagine" allegations that journalist Jamal Khashoggi was murdered by the kingdom.
But, he has told CBS' "60 Minutes," ''Could it be them? Yes."
Khashoggi, a U.S. resident and critic of the Saudi government, went missing more than a week ago after entering a Saudi consulate in Istanbul.
Trump, who's attacked the press as the "enemy of the people," says "there's a lot of stake, and maybe especially so because this man was a reporter. ... You'll be surprised to hear me say that."
He says "we're going to get to the bottom of it and there will be severe punishment."
Trump isn't saying what that could be, but says he doesn't want to cut off American military sales to Saudi Arabia.
He says "there are other ways of punishing."
A pro-government Turkish newspaper is reporting that Turkish officials have an audio recording of the alleged killing of journalist Jamal Khashoggi.
The Sabah newspaper, through which Turkish security officials have leaked much information about the case, reported Saturday that Khashoggi's Apple Watch recorded his alleged slaying at the hands of Saudi officials.
The newspaper said authorities recovered the audio from Khashoggi's iPhone and his iCloud account. The journalist had given his phones to his fiancée before entering the Saudi Consulate in Istanbul on Oct. 2.
Turkish officials have not answered queries from The Associated Press about Khashoggi's Apple Watch.
Meanwhile, Saudi Interior Minister Prince Abdulaziz bin Saud said Saturday that "what has been circulating about orders to kill (Khashoggi) are lies and baseless allegations against the government of the kingdom."
President Donald Trump has declared the U.S. will uncover the truth about what happened to journalist and U.S. resident Jamal Khashoggi, whose possible murder at Saudi hands after disappearing in Istanbul has captured worldwide attention.
Trump promised Friday to personally call Saudi Arabia's King Salman soon about "the terrible situation in Turkey."
Khashoggi, a forceful critic of the Saudi government, went missing more than a week ago after entering a Saudi consulate in Istanbul.
Turkish officials have said they believe he was murdered there. U.S. officials say they are seeking answers from the Saudi government and are not yet accepting the Turkish government's conclusions.
The Saudis have called accusations that they are responsible for Khashoggi's disappearance "baseless."
Nusa Dua, Oct 13 (AP/UNB) — Global financial leaders wrapped up an annual meeting of the International Monetary Fund and World Bank on Saturday by urging countries to brace for potential risks from trade disputes and other tensions.
The meetings in Bali, Indonesia, this week were overshadowed by a spate of financial market turmoil and by the threat to global growth from the trade clash between the U.S. and China over Beijing's technology policies.
The International Monetary and Financial Committee, which advises the IMF's board of governors, issued a communique on Saturday urging countries to keep debt under control, engineer policies to ensure credit is available in line with their levels of inflation and ensure sustained economic growth "for the benefit of all."
IMF Managing Director Christine Lagarde said that while global growth is still strong, it has leveled off. The IMF started the meetings in Bali by downgrading its 2018 estimate for global growth to a still robust 3.7 percent from an earlier forecast of 3.9 percent.
"I think it's not inconsistent to have a plateaued growth and downside risks that are the clouds on the horizon, some of which have begun to open up," Lagard said. Adding that given the level of debt around the world, "we've given strong recommendations and in terms of trade: de-escalate and please dialogue."
Countries should seek to ensure their levels of debt are manageable and that policies foster growth for all, she said. "Sail together and we will be stronger. Focus on your policies. Don't drift and let's cooperate as much as we can because we will be better off together."
China's central bank governor, Yi Gang, joined the chorus of consternation over the trade standoff, which has resulted in Washington imposing penalty tariffs on tens of billions of dollars of imports of Chinese products and Beijing responding in kind. Protectionism and trade tensions are "major risks" for the world economy, he told fellow financial leaders.
U.S. Treasury Secretary Steven Mnuchin downplayed the level of alarm. He said he doesn't lose sleep over the possibility that China might step up its sales of U.S. treasuries in retaliation for pressure from Washington to alter national economic strategies aimed at nurturing Chinese leaders in many advanced technologies.
Mnuchin said it was still not certain if President Donald Trump would meet with his Chinese counterpart Xi Jinping at a Group of 20 summit late next month in Buenos Aires. Reports that such a meeting was likely raised hopes for progress on the impasse between the world's two largest economies, stilling disquiet on financial markets Friday.
"I don't think any decision has been made in regards to a meeting," he said, saying he favored one. "The president will decide."
It's unclear if the two sides can make enough progress before then given the limited room for maneuvering. Apart from chronic U.S. trade deficits, the policies Washington objects to are central to Beijing's strategy for guiding the economy for decades to come.
Stepping up Chinese imports of U.S. goods and commodities such as liquefied natural gas won't cut it, Mnuchin said.
It's "about structural issues," he acknowledged. "This is not about buying more soybeans and buying more LNG," he said.
"There have to be meaningful commitments to create a rebalanced trading relationship," he said.
New York, Oct 13 (AP/UNB) — Stocks rebounded Friday, clawing back some of the week's steep losses, but the turbulent trading of the last few days left no doubt that the relative calm the markets enjoyed all summer had been shattered.
Major U.S. indexes ended the week down about 4 percent, their worst weekly loss in six months. An index measuring the performance of small-company stocks had its worst week since early 2016.
Big technology and consumer-focused companies led the recovery Friday. Longtime favorites of many investors, they had plunged in the last few days.
A major factor cited by market watchers for the pullback was a sharp increase in interest rates, which can slow the economy and make bonds more attractive to investors relative to stocks.
Apple climbed 3.6 percent to $222.11 and Microsoft gained 3.5 percent to $109.57. Amazon jumped 4 percent to $1,788.41. Those are the three most valuable companies in the U.S., and they suffered startling declines the last few days: on Wednesday each took its biggest loss in more than two years. That made for a dramatic end to three months of calm on the U.S. market.
The S&P 500 index rose 38.76 points, or 1.4 percent, to 2,767.13 to end a six-day losing streak. The benchmark index tumbled 4.1 percent this week, and it's down 5.6 percent since from its latest record high, set Sept. 20. Thanks in part to the big gain for technology companies, the Nasdaq composite jumped 167.83 points, or 2.3 percent, to 7,496.89.
The Dow Jones Industrial Average rose as much as 414 points early on, then gave it all up and turned slightly lower. It rebounded and finished with a gain of 287.16 points, or 1.1 percent, at 25,339.99.
The market's recent skid started last week, when strong economic data and positive comments from Federal Reserve Chair Jerome Powell helped set off a wave of selling in the bond market as investors they bet that the U.S. economy would keep growing at a healthy pace. That pushed bond prices lower and sent yields up to seven-year highs.
That drove interest rates sharply higher, which worried stock investors who felt that a big increase could stifle economic growth. The big swings in the market Friday suggest those fears haven't gone away. The VIX, a measurement of how much volatility investors expect, hasn't been this high in six months.
"What seems to have driven this is a fear interest rates were going to rise more quickly because the Fed was being too aggressive or the economy was going to overheat," said David Kelly, chief global strategist for JPMorgan Funds. Kelly said he doesn't think either of those fears is justified, as the Fed isn't raising interest rates that rapidly and economic growth hasn't sped up recently.
Small companies didn't fare as well. The Russell 2000 index rose just 1.30 points, or 0.1 percent, to 1,546.68 to wrap up its largest loss in one week since January 2016. High-dividend stocks like utilities and real estate investment trusts also rose less than the rest of the market. They held up relatively well over the past few days. Investors view them as relatively safe, steady assets that look better when growth is uncertain and the rest of the market is in turmoil.
U.S. automakers Ford and General Motors continued to slump. GM shed 1.6 percent to $31.79, its lowest in almost two years. Ford, trading at its lowest in almost nine years, dipped 1.9 percent to $8.64. Both have plunged this year as they deal with slowing sales and the Trump administration's tariffs on steel and aluminum, which are sending their manufacturing costs higher.
The stocks have fallen further in recent days following reports Ford might cut jobs. In late September, Ford CEO Jim Hackett said the steel and aluminum duties would cost the company $1 billion through 2019.
Investors are also growing more concerned that U.S.-China trade tensions are impairing global economic growth. The International Monetary Fund cut its forecast for global economic growth this week because of trade tensions and increased interest rates.
Sam Stovall, chief investment strategist for CFRA, said he thought stocks fell too far, but there could be more turmoil ahead for the markets. While stocks had done well in spite of the rising trade tensions between China and the U.S., investors seem more worried now.
"Everybody has been pretty much dismissing the effect of the trade war on U.S. equities, and now they're beginning to think 'wait a minute, maybe there could be a problem,'" he said. "I don't think the reasons for the decline have been resolved."
Bond prices edged lower. The yield on the 10-year Treasury note rose to 3.15 percent 3.13 percent. At the beginning of the year it stood at 2.46 percent.
U.S. crude oil added 0.5 percent to $71.34 a barrel in in New York. Brent crude, the international standard, picked up 0.2 percent to $80.43 a barrel in London.
Wholesale gasoline rose 0.5 percent to $1.94 a gallon. Heating oil fell 0.5 percent to $2.32 a gallon. Natural gas lost 1.9 percent to $3.16 per 1,000 cubic feet.
Asian stocks also rebounded. Japan's Nikkei 225 index gained 0.5 percent after sinking early in the day and following a nearly 4 percent loss on Thursday. Hong Kong's Hang Seng surged 2.1 percent and the Kospi in South Korea rose 1.5 percent.
European stocks finished mostly lower. The French CAC 40 dipped 0.2 percent and so did the FTSE 100 in Britain. The DAX in Germany slipped 0.1 percent.
After a big jump Thursday, gold lost 0.5 percent to $1,222 an ounce. Silver rose 0.2 percent to $14.64 an ounce. Copper slipped 0.1 percent to $2.80 a pound.
The dollar slipped to 112.01 yen from 111.94 yen. The euro fell to $1.1563 from $1.1594.