China stocks Dropped

China Stocks

 Shanghai stocks lower, blue-chip CSI300 index down,  Losses in Shanghai stocks led by China CSSC Holdings Ltd,  China’s A-shares at 25.87 pct premium over H-shares 

SHANGHAI, March 21 (Reuters) - China stocks erased early gains and ended lower on Wednesday, weighed down by start-up firms, as investors booked profits in shares of technology companies. ** At the close, the Shanghai Composite index was down 0.3 percent at 3,280.95. 

The blue-chip CSI300 index was down 0.38 percent, with its financial sector sub-index losing 0.01 percent, the consumer staples sector falling 0.77 percent and healthcare sub-index shedding 0.67 percent; the real estate index gained 0.56 percent ** The smaller Shenzhen index ended down 0.73 percent and the start-up board, ChiNext Composite index, was weaker by 1.86 percent, its worst day in five weeks. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.05 percent. 

** At 07:00 GMT, the yuan was quoted at 6.331 per U.S. dollar, 0.06 percent firmer than the previous close of 6.3352. ** The largest percentage gainers in the main Shanghai Composite index were Guodian Nanjing Automation Co Ltd, up 10.09 percent, followed by Shenzhen Geoway Co Ltd, up 10.07 percent and Heilongjiang Interchina Water Treatment Co Ltd, up 10.04 percent. ** The largest percentage losers in the Shanghai index were China CSSC Holdings Ltd down 10.01 percent, followed by CSSC Offshore & Marine Engineering Group Co Ltd, down 9.98 percent and Shanghai Baosight Software Co Ltd , down 6.39 percent. 

** About 16.84 billion shares were traded on the Shanghai exchange, roughly 94.6 percent of the market’s 30-day moving average of 17.81 billion shares a day. The volume in the previous trading session was 13.99 billion. ** As of 07:01 GMT, China’s A-shares were trading at a premium of 25.87 percent over the Hong Kong-listed H-shares.

Daily Briefing: Oil and euro zone inflation take centre stage

Brent crude’s continued climb above $52 to its highest levels since late May now has it clocking year-on-year gains of about 24 percent, courtesy of slightly skewed base effects from this time last year. 

As a result its gains will remain on inflation-watchers’ radars and, if nothing else, remind everyone that price pressures have not disappeared altogether and the likelihood of a renewed deflation scare is pretty remote right now. 

Euro zone flash inflation numbers are due out later and are expected to show headline inflation in June coming in unchanged at an annual 1.3 percent in July, but with the core rate dipping to 1.1 percent from 1.2 percent last month. While there’s nothing in there to scare the European Central Bank either way right now, energy prices show the picture will be muddy at least for a few months. 

Another negative day for Wall Street stocks on Friday, following a number of high-profile earnings misses last week, has not rippled through world markets early Monday.  

Asia bourses were mostly positive, with Shanghai and HK stocks advancing after official Chinese business surveys were broadly in line with forecasts and showed ongoing growth in July of both manufacturing and service sectors. Tokyo and Seoul underperformed, with the latter on edge after North Korea on Friday launched its latest long-range missile into the seas off Japan. 

European stocks are expected to rise first thing. Earnings are set to dominate the session once again with some well-received results in Asia from HSBC, whose Hong Kong-listed shares have risen 2.7 percent after its pretax profit beat expectations and the lender also announced a share buyback of up to $2 billion. 

Sanofi and Heineken will also be in focus today. So far around 45 percent of MSCI Europe firms have reported Q2 results, 58 percent of which have either met or beaten analysts’ expectations, a figure which is slightly lower for euro zone firms, of which just over half have met or beaten expectations.  The dollar and Treasury yields were a touch  firmer, even though euro/dollar remained above $1.17 level it captured last week.

Asia stocks, dollar steady as investors await Fed clues

Asian stocks steadied on Wednesday and the dollar held firm as investors awaited the Federal Reserve's policy decision later in the day for more clues on its tightening plans. 

The wait-and-see mood was expected to prevail in the European session, with spreadbetters forecasting Britain's FTSE .FTSE and France's CAC .FCHI to open effectively flat while predicting Germany's DAX .GDAXI to inch up 0.05 percent. 

The Fed will conclude its two-day meeting later on Wednesday, and is widely expected to keep interest rates unchanged. 

With a rate hike not in the picture this time, the focus will be on the Fed's statement, with markets looking for signs of when the central bank will begin paring its massive bond holdings and next raise rates. Its statement is expected at 1800 GMT.

Federal funds futures implied traders saw the chance of a Fed rate increase in September at about 8 percent and a December hike possibility at 48 percent. 

A more assertive policy message by the Fed, on the other hand, would likely lift U.S. yields and boost the dollar. 

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was little changed, but drew mild support after the S&P 500 .SPX climbed to an all-time high overnight on well-received results from McDonald's (MCD.N) and Caterpillar (CAT.N) in addition to bank share gains. 

Australian stocks gained 1 percent with a smaller-than-expected rise in local inflation supporting views that interest rates will remain at record lows for some time to come. The Australian dollar slipped 0.5 percent to $0.7896 AUD=D4. 

Japan's Nikkei .N225 added 0.5 percent after the dollar rallied against the yen JPY= overnight to pull away from seven-week lows. 

Shanghai .SSEC shed 0.4 percent on lingering fears of further regulatory tightening, while South Korea's KOSPI .KS11 lost momentum after touching a record high the previous day and slipped 0.3 percent.

Asian stocks waver, investors on knife edge for Trump-Xi meeting

Stocks slipped and bonds rose in Asia on Thursday, with risk appetite soured by signs the Federal Reserve might start paring its king-sized asset holdings later this year just as the chance of early U.S. fiscal stimulus faded further.

Futures markets pointed to opening falls of between 0.5 percent and 0.7 percent for the major European bourses while S&P 500 futures ESc1 eased 0.2 percent.

Investors were also wary ahead of a potentially tense meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping, the first between the world's two most powerful leaders.

Topping the agenda at Trump's Mar-a-Lago resort in Florida will be whether he makes good on his threat to use U.S.-China trade ties to pressure Beijing to do more to rein in its nuclear-armed neighbor North Korea.

Nerves were not helped when U.S. Pacific Fleet Commander Admiral Scott Swift said any decision on a pre-emptive attack against North Korea would be up to President Donald Trump.

Lingering fears of a possible trade war kept Asian markets on edge and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS lost 0.8 percent.

Japan's Nikkei .N225 fell 1.4 percent to its lowest since early December. Australia's index lost 0.5 percent.

Shares in Shanghai .SSEC made marginal gains as a private survey of China's service sector showed activity expanded at its slowest pace in six months in March.

Sentiment had been bruised overnight when U.S. House of Representatives Speaker Paul Ryan said there was no consensus on tax reform and it would take longer to accomplish than healthcare.

Markets have risen in recent months in part on speculation fiscal stimulus would boost U.S. growth and inflation.

Minutes of the Fed's last meeting also showed most policymakers thought the U.S. central bank should begin trimming its $4.5 trillion balance sheet later this year, much earlier than many had expected.

Asia shares adrift for U.S. holiday, focus on Unilever

Asian share markets were mixed on Monday as political uncertainty globally kept the mood cautious, while the U.S. dollar dithered in a tight range ahead of a busy week for Federal Reserve events.

Turnover was light with U.S. markets closed for the Presidents Day holiday. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.1 percent and back toward a 19-month peak reached last week.

Japan's Nikkei .N225 went flat after domestic data showed exports disappointed in January even as imports outpaced forecasts.

Shanghai stocks .SSEC added 0.9 percent and expectations of solid economic growth in China kept commodities such as copper and iron ore well bid.

Spreadbetters predicted opening gains of 0.2 to 0.3 percent for bourses in Europe while E-mini futures for the S&P 500 ESc1 added 0.1 percent.

Shares in Unilever Plc (ULVR.L) could retreat after U.S. food company Kraft Heinz Co (KHC.O) withdrew its proposal for a $143 billion merger. Unilever's shares jumped 13 percent on Friday on news of the bid.

Wall Street ended last week on a roll, with all three major indexes making historic highs and the Dow Jones Industrial Average reaching a seventh straight record close. [.N]

A host of results from retailers are due this week, including Wal-Mart Stores Inc (WMT.N), Macy's (M.N) and Home Depot Inc (HD.N). The results will be watched for a read on spending as well as for commentary from executives on President Donald Trump's proposal to tax imports.