Hong Kong Share Index Little Changed as Financials Curb Gains (Riview)

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Hong Kong stocks were little changed on Wednesday, with financial shares curbing gains on the main index as investors await fresh cues for direction.

The Hang Seng index rose 0.2 percent, to 20,206.67, while the China Enterprises Index lost 0.1 percent, to 8,668.63 points.

Most sectors rose but financial shares underperformed, losing 0.5 percent, as Chinese banks are under margin pressures from a slowing economy and rising bad debt.

Chi Lo, economist at BNP Paribas Investment Partners pointed out that some market players believe that China would see a banking crisis soon, with losses expected to amount to $3.5 trillion. But such an "Armageddon" scenario was not a fair bet on China, he wrote.

Source : Reuters

U.S. Stocks Rally as Health-Care, Energy Shares Lead a Rebound

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U.S. stocks advanced, with the Standard & Poor’s 500 Index posting its best gain in more than three weeks, as health-care shares rallied on deal speculation and energy producers rallied with crude oil.

The main benchmark index halted a two-day slide as Pfizer Inc.’s busted deal with Allergan Plc sparked speculation the two companies will now turn their attention to other potential merger targets, sending biotechnology companies to their strongest rally in more than four years. An unexpected drop in crude stockpiles drove crude and energy producers to their biggest gains in three weeks.

The S&P 500 rose 1.1 percent to 2,066.71 at 4 p.m. in New York, recovering from the biggest two-day drop since Feb. 9 as gains accelerated in the final hour. After the longest span without a 1 percent move in more than a year, the index has posted two such swings back to back.

Equities held gains after minutes from the Federal Reserve’s last meeting showed policy makers were worried that slowing world growth could reduce corporate investment plans and restrain U.S. exports.

Following Fed Chair Janet Yellen’s reiteration that future rate increases will be gradual and the latest meeting minutes, traders are pricing in no possibility of an April hike. December is now the first month with at least even odds of a boost in borrowing costs.

Source: Bloomberg

U.S. Stocks Advance Before Fed Minutes Following Two-Day Slide

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U.S. stocks advanced, after the Standard & Poor’s 500 Index rebounding from the steepest decline in almost a month, boosted by rallies in health-care and energy shares while investors awaited minutes from the Federal Reserve’s latest meeting.

The benchmark index was on the way to halting a two-day slide that followed a 2016 high, amid a lull in economic data and before corporate earnings season gears up to provide evidence on the sturdiness of U.S. growth. Health-care companies were on track for the strongest increase in more than a month as drug companies surged.

The S&P 500 rose 0.7 percent to 2,058.48 at 11:55 a.m. in New York, after sliding yesterday to cap the biggest two-day drop since Feb. 9. The Dow Jones Industrial Average climbed 85.33 points, or 0.5 percent, to 17,688.65. The Nasdaq Composite Index advanced 1 percent, lifted by gains among biotechnology companies. Trading volume in S&P 500 shares was in line with the 30-day average for this time of day.

The S&P 500 fell 1 percent yesterday, leaving it little changed for the year amid concern global growth will remain sluggish. The gauge’s rebound from a nearly two-year low in February has shown signs of waning in tepid trading volume as investors consider whether efforts by central banks are potent enough to fend off slowing growth. Minutes from the Fed’s March meeting are due at 2 p.m.

Source: Bloomberg

Oil Rises as Kuwaiti Says Iran Is not Needed for Freeze Pact

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Oil advanced on speculation a pact to freeze crude output may be reached without the participation of Iran.

Futures rose from a one-month low. Oil-producing countries can come to an agreement capping crude production at January levels even if Iran doesn’t join the move to help shore up prices, according to Kuwait’s OPEC governor. The dollar dropped to the lowest level against the yen in more than a year, bolstering the appeal of commodities priced in the U.S. currency. A government report Wednesday is projected to show that U.S. crude supplies climbed.

West Texas Intermediate for May delivery increased 19 cents, or 0.5 percent, to settle at $35.89 a barrel on the New York Mercantile Exchange. Futures touched $35.24, the lowest since March 4. Total volume traded was 19 percent below the 100-day average at 3:12 p.m.

Brent for June settlement rose 18 cents, or 0.5 percent, to $37.87 a barrel on the London-based ICE Futures Europe exchange. It earlier touched $37.27, also the lowest since March 4. The global benchmark closed at a 73-cent premium to WTI for June delivery.

Oil’s rebound from a 12-year low has stalled amid doubts about the prospects of a proposed deal to freeze supply. Saudi Arabia will only cap production if it’s joined by other major producers including Iran, the kingdom’s deputy crown prince said last week. Russia and all OPEC members except Libya will attend the meeting in Doha.

Source: Bloomberg