In Economy
On Tuesday Asian Indices at par on investors looking to a new round of Sino-U.S. trade talks as the world's two largest economies try to resolve a tariff dispute that has put a dent on global growth and corporate earnings. MSCI's broadest index of Asia-Pacific shares outside Japan was unchanged in early trade.
U.S. and Chinese officials expressed hopes on Monday that a new round of talks would bring them closer to easing their months-long trade war.Beijing and Washington are trying to hammer out a deal before a March 1 deadline, without which U.S. tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent.
The trade dispute has already started to impact global growth, hitting businesses confidence, factory activity and disrupting supply chains. The worry is that a protracted Sino-U.S. tariff row could severely hurt corporate earnings globally.
Analysts are now expecting U.S. corporate earnings for the current quarter to drop 0.2 percent from last year, which would mark the first contraction since the second quarter of 2016.
A Democratic Senator said on Monday negotiators were working into the night in hopes of striking a deal on funding border security programs through Sept. 30 and averting another round of federal agency shutdowns.The talks resumed on Monday after having broken down over the weekend.
In Currency & Emerging Market
The dollar held firm, dollar's index rose to its highest levels in almost three months to 971.123 on Monday. It last stood at 97.03, having gained for eight straight sessions against a basket of six major currencies until Monday, its longest rally in two years. Although the Federal Reserve's dovish turn dented the dollar earlier this year, some analysts noted the U.S. currency still has the highest yield among major peers and that the Fed continues to shrink its balance sheet.
The euro dropped to as low as $1.1267 on Monday, its weakest in 2-1/2 months, and last stood at $1.1278.
The dollar popped up to a six-week high of 110.51 yen.
Oil prices ticked up slightly after falls on Monday as traders weigh support from OPEC-led supply restraint and a slowdown in the global economy. U.S. crude futures traded at $52.55 per barrel, up 0.29%.
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