Singapore shares appear set to start the week on a rocky footing, with negative leads from Wall Street and early Asian markets amid fresh chaos from the White House over whether trade talks with China would de-escalate the U.S. trade war.
Wall Street dropped on Friday after Apple’s earnings guidance disappointed and after the optimism on U.S.-China trade talks, which had boosted shares earlier in the week, dissipated. White House economic adviser and former CNBC commentator told CNBC on Friday that he wasn’t as optimistic about a deal with China as he used to be and he contradicted earlier reports that U.S. President Trump had asked officials to draw up a proposed U.S.-China trade deal.
“What’s even more confusing is that after these comments, Trump said he thinks a deal with China could happen. At the end of the day, while Trump and [Chinese President] Xi could meet at the G-20 meeting at the end of the month, it remains to be seen whether anything substantial will come out of the meeting,” Kathy Lien, managing director of foreign-exchange strategy at BK Asset Management, said in a note on Friday.
“As stocks resumed their slide, investors flocked into the safety of U.S. dollars, and if stocks continue to fall, the greenback will resume its rise,” she said.
Wall Street’s fall was despite Friday’s U.S. non-farm payrolls data showing a rebound in job growth and the highest wage increases since the Obama administration.
Lien said the report was “good enough” to convince the U.S. Federal Reserve to raise interest rates in December, but the confusion over trade talks was the main driver of the stock selloff and currency spillover.
Japan’s Nikkei 225 index was down 1.41 percent at 8:21 A.M. SGT, while South Korea’s Kospi was off 1.11 percent at 8:26 A.M. SGT.
Singapore’s Straits Times Index ended Friday up 1.82 percent at 3116.39; November futures were at 3119 on Friday, while December and January futures were at 3117 and 3119 respectively.
Malaysia’s KLCI rose 0.41 percent on Friday to 1713.87, while Indonesia’s IDX Composite Index rose 1.21 percent to 5906.29.
Hong Kong’s Hang Seng Index rose 4.21 percent to 26,486.35, while China’s CSI 300 added 3.56 percent to 3290.246.
The Dow Jones Industrial Average fell 0.43 percent to 25,270.83, the Nasdaq Composite shed 1.04 percent to 7356.99, and the S&P 500 lose 0.63 percent to 2723.06. Futures for the three indexes were well in the red in early trade, with DJIA futures down nearly 100 points.
The U.S. dollar index was at 96.42 at 8:09 A.M. SGT after rising from levels as low as 96.02 on Friday to touch levels as high as 96.56, according to ICE futures day.
The 10-year U.S. Treasury note yield was at 3.213 percent at 8:21 A.M. SGT after rising from levels as low as 3.139 percent early on Friday to as high as 3.222 percent, according to Tullett Prebon data.
The euro/dollar was at 1.1395 at 8:23 A.M. SGT after trading in a 1.1371 to 1.1456 range on Friday, according to DZHI data.
The dollar/yen was at 113.203 at 8:23 A.M. SGT after trading in a 112.53 to 113.323 range on Friday, according to DZHI data.
The dollar/yuan ended Friday at 6.8893 after trading in a 6.8675 to 6.9314 range during the session, according to DZHI data.
The dollar/Singapore dollar was at 1.3736 at 8:23 A.M. SGT after trading in a 1.3697 to 1.3773 range on Friday, according to DZHI data.
The dollar/Malaysian ringgit was at 4.1650 at 8:06 A.M. SGT after trading in a 4.1580 to 4.1830 range on Friday, according to DZHI data.
The dollar/Indonesian rupiah ended Friday at 14,950 after trading in a 14,940 to 15,200 range during the session, according to DZHI data.
Nymex WTI crude oil futures for December were down 0.22 percent at US$63.00 a barrel at 6:53 P.M. ET, while ICE Brent crude oil futures for January were down 0.16 percent at US$72.71 a barrel at 6:52 P.M. ET, according to Bloomberg data.