Market News & Analysis
European Equity Market Handover: Washington bans Huawei, but Walmart shines
Ken Odeluga May 16, 2019 10:18 PM
Stock market snapshot as of [16/5/2019 3:11 PM]
- Washington’s confirmed ban of Huawei and 70 affiliates, inevitably exacerbating a trade dispute with Beijing, vies with stronger earnings and signs of bargain hunting as chief influences on global shares
- A positive start despite the White House’s efforts, joins other clues suggesting risky markets could soon draw a line under weakness that became pronounced last month. Indications are technical and also structural, including JPMorgan’s Treasury survey pointing to profit taking in the safe-haven asset sometime soon
- Housing starts and permits showing a spring rebound, jobless claims stuck near rock-bottom and another ebullient regional U.S. manufacturing index are further positives for risk appetite
- But the China-tariff theme keeps showing up elsewhere. Burberry shares are the worst large-cap fallers in Europe after lacklustre earnings, with dependence on China and the Asia-Pacific dragging revenues
- Walmart took the tariff end of prevailing concerns, warning that “increased tariffs lead to increased prices”. The stock rises 3% though. Like Macy’s on Wednesday, Walmart backs the view that a rebound of traditional retailers may be underway. The biggest bricks & mortar retailer in the world posted a 19th-consecutive quarter of same-store sales growth
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