Add to favourites
News Local and Global in your language
23rd of October 2018

Economy



Australian dollar rises on US-China trade hopes, Apple and tech stocks tumble

$100 Australian dollar notes layered over each other.

The Australian dollar outperformed most major currencies overnight, helped by a sharp fall in the greenback and renewed hopes for US-China trade talks.

Markets at 7:30am (AEST):ASX SPI 200 -0.3pc at 6,162, ASX 200 (Wednesday's close) -0.1pc at 6,176AUD: 71.68 US cents, 54.92 British pence, 61.63 euro cents, 79.77 Japanese yen, $NZ1.09US: Dow Jones +0.1pc at 25,998, S&P 500 flat at 2,889, Nasdaq -0.2pc at 7,954Europe: FTSE +0.6pc at 7,313, DAX +0.5pc at 12,032, CAC +0.9pc at 5,332, Euro Stoxx 50 +0.5pc at 3,327Commodities: Brent crude +0.8pc at $US79.71/barrel, spot gold +0.7pc at $US1,205.45/ounce, iron ore +0.3pc at $US67.86/tonne

The local currency lifted by 0.7 per cent to 71.68 US cents, which is still near its lowest level in two-and-a-half years.

It has also risen against the British pound (+0.6pc), euro (+0.6pc) and Japanese yen (+0.4pc).

But Australian shares are expected to fall in early trade, with ASX futures down 17 points.

In local economic news, the Australian Bureau of Statistics will release its latest job figures on Thursday morning.

Reuters-polled economists are predicting that 15,000 new jobs will have been created, and the unemployment rate to remain steady at 5.3 per cent in August.

US 'guarantees nothing' with stepped up China trade talks

The Trump administration has stepped up its communications with China over trade and an invitation for a new round of trade talks has been sent to Beijing, according to sources familiar with the matter.

White House economic adviser Larry Kudlow would not confirm the meeting invitation, but said that communication with Beijing had "picked up a notch".

"The Treasury Department is in communication with China. I can't go beyond that," Mr Kudlow told reporters outside the White House.

He added that he views such communication as "a positive thing."

"I think most of us think it's better to talk than not to talk, and I think the Chinese government is willing to talk."

Asked if the Trump administration would like to have additional trade talks with China, Kudlow said:

"If they come to the table in a serious way to generate some positive results, yes of course. That's what we've been asking for months and months."

But he cautioned: "I guarantee nothing."

Tech firms hauled before the Senate

Wall Street's technology index was battered, while its benchmark S&P 500 index barely made any gains.

The industrial-skewed Dow Jones index rose 0.1 per cent to 25,998 points.

Apple shares dropped 1.2 per cent, even as it unveiled its new line-up of iPhones and smart watches.

The Nasdaq index slipped 0.2 per cent, as six major tech companies have been called to testify before the US Senate on September 26 — to explain their consumer data privacy practices.

These companies include Apple, Twitter, Amazon, Google and AT&T, and their share prices fell as the prospect of stricter data regulation looms.

The Senate hearing will give the companies "an opportunity to explain their approaches to privacy", said US Senator John Thune, the Republican chairman of the Senate Commerce Committee.

Mr Thune said they will also testify on "how they plan to address new requirements from the European Union and California, and what Congress can do to promote clear privacy expectations without hurting innovation".

The witnesses at the upcoming Senate hearing include Google's chief privacy officer, Twitter's global data protection officer and Apple's vice president for software technology.

Data privacy has become an increasingly important issue, fuelled by massive breaches that have compromised the personal information of millions of internet users, as well as breaches involving large retailers and credit reporting agency Equifax.

Read More




Leave A Comment

More News

<none>

Business

Finance | News.com.au

Sydney Morning Herald RSS

Business News - Markets

Disclaimer and Notice:WorldProNews.com is not the owner of these news or any information published on this site.