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Nikkei Markets

GLOBAL SNAPSHOT: Trump Jr.'s Russia Emails Latest US Drama To Affect Share Prices

By Kuala Lumpur Newsroom
Nikkei Markets
KUALA LUMPUR (Jul 12) -- Significant international events and markets news:

KEY EVENTS:

*08:30 GMT: U.K. June claimant count change

*08:30 GMT: U.K. May International Labor Organization unemployment rate

*08:30 GMT: U.K. May average weekly earnings growth

*14:00 GMT: Bank of Canada interest-rate decision

US STOCKS:

The main U.S. markets were mixed Tuesday with the Dow Jones industrial average unchanged at 21409.07 points, the Standard & Poor's 500 index falling 0.08% to 2425.53 points and the Nasdaq composite adding 0.27% to 6193.30 points. U.S. share prices were mixed after the son of U.S. president Donald Trump released emails about a meeting in June 2016 that discussed allegedly incriminating information about presidential candidate Hillary Clinton as part of the Russia government's support of his father's election run. The emails show Donald Trump Jr. was told the Russian government had information that would incriminate Clinton. Market participants are looking to the start of earnings season. JPMorgan Chase & Co. and Citigroup Inc. will report Friday. Europe stock prices were largely lower.

DOLLAR INDEX:

The dollar index was last down 0.33% to 95.49. The dollar fell Tuesday after President Donald Trump's eldest son released emails which referred to a top Russian government prosecutor as offering the Trump campaign damaging information about Democratic rival Hillary Clinton. The dollar was up 0.17% to 114.22 yen. Meanwhile, the yield on U.S. 10 Year Treasury notes was 2.363% compared with 2.376% this time Tuesday.

ASIA MARKETS:

Nikkei 225 futures were last down 0.35% at 20110.00 suggesting a weaker opening at Tokyo on Wednesday. Nikkei share average prices rose on a weaker yen and technology company share prices which benefited from a strong Nasdaq performance overnight. The Nikkei rose 0.6% to 20195.48 points. The dollar rose to 114.45 yen to a four-month high. The dollar has been strong against the yen since the Bank of Japan offered last week to buy an unlimited amount of bonds. The spread between 10-year Treasury and JGB yields is the widest for two months - contributing to the dollar's strength against the yen. Elsewhere in Asia Hong Kong stock prices rose on gains in financial company share prices. The Hang Seng Index rose 1.5% to 25877.64 points. The market was assisted by Geely Automobile Holdings whose shares gained 7.5% to a record as the motor-vehicle maker reported strong first-half profit growth. Mainland China stock prices fell with the Shanghai Composite Index down 0.3% to 3203.04 points. China's central bank resumed open-market operations to inject 40 billion yuan into money markets Tuesday after abstaining during the previous 12 sessions.

CRUDE OIL:

Oil prices rose Tuesday on a lower 2018 forecast on U.S. crude production and speculation of possible output cuts by Libya and Nigeria. Expectations for a second-consecutive weekly decline in U.S. crude supplies provided support. August West Texas Intermediate crude rose $0.64, or 1.4%, to $45.04 a barrel on the New York Mercantile Exchange. September Brent crude on ICE Futures Europe rose $0.64, or 1.4%, to $47.52 a barrel. The U.S. Energy Information Administration lowered its WTI and Brent oil-price forecasts for this year and next and cut its 2018 U.S. production forecast by 1% to 9.90 million barrels a day.

TOP NEWS:

*Russian Dirt on Clinton? 'I Love It,' Donald Trump Jr. Said

The June 3, 2016, email sent to Donald Trump Jr. could hardly have been more explicit: One of his father's former Russian business partners had been contacted by a senior Russian government official and was offering to provide the Trump campaign with dirt on Hillary Clinton. The documents "would incriminate Hillary and her dealings with Russia and would be very useful to your father," read the email, written by a trusted intermediary, who added, "This is obviously very high level and sensitive information but is part of Russia and its government's support for Mr. Trump." - The New York Times

*Trump seen replacing Yellen at Fed with NEC's Cohn: Politico

U.S. President Donald Trump is increasingly unlikely to nominate Federal Reserve Chair Janet Yellen next year for a second term and National Economic Council Director Gary Cohn is the leading candidate to succeed her, Politico reported Tuesday, citing four people close to the process. - Reuters

*Toshiba weighs Western Digital, Foxconn as buyers for memory arm

With Toshiba hitting a wall in efforts to sell its flash memory unit to a favored buyer, the Japanese company is taking a second look at bids from suitors it previously spurned, according to a briefing Tuesday for key banks. Sumitomo Mitsui Banking Corp., Mizuho Bank, Sumitomo Mitsui Trust Bank and four other major lenders attended the meeting where Toshiba officials including chief financial officer Masayoshi Hirata provided an update on the Toshiba Memory sale. - Nikkei Asian Review

*Western Digital gets U.S. court order to access Toshiba databases, chip samples

Western Digital won a temporary U.S. court order Tuesday saying that Toshiba must allow Western Digital's employees to access databases and chip samples as part of a joint venture with Toshiba around flash memory chip plants in Japan. Toshiba is scrambling to sell its flash memory business and Western Digital is among the bidders. In a sign of high tensions around the deal, Toshiba threatened to lock Western Digital out of shared databases and quit sending chip samples. - Reuters

*Giving up the ghost: Investors bail on Snap

Here one minute, gone the next. While that is the premise of Snap Inc.'s popular messaging platform, investors also saw any gains from its red-hot initial public offering disappear when shares plunged far below their initial sale price Tuesday. Morgan Stanley, a lead underwriter on the company's IPO, slapped a price target of $16 on the stock - a buck below its March IPO price. Analyst Brian Nowak wrote in the note that "we have been wrong about Snap's ability to innovate and improve its ad product this year." - Reuters
- By Kuala Lumpur Newsroom; kleditorial@nikkeinewsrise.com; +60320267363
- Edited by Glen Nicol Perkinson
- Send Feedback to feedback@nikkeinewsrise.com
- Copyright (c) 2017 Nikkei NewsRise Asia Pte Ltd.

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