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Markets Jump on Trade Talks

  • Junior Trader
  • Blog post submitted on 9th January 2019
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US stocks closed higher for a third straight session on Tuesday as optimism over U.S.-China trade talks boosted sentiment and pushed investors away from safe-haven assets and into the equity markets. The Dow Jones Industrial Average rose 256.10 points, or 1.1%, to 23,787.45, while the S&P 500 index gained 24.72 points, or 1%, to 2,574.41. The Nasdaq Composite Index climbed 73.53 points, or 1.1%, to 6,897.

European markets also ended the session with gains with the boost in sentiment allowing investors to shake off other worries such as more signs of stress in the tech sector and weak European manufacturing data. The Stoxx Europe 600 gained 1.5% to 347.94 and the German DAX 30 added 1.5% to 10,905.26. France’s CAC 40 rose 1.9% to 4,807.99 whilst the U.K.’s FTSE 100 jumped 1.2% to 6,894.17.

Ghosn loses court appeal

The ongoing legal dramas of former Nissan chairman, Carlos Ghosn, deepened after he lost an appeal against his ongoing detention, diminishing prospects of an early release on bail for the auto industry icon fighting charges of financial misconduct while he was heading Nissan Motor Co. Wednesday’s decision by the judge means Ghosn could spend his time locked away in jail until an actual trial, which his main lawyer Motonari Otsuru has said may be as long as six months away. Ghosn’s current custody ends Jan. 11, and prosecutors are likely to slap new charges or request another extension as they build a case against him.

The Tokyo District Court rejected the petition filed by Ghosn’s defense team, according to a statement from the court shared with the media by the Foreign Press in Japan Wednesday. The former Nissan chairman’s lawyers will appeal the decision in a higher court. In his defense, the fallen titan offered a two-pronged response. Ghosn said that he had been wrongly accused and unfairly detained, terming the accusations “merit-less and unsubstantiated.”

Apple sees production cuts

Tech giant, Apple Inc, which slashed its quarterly sales forecast last week, has reduced planned production for its three new iPhone models by about 10 percent for the January-March quarter. Overall planned production volume of both old and new iPhones is likely to be cut to a range of 40 million to 43 million units for January-March, from an earlier projection of 47 million to 48 million units, said one source familiar with the situation.

That rare forecast cut exposed weakening iPhone demand in China, the world’s biggest smartphone market, where a slowing economy has also been buffeted by a trade war with the United States. Apple asked its suppliers late last month to produce fewer-than-planned units of its XS, XS Max and XR models, according to the same sources with knowledge of the situation.

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