· HSBC to announce exit from U.S. retail banking, reshuffles top jobs
HSBC is set to withdraw from U.S. retail banking, a source familiar with the matter told Reuters on Monday, as Europe’s biggest bank seeks to dispose of a business that has long underperformed.
· Value and cyclical stocks are ‘more interesting’ than cryptocurrencies right now: UBS
Kelvin Tay of UBS Global Wealth Management says there are “hardly any fundamentals” that support the current levels of cryptocurrencies.
· Stock futures rise as Wall Street looks to shake off Big Tech’s slide
U.S. stock futures were higher in early Tuesday trading after tech stocks fell sharply to start the week.
Futures tied to the Dow Jones Industrial Average rose 96 points. Those for the S&P 500 and the Nasdaq 100 also traded in positive territory.
In corporate developments, Facebook reached an agreement with the Australian government and will restore news pages in the country again, just days after restricting them.
· Market bull Julian Emanuel sees rising Treasury yields accelerating a major leadership change.
While rising Treasury yields create jitters on Wall Street, BTIG’s Julian Emanuel is seeing opportunities.
The firm’s chief equity and derivatives strategist said Monday he thinks economically sensitive stocks, cryptocurrencies and overseas markets, particularly China, will get a boost.
“There’s a large subset of China ADRs [American depository receipts], some of which are levered to the financial sector, that have really shown a very close correlation to Chinese yields, which are rising alongside the U.S.,” Emanuel told CNBC’s “Trading Nation.”
But it’s not just unloved areas of the market. Emanuel sees rising yields making cryptocurrencies even more attractive.
For investors who want to take the more traditional route, he recommends economically sensitive stocks, particularly in financials and energy.
Emanuel predicts growth stocks, including Big Tech, will continue to fall out of favor as the rotation into cyclicals picks up momentum. He expects algorithmic computer trading to exacerbate the turbulence by piling on to the downward pressure and accelerating losses.
Emanuel has a 4,000 year-end S&P 500 target, which implies a 3% increase from Monday’s close.
· Asian stocks advance in commodities-inspired rally
Asian shares rebounded from two-week lows on Tuesday as rising commodity prices boosted market expectations of an improved growth outlook, a day after rising U.S. Treasury yields and inflation prospects hit U.S. tech shares.
Europe's Eurostoxx 50 futures and Germany's DAX futures FDXc1 both gained 0.2%, while futures for London's FTSE FFIc1 rose 0.3%. E-mini futures for the S&P 500 advanced 0.5%.
MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.4% to 726.6 after dipping to 719.8, the lowest level in two weeks. The gauge has eased from last week's record top but is still up about 9% so far this year.
Buoyed by the rally in commodities, the Australian S&P/ASX 200 index to rose nearly 0.9%. Singapore's Straits Times index put on 0.6% and Taiwan was up 0.2%. Hong Kong advanced 1%, while the tech-laden South Korea's Kospi lost 0.3%.
Japanese markets were closed for a public holiday.
· China stocks end lower, losses limited by gains in financials
China stocks closed lower in volatile trading on Tuesday, after a sharp correction the previous session, as worries over policy tightening weighed on sectors with lofty valuations, although losses were limited by gains in financials shares.
The blue-chip CSI300 index fell 0.3% to 5,579.67, after logging the biggest daily drop in nearly seven months on Monday. The Shanghai Composite Index slid 0.2% to 3,636.36.
· European markets cautiously higher with economic recovery in focus
European stocks inched into positive territory on Tuesday, with investor focus on coronavirus developments, economic recovery and earnings.
The pan-European Stoxx 600 hovered 0.2% above the flatline in early trade, with oil and gas stocks rallying 1.9% to lead gains while tech stocks slid 0.9% lower.
European markets are continuing a more cautious trend seen in Asia and the U.S., with investors in the former monitoring technology stocks regionally after their counterparts declined overnight on Wall Street.
Reference: CNBC, Reuters
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