Denison Mines announces $250 million convertible notes offering
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Shanghai shares skid as Trump targets Huawei, Europe lower
* Asia index ex-Japan hits 15-week trough
* Yen edges higher as mood turns risk averse
* Bitcoin suddenly tumbles, then claws back losses
* Oil waits for OPEC+ output signals
* World FX rates in 2019 http://tmsnrt.rs/2egbfVh
*
By Marc Jones
LONDON, May 17 (Reuters) - World share markets suffered a
fresh bout of risk aversion on Friday after tough words on trade
from China, while bets on a new pro-Brexit leader in Britain
whipped the pound towards its worst week since October.
Europe's bourses .STOXX slipped 0.6% early on that seemed
a minor blip after what had happened in Asia.
Shanghai stocks finished 2.5% in the red .SS and the yuan
hit its weakest in nearly five months amid growing fallout from
President Donald Trump's move to block China's Huawei
Technologies HWT.UL from buying vital American technology.
On Friday, the Communist Party's People's Daily used a front
page commentary to evoke the patriotic spirit of past wars,
saying the trade war would never bring China down. In terms of how the trade conflict plays out, "the next
fortnight will be very, very important," UniCredit strategist
Kiran Kowshik said.
"Chinese counter-tariffs are due on June 1 and if those get
effective, I think markets will price in the risk of the U.S.
imposing its additional $300 billion of tariffs ahead of the G20
meeting (near the end of June)."
The drop in the yuan CNH=D3 saw it ease past 6.9400 per
dollar in the offshore market for the first time since November
2018.
Its slide has been steepening in recent days. Sources in
China told Reuters the central bank would intervene to ensure it
did not weaken past 7 to the dollar in the near term.
While breaking 7 could reduce some of the effects of U.S.
tariff increases, it could hit confidence and trigger fund
outflows, one of the sources said.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was at 15-week lows and down 2.6% for the week
at the end of trading.
Japan's Nikkei .N225 did manage to bounce 0.9%, while the
main Australian index .AXJO climbed to an 11-year peak as
higher commodity prices boosted miners.
In Europe, Germany's exporter-heavy DAX .GDAXI fell the
most, auto stocks .SXAP lost as much as 1.6% and E-Mini
futures for the S&P 500 ESc1 shed 0.35% ahead of Wall Street
trading.
Sentiment had been briefly soothed on Thursday by better
U.S. economic news, with housing starts surprisingly strong and
a welcome pickup in the Philadelphia Federal Reserve's
manufacturing survey. Upbeat results from Walmart WMT.N burnished the outlook
for retail spending, though the chain also warned that tariffs
would raise prices for U.S. consumers. As the earnings season winds down, of the 457 S&P 500
companies reporting about 75% have beaten profit expectations,
according to Refinitiv data.
MAY COUNTS DOWN TO JUNE
The chillier trade winds helped Treasuries, with the 10-year
yield down at 2.38% after a second strong week running for bond
markets.
The dollar lost a little of its shine against the safe-haven
yen to stand at 109.64 JPY= from a top of 110.03. Against a
basket of currencies, it was a shade softer at 96.824 .DXY .
Yet the euro could make no ground and held at $1.1173
EUR= , down 0.5% for the week so far.
Sterling was one of the worst performers as Britain's Prime
Minister Theresa May battled to keep her Brexit deal, and her
premiership, intact amid growing fears of a disorderly departure
from the European Union. GBP/
The pound touched a three-month low of $1.2783 GBP=D3 and
was down 1.6% for the week so far.
Also under pressure was the Australian dollar, losing 1.5%
for the week to $0.6880 AUD=D3 as investors piled into bets
that interest rates would be cut in June. Cyber currency Bitcoin BTC=BTSP tumbled over 20% at one
stage for no clear reason. It was last down 7%, albeit back on
course for its third week of gains and having doubled in value
this year.
In commodity markets, spot gold steadied at $1,287 per ounce
XAU= as risk sentiment soured.
Oil futures firmed into a fourth session as rising tensions
in the Middle East stoked fears of potential supply disruptions.
O/R
U.S. crude CLc1 was last up 33 cents at $63.20 a barrel,
while Brent crude LCOc1 futures rose 19 cents to $72.81.
The Organization of the Petroleum Exporting Countries and
other producers will meet in Saudi Arabia this weekend over
whether to continue with supply cuts that have boosted prices
more than 30% so far this year.
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(Editing by Shri Navaratnam and John Stonestreet)