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“Going back long term, the dollar versus the S&P as a ratio has a few significant bottoms that end up leading to a period where the dollar severely outperformed the S&P 500,” Ciana said on CNBC’s “Futures Now” on Thursday.

For example, in 2000, the ratio found a bottom before the dot-com bust sent equities tumbling and the dollar soaring. It was a similar setup in 2008 and 2014-15, said Ciana, BofA’s chief global fixed income technical strategist.

“Now we’re having another one right in here,” he added. “What ends up happening in these time frames is the dollar ends up outperforming while the S&P 500 of course underperforms. That means, buy dollar, sell stocks.”

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Hong Kong protests, oil, currencies in focus



Shares in Asia Pacific were set to trade mixed on Thursday following an overnight slip for stocks on Wall Street.

Futures pointed to a lower open for stocks in Japan. The Nikkei futures contract in Chicago was at 21,055, as compared to the benchmark Nikkei 225’s last close at 21,129.72.

Shares in Australia, on the other hand, were set to rise. The SPI futures contract was at 6,552.0, as compared to the ASX 200’s last close at 6,543.70.

Investors will be watching out for market reaction from Hong Kong’s Hang Seng index. It closed 1.73% lower on Wednesday, having lost as much as 2% in the afternoon, while Chinese companies in Hong Kong ended down 1.2%, amid violent clashes between protesters and riot police over a controversial extradition bill.

Asia-Pacific Market Indexes Chart

Overnight on Wall Street, the Dow Jones Industrial Average slipped 43.68 points to close at 26,004.83 while the S&P 500 ended its trading day 0.2% lower at 2,879.84. The Nasdaq Composite lagged, sliding 0.4% to close at 7,792.72.

Wednesday’s declines stateside came following muted trading action in the previous session. The Dow closed marginally lower on Tuesday, ending a six-day winning streak.

Oil prices plunged on Wednesday following data that showed an unexpected increase in U.S. crude inventories for the second week in a row, against the backdrop of fears that fuel demand could weaken amid the U.S.-China trade fight.

U.S. West Texas Intermediate crude futures plunged $2.13 to $51.15 per barrel, tumbling 4% on the day to a new five-month low. Brent crude, the international benchmark for oil prices, fell $2.32 or 3.7%, at $59.97 a barrel, its first settle below $60 since January.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.000 after rising from levels around 96.6 yesterday.

The Japanese yen changed hands at 108.49 against the dollar after seeing levels below 108.3 in the previous session. while the Australian dollar traded at $0.6929 after slipping from the $0.696 handle yesterday.

— CNBC’s Fred Imbert and Tom DiChristopher contributed to this report.

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Hyundai backs Aurora to bring driverless systems to Kia, Hyundai cars



Chris Urmson, co-founder and chief executive officer of Aurora Innovation Inc.

David Paul Morris | Bloomberg | Getty Images

Hyundai Motor Group is investing in Aurora, a developer of self-driving technology for autos, with a plan to bring the systems to Hyundai and Kia models.

The companies have been working for the past year to develop and integrate the “Aurora Driver” into Hyundai’s NEXO fuel cell vehicles as well as on other projects.

It’s an extension of an existing partnership and furthers the work that large auto manufacturers are doing with developers of driverless technology. General Motors acquired Cruise in 2016, and Ford took a stake in the following year. Aurora still aims to provide autonomous systems to many different players. 

On Monday, Aurora announced a partnership with Fiat Chrysler to develop self-driving vehicles for corporate clients, and it also works with Chinese electric vehicle maker Byton.

In a press statement, Aurora’s co-founder and chief product officer Sterling Anderson — previously the director of Autopilot programs at Tesla — said the company’s aim, with its partners, is to “deliver the benefits of self-driving technology safely, quickly, and broadly.” After reportedly failing to acquire Aurora last summer, Volkswagen concluded a partnership with the company on Tuesday.

Aurora employs lidar, or light ranging and detection sensors, as part of its autonomous systems. That’s different than Tesla, which uses cameras and radar, primarily to power its “full self-driving” and Autopilot features.

Led by CEO Chris Urmson, former technical lead of Google’s self-driving efforts, Aurora has raised at least $700 million in total funding. Other investors include Amazon, Greylock, Sequoia, Shell Energy’s venture group and T. Rowe Price. The size of Hyundai’s investment wasn’t disclosed.

WATCH: The best way to get self-driving vehicles on the road

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Huawei files ex parte brief protesting FCC actions to block it



Guests hold umbrellas with Huawei logos at the Songshan Lake New Campus in Dongguan, China, May 31, 2019.

Jason Lee | Reuters

China’s Huawei has responded again to actions from the Federal Communications Commission, releasing an ex parte memo further laying out its response to the commission’s efforts to block its equipment on national security grounds.

“While Huawei does not agree with the view that Chinese companies pose a threat simply because they are Chinese, Huawei agrees that threats to network security do exist, and should be addressed comprehensively trough a holistic approach to supply chain security, not through a vendor-to-vendor approach,” according to the brief.

The company cites comments by government officials that it says appear to indicate the U.S. may have economic motives for the ban, and cites the use of its equipment in other European and North American markets.

Huawei also said it has approached the FCC, but has not had a conversation with the commission about its proposal, which would involve using existing risk mitigation testing to put the equipment through an approval process.

“Huawei has been trying to schedule exparte meetings with all of the Commissioners to learn first-hand and directly address their concerns over the company. However, no Commissioner has yet agreed to meet personally with Huawei,” the brief says.

The FCC did not immediately respond to comment on the new brief. In May, FCC Commissioner Geoffrey Starks in an interview with The Verge reiterated the FCC’s position: “We have a distinct role to serve in protecting our communication networks under the defense of national security as well as the safety of life and property. I think it is extremely important for us to step in to the full extent of our authority.”

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