Stocks Edge Up as Trade, Economic Momentum Mulled: Markets Wrap


(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.

U.S. index futures edged higher with stocks in Europe as investors digested developments in trade talks and comments from a Federal Reserve official about the strength of the biggest economy. Treasuries climbed and a gauge of the dollar held close to the year's high.

The Stoxx Europe 600 Index advanced after fluctuating earlier. Contracts on three main American equity indexes all struggled for traction after the underlying benchmarks rose on Monday, when the U.S. commerce secretary said the nation will delay restrictions on some operations of China's Huawei Technologies. Stocks advanced across Asia except for markets in Hong Kong and Shanghai.

Government bonds climbed in Europe except for Italy's, where leaders may force an early election. The pound slipped after the prime minister announced a proposal to break the deadlock in the Brexit deal with the European Union. Treasuries recovered from Monday declines when Fed Bank of Boston President Eric Rosengren pushed back against further rate cuts. A Bloomberg dollar index steadied, close to its 2019 record.

The latest headlines on global trade and interest rates may provide some reprieve for investors spooked by tumbling bond yields. The U.S. decision on Huawei was seen as encouraging for the long-awaited trade pact between the world's two largest economies. Still, the Chinese company said the temporary relief doesn't change the fact that it's been treated "unjustly."

Meanwhile, Trump's top economic adviser, Larry Kudlow, will speak with business leaders this week amid concerns about the rising odds for a recession, the trade war and whipsawing markets. That comes before Fed Chairman Jerome Powell's remarks about the challenges for monetary policy at the Jackson Hole symposium Friday.

"Our thesis maintains that over the next six months equity markets should do better, really mainly underpinned by the lower interest rates around the world," Jun Bei Liu, a portfolio manager at Tribeca Investment Partners in Sydney, told Bloomberg TV. "Of course, there's a few issues that arise. One is that the valuations seem incredibly high. And the trade conflict is another uncertainty at this point."

Elsewhere, there was muted reaction after China made borrowing costs cheaper for companies with the introduction of a revamped market benchmark rate. Oil futures were steady.

Here are some notable events coming up:

Minutes of the Fed's July meeting will provide details on the discussions leading to the first interest-rate cut in a decade when they are released on Wednesday.Thursday brings the Bank Indonesia rate decision and press conference with Governor Perry Warjiyo.Flash PMIs are due for the euro area on Thursday.Kansas City Federal Reserve Bank hosts its annual central banking symposium in Jackson Hole, Wyoming, starting Thursday. Fed Chairman Jerome Powell will give remarks on Friday.

Here are the main moves in markets:


Futures on the S&P 500 Index gained 0.1% as of 6:23 a.m. New York time.The Stoxx Europe 600 Index advanced 0.2%.The MSCI Asia Pacific Index increased 0.6%.Hong Kong's Hang Seng Index fell 0.2%.


The Bloomberg Dollar Spot Index dipped 0.1%.The British pound declined 0.2%.The euro advanced less than 0.05% to $1.1081.The Japanese yen strengthened 0.3% to 106.36 per dollar.


The yield on 10-year Treasuries decreased four basis points to 1.56%.Britain's 10-year yield declined three basis points to 0.443%.Germany's 10-year yield fell four basis points to -0.69%.Italy's 10-year yield increased five basis points to 1.484%.


Gold advanced 0.5% to $1,503.59 an ounce.LME copper decreased 0.7% to $5,733.50 per metric ton.West Texas Intermediate crude gained 0.1% to $56.29 a barrel.

--With assistance from Sybilla Gross and Andreea Papuc.

To contact the reporter on this story: Todd White in Madrid at

To contact the editors responsible for this story: Samuel Potter at, Laura Curtis

For more articles like this, please visit us at

©2019 Bloomberg L.P.


More Related News

LeadsRx Expands International Business with European Reseller - MarketForce
LeadsRx Expands International Business with European Reseller - MarketForce

PORTLAND, OR and SLOUGH, UK / ACCESSWIRE / August 4, 2020 / LeadsRx, a marketing attribution company, has expanded its international reach with its first reseller in Europe, MarketForce, Inc.

US 'cloud' supremacy has Europe worried about data

Europe is sitting on a wealth of data that is the 21st century equivalent of a precious metal mine during the gold rush. Renault, Orange, Deutsche Bank, and Lufthansa recently plumped for Google Cloud. Volkswagen signed up with Amazon Web Services.

Fed's Kashkari suggests 4-6 week shutdown; says U.S. Congress can spend big on coronavirus relief

The U.S. economy could benefit if the nation were to "lock down really hard" for four to six weeks, a top Federal Reserve official said on Sunday, adding that Congress can well afford large sums for coronavirus relief efforts. The economy, which in the second quarter suffered its biggest blow since the Great Depression, would be able to mount a robust recovery, but only if the virus were brought under control, Neel Kashkari, president of the Minneapolis Federal Reserve Bank, told CBS' "Face the Nation."

It looks like Sequoia has hired a second partner in Europe: Revolut product lead George Robson
It looks like Sequoia has hired a second partner in Europe: Revolut product lead George Robson

Now, according to a tweet by Revolut product lead George Robson, the VC has recruited a second European partner. Robson, who also previously co-founded Kickstart London, a student-run accelerator programme in the U.K. and has worked at Morgan Stanley as an analyst, announced via Twitter last week that he has joined Sequoia's burgeoning European operation where he says he'll be working with the team "to help founders across Europe build the next generation of transformative companies".

U.S. Congress in position to spend big on coronavirus relief: Fed official
U.S. Congress in position to spend big on coronavirus relief: Fed official

The U.S. Congress is in position to spend big on coronavirus relief efforts because the nation's budget gap can be financed without relying on foreign borrowing, given how much Americans are saving, a top Federal Reserve official said on Sunday. "Those of us who are fortunate enough to still have our jobs, we're saving a lot more money because we're not going to restaurants or movie theaters or vacations," Neel Kashkari, president of the Minneapolis Federal Reserve Bank, told CBS' "Face the Nation." The Democratic-led U.S. House of Representatives approved a $3 trillion relief bill in May, while Senate Republicans, many of whom have expressed concerns about mounting debt, countered by...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


  • Quality essays
    (2019-08-22 10:06:37Z)

    Hi there. Here is a solutions for students who struggle with writing an essay papers. This website provides all kinds of help with writing a paper.

  • StevGuaw
    (2019-11-08 18:52:25Z)

    Precio Levitra 10 Kamagra Sildenafil Citrate Keflex For Demodectic Mange priligy foro Cats Alergic To Amoxicillin Zithromax Swollen Lymph Nodes


Top News: Economy