Stocks Mixed Amid Trade Concerns; Dollar Steady: Markets Wrap




 

(Bloomberg) -- Stocks in Europe drifted, U.S. equity futures edged higher and Asian shares were mostly down as fresh trade tensions offset solid economic data and a raft of corporate earnings. Treasuries were steady and European government bonds climbed.

The Stoxx Europe 600 index fluctuated between gains and losses amid a mixed bag of reports from companies including Swatch, Ericsson and ASML. Contracts on the S&P 500, Dow Jones and Nasdaq pointed to a slightly firmer U.S. open, even after sentiment overnight was dented by President Donald Trump saying he could impose more tariffs on China. Benchmarks in Japan, Korea and China fell, while Australian stocks rose. The euro erased a decline after June inflation data largely met economists' expectations. Crude oil rose for the first time in three days.

Investors have plenty to digest this week. More dovish comments from Federal Reserve Chairman Jerome Powell did little to stir markets Tuesday, suggesting easing may be fully priced in. A resumption of trade bluster from Trump served to remind that the threat of tariffs hasn't gone away, while healthy earnings from some of the big Wall Street names are being overshadowed by the prospect of lower rates. Corporate reporting season in Europe will add to the mix.

"In the wake of reporting that there were signs of progress in U.S.-Chinese trade talks, President Donald Trump took the opportunity to put markets on the back foot," said Siobhan Redford, an analyst at FirstRand Bank in Johannesburg. "These events contributed to dollar strength."

Elsewhere, Bitcoin extended a slide below $10,000. The pound slipped for a third day as traders contemplated no-deal Brexit risk and the Times reported that Boris Johnson, the leading candidate to take over as prime minister, wants to hold an early general election.

Here are some key events coming up:

Bank of America Corp. and Taiwan Semiconductor are among companies due to report results this week.Monetary policy decisions are due in Indonesia, South Korea and South Africa on Thursday.

These are the main moves in markets:

Stocks

The Stoxx Europe 600 Index climbed 0.1% as of 10:11 a.m. London time.Futures on the S&P 500 Index increased 0.1%.The MSCI All-Country World Index declined 0.1%.The U.K.'s FTSE 100 Index fell 0.1%.

Currencies

The Bloomberg Dollar Spot Index gained less than 0.05% to the highest in more than a week.The euro increased less than 0.05% to $1.1214.The British pound decreased less than 0.05% to $1.2404, the weakest in more than two years.The Japanese yen fell less than 0.05% to 108.25 per dollar.

Bonds

The yield on 10-year Treasuries decreased less than one basis point to 2.10%.Germany's 10-year yield decreased three basis points to -0.28%, the lowest in a week.Britain's 10-year yield declined four basis points to 0.776%, the lowest in a week on the biggest drop in more than two weeks.Japan's 10-year yield declined less than one basis point to -0.121%.

Commodities

West Texas Intermediate crude rose 0.5% to $57.91 a barrel, the largest advance in a week.Gold fell 0.3% to $1,402.18 an ounce, the weakest in more than a week.The Bloomberg Commodity Index declined 0.1%, the lowest in more than a week.

--With assistance from Adam Haigh.

To contact the reporter on this story: Robert Brand in Cape Town at rbrand9@bloomberg.net

To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Laura Curtis

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

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