Stocks Rally Stalls as Treasuries Gain; Oil Drops: Markets Wrap


(Bloomberg) -- Stocks slipped globally on Wednesday alongside U.S. index futures amid signs the June revival in risk appetite may have overshot with trade concerns still lingering. Treasuries gained, and crude oil headed below $52 a barrel.

The Stoxx Europe 600 index opened lower for the first time in four sessions, after shares slipped across Asian markets. Hong Kong led losses as demonstrators forced road closures in the city, while stocks dipped less in Shanghai, Tokyo and Seoul. U.S. President Donald Trump said he's personally holding up a trade deal with China and won't complete the agreement unless Beijing returns to terms negotiated earlier in the year. The dollar drifted, while Treasuries added to earlier advances across the yield curve. Gold and the yen rose as risk appetite dissipated.

Just as investor concern over protectionism and global growth seemed to ease, Trump's latest salvos at China and the Federal Reserve introduced fresh uncertainty. With the president scowling at the central bank's "way too high" interest rates in a tweet on Tuesday, traders will next focus on European Central Bank President Mario Draghi's comments in Frankfurt and later on U.S. consumer-price data for clues on the institutions' policy paths.

"With no assurance that China will meet with the U.S. on the sidelines of the G-20 later this month, trade tensions continue to fuel market uncertainty," said Nema Ramkhelawan-Bhana, an economist at FirstRand Bank Ltd. in Johannesburg. "Yet, the growing probability of Fed cuts is counterbalancing trade concerns. The matter is crucial to global growth."

Elsewhere, WTI-grade oil futures fell back toward $52 a barrel in New York after an industry report showed U.S. oil inventories swelling further. Hong Kong's dollar climbed to the strongest level since December amid signs of tightening funding costs. Turkey's lira weakened modestly as traders pondered whether an interest-rate cut will come later Wednesday.

Here are some key events coming up:

The U.S. releases consumer prices for May on Wednesday.ECB President Mario Draghi speaks at a conference in Frankfurt on Wednesday.The race to succeed Theresa May heats up with the first Conservative Party leadership ballot Thursday.Euro-area finance ministers meet in Luxembourg Thursday. On the agenda: financial penalties for Italy over its debt load, and the euro-area budget.China and the U.S. release industrial production, retail sales data Friday.

And these are the main moves in markets:


The Stoxx Europe 600 Index sank 0.5% as of 9:29 a.m. London time, heading for its first drop in four sessions.Futures on the S&P 500 Index declined 0.3%, in what would be the biggest dip in more than a week.Hong Kong's Hang Seng Index slipped 1.7%, the first retreat in more than a week and the largest tumble in almost five weeks.The MSCI Emerging Market Index dropped 0.4%, the biggest dip in almost three weeks.


The Bloomberg Dollar Spot Index dipped less than 0.05%.The Japanese yen jumped 0.2%.The Hong Kong dollar climbed 0.1% to 7.8248 per U.S. dollar.The MSCI Emerging Markets Currency Index declined less than 0.05%.


The yield on two-year Treasuries declined four basis points to 1.89%, the largest decrease in more than a week.Britain's 10-year yield declined two basis points to 0.84%.Germany's 10-year yield dipped less than one basis point to -0.24%.


Iron ore declined 0.5% to $102.30 per metric ton.Gold increased 0.8% to $1,337.68 an ounce.West Texas Intermediate crude fell 2.4% to $51.99 a barrel on the biggest drop in a week.

--With assistance from David Wilson, Sarah Ponczek, Vildana Hajric, Cormac Mullen and Adam Haigh.

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

To contact the editors responsible for this story: Christopher Anstey at, Robert Brand

For more articles like this, please visit us at

©2019 Bloomberg L.P.


More Related News

Trump: Iran a
Trump: Iran a 'nation of terror,' was behind tanker attacks

Calling Iran "a nation of terror," President Donald Trump on Friday publicly accused the Persian Gulf nation of responsibility for recent attacks on oil tankers near the strategic Strait of Hormuz. Trump said Iran's culpability was "exposed" by the United States. While Iran has denied being involved in the attacks, U.S. Central Command released footage it said shows Iran's Revolutionary Guard removing an unexploded limpet mine from the Japanese-owned tanker Kokuka Courageous.

White House spokeswoman Sanders leaving job at end of month
White House spokeswoman Sanders leaving job at end of month
  • US
  • 2019-06-13 20:22:30Z

White House spokeswoman Sarah Sanders, a fierce loyalist of President Donald Trump, will leave her job at the end of the month to return to her home state of Arkansas, Trump said on Thursday. The Republican Sanders, who is 36 and has three young children, has drawn fire from the White House Correspondents Association for limiting daily briefings, with Trump preferring to take questions himself from reporters and command the White House stage. The last briefing was 94 days ago, but Trump answers questions from reporters on a near-daily basis, including two extended sessions with them on Wednesday.

Federal agency recommends that Kellyanne Conway be removed from service
Federal agency recommends that Kellyanne Conway be removed from service

The government office that oversees compliance with the Hatch Act has recommended that White House counselor Kellyanne Conway be removed from federal service.

Pelosi says Trump giving Russians 'green light' to attack US elections
Pelosi says Trump giving Russians 'green light' to attack US elections

Pelosi says Trump is giving Russia 'the green light' to attack U.S. elections with his comments saying he'd accept foreign dirt on an opponent.

Trump says he
Trump says he'd 'want to hear' foreign dirt on his rivals

President Donald Trump says that if a foreign power offered dirt on his 2020 opponent he'd be open to accepting it and that he'd have no obligation to call in the FBI. Trump's comments, aired Wednesday and Thursday, come as congressional investigations into Russian interference in the 2016 election continue, and they drew sharp response from his would-be Democratic rivals. On Thursday, the House Intelligence Committee subpoenaed former White House national security adviser Michael Flynn and former Trump campaign aide Rick Gates as part of its ongoing probe.

Leave a Comment

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

Cancel reply


Top News: Economy

Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.