Stocks Rebound at End of Tough Week; Bonds Steady: Markets Wrap




 

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European stocks rose with U.S. equity futures at the end of a bruising week in which escalating trade tensions weighed on investors. Treasuries steadied after Thursday's rally.

Carmakers and energy firms pushed the Stoxx Europe 600 index higher, while futures on the S&P 500, Dow Jones Industrial Average and Nasdaq 100 also climbed in the wake of steep declines a day earlier. Shares in Asia edged higher, with Chinese equities little changed and Indian stocks rebounding. Despite the gains, a gauge of global equities is headed for a third straight weekly drop, its longest losing streak of the year.

The rally in sovereign bonds showed signs of easing after yields on 10-year Treasuries touched the lowest since 2017. The dollar drifted and the euro nudged higher. The pound also edged up as people familiar with the matter said U.K. Prime Minister Theresa May was set to announce a timeline for her resignation.

Ahead of a long weekend for both the U.S. and U.K., concerns are mounting that the trade dispute could cripple global growth, with disappointing American factory data Thursday hinting at the fragility of the expansion. After the close on Wall Street, President Donald Trump said that Huawei Technologies Co., which was put on a U.S. blacklist earlier this month, could be part of any trade pact with China.

"The trade war is going to cause growth to slow, both in the U.S. and China, and therefore globally -- there is no doubt about that," Komal Sri-Kumar, founder and president of Sri-Kumar Global Strategies Inc., told Bloomberg TV in New York. "The trade war is taking on new dimensions."

Elsewhere, Australia's 10-year bond yield reached another all-time low amid calls for as many as three central bank interest-rate cuts this year. The yuan was flat on signs of stabilization from China's central bank this week.

And these are the main moves in markets:

Stocks

Futures on the S&P 500 Index added 0.6% as of 9:26 a.m. London time.The Stoxx Europe 600 Index rose 0.7%, the biggest advance in more than a week.The U.K.'s FTSE 100 Index rose 0.8%, the largest advance in more than a week.The MSCI Emerging Market Index gained 0.3%.The MSCI Asia Pacific Index increased 0.2%.

Currencies

The Bloomberg Dollar Spot Index declined less than 0.05%, the lowest in more than a week.The euro rose 0.1% to $1.1191, the strongest in more than a week.The British pound climbed 0.1% to $1.2675, the biggest increase in three weeks.The Japanese yen gained 0.1% to 109.52 per dollar, the strongest in more than a week.

Bonds

The yield on 10-year Treasuries fell less than one basis point to 2.32%, the lowest in more than 18 months.Germany's 10-year yield was unchanged at -0.12%, the lowest in more than two years.Britain's 10-year yield rose one basis point to 0.959%.

Commodities

West Texas Intermediate crude rose 1.3% to $58.64 a barrel, the largest advance in more than a week.Gold dipped 0.1% to $1,282.55 an ounce.

--With assistance from Adam Haigh.

To contact the reporter on this story: Namitha Jagadeesh in London at njagadeesh@bloomberg.net

To contact the editor responsible for this story: Samuel Potter at spotter33@bloomberg.net

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

©2019 Bloomberg L.P.

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