Stocks Whipsawed Before Trade Talks; Dollar Drops: Markets Wrap




 

(Bloomberg) -- U.S. equity futures and European stocks struggled for traction as investors turned their focus to a long-anticipated meeting on trade between America and China, after contrasting reports on the talks spurred volatile trading in Asia. Treasuries edged higher.

Contracts on the S&P 500 Index fluctuated amid concern that the gathering scheduled for Thursday and Friday in Washington might be cut short. Earlier, futures were whipsawed during the Asia session after Bloomberg reported that next week's planned tariff hike could be suspended, and following a report that President Donald Trump may let some U.S. companies supply Huawei Technologies Co. The yuan reversed a decline on news that the White House was considering a currency pact with Beijing.

European stocks drifted while Asian shares were ending the session mixed, with Japanese equities recouping their declines by the close, South Korea down and Hong Kong and Shanghai notching modest gains. Crude oil steadied after a whipsawing in Asia trading.

Markets have grown jittery against a backdrop of deteriorating economic data and fresh tensions between the U.S. and China in recent days, as they prepare for the first face-to-face talks between senior officials since July. Investor nerves were on full display in Asia as a series of headlines roiled markets, with traders attempting to digest reports on everything from the duration of the talks to the potential currency pact.

"The market is bracing for more headlines -- which can be confusing -- in the next two days; investors may want to keep their position light," said Frances Cheung, head of Asia macro strategy at Westpac Banking Corp. "A partial deal is the key, as a 'great deal' is very unlikely to be reached at this stage, with China reluctant to touch on some structural issues," she said.

Here are some key events coming up this week:

On Thursday, minutes from the European Central Bank's most recent gathering are due.Chinese President Xi Jinping is scheduled to meet Indian Prime Minister Narendra Modi on Friday and Saturday for an informal summit.The U.S. releases a key measure of inflation on Thursday.

Here are the main moves in markets:

Stocks

Futures on the S&P 500 Index were little changed as of 9:51 a.m. London time.The Stoxx Europe 600 Index was steady.The Shanghai Composite Index increased 0.8%.The MSCI Emerging Market Index gained 0.1%.

Currencies

The Bloomberg Dollar Spot Index sank 0.3%.The euro gained 0.4% to $1.1018.The British pound gained 0.2% to $1.2234.The onshore yuan increased 0.1% to 7.127 per dollar.The Japanese yen climbed 0.1% to 107.42 per dollar.

Bonds

The yield on 10-year Treasuries dipped one basis point to 1.58%.The yield on two-year Treasuries fell one basis point to 1.45%.Germany's 10-year yield gained one basis point to -0.54%.Britain's 10-year yield jumped one basis point to 0.474%.Japan's 10-year yield decreased less than one basis point to -0.203%.

Commodities

West Texas Intermediate crude increased 0.3% to $52.76 a barrel.Iron ore increased 3.1% to $88.85 per metric ton.Gold climbed 0.1% to $1,507.46 an ounce.

--With assistance from Sybilla Gross and Christopher Anstey.

To contact the reporter on this story: Yakob Peterseil in London at ypeterseil@bloomberg.net

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Todd White

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

©2019 Bloomberg L.P.

COMMENTS

More Related News

Pentagon chief vows to cooperate with impeachment probe
Pentagon chief vows to cooperate with impeachment probe

US Defense Secretary Mark Esper said Sunday the Pentagon would cooperate with the congressional impeachment inquiry -- in an apparent break with President Donald Trump's policy to thwart the probe. Esper said his department would try to comply with a subpoena from House Democrats seeking records

Inside look at Melania Trump
Inside look at Melania Trump's daily diet, including her favorite meal

A former model, Melania is no stranger to a healthy lifestyle.

U.S., China Reach Substantial
U.S., China Reach Substantial 'Phase One' Trade Deal, Trump Says

(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The U.S. and China agreed on the outlines of a partial trade accord Friday that President Donald Trump said he and his counterpart Xi Jinping could sign as soon as next month.As part of the

Shepard Smith Steps Down From Fox News
Shepard Smith Steps Down From Fox News

Shepard Smith is stepping down from Fox News, effective with Friday afternoon's edition of Shepard Smith Reporting. The anchor has been a frequent target of President Donald Trump's attacks, after Smith had been critical of the president at certain points in his administration. Smith's departure also comes just hours after Attorney General Bill Barr met […]

Nearly 3 weeks into the Trump impeachment inquiry, polls show a shift in public opinion
Nearly 3 weeks into the Trump impeachment inquiry, polls show a shift in public opinion

Public opinion polling has shown noticeable shifts in attitudes towards impeachment, though every single poll has asked about impeachment differently.

Leave a Comment

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

Cancel reply

Comments

Top News: Economy

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