U.S. Futures Pause as Europe, Asia Stocks Advance: Markets Wrap




 

(Bloomberg) -- U.S. stock futures held on to gains and European shares followed Asia higher at the end of a week when sentiment was bolstered by a more dovish tone from the Federal Reserve and hopes for a breakthrough on trade. The dollar slipped and Treasuries climbed.

Contracts on the Dow, S&P and Nasdaq indexes were all range-bound, while miners led the Stoxx Europe 600 Index higher. In Asia, shares rose in Shanghai, Tokyo, Seoul and Hong Kong. The greenback was set for a fourth week of losses after Fed Chairman Jerome Powell underscored the message of patience with further interest-rate hikes, while saying the central bank will keep shrinking its balance sheet. European debt tracked Treasuries higher. The pound drifted as U.K. politicians continued to debate Prime Minister Theresa May's Brexit deal.

Equities are set for big gains this week amid signs of progress between the world's two biggest economies on trade and dovish commentary from the Fed. Still, worries remain about economic growth and earnings prospects, while there's also uncertainty as the U.S. partial government shutdown threatens to extend into a fourth week.

Chinese Vice Premier Liu He is set to visit Washington on Jan. 30 and 31 for further trade talks and China's yuan, which slumped last year as trade tensions worsened, is heading for its best week since 2005 -- back when the country dropped a fixed peg to the dollar.

Elsewhere, oil in New York traded above $53 a barrel after surging this week. Emerging-market currencies and shares extended recent gains.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index were little changed as of 8:36 a.m. London time.The Stoxx Europe 600 Index advanced 0.2 percent.The MSCI All-Country World Index increased 0.2 percent with its sixth consecutive advance.The MSCI Emerging Market Index gained 0.3 percent to the highest in more than five weeks.

Currencies

The Bloomberg Dollar Spot Index sank 0.3 percent to the lowest in more than 15 weeks.The euro advanced 0.2 percent to $1.1524.The Japanese yen increased 0.2 percent to 108.26 per dollar.The British pound was steady at $1.2743.The MSCI Emerging Markets Currency Index gained 0.1 percent.

Bonds

The yield on 10-year Treasuries declined three basis points to 2.72 percent, the biggest fall in more than a week.Germany's 10-year yield declined two basis points to 0.24 percent.Britain's 10-year yield dipped two basis point to 1.254 percent.

Commodities

The Bloomberg Commodity Index increased 0.7 percent.West Texas Intermediate crude climbed 1 percent to $53.11 a barrel.Gold gained 0.5 percent to $1,293.24 an ounce.

To contact the reporters on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net;Eddie van der Walt in London at evanderwalt@bloomberg.net

To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net;Christopher Anstey at canstey@bloomberg.net

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

©2019 Bloomberg L.P.

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