U.S. Stock Futures Pare Gain, Dollar Rises on Data: Markets Wrap




 

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U.S. equity futures pared most of their gain when retail sales data came in hotter than expected, while European stocks advanced after a mixed session in Asia. Treasuries dropped and the dollar extended an advance.

Futures on the benchmark U.S. index were little changed after the underlying gauge ended Monday at a record. Goldman Sachs Group Inc. rose in pre-market trading after total trading revenue beat expectations, while JPMorgan Chase & Co. slipped after cutting its outlook and Wells Fargo & Co. fell as income missed estimates. The Stoxx Europe 600 Index climbed, with construction companies pacing the gains. Japanese equities dipped as traders returned from a holiday while South Korean stocks advanced.

Despite strong U.K. wage numbers, the pound slumped on fresh Brexit worries. The euro slipped as investor confidence in Germany's economic outlook fell. Oil held below $60 a barrel as U.S. output returned after storm Barry was downgraded.

In the latest clues over the health of the world's largest economy, U.S. retail sales exceeded projections in June, in data published one day after Chinese figures showed signs of stabilization. Earnings season is also picking up pace, providing an insight into the strength of corporate America, while a slew of Federal Reserve speakers this week may offer guidance on the path for monetary policy.

The trade war remains in the picture, with Treasury Secretary Steven Mnuchin saying he and U.S. Trade Representative Robert Lighthizer may travel to Beijing for negotiations if talks by phone this week are productive.

"We are concerned about complacency as investors seem to believe the Fed will save the day, the U.S.-China trade dispute will be resolved relatively soon and massive China stimulus will boost global growth," said Bob Doll, chief equity strategist and senior portfolio manager at Nuveen Asset Management. "Market risks lean more to the downside."

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

Futures on the S&P 500 Index increased less than 0.05% as of 8:35 a.m. New York time, hitting the highest on record with its sixth straight advance.The Stoxx Europe 600 Index jumped 0.3%, the highest in more than a week on the biggest increase in almost two weeks.The U.K.'s FTSE 100 Index jumped 0.4%, the highest in more than a week on the largest climb in almost two weeks.The MSCI Emerging Market Index advanced 0.2%, the highest in more than a week.The MSCI Asia Pacific Index declined 0.1%, the first retreat in a week.

Currencies

The Bloomberg Dollar Spot Index climbed 0.3%, the biggest increase in more than a week.The euro dipped 0.4% to $1.1213, the weakest in a week on the largest dip in more than a week.The British pound sank 0.7% to $1.2424, the weakest in more than two years on the biggest dip in almost 16 weeks.The Japanese yen declined 0.2% to 108.14 per dollar, the largest drop in more than a week.

Bonds

The yield on 10-year Treasuries advanced two basis points to 2.11%.Germany's 10-year yield dipped one basis point to -0.26%.Britain's 10-year yield declined one basis point to 0.791%.

Commodities

West Texas Intermediate crude increased 0.1% to $59.61 a barrel.Gold declined 0.3% to $1,409.92 an ounce.

--With assistance from Adam Haigh.

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