U.S. Stocks Rise on Prospect of Car-Tariff Delay: Markets Wrap




  • In Business
  • 2019-05-15 14:41:36Z
  • By Bloomberg
 

(Bloomberg) -- U.S. stocks turned higher on the prospect that President Donald Trump will delay imposing tariffs on auto imports. Treasuries and the dollar pared gains.

The S&P 500 wiped out declines of as much as 0.7% after Bloomberg reported the president would delay by up to six months a decision on car tariffs that was due by Saturday. The tech-heavy Nasdaq 100 also rose as Treasury Secretary Steven Mnuchin added to hopes of a trade deal when he said U.S. officials were in "serious" talks with China to improve trade ties. Share fell in early trading after weak U.S. retail and factory numbers spurred growth concerns.

Treasuries gave back gains after the two-year yield touched the lowest level since February 2018, while the 10-year rate traded around 2.38%. Oil retreated as mounting tensions in the Middle East over U.S.-Iran relations added to demand for haven assets.

"Trade is far and away the more dominant story right now, but sales should not go unnoticed ahead of Consumer Confidence reads later this week," said Mike Loewengart, vice president of investment strategy at E*TRADE Financial. "Many view retail as a key economic bellwether, and so weakness in the sector could give the bears more to sink their teeth into."

The unexpectedly weak U.S. economic numbers on the back of data pointing to slowing growth out of China heightened investors concerns Wednesday that the trade war could weigh on a global economy that's already staggering. Adding to those woes is a growing sense of unease in the Middle East after a spat of attacks on oil assets ratcheted up an already tense relationship between America and Iran.

Elsewhere, oil fell as an industry report signaling a jump in U.S. stockpiles eased concerns over a supply crunch, after a drone attack in Saudi Arabia had highlighted the vulnerability of the country's energy infrastructure.

Here are some notable events coming up this week:

Earnings this week include Cisco, Nvidia.Bank of Indonesia has an interest rate decision on Thursday.Australian unemployment is out on Thursday.

And here are the main market moves:

Stocks

The S&P 500 Index rose 0.2% as of 10:40 a.m. New York time.The Stoxx Europe 600 Index declined 0.5%.Germany's DAX Index declined 0.9%.The MSCI Emerging Market Index fell 0.1%.The MSCI Asia Pacific Index advanced 0.5%, the biggest gain in six weeks.

Currencies

The Bloomberg Dollar Spot Index climbed 0.1%, the highest in almost three weeks.The euro fell 0.2% to $1.1184, the weakest in almost two weeks.The British pound dipped 0.4% to $1.2860, the weakest in almost three months.The Japanese yen gained 0.3% to 109.27 per dollar, the strongest in almost 15 weeks.

Bonds

The yield on 10-year Treasuries fell four basis points to 2.37%, the lowest in seven weeks.Germany's 10-year yield dipped six basis points to -0.13%, the lowest in more than two years.Britain's 10-year yield declined seven basis points to 1.034%, the lowest in six weeks.

Commodities

West Texas Intermediate crude dipped 1% to $61.11 a barrel.Gold advanced 0.3% to $1,300.10 an ounce.

--With assistance from Charlotte Ryan, Vildana Hajric and Todd White.

To contact the reporter on this story: Randall Jensen in New York at rjensen18@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Yakob Peterseil

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

©2019 Bloomberg L.P.

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