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Stocks Edge Up as Trade, Economic Growth Mulled: Markets Wrap
(Bloomberg) -- Stocks in Europe climbed with U.S. equity futures and shares in Asia as investors digested developments in trade talks and comments from a Federal Reserve official about the strength of the biggest economy. Treasuries rose and a dollar gauge hovered near the year’s high.The Stoxx Europe 600 index edged up, as gains in healthcare shares offset declines in energy companies. Equities ticked lower in Hong Kong and Shanghai and increased elsewhere in Asia. S&P 500 index contracts advanced after the underlying benchmark gained for a third day on Monday as the U.S. commerce secretary said the nation will delay restrictions imposed on some business operations of China’s Huawei Technologies.Treasuries recovered some of their Monday declines after Fed Bank of Boston President Eric Rosengren pushed back against further rate cuts, arguing he’s not convinced that slowing trade and global growth will significantly dent the economy. U.S. President Donald Trump called for the central bank to cut rates by “at least 100 basis points.”The latest headlines on global trade and interest rates may provide some reprieve for investors spooked by tumbling bond yields. The U.S. decision on Huawei was seen as encouraging for the long-awaited trade pact between the world’s two largest economies. Still, the Chinese company said the temporary relief doesn’t change the fact that it’s been treated “unjustly.”Meanwhile, Trump’s top economic adviser, Larry Kudlow, will speak with business leaders this week amid concerns about the rising odds for a recession, the trade war and whipsawing markets. That comes before Fed Chairman Jerome Powell’s remarks about the challenges for monetary policy at the Jackson Hole symposium Friday.“Our thesis maintains that over the next six months equity markets should do better, really mainly underpinned by the lower interest rates around the world,” Jun Bei Liu, a portfolio manager at Tribeca Investment Partners in Sydney, told Bloomberg TV. “Of course, there’s a few issues that arise. One is that the valuations seem incredibly high. And the trade conflict is another uncertainty at this point.”Elsewhere, there was muted reaction after China made borrowing costs cheaper for companies with the introduction of a revamped market benchmark rate. Oil futures were steady.Here are some notable events coming up:Minutes of the Fed’s July meeting will provide details on the discussions leading to the first interest-rate cut in a decade when they are released on Wednesday.Thursday brings the Bank Indonesia rate decision and press conference with Governor Perry Warjiyo.Flash PMIs are due for the euro area on Thursday.Kansas City Federal Reserve Bank hosts its annual central banking symposium in Jackson Hole, Wyoming, starting Thursday. Fed Chairman Jerome Powell will give remarks on Friday.Here are the main moves in markets:StocksFutures on the S&P 500 Index gained 0.2% as of 8:28 a.m. London time.The Stoxx Europe 600 Index advanced 0.2%.The MSCI Asia Pacific Index increased 0.5%.Hong Kong’s Hang Seng Index decreased 0.2%.CurrenciesThe Bloomberg Dollar Spot Index dipped less than 0.05%.The British pound fell 0.3%.The euro was unchanged at $1.1078.The Japanese yen climbed 0.2% to 106.42 per dollar.BondsThe yield on 10-year Treasuries dipped two basis points to 1.58%.Britain’s 10-year yield declined one basis point to 0.463%.Germany’s 10-year yield decreased two basis points to -0.67%.Italy’s 10-year yield advanced one basis point to 1.448%.CommoditiesGold climbed 0.2% to $1,499.46 an ounce.Silver climbed 0.7% to $16.99 per ounce.West Texas Intermediate crude was unchanged at $56.21 a barrel.\--With assistance from Sybilla Gross.To contact the reporters on this story: Andreea Papuc in Sydney at apapuc1@bloomberg.net;Todd White in Madrid at twhite2@bloomberg.netTo contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Laura CurtisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
https://finance.yahoo.com/news/asian-stocks-gain-dollar-rises-214912096.html?.tsrc=rss
(Bloomberg) -- Stocks in Europe climbed with U.S. equity futures and shares in Asia as investors digested developments in trade talks and comments from a Federal Reserve official about the strength of the biggest economy. Treasuries rose and a dollar gauge hovered near the year’s high.The Stoxx Europe 600 index edged up, as gains in healthcare shares offset declines in energy companies. Equities ticked lower in Hong Kong and Shanghai and increased elsewhere in Asia. S&P 500 index contracts advanced after the underlying benchmark gained for a third day on Monday as the U.S. commerce secretary said the nation will delay restrictions imposed on some business operations of China’s Huawei Technologies.Treasuries recovered some of their Monday declines after Fed Bank of Boston President Eric Rosengren pushed back against further rate cuts, arguing he’s not convinced that slowing trade and global growth will significantly dent the economy. U.S. President Donald Trump called for the central bank to cut rates by “at least 100 basis points.”The latest headlines on global trade and interest rates may provide some reprieve for investors spooked by tumbling bond yields. The U.S. decision on Huawei was seen as encouraging for the long-awaited trade pact between the world’s two largest economies. Still, the Chinese company said the temporary relief doesn’t change the fact that it’s been treated “unjustly.”Meanwhile, Trump’s top economic adviser, Larry Kudlow, will speak with business leaders this week amid concerns about the rising odds for a recession, the trade war and whipsawing markets. That comes before Fed Chairman Jerome Powell’s remarks about the challenges for monetary policy at the Jackson Hole symposium Friday.“Our thesis maintains that over the next six months equity markets should do better, really mainly underpinned by the lower interest rates around the world,” Jun Bei Liu, a portfolio manager at Tribeca Investment Partners in Sydney, told Bloomberg TV. “Of course, there’s a few issues that arise. One is that the valuations seem incredibly high. And the trade conflict is another uncertainty at this point.”Elsewhere, there was muted reaction after China made borrowing costs cheaper for companies with the introduction of a revamped market benchmark rate. Oil futures were steady.Here are some notable events coming up:Minutes of the Fed’s July meeting will provide details on the discussions leading to the first interest-rate cut in a decade when they are released on Wednesday.Thursday brings the Bank Indonesia rate decision and press conference with Governor Perry Warjiyo.Flash PMIs are due for the euro area on Thursday.Kansas City Federal Reserve Bank hosts its annual central banking symposium in Jackson Hole, Wyoming, starting Thursday. Fed Chairman Jerome Powell will give remarks on Friday.Here are the main moves in markets:StocksFutures on the S&P 500 Index gained 0.2% as of 8:28 a.m. London time.The Stoxx Europe 600 Index advanced 0.2%.The MSCI Asia Pacific Index increased 0.5%.Hong Kong’s Hang Seng Index decreased 0.2%.CurrenciesThe Bloomberg Dollar Spot Index dipped less than 0.05%.The British pound fell 0.3%.The euro was unchanged at $1.1078.The Japanese yen climbed 0.2% to 106.42 per dollar.BondsThe yield on 10-year Treasuries dipped two basis points to 1.58%.Britain’s 10-year yield declined one basis point to 0.463%.Germany’s 10-year yield decreased two basis points to -0.67%.Italy’s 10-year yield advanced one basis point to 1.448%.CommoditiesGold climbed 0.2% to $1,499.46 an ounce.Silver climbed 0.7% to $16.99 per ounce.West Texas Intermediate crude was unchanged at $56.21 a barrel.\--With assistance from Sybilla Gross.To contact the reporters on this story: Andreea Papuc in Sydney at apapuc1@bloomberg.net;Todd White in Madrid at twhite2@bloomberg.netTo contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Laura CurtisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
https://finance.yahoo.com/news/asian-stocks-gain-dollar-rises-214912096.html?.tsrc=rss
