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Stocks Mixed as Earnings Roll In; Bonds Edge Up: Markets Wrap
(Bloomberg) -- European stocks edged lower, U.S. index futures drifted and Asian shares advanced as investors digested a flurry of company results and the odds of a trade deal being agreed in November. Treasuries rose and the pound was steady.The Stoxx Europe 600 Index was pulled lower by households goods and food shares. S&P 500 futures fluctuated after the underlying gauge closed above 3,000 on Monday, less than 1% from a record. In Asia, the biggest advance was in South Korea, seen as a proxy for global trade. Equities in Hong Kong, Australia and China had more modest increases. Japan is closed for a holiday. The British pound remained calm as Prime Minister Boris Johnson prepared to put his Brexit deal to a vote.It’s a huge week for corporate earnings, with around one-fifth of S&P 500 members due to report, including McDonald’s and Procter & Gamble on Tuesday followed by Microsoft and Caterpillar a day later. So far the results have generally surprised to the upside, reassuring investors that companies are weathering slowing growth and the trade war. All the same, analysts are cuting estimates for next year as the protectionist dispute between the world’s biggest economies continues to take a toll.President Donald Trump stoked hopes that a trade deal can be reached next month, saying that China has indicated negotiations are advancing and has started buying more American agricultural products.“There are still residual concerns about the outlook as we head toward Christmas with memories of last year’s price capitulation still fresh,” Greg McKenna, strategist at McKenna Macro, wrote in a note to clients. “But earnings so far aren’t as bad -- or should I say much worse -- than thought. And there is still much cash on the sidelines, and the increase in bond yields is mildly supportive of stocks.”Elsewhere, the shekel edged higher after Israel’s Prime Minister Benjamin Netanyahu gave up the privilege of leading the formation of a new government. The Canadian dollar showed little reaction as Prime Minister Justin Trudeau won a second term in elections with a reduced mandate.Here are some key events coming up this week:Earnings season is in full swing with companies reporting including: McDonald’s, Procter & Gamble, Microsoft, Caterpillar, Amazon.com, Daimler and Kia Motors.Thursday brings monetary policy decisions from the European Central Bank and Bank Indonesia.U.S. factory orders for business equipment will provide a look into the strength of capital investment in September. The figures will show to what extent the latest tranche of tariffs on China and others is impacting investment decisions.These are the main moves in markets:StocksThe Stoxx Europe 600 Index fell 0.2% as of 8:25 a.m. London time.Futures on the S&P 500 Index were little changed.The U.K.’s FTSE 100 Index declined 0.1%.Sweden’s OMX Stockholm 30 Index climbed 0.2%.The MSCI Asia Pacific Index jumped 0.3%.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The British pound was steady at $1.2965.The euro was little changed at $1.1147.The Indian rupee gained 0.4% to 70.859 per dollar.The Japanese yen climbed 0.1% to 108.55 per dollar.BondsThe yield on 10-year Treasuries declined two basis points to 1.78%.Britain’s 10-year yield dipped two basis points to 0.734%.Italy’s 10-year yield fell three basis points to 0.953%.New Zealand’s 10-year yield advanced five basis points to 1.343%.CommoditiesWest Texas Intermediate crude dipped 0.2% to $53.21 a barrel.Gold gained 0.2% to $1,487.40 an ounce.Arabica coffee climbed 0.7% to $0.96 a pound.Corn fell 0.3% to $3.86 a bushel.\--With assistance from Justina Vasquez.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 editor responsible for this story: Samuel Potter at spotter33@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
https://finance.yahoo.com/news/asia-stocks-set-rise-trade-233543063.html?.tsrc=rss
(Bloomberg) -- European stocks edged lower, U.S. index futures drifted and Asian shares advanced as investors digested a flurry of company results and the odds of a trade deal being agreed in November. Treasuries rose and the pound was steady.The Stoxx Europe 600 Index was pulled lower by households goods and food shares. S&P 500 futures fluctuated after the underlying gauge closed above 3,000 on Monday, less than 1% from a record. In Asia, the biggest advance was in South Korea, seen as a proxy for global trade. Equities in Hong Kong, Australia and China had more modest increases. Japan is closed for a holiday. The British pound remained calm as Prime Minister Boris Johnson prepared to put his Brexit deal to a vote.It’s a huge week for corporate earnings, with around one-fifth of S&P 500 members due to report, including McDonald’s and Procter & Gamble on Tuesday followed by Microsoft and Caterpillar a day later. So far the results have generally surprised to the upside, reassuring investors that companies are weathering slowing growth and the trade war. All the same, analysts are cuting estimates for next year as the protectionist dispute between the world’s biggest economies continues to take a toll.President Donald Trump stoked hopes that a trade deal can be reached next month, saying that China has indicated negotiations are advancing and has started buying more American agricultural products.“There are still residual concerns about the outlook as we head toward Christmas with memories of last year’s price capitulation still fresh,” Greg McKenna, strategist at McKenna Macro, wrote in a note to clients. “But earnings so far aren’t as bad -- or should I say much worse -- than thought. And there is still much cash on the sidelines, and the increase in bond yields is mildly supportive of stocks.”Elsewhere, the shekel edged higher after Israel’s Prime Minister Benjamin Netanyahu gave up the privilege of leading the formation of a new government. The Canadian dollar showed little reaction as Prime Minister Justin Trudeau won a second term in elections with a reduced mandate.Here are some key events coming up this week:Earnings season is in full swing with companies reporting including: McDonald’s, Procter & Gamble, Microsoft, Caterpillar, Amazon.com, Daimler and Kia Motors.Thursday brings monetary policy decisions from the European Central Bank and Bank Indonesia.U.S. factory orders for business equipment will provide a look into the strength of capital investment in September. The figures will show to what extent the latest tranche of tariffs on China and others is impacting investment decisions.These are the main moves in markets:StocksThe Stoxx Europe 600 Index fell 0.2% as of 8:25 a.m. London time.Futures on the S&P 500 Index were little changed.The U.K.’s FTSE 100 Index declined 0.1%.Sweden’s OMX Stockholm 30 Index climbed 0.2%.The MSCI Asia Pacific Index jumped 0.3%.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The British pound was steady at $1.2965.The euro was little changed at $1.1147.The Indian rupee gained 0.4% to 70.859 per dollar.The Japanese yen climbed 0.1% to 108.55 per dollar.BondsThe yield on 10-year Treasuries declined two basis points to 1.78%.Britain’s 10-year yield dipped two basis points to 0.734%.Italy’s 10-year yield fell three basis points to 0.953%.New Zealand’s 10-year yield advanced five basis points to 1.343%.CommoditiesWest Texas Intermediate crude dipped 0.2% to $53.21 a barrel.Gold gained 0.2% to $1,487.40 an ounce.Arabica coffee climbed 0.7% to $0.96 a pound.Corn fell 0.3% to $3.86 a bushel.\--With assistance from Justina Vasquez.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 editor responsible for this story: Samuel Potter at spotter33@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
https://finance.yahoo.com/news/asia-stocks-set-rise-trade-233543063.html?.tsrc=rss
