Global Stock Markets
The dollar strengthened against most major peers and U.S. equity futures rallied as the world’s two largest economies appeared to step back from the brink of a trade war. Treasury yields climbed, and European shares advanced.
The greenback rose as Treasury Secretary Steven Mnuchin said the U.S. was “putting the trade war on hold,” amid progress in talks with China. The euro headed for a sixth day of declines after Italy’s two populist parties agreed on a prime minister, while Italian bonds extended their decline. Travel companies and retailers led advances in the Stoxx Europe 600 Index, though a number of countries are out for a holiday. U.S. oil futures resumed a rally.
The easing protectionist tensions will offer some respite to traders as they grapple with the impact of rising Treasury yields and a stronger dollar. But the week ahead is loaded with risk events, including releases of the latest meeting minutes from both the Federal Reserve and European Central Bank, a slew of debt sales from the U.S., and preliminary purchasing manager indexes from the euro zone. Meanwhile, geopolitical stress lingers, with South Korea’s president visiting Washington to discuss North Korea and Brexit negotiations ongoing.
Elsewhere, emerging-market currencies continued to come under pressure, with Turkey’s lira falling 1.5 percent. Gold extended it’s decline to the lowest level this year.
Stocks
The Stoxx Europe 600 Index rose 0.4 percent as of 11:29 a.m. London time, to the highest in 16 weeks.
The MSCI All-Country World Index gained less than 0.05 percent.
Futures on the S&P 500 Index rose 0.6 percent to the highest in a week.
The U.K.’s FTSE 100 Index increased 0.8 percent to the highest on record.
Currencies
The euro declined 0.2 percent to $1.1748, reaching the weakest in more than five months on its sixth consecutive decline.
The British pound dipped 0.5 percent to $1.3407, the weakest in almost 21 weeks on the largest dip in almost three weeks.
South Africa’s rand decreased 0.3 percent to 12.8036 per dollar, the weakest in about five months.
Bonds
The yield on 10-year Treasuries increased two basis points to 3.07 percent.
Britain’s 10-year yield fell one basis point to 1.5 percent, the lowest in a week.
France’s 10-year yield declined less than one basis point to 0.829 percent, the lowest in more than a week.
Germany’s 10-year yield dipped two basis points to 0.56 percent, the lowest in more than a week.
Commodities
West Texas Intermediate crude gained 0.2 percent to $71.42 a barrel.
Gold fell 0.7 percent to $1,284.46 an ounce, the weakest in almost 21 weeks.
LME copper rose 0.8 percent to $6,909.00 per metric ton, the highest in more than a week on the largest advance in more than a week.
The greenback rose as Treasury Secretary Steven Mnuchin said the U.S. was “putting the trade war on hold,” amid progress in talks with China. The euro headed for a sixth day of declines after Italy’s two populist parties agreed on a prime minister, while Italian bonds extended their decline. Travel companies and retailers led advances in the Stoxx Europe 600 Index, though a number of countries are out for a holiday. U.S. oil futures resumed a rally.
The easing protectionist tensions will offer some respite to traders as they grapple with the impact of rising Treasury yields and a stronger dollar. But the week ahead is loaded with risk events, including releases of the latest meeting minutes from both the Federal Reserve and European Central Bank, a slew of debt sales from the U.S., and preliminary purchasing manager indexes from the euro zone. Meanwhile, geopolitical stress lingers, with South Korea’s president visiting Washington to discuss North Korea and Brexit negotiations ongoing.
Elsewhere, emerging-market currencies continued to come under pressure, with Turkey’s lira falling 1.5 percent. Gold extended it’s decline to the lowest level this year.
Stocks
The Stoxx Europe 600 Index rose 0.4 percent as of 11:29 a.m. London time, to the highest in 16 weeks.
The MSCI All-Country World Index gained less than 0.05 percent.
Futures on the S&P 500 Index rose 0.6 percent to the highest in a week.
The U.K.’s FTSE 100 Index increased 0.8 percent to the highest on record.
Currencies
The euro declined 0.2 percent to $1.1748, reaching the weakest in more than five months on its sixth consecutive decline.
The British pound dipped 0.5 percent to $1.3407, the weakest in almost 21 weeks on the largest dip in almost three weeks.
South Africa’s rand decreased 0.3 percent to 12.8036 per dollar, the weakest in about five months.
Bonds
The yield on 10-year Treasuries increased two basis points to 3.07 percent.
Britain’s 10-year yield fell one basis point to 1.5 percent, the lowest in a week.
France’s 10-year yield declined less than one basis point to 0.829 percent, the lowest in more than a week.
Germany’s 10-year yield dipped two basis points to 0.56 percent, the lowest in more than a week.
Commodities
West Texas Intermediate crude gained 0.2 percent to $71.42 a barrel.
Gold fell 0.7 percent to $1,284.46 an ounce, the weakest in almost 21 weeks.
LME copper rose 0.8 percent to $6,909.00 per metric ton, the highest in more than a week on the largest advance in more than a week.
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