European shares struggle as as focus turns to jobs data

European Stock Markets

A lull settled over European stocks before key jobs data in the U.S., where announcements of exceptions to import tariffs and talks with North Korea have traders weighing the outlook for a range of assets. The dollar was steady and Treasuries edged lower.

 

The Stoxx Europe 600 Index was little changed along with U.S. equity-index futures, capping a week in which shares globally were roiled by President Donald Trump’s protectionist trade agenda.

The announcement that Trump has accepted an invitation to meet North Korean leader Kim Jong Un fed risk-on sentiment in Asia as it helped ease geopolitical concerns tied to the nuclear-armed dictatorship. 

 

The summit news overshadowed a warning from China that it will take “strong” measures to counter U.S. trade tariffs. Investors will now look to monthly U.S. employment data for the next signal on the direction of asset markets as the Fed prepares to review interest rates later this month.

Elsewhere, Mexico’s peso and Canada’s loonie strengthened on news the two countries will be exempted from the U.S. tariffs. Bitcoin fell below $9,000.
 

Stocks
The Stoxx Europe 600 Index decreased 0.1 percent as of 10:29 a.m. London time, the first retreat in a week.
Futures on the S&P 500 Index sank 0.1 percent.
The U.K.’s FTSE 100 Index declined less than 0.05 percent.
Germany’s DAX Index dipped 0.4 percent.
The MSCI Asia Pacific Index rose 0.3 percent.
Japan’s Topix index added 0.3 percent, Hong Kong’s Hang Seng jumped 1.1 percent, South Korea’s Kospi rallied 1.1 percent and Australia’s S&P/ASX 200 Index rose 0.3 percent.

Currencies
The euro decreased 0.1 percent to $1.2303.
The British pound gained less than 0.05 percent to $1.3814.
The Japanese yen sank 0.5 percent to 106.73 per dollar, the biggest dip in more than two weeks.

Bonds
The yield on 10-year Treasuries gained two basis points to 2.88 percent, the biggest gain in a week.
Germany’s 10-year yield advanced two basis points to 0.63 percent.
Britain’s 10-year yield jumped three basis points to 1.47 percent, the biggest surge in more than a week.
Japan’s 10-year yield declined less than one basis point to 0.05 percent.

Commodities
West Texas Intermediate crude climbed 0.5 percent to $60.41 a barrel.
Gold fell 0.2 percent to $1,319.71 an ounce, the weakest in more than a week.
LME copper gained 0.1 percent to $6,839.50 per metric ton.