Asian Stocks Mixed Before Fed; Yuan Extends Gains: Markets Wrap – Yahoo Finance

0
80
views
Asian Stocks Mixed Before Fed; Yuan Extends Gains: Markets Wrap - Yahoo Finance

Stocks on Hold Before Trade Talks, Fed; Oil Steady: Markets Wrap

(Bloomberg) — Sign up for our new China newsletter, a weekly dispatch coming soon on where China stands now and where it’s going next.

Stocks across the world were mostly in a holding pattern on Wednesday as investors grappled with a wall of macro catalysts, from trade talks and the Fed meeting to a slew of corporate earnings. The pound halted a two-day decline and U.K. shares gained after lawmakers voted to renegotiate Brexit.

The Stoxx Europe 600 Index edged lower as national gauges in the region were mixed. The U.K.’s FTSE 100 Index posted the biggest gains, advancing for a second day. Futures on the S&P 500 Index were little changed. Stocks in Japan and China slid, while they rose in South Korea, Australia and Hong Kong. Treasury yields ticked up slightly and the dollar drifted. The yuan advanced to the highest since July on hopes for the U.S.-China trade talks getting underway in Washington. Gold climbed to an eight-month high, underscoring investor caution.

Strong gains in January for equities are facing a test from a mixed bag of corporate earnings, with tech giants including Facebook and Microsoft due to report today. Investors are also awaiting the Fed’s policy decision, with markets expecting a rate hold and focusing on the commentary amid signs of slowing global growth. Chinese trade negotiators are in Washington this week for talks with U.S. counterparts.

“Such is the extent of uncertainty across global markets at the moment that investor sentiment is struggling to gain any meaningful traction,” Simon Ballard, a macro strategist at First Abu Dhabi Bank, said in a note. “The overarching veil of caution suggests that near-term positive momentum potential will likely remain limited. It is still very much global trade and the global rates outlook that sit at the heart of investor focus.”

The pound largely held losses after lawmakers voted against a key proposal that sought to rule out the prospect of the U.K. crashing out of the European Union without a deal. Members of Parliament including Prime Minister Theresa May backed a proposal to strip out the most difficult part of her proposed divorce package and re-open talks with the European Union.

Apple shares rose in post-market trading after first-quarter earnings offered some reassurance to investors that there is life beyond the company’s flagship product.

Elsewhere, the Mexican peso declined as Fitch Ratings Inc. cut the debt of state oil company, Petroleos Mexicanos, known as Pemex, to one notch above junk. Iron ore surged after Brazil’s Vale SA, the world’s largest producer, outlined plans to cut output after a deadly dam breach.

Among key events in the coming days:

Chinese President Xi Jinping’s top economic aide, Vice Premier Liu He, will meet with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Wednesday and Thursday.Tech giants Microsoft, Facebook, Alibaba, Qualcomm, Tesla, Samsung and Sony announce earnings.Wednesday Fed Chairman Jerome Powell holds a news conference after the FOMC rate decision.

These are the main moves in markets:

Stocks

The Stoxx Europe 600 Index decreased 0.1 percent as of 8:04 a.m. London time.Futures on the S&P 500 Index were unchanged.The MSCI All-Country World Index rose less than 0.05 percent.The U.K.’s FTSE 100 Index jumped 0.5 percent, reaching the highest in more than a week.The MSCI Emerging Market Index increased 0.2 percent.

Currencies

The Bloomberg Dollar Spot Index gained less than 0.05 percent.The euro decreased 0.1 percent to $1.1427.The British pound rose less than 0.05 percent to $1.3072.The Japanese yen increased 0.1 percent to 109.34 per dollar.

Bonds

The yield on 10-year Treasuries climbed one basis point to 2.72 percent.Germany’s 10-year yield fell one basis point to 0.20 percent.Britain’s 10-year yield dipped one basis point to 1.259 percent, the lowest in more than two weeks.Japan’s 10-year yield declined less than one basis point to 0.005 percent.

Commodities

West Texas Intermediate crude fell 0.2 percent to $53.18 a barrel.Gold gained 0.2 percent to $1,313.96 an ounce, the highest in almost nine months.Iron ore surged as much as 9.5 percent to the highest since March 2017 in Singapore.

–With assistance from Sarah Ponczek and Reade Pickert.

To contact the reporters on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net;Robert Brand in Cape Town at rbrand9@bloomberg.net

To contact the editor responsible for this story: Samuel Potter at spotter33@bloomberg.net

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

©2019 Bloomberg L.P.

Let’s block ads! (Why?)

Original Post Source link