Stocks Mixed as Trade Talks Wrap Up; Dollar Steady: Markets Wrap - Yahoo Finance

Stocks Mixed as Trade Talks Wrap Up; Dollar Steady: Markets Wrap

(Bloomberg) -- Stocks in Europe drifted, American equity futures gained and Asian shares retreated as the U.S. and China concluded the latest round of trade talks with no obvious breakthrough and investors grappled with a flood of corporate earnings. Treasuries and the dollar were steady before the Federal Reserve’s rate decision.

The Stoxx Europe 600 index struggled for direction amid mixed company reports, with personal and household-goods shares among the biggest losers as L’Oreal dropped after posting disappointing sales figures. Construction companies led gains after upbeat results from Vinci. On a big day for banks, Credit Suisse and BNP Paribas rose after reporting earnings that beat expectations, while Lloyds Banking Group fell after a miss. Futures on the S&P 500, Dow Jones Industrial Average and Nasdaq 100 all advanced. Hong Kong shares were the hardest-hit in Asia before the city’s markets closed early due to a storm. Samsung slid after it reported a sharp decline in profit.

The euro weakened after data showed economic growth in the common-currency area slowed by half in the second quarter, the latest in a string of reports flagging a deteriorating outlook. Most European bonds gained.

With one of the week’s key events -- trade talks -- over for now, investors still have the Fed, a slew of corporate results and Friday’s U.S. jobs data to contend with. American delegates wrapped up negotiations with their Chinese counterparts in Shanghai on Wednesday with little evidence of progress toward ending the year-long trade dispute. And with a Fed rate cut already baked into market pricing, Chairman Jerome Powell’s post-meeting press conference later Wednesday will be parsed for clues on the policy path.

“The bond and equity markets have fully priced in a cut,” Paul Brain, head of fixed income at Newton Investment Management, said in a note. “On balance, there may be some that are disappointed by the size of the cut and the subsequent messaging, but once that is out of the way there will be a realization that rates are heading lower.”

Shares in China and Hong Kong were also weighed down by a pledge by the Communist Party’s Politburo to avoid applying stimulus to the property market. Nasdaq futures were buoyed after Apple shares jumped more than 4% in late trading, spurred by projected revenue that topped estimates. Crude oil extended its recent rally.

Here are some of the key events to watch as the week unfolds:

Fed officials announce their decision Wednesday. Chairman Jerome Powell will hold a press conference following the FOMC’s meeting.The Bank of England policy decision is due Thursday.The U.S. July jobs report is due Friday.

Here are the main moves in markets:

Stocks

The Stoxx Europe 600 Index was little changed at as of 10:16 a.m. London time.Futures on the S&P 500 Index climbed 0.2%.The MSCI All-Country World Index fell 0.1%, the lowest in more than a week.The U.K.‘s FTSE 100 Index dipped 0.4%.

Currencies

The Bloomberg Dollar Spot Index was little changed.The euro decreased 0.1% to $1.1145.The British pound increased 0.1% to $1.2168, the first advance in a week.The Japanese yen was little changed at 108.57 per dollar.

Bonds

The yield on 10-year Treasuries decreased one basis point to 2.05%, the lowest in a week.Germany’s 10-year yield decreased one basis point to -0.41%.Britain’s 10-year yield increased one basis point to 0.644%.Japan’s 10-year yield declined less than one basis point to -0.153%.

Commodities

West Texas Intermediate crude climbed 0.7% to $58.48 a barrel, hitting the highest in more than two weeks with its fifth straight advance.Gold was little changed at $1,430.59 an ounce.The Bloomberg Commodity Index rose 0.2% to 79.20, the highest in a week.

--With assistance from Moxy Ying, Joanna Ossinger and Andreea Papuc.

To contact the reporter on this story: 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

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2019-07-31 08:28:00Z
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