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European Stocks Track Asian Gains; Dollar Steadies: Markets Wrap: Bloomberg

  • With trade talks set to resume, onshore yuan rises after fix
  • Turkish lira slips as emerging-market shares, currencies climb

European stocks followed Asian equities higher on Monday as traders held onto hopes for an easing of the trade war and ahead of a meeting of central bankers later in the week that may throw up clues on the outlook for markets. The dollar edged up and the euro fell.

Miners were the biggest winners as the Stoxx Europe 600 Index climbed, while futures on the S&P 500, Dow and Nasdaq all pointed to a positive open. There were advances across most Asian equities, though Japan’s gauge bucked the upward trend. The dollar firmed after two days of declines and the 10-year Treasury yield was little changed. The onshore yuan climbed amid signs China is propping up the currency just as it prepares to restart trade negotiations with the U.S. The euro slipped for the first time in four days.

Bond traders are betting recent market turmoil won’t throw the Federal Reserve off its tightening course. They expect the Fed will raise rates at its next meeting and this week’s Jackson Hole symposium could provide clues as to whether such confidence is warranted as the spread between 2- and 10-year yields narrowed to the least since 2007 on Friday.

Elsewhere, the lira slipped. Turkish markets will be closed for most of this week, which may mean low trading volumes and the possibility of even sharper currency swings than usual. Emerging-market stocks and currencies rose. Industrial metals helped an index of commodity prices higher.

Terminal users can read more in our Bloomberg Markets Live blog here.

Here are some key events coming up this week:

  • Companies announcing earnings include Alibaba, Royal Bank of Canada, Lowe’s, Target, BHP Billiton, Qantas, Ping An and China’s Bank of Communications.
  • Central bankers gather at the Kansas City Fed’s annual Jackson Hole symposium, where Federal Reserve Chairman Jerome Powell speaks Friday.
  • Fed releases the minutes from its July 31 – Aug. 1 FOMC meeting.

These are the main moves in markets:

Stocks

  • The Stoxx Europe 600 Index gained 0.3 percent as of 8:03 a.m. London time.
  • Futures on the S&P 500 Index increased 0.2 percent to the highest in almost two weeks.
  • The MSCI All-Country World Index climbed 0.2 percent.
  • The MSCI Emerging Market Index gained 0.9 percent, the largest rise in almost four weeks.

Currencies

  • The Bloomberg Dollar Spot Index increased 0.1 percent.
  • The euro fell 0.2 percent to $1.1419.
  • The Japanese yen declined 0.1 percent to 110.64 per dollar.
  • The Turkish lira declined 1.3 percent to 6.0962 per dollar.
  • South Africa’s rand decreased 0.1 percent to 14.6486 per dollar.
  • The MSCI Emerging Markets Currency Index advanced 0.4 percent, the biggest gain in almost four weeks.

Bonds

  • The yield on 10-year Treasuries decreased less than one basis point to 2.86 percent, the lowest in more than a month.
  • Germany’s 10-year yield gained less than one basis point to 0.31 percent.
  • Britain’s 10-year yield increased less than one basis point to 1.236 percent.

Commodities

  • The Bloomberg Commodity Index gained 0.2 percent.
  • West Texas Intermediate crude climbed less than 0.05 percent to $65.92 a barrel.
  • LME copper advanced 0.8 percent to $5,974.50 per metric ton.
  • Gold increased 0.2 percent to $1,186.48 an ounce.

By and 

— With assistance by David Finnerty, and Alex Harris

August 20, 2018, 5:17 PM GMT+10

Source: Bloomberg

 

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