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Stocks Decline as Trade Fears Linger; Oil Climbs: Markets Wrap: Bloomberg

  • WTI crude surges past $70 a barrel on moves to cut Iran out
  • Japanese yen outperforms major peers; yuan finds floor

Stocks came under increasing pressure as traders grappled with escalating global trade tension between the world’s biggest economic powers. Oil built on gains after the U.S. stepped up pressure on Iran.

Most sectors fell in Europe, with the Stoxx 600 Index touching the lowest level in two months. U.S. futures slid and Chinese shares extended a decline. The Asian nation’s currency appeared to find a floor after its rapid descent in recent days, while Japan’s yen outperformed major peers. Treasuries advanced with European bonds. West Texas Intermediate crude traded at a one-month high as America demanded that Iran’s customers halt imports.

Mixed signals on global trade are complicating the investment picture, after President Donald Trump signaled he may take a less confrontational path toward curbing Chinese investments, while his trade representative Robert Lighthizer poured fuel on the showdown with countries including the EU. Disruption to trade could increase risk to the economy, Federal Reserve Bank of Atlanta President Raphael Bostic said in a speech.

Developing-market stocks tumbled, with the MSCI Emerging Markets Index hitting the lowest in 10 months as gauges from South Africa to India retreated. Gold failed to capitalize on the bearish mood, edging downward and poised for a fresh 2018 low.

Terminal users can read more in Bloomberg’s Markets Live blog.

These are key key events coming up this week:

  • New Zealand and Indonesia monetary policy decisions on Thursday.
  • U.S. personal spending probably increased in May for a third month, economists forecast ahead of Friday’s data.
  • China manufacturing and non-manufacturing PMI are due on Saturday.

Here are the main market moves.

Stocks

  • The Stoxx Europe 600 Index decreased 0.4 percent as of 8:39 a.m. London time, to the lowest in more than 11 weeks.
  • Futures on the S&P 500 Index sank 0.5 percent to the lowest in almost four weeks.
  • The U.K.’s FTSE 100 Index gained less than 0.05 percent.
  • The MSCI Asia Pacific Index dipped 0.5 percent to the lowest in more than eight months.
  • The MSCI World Index of developed countries fell 0.1 percent.

Currencies

  • The Bloomberg Dollar Spot Index decreased 0.1 percent.
  • The Japanese yen increased 0.3 percent to 109.78 per dollar.
  • The euro climbed 0.1 percent to $1.1661.
  • The British pound declined less than 0.05 percent to $1.3223, the weakest in a week.

Bonds

  • The yield on 10-year Treasuries fell two basis points to 2.86 percent, reaching the lowest in four weeks on its fifth straight decline.
  • Germany’s 10-year yield declined two basis points to 0.32 percent, the lowest in more than four weeks.
  • Britain’s 10-year yield declined three basis points to 1.273 percent, the lowest in almost four weeks on the biggest fall in more than a week.

Commodities

  • Gold declined 0.1 percent to $1,257.95 an ounce, the weakest in more than six months.
  • Brent crude climbed 0.5 percent to $76.72 a barrel, the highest in two weeks.
  • LME copper fell 0.4 percent to $6,683.00 per metric ton, the lowest in three months.

By June 27, 2018, 5:48 PM GMT+10

— With assistance by Adam Haigh

Source: Bloomberg

 

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