Stocks Climb After China’s IP Move; Treasuries Dip: Markets Wrap

 

 

These are the main moves in markets:

Stocks

• Futures on the S&P 500 Index climbed 0.2% as of 7:23 a.m. New York time.
• The Stoxx Europe 600 Index rose 0.8%.
• Italy’s FTSE MIB Index climbed 0.7%.
• Hong Kong’s Hang Seng Index gained 1.5%.

Currencies

• The Bloomberg Dollar Spot Index was little changed.
• Sterling jumped 0.4% to 0.8555 per euro.
• The euro dipped 0.1% to $1.1011.
• The Japanese yen weakened 0.2% to 108.88 per dollar.
• Bitcoin sank 5.3% to $6,955.

Bonds

• The yield on 10-year Treasuries gained one basis point to 1.78%.
• Germany’s 10-year yield climbed one basis point to -0.35%.
• Italy’s 10-year yield fell two basis points to 1.161%.
• Portugal’s 10-year yield dipped one basis point to 0.387%.

Commodities

• West Texas Intermediate crude decreased 0.1% to $57.70 a barrel.
• Iron ore climbed 3.2% to $89.25 per metric ton.
• Gold dipped 0.3% to $1,457.61 an ounce.
• Natural-gas futures traded in New York declined 3.1% to $2.58 per mmbtu.

 

Here are some key events coming up this week:

• Federal Reserve Chairman Jerome Powell speaks on Monday at the Greater Providence Chamber of Commerce annual dinner in Providence, Rhode Island.
• Alibaba starts trading in Hong Kong on Tuesday.
• Reserve Bank of Australia Governor Philip Lowe will give a speech on unconventional monetary policy on Tuesday evening in Sydney.
• U.S. consumer spending data is due Wednesday, along with GDP, jobless claims and durable goods.
• The U.S. celebrates Thanksgiving on Thursday, when equity and bond markets will be shut.
• The Bank of Korea sets policy on Friday.

U.S. equity futures climbed along with stocks globally as investors digested China’s decision to tighten intellectual property rules, a move that may boost the chances of a trade deal between the world’s largest economies. Treasuries, the yen and gold declined.

Contracts on the three main U.S. stock gauges all pointed to a firm start on Wall Street after China said over the weekend it will raise penalties on intellectual property violations as it tries to smooth over a sticking point in talks. Charles Schwab Corp. and rival TD Ameritrade Holding Corp. will be among stocks in focus after their multibillion-dollar merger was agreed, while Uber Technologies Inc. may also be in the spotlight following a failed bid to get a new license to operate in London.

The Stoxx Europe 600 Index advanced, with all 19 industry sectors in the green. Equities climbed across Asia, led by those in Hong Kong, where local elections brought a landslide victory to pro-democracy candidates. The dollar was steady against most of its major peers, though the yen fell against the greenback and the pound gained.

Stocks are headed for a third month of gains globally, though doubts about the rally remain and bonds and other haven investments seem well-supported. While the S&P 500 Index rose on Friday after President Donald Trump said he was “very close” to a trade pact, the yield on 10-year U.S. notes has steadied around 1.78%, down from the three-month intraday high of 1.97% touched in early November.

“The markets are pretty much priced for a deal to go ahead, and that may be the case, but we may see that pushed out to 2020,” Eleanor Creagh, market strategist at Saxo Capital Markets, told Bloomberg TV in Sydney. “The key sticking point is really going to be the rolling back of tariffs.”

Elsewhere, China was planning a record sale of sovereign bonds in dollars, with a potential $6 billion offering, according to people familiar with the discussions. West Texas-grade oil futures drifted, after ending Friday barely changed on the week. Bitcoin fell as much as 11% and headed for its ninth weekday session of declines, the longest losing streak in a year.

— With assistance by Adam Haigh, and Sybilla Gross