U.S. Equities Open Mixed; Treasuries Rebound: Markets Wrap

 

 

These are the main moves in markets:

Stocks

• The S&P 500 Index was little changed as of 9:33 a.m. New York time.
• The Stoxx Europe 600 Index was little changed.
• The U.K.’s FTSE 100 Index was little changed.
• The MSCI Emerging Market Index declined 0.4%.

Currencies

• The Bloomberg Dollar Spot Index was little changed.
• The euro gained 0.1% to $1.108.
• The British pound was little changed at $1.2879.
• The Japanese yen strengthened 0.1% to 108.99 per dollar.

Bonds

• The yield on 10-year Treasuries dipped three basis points to 1.82%.
• The yield on two-year Treasuries decreased two basis points to 1.60%.
• Britain’s 10-year yield declined four basis points to 0.737%.
• Germany’s 10-year yield fell two basis points to -0.33%.

Commodities

• West Texas Intermediate crude gained 0.1% to $57.25 a barrel.
• Gold rose 0.2% to $1,487.51 an ounce.

Here are some key events coming up this week:

• Earnings are due this week from companies including: Walt Disney, Toyota, Deutsche Telekom.
• Regional Federal Reserve presidents including Charles Evans, John Williams and Patrick Harker speak at events on Wednesday.
• A Bank of England monetary decision is due Thursday.
• The USDA World Agricultural Supply and Demand Estimates Report for November comes out Friday.

U.S. equity indexes fluctuated at the start of trading Wednesday, while stocks climbed in Europe as a raft of mixed corporate earnings and economic data muddied the outlook for global growth. Treasuries rebounded after dropping for three days.

The S&P 500 Index was little changed at the open. HP Inc. rose after the Wall Street Journal reported Xerox Corp. is considering a cash-stock offer for the PC maker, while Uber Technologies Inc. sank for the fifth straight day as its share lockup expired.

The Stoxx Europe 600 Index fluctuated before posting a gain as data suggesting that the euro-area economy may be gathering momentum was offset by the International Monetary Fund’s warning of clouds on the horizon. Banks advanced after Societe Generale SA strengthened its key capital ratio, while global cleaning giant ISS A/S slumped after cutting its full-year outlook.

A wave of interest-rate cuts by central banks and mounting hopes of a U.S.-China trade deal have buoyed confidence in markets just as key economic indicators show signs of stabilization. While the latest data from Europe suggest a robust recovery may not be on the cards, the relative improvement eased fears that the global economy was hurtling toward a recession, prompting traders to temper bets for further monetary easing.

“Economic reports took a turn to the better,” said Jim Paulsen, chief investment strategist at Leuthold Weeden Capital Management LLC. “It’s not that they’re so robust they say everything is great, but they show some signs of responding to lower interest rates.” He added: “The idea of Europe not heading into a recession and maybe the U.S. turning a corner is a big factor.”

In Asia, benchmarks rose in Japan and Mumbai, but fell in Shanghai and Sydney. The yuan strengthened past 7 per dollar for a second day, while the greenback was steady as investors awaited fresh developments on the U.S.-China trade front. Bloomberg’s gauge of raw-material spot prices climbed to its highest level since April.

Elsewhere, held steady while gold, which slumped Tuesday, scored small gains. Emerging-market stocks slipped for the first time in five days.