U.S. Equity Futures Edge Higher as Treasuries Gain: Markets Wrap

 

 

 

 

These are the main moves in markets:

Stocks

• Futures on the S&P 500 Index climbed 0.1% as of 6:22 a.m. New York time.
• The Stoxx Europe 600 Index gained 0.4%.
• The U.K.’s FTSE 100 Index surged 1%.
• The MSCI Asia Pacific Index increased 0.2%.

Currencies

• The Bloomberg Dollar Spot Index was little changed.
• The euro was unchanged.
• The British pound decreased 0.3%.
• The Japanese yen gained 0.1%.

Bonds

• The yield on 10-year Treasuries decreased three basis points.
• Germany’s 10-year yield declined three basis points.
• Britain’s 10-year yield decreased five basis points.

Commodities

• West Texas Intermediate crude dipped 0.6%.
• Gold gained 0.5%.

U.S. equity futures edged higher while European stocks advanced as investors digested the latest headlines on the trade dispute between America and China. Treasuries rose along with most benchmark bonds in Europe after some mixed economic data.

Futures contracts on all three main U.S. gauges pointed to a firm open, though they pared earlier gains. Treasuries and most government bonds in Europe reversed losses after a measure of services in the euro area disappointed, even as Germany reported better-than-expected manufacturing numbers. The common currency fluctuated.

Miners and energy companies helped lead the Stoxx Europe 600 Index higher after oil’s strongest close since September. The pound fell — boosting British equities — following a gloomy reading of company sentiment. Japanese shares steadied after three days of declines, while stocks climbed in Australia and Hong Kong, and slipped in China.

 

It’s been a mixed picture on the trade front this week. Chinese Vice Premier Liu He has invited Robert Lighthizer to Beijing for further talks later this month, according to people familiar with the matter, and Washington will likely postpone new tariffs scheduled for December even if there’s no deal by then, the South China Morning Post reported. However, President Donald Trump may soon sign into law a bill supporting Hong Kong’s protesters, a move likely to anger China.

Meanwhile, Chinese President Xi Jinping said his nation wants to work toward a phase one trade agreement with the U.S. on the “basis of mutual respect and equality,“ his first comments on a partial deal.

 

“The market is looking for some bullish signal that things aren’t going to get worse and that we’re not going to see further deterioration in trade talks between the U.S. and China,” Erin Browne, a portfolio manager at Pacific Investment Management Co., told Bloomberg TV. “They just don’t want to see further escalation.”

 

Elsewhere, oil fluctuated after rising to a nine-week high. Gold reversed earlier losses.