U.S. Futures Fluctuate on Trade News; Bonds Drift: Markets Wrap

 

 

 

 

These are the main moves in markets:

Stocks

• Futures on the S&P 500 Index decreased 0.1% as of 6:14 a.m. New York time.
• The Stoxx Europe 600 Index dipped 0.5%.
• The MSCI Asia Pacific Index declined 0.7%.
• The MSCI Emerging Market Index fell 0.8%.

Currencies

• The Bloomberg Dollar Spot Index dipped 0.1%.
• The euro gained 0.1% to $1.1085.
• The British pound jumped 0.2% to $1.2945.
• The onshore yuan advanced 0.1% to 7.028 per dollar.
• The Japanese yen was unchanged at 108.61 per dollar.

Bonds

• The yield on 10-year Treasuries gained one basis point to 1.76%.
• The yield on two-year Treasuries advanced one basis point to 1.59%.
• Germany’s 10-year yield increased one basis point to -0.34%.
• Britain’s 10-year yield jumped two basis points to 0.747%.
• Japan’s 10-year yield climbed less than one basis point to -0.105%.

Commodities

• West Texas Intermediate crude dipped 0.3% to $56.84 a barrel.
• Iron ore gained 0.4% to $83.18 per metric ton.
• Gold decreased 0.2% to $1,469.10 an ounce.

Here are some key events coming up this week:

• U.S. economic indicators due for release include initial jobless claims on Thursday.

U.S. equity futures fluctuated as investors weighed the latest trade developments, including a bill from Congress supporting Hong Kong protesters that could complicate a deal with China. Stocks fell in Europe and Asia, while Treasuries drifted.

Contracts on the S&P 500 Index pared losses on a news report that China’s chief trade negotiator invited his American counterparts for a new round of face-to-face talks. They had declined earlier as President Donald Trump was expected to sign legislation backing Hong Kong protesters, potentially setting up further confrontation with China. TD Ameritrade leaped in pre-market trading on reports that Charles Schwab Corp. is in talks to buy the online brokerage.

The Stoxx Europe 600 Index dropped, with Thyssenkrupp AG shares tumbling after the steelmaker said it was suspending dividend payments and warned of deepening losses. The MSCI Asia Pacific Index at one point fell the most in almost three months, though the moves eased and the yen trimmed gains as Beijing’s chief negotiator said he was “cautiously optimistic” about reaching a phase-one trade deal with the U.S.

Crucial to the trade talks is Hong Kong’s deteriorating situation, with the latest developments helping end a streak of record highs for U.S. stocks. China has threatened to retaliate for the passage of an American bill and said supporting the protesters was a “gross” interference in Hong Kong affairs. Traders will be watching closely for signs of progress ahead of a Dec. 15 deadline for further tariffs.

“From a market perspective, there’s a consensus that an agreement will be reached,” Viktor Shvets, head of Asian strategy at Macquarie Commodities and Global Market, told Bloomberg Television. “They need to sign something, otherwise volatility in markets could be quite extreme.”

Elsewhere, oil edged down after jumping on Wednesday as American crude stockpiles rose less than expected and inventories at a key storage hub shrank by the most since August.