European Stocks Advance, Brexit Hopes Lift Pound: Markets Wrap: Bloomberg

  • Investors weigh mixed outlook on trade, Fed policy trajectory
  • French inflation meet expectations; euro steady, yen rises

European stocks climbed following an uncertain session in Asia as investors gauge the implications of the latest personnel changes in the Trump administration. The pound climbed on signs Britain is poised to clinch a two-year grace period when it leaves the European Union.

The Stoxx Europe 600 Index advanced for the first time in three sessions, with insurance and technology companies the biggest winners, and U.S. futures pointed toward a firmer open. The yen gained for a second day while the euro held steady. Treasury yields held near February lows on bets the Federal Reserve won’t signal quicker interest-rate hikes when policy makers meet next week. French consumer prices were unchanged on the previous month in February.

Traders continue to mull prospects for U.S. trade protectionism after incoming White House economic adviser Larry Kudlow signaled support for a strong dollar and took a tough line on China. The lackluster retail sales data provided the last major economic indicator prior to the Federal Reserve’s policy decision next week. While an increase in borrowing costs at the meeting is seen as a done deal, it remains an open question whether U.S. policy makers will lift their expectations for the pace of future increases.

Elsewhere, oil held gains near $61 a barrel as signs of stronger U.S. fuel consumption balanced OPEC forecasting for the first time that new supplies from its rivals will exceed demand growth this year. Bitcoin touched the lowest level in a month.

Terminal users can read more in our markets blog.

Here are some of the key things happening this week:

  • Japan industrial production is out on Friday.
  • Inflation data Thursday is a focal point in the euro area.
  • EU27 government officials discuss the European Union’s Brexit position.

And these are the main moves in markets:

Stocks

  • The Stoxx Europe 600 Index increased 0.3 percent as of 8:26 a.m. London time.
  • The MSCI All-Country World Index gained 0.1 percent.
  • Futures on the S&P 500 Index climbed 0.2 percent.
  • The U.K.’s FTSE 100 Index advanced 0.1 percent.

Currencies

  • The Bloomberg Dollar Spot Index gained less than 0.05 percent.
  • The euro fell less than 0.05 percent to $1.2364.
  • The Japanese yen increased 0.2 percent to 106.14 per dollar, the strongest in more than a week.
  • South Africa’s rand fell 0.4 percent to 11.8183 per dollar, the biggest fall in a week.
  • The British pound rose 0.1 percent to $1.3977 with its fifth consecutive advance.

Bonds

  • The yield on 10-year Treasuries advanced less than one basis point to 2.82 percent.
  • Germany’s 10-year yield was unchanged at 0.59 percent, the lowest in seven weeks.
  • Britain’s 10-year yield climbed less than one basis point to 1.441 percent.

Commodities

  • West Texas Intermediate crude advanced 0.2 percent to $61.09 a barrel.
  • Gold declined 0.1 percent to $1,323.41 an ounce.
  • LME copper decreased 0.6 percent to $6,948.50 per metric ton.

By Eddie Van Der Walt and Adam Haigh

March 15, 2018, 7:46 PM GMT+11

Source: Bloomberg

 

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