U.S. 10-year yield edges higher; Turkey lira pares recent loss
Pound recovers some ground; European bonds mixed; gold gains
Most major stocks gauges advanced on Tuesday as earnings season continued, helping buoy investor sentiment against a backdrop of trade angst and geopolitical noise. The dollar slipped against major peers and Treasuries were edged lower.
As earnings season enters its final phase, most major U.S. companies have now reported and four out of five have surprised to the upside. That’s helped put the S&P 500 within touching distance of a record, even as investors fret the escalating trade war between America and China. Meanwhile, geopolitical concerns linger in the background, including confusion about the status of negotiations intended to lead to thedenuclearization of the Korean peninsula and the Trump administration’s restoration of some U.S. sanctions on Iran.
Elsewhere, crude climbed after Saudi Arabian production cuts added to concern about tightening worldwide supplies. Gold advanced with industrial metals. European sovereign bonds were mixed and range bound, although Italian notes rose. The yen strengthened after Reuters reported that the Bank of Japan had considered raising interest rates this year. Germany’s industrial production fell more than expected in June, but the euro strengthened after a recent run of losses.
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Here are some key events coming up this week:
- Earnings season includes results from: Japan Post Bank, Disney, 21st Century Fox, Deutsche Telekom, China Mobile, Glencore and Adidas.
- The Bank of Japan releases a summary of opinions Wednesday from its July 30-31 meeting, at which it tweaked elements of its stimulus policy to make it more sustainable.
- Samsung Electronics unveils its next Galaxy Note smartphone.
- U.S. consumer prices probably rose in July, consistent with a pickup in inflation that’s projected to keep the Federal Reserve on a path of gradual interest-rate increases, economists forecast before Friday’s release.
These are the main moves in markets:
- The Stoxx Europe 600 Index climbed 0.6 percent as of 10:23 a.m. London time, the highest in a week.
- Futures on the S&P 500 Index gained 0.2 percent to the highest in about six months.
- The MSCI All-Country World Index rose 0.4 percent to the highest in more than a week.
- The MSCI Emerging Market Index increased 0.8 percent, the largest climb in almost two weeks.
- The Bloomberg Dollar Spot Index dipped 0.2 percent, the largest decrease in almost two weeks.
- The euro increased 0.3 percent to $1.159, the first advance in more than a week.
- The British pound gained 0.2 percent to $1.297, the largest advance in more than a week.
- The Japanese yen gained 0.1 percent to 111.27 per dollar.
- The yield on 10-year Treasuries rose one basis point to 2.95 percent.
- Germany’s 10-year yield climbed one basis point to 0.40 percent.
- Britain’s 10-year yield rose one basis point to 1.304 percent.
- The Bloomberg Commodity Index gained 0.7 percent to the highest in four weeks on the biggest climb in almost two weeks.
- West Texas Intermediate crude gained 0.5 percent to $69.35 a barrel, the highest in more than a week.
- LME copper climbed 0.6 percent to $6,168.00 per metric ton.
- Gold rose 0.6 percent to $1,214.36 an ounce.
By Eddie van der Walt – August 7, 2018, 7:37 PM GMT+10
— With assistance by Jeremy Herron, Randall Jensen, Helen Sun, and Andreea Papuc