Dollar Drops With Treasuries on Trade-Talk Plans: Markets Wrap: Bloomberg

  • European stocks, S&P futures gain as U.S.-China meeting set
  • Industrial metals rebound; Italian shares decline on Atlantia

The dollar fell while European stocks climbed alongside U.S. equity futures on renewed hopes for trade tensions to ease. The yuan jumped and Treasuries dipped.

The Stoxx Europe 600 Index rose, with most sectors in the green, while futures on the S&P 500, Dow and Nasdaq indexes all gained. The greenback, which has seen recent strength on its role as a haven, fell for the first time in six days. Stocks stayed lower in most Asian markets in the wake of disappointing earnings from tech giant Tencent Holding, though pared declines after China said its vice commerce minister will visit the U.S. for talks in late August. Italian stocks declined as infrastructure company Atlantia SpA’s shares fell by almost one-fifth in the wake of a deadly bridge collapse.

Hopes for a détente in the trade dispute gave China’s yuan a boost. Emerging-market shares slipped, flirting with a bear market. In Europe, the pound edged higher after data showed U.K. retail sales bounced back in July.

Read more about the proposed U.S.-China meeting and its significance

The potential for a breakthrough in the trade standoff between China and the U.S. is helping shake off some of the caution that’s weakened risk assets over the past week. The lira rallied for a third day ahead of an investor call with Turkey’s Treasury and Finance Minister later Thursday that may provide clues about any further policy action.

Elsewhere, metals rebounded after a hammering on Wednesday. Gold turned higher after touching a 19-month low. In Hong Kong, currency interventions continued after the currency fell to the weak end of its trading band.

Terminal users can read more in our Bloomberg Markets Live blog here.

Here are some key events coming up this week:

  • Earnings are still to come from companies including Maersk and Carlsberg.
  • Brexit talks between the EU and the U.K. resume in Brussels Thursday.

These are the main moves in markets:

Stocks

  • The Stoxx Europe 600 Index increased 0.4 percent as of 6:10 a.m. New York time, the largest climb in more than a week.
  • Futures on the S&P 500 Index gained 0.4 percent.
  • The U.K.’s FTSE 100 Index increased 0.6 percent.
  • Germany’s DAX Index advanced 0.3 percent.
  • The MSCI Emerging Market Index fell 0.3 percent, hitting the lowest in about 13 months with its seventh straight decline.
  • The MSCI Asia Pacific Index sank 0.5 percent to the lowest in almost 11 months.

Currencies

  • The Bloomberg Dollar Spot Index dipped 0.2 percent, the first retreat in more than a week.
  • The euro gained 0.2 percent to $1.1369.
  • The British pound advanced less than 0.05 percent to $1.2701.
  • The Japanese yen decreased 0.1 percent to 110.82 per dollar.

Bonds

  • The yield on 10-year Treasuries increased one basis point to 2.88 percent.
  • Germany’s 10-year yield climbed one basis point to 0.31 percent.
  • Britain’s 10-year yield advanced one basis point to 1.225 percent.
  • Italy’s 10-year yield declined six basis points to 3.105 percent.

Commodities

  • West Texas Intermediate crude advanced 0.1 percent to $65.06 a barrel.
  • Gold jumped 0.4 percent to $1,179.53 an ounce, the biggest increase in almost two weeks.

By August 16, 2018, 8:11 PM GMT+10

— With assistance by Cormac Mullen, Olivia Schaber, Andreea Papuc, and Adam Haigh

Source: Bloomberg

 

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