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07-10-2019, 02:49 AM
Stocks Slide Ahead of Powell Testimony; Bonds Fall: Markets Wrap
(Bloomberg) -- Stocks in Europe slipped along with U.S. equity-index futures as investors awaited clues on policy from Federal Reserve Chairman Jerome Powell. Treasury yields touched a three-week high.The Stoxx Europe 600 index fell for a fourth day, while contracts for the S&P 500, Nasdaq 100 and Dow Jones Industrial Average all pointed to a drop at the New York open. The trading session in Asia was mixed as Hong Kong and South Korea equities gained modestly, and Japan and China declined. Yields on 10-year Treasuries reached 2.08% and the dollar was steady. European government bonds dropped amid a slew of data, including strong manufacturing numbers from France. The pound extended a decline.Powell’s two days of semi-annual testimony in Congress on the economic and policy outlook will set expectations for the Fed’s policy meeting at the end of July. With both equities and bonds sitting on outsize gains since the start of the year, it’s unclear what further impetus they can get given that traders are already discounting a cycle of interest-rate cuts. Investors will also scour June meeting minutes out today for any sign that the Fed may pull back on policy easing.“There is a very real risk that the Fed maintains a neutral stance as members are decidedly split on the need for policy accommodation,” said Nema Ramkhelawan-Bhana, an economist at FirstRand Bank Ltd. in Johannesburg. “If Powell follows a similar tack, it would immediately unravel the weave of risk that global markets have constructed over the last month.”Meanwhile, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke on the phone with their Chinese counterparts, marking the first high-level contact after their presidents agreed to resume trade talks last month.Elsewhere, West Texas intermediate crude gained. Mexico’s peso steadied after sliding on news that the country’s finance minister quit.Here are some key events coming up:Powell testifies before Congress on monetary policy and the state of the U.S. economy on Wednesday (the House of Representatives) and Thursday (the Senate).Fed minutes are due on Wednesday, ECB minutes on Thursday.A key measure of U.S. inflation -- the core consumer price index, due Thursday -- is expected to have increased 0.2% in June from the prior month, while the broader CPI is forecast to remain unchanged.U.S. producer prices are due on Friday.Here are the main moves in markets:StocksFutures on the S&P 500 Index declined 0.2% as of 8:23 a.m. London time, the lowest in more than a week.The Stoxx Europe 600 Index sank 0.2%, the lowest in more than a week.The U.K.’s FTSE 100 Index decreased 0.1%, its fifth consecutive decline.Germany’s DAX Index dipped 0.2%, the lowest in more than a week.The MSCI Asia Pacific Index advanced less than 0.05%.The MSCI Emerging Market Index advanced 0.2%.CurrenciesThe Bloomberg Dollar Index was little changed.The euro advanced less than 0.05% to $1.1212.The British pound decreased 0.1% to $1.2455, the weakest in more than two years.The Japanese yen dipped 0.1% to 108.97 per dollar, the weakest in almost six weeks.BondsThe yield on 10-year Treasuries advanced three basis points to 2.09%, hitting the highest in almost four weeks with its fifth straight advance.Germany’s 10-year yield advanced four basis points to -0.31%, the highest in two weeks on the biggest rise in almost three months.Britain’s 10-year yield climbed four basis points to 0.76%, the highest in more than a week.CommoditiesGold fell 0.4% to $1,391.86 an ounce, the weakest in more than a week.West Texas Intermediate crude advanced 1.7% to $58.79 a barrel, hitting the highest in more than a week.Iron ore decreased 1% to $115.60 per metric ton.To contact the reporters on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net;Laura Curtis in London at lcurtis7@bloomberg.netTo contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Robert BrandFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
https://finance.yahoo.com/news/asian-stocks-set-mixed-trading-225059820.html?.tsrc=rss
(Bloomberg) -- Stocks in Europe slipped along with U.S. equity-index futures as investors awaited clues on policy from Federal Reserve Chairman Jerome Powell. Treasury yields touched a three-week high.The Stoxx Europe 600 index fell for a fourth day, while contracts for the S&P 500, Nasdaq 100 and Dow Jones Industrial Average all pointed to a drop at the New York open. The trading session in Asia was mixed as Hong Kong and South Korea equities gained modestly, and Japan and China declined. Yields on 10-year Treasuries reached 2.08% and the dollar was steady. European government bonds dropped amid a slew of data, including strong manufacturing numbers from France. The pound extended a decline.Powell’s two days of semi-annual testimony in Congress on the economic and policy outlook will set expectations for the Fed’s policy meeting at the end of July. With both equities and bonds sitting on outsize gains since the start of the year, it’s unclear what further impetus they can get given that traders are already discounting a cycle of interest-rate cuts. Investors will also scour June meeting minutes out today for any sign that the Fed may pull back on policy easing.“There is a very real risk that the Fed maintains a neutral stance as members are decidedly split on the need for policy accommodation,” said Nema Ramkhelawan-Bhana, an economist at FirstRand Bank Ltd. in Johannesburg. “If Powell follows a similar tack, it would immediately unravel the weave of risk that global markets have constructed over the last month.”Meanwhile, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke on the phone with their Chinese counterparts, marking the first high-level contact after their presidents agreed to resume trade talks last month.Elsewhere, West Texas intermediate crude gained. Mexico’s peso steadied after sliding on news that the country’s finance minister quit.Here are some key events coming up:Powell testifies before Congress on monetary policy and the state of the U.S. economy on Wednesday (the House of Representatives) and Thursday (the Senate).Fed minutes are due on Wednesday, ECB minutes on Thursday.A key measure of U.S. inflation -- the core consumer price index, due Thursday -- is expected to have increased 0.2% in June from the prior month, while the broader CPI is forecast to remain unchanged.U.S. producer prices are due on Friday.Here are the main moves in markets:StocksFutures on the S&P 500 Index declined 0.2% as of 8:23 a.m. London time, the lowest in more than a week.The Stoxx Europe 600 Index sank 0.2%, the lowest in more than a week.The U.K.’s FTSE 100 Index decreased 0.1%, its fifth consecutive decline.Germany’s DAX Index dipped 0.2%, the lowest in more than a week.The MSCI Asia Pacific Index advanced less than 0.05%.The MSCI Emerging Market Index advanced 0.2%.CurrenciesThe Bloomberg Dollar Index was little changed.The euro advanced less than 0.05% to $1.1212.The British pound decreased 0.1% to $1.2455, the weakest in more than two years.The Japanese yen dipped 0.1% to 108.97 per dollar, the weakest in almost six weeks.BondsThe yield on 10-year Treasuries advanced three basis points to 2.09%, hitting the highest in almost four weeks with its fifth straight advance.Germany’s 10-year yield advanced four basis points to -0.31%, the highest in two weeks on the biggest rise in almost three months.Britain’s 10-year yield climbed four basis points to 0.76%, the highest in more than a week.CommoditiesGold fell 0.4% to $1,391.86 an ounce, the weakest in more than a week.West Texas Intermediate crude advanced 1.7% to $58.79 a barrel, hitting the highest in more than a week.Iron ore decreased 1% to $115.60 per metric ton.To contact the reporters on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net;Laura Curtis in London at lcurtis7@bloomberg.netTo contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Robert BrandFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
https://finance.yahoo.com/news/asian-stocks-set-mixed-trading-225059820.html?.tsrc=rss