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07-29-2019, 02:54 AM
Stocks Edge Down as Trade Talks, Fed Decision Loom: Markets Wrap
(Bloomberg) -- European equities nudged lower with S&P 500 futures and Asian stocks fell at the start of a packed week featuring everything from the resumption of U.S.-China trade talks to an expected Federal Reserve interest-rate cut and the monthly American payrolls report. Treasuries edged higher with the dollar.The Stoxx Europe 600 index struggled for traction, with automakers showing the largest declines as major carmakers prepare to report earnings this week. Futures for the three main U.S. equity gauges were slightly lower after the S&P 500 closed at a record high Friday. Asian equities benchmarks declined, with poor Korean earnings and increasing angst about protests in Hong Kong pulling stocks down. Core European bonds rose and the pound fell for a third day.Investors will be picking through any developments on trade as Chinese and American negotiators gather Tuesday for two days of talks, three months after negotiations broke down. Neither side is signaling much hope for a breakthrough. Meanwhile, Fed Chairman Jerome Powell’s post-meeting press conference on Wednesday will provide an opportunity to gauge the trajectory of U.S. rates after the central bank is tipped to ease policy. On a related theme, traders will eagerly await monthly employment data from the world’s largest economy at the tail end of the week.“The market has fully baked in a 25 basis point cut,” Eugenia Victorino, SEB head of Asia strategy, said on Bloomberg TV. “The markets are now pricing in a protracted negotiation” on trade, she also said. “We don’t expect much breakthrough.”Corporate earnings will remain a focal point as investors stay vigilant for any signs that a global economic slowdown is being reflected in companies’ bottom lines. Among major earnings this week are Apple, Rio Tinto and carmakers Toyota and BMW.Elsewhere, oil traded lower. China’s yuan retreated the most in three weeks as liquidity in Hong Kong made it cheap to short the currency.Here are some of the key events to watch as the week unfolds:Earnings include: Nintendo, Qualcomm, AMD, Siemens, Sony, Credit Suisse, Nomura, Toyota, Honda, Ferrari, GM, BMW, Rio Tinto, ConocoPhillips, BP, Shell, Vale, Heineken, GE, Altria.Bank of Japan rate decision and Governor Haruhiko Kuroda briefing are due Tuesday.U.S. Trade Representative Robert Lighthizer and his team meet their Chinese counterparts in Shanghai Tuesday.Fed officials begin their two-day meeting on monetary policy in Washington Tuesday. Chairman Jerome Powell will hold a press conference following the FOMC’s decision Wednesday.The Bank of England policy decision is due Thursday.The U.S. July jobs report is due Friday.These are the main moves in markets:StocksFutures on the S&P 500 Index fell 0.1% as of 8:22 a.m. London time.The MSCI Asia Pacific Index dipped 0.4% to the lowest in more than a week.The Stoxx Europe 600 Index declined 0.1%.Germany’s DAX Index decreased 0.1%.The MSCI Emerging Market Index sank 0.4% to the lowest in almost three weeks.CurrenciesThe Bloomberg Dollar Spot Index rose 0.1% to the highest in almost two months.The euro decreased 0.1% to $1.1119, the weakest in more than two years.The British pound dipped 0.4% to $1.234, the weakest in more than two years.The Japanese yen gained less than 0.05% to 108.65 per dollar.BondsThe yield on 10-year Treasuries fell one basis point to 2.06%.Britain’s 10-year yield declined two basis points to 0.665%, the lowest in about three years on the largest fall in a week.Germany’s 10-year yield fell one basis point to -0.39%, the lowest in more than three weeks.CommoditiesGold declined less than 0.05% to $1,418.39 an ounce.West Texas Intermediate crude fell 0.4% to $56.00 a barrel.Iron ore decreased 0.6% to $114.27 per metric ton.To contact the reporters on this story: Andreea Papuc in Sydney at apapuc1@bloomberg.net;Laura Curtis in London at lcurtis7@bloomberg.netTo contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net;Christopher Anstey at canstey@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
https://finance.yahoo.com/news/stocks-look-mixed-trade-talks-215220437.html?.tsrc=rss
(Bloomberg) -- European equities nudged lower with S&P 500 futures and Asian stocks fell at the start of a packed week featuring everything from the resumption of U.S.-China trade talks to an expected Federal Reserve interest-rate cut and the monthly American payrolls report. Treasuries edged higher with the dollar.The Stoxx Europe 600 index struggled for traction, with automakers showing the largest declines as major carmakers prepare to report earnings this week. Futures for the three main U.S. equity gauges were slightly lower after the S&P 500 closed at a record high Friday. Asian equities benchmarks declined, with poor Korean earnings and increasing angst about protests in Hong Kong pulling stocks down. Core European bonds rose and the pound fell for a third day.Investors will be picking through any developments on trade as Chinese and American negotiators gather Tuesday for two days of talks, three months after negotiations broke down. Neither side is signaling much hope for a breakthrough. Meanwhile, Fed Chairman Jerome Powell’s post-meeting press conference on Wednesday will provide an opportunity to gauge the trajectory of U.S. rates after the central bank is tipped to ease policy. On a related theme, traders will eagerly await monthly employment data from the world’s largest economy at the tail end of the week.“The market has fully baked in a 25 basis point cut,” Eugenia Victorino, SEB head of Asia strategy, said on Bloomberg TV. “The markets are now pricing in a protracted negotiation” on trade, she also said. “We don’t expect much breakthrough.”Corporate earnings will remain a focal point as investors stay vigilant for any signs that a global economic slowdown is being reflected in companies’ bottom lines. Among major earnings this week are Apple, Rio Tinto and carmakers Toyota and BMW.Elsewhere, oil traded lower. China’s yuan retreated the most in three weeks as liquidity in Hong Kong made it cheap to short the currency.Here are some of the key events to watch as the week unfolds:Earnings include: Nintendo, Qualcomm, AMD, Siemens, Sony, Credit Suisse, Nomura, Toyota, Honda, Ferrari, GM, BMW, Rio Tinto, ConocoPhillips, BP, Shell, Vale, Heineken, GE, Altria.Bank of Japan rate decision and Governor Haruhiko Kuroda briefing are due Tuesday.U.S. Trade Representative Robert Lighthizer and his team meet their Chinese counterparts in Shanghai Tuesday.Fed officials begin their two-day meeting on monetary policy in Washington Tuesday. Chairman Jerome Powell will hold a press conference following the FOMC’s decision Wednesday.The Bank of England policy decision is due Thursday.The U.S. July jobs report is due Friday.These are the main moves in markets:StocksFutures on the S&P 500 Index fell 0.1% as of 8:22 a.m. London time.The MSCI Asia Pacific Index dipped 0.4% to the lowest in more than a week.The Stoxx Europe 600 Index declined 0.1%.Germany’s DAX Index decreased 0.1%.The MSCI Emerging Market Index sank 0.4% to the lowest in almost three weeks.CurrenciesThe Bloomberg Dollar Spot Index rose 0.1% to the highest in almost two months.The euro decreased 0.1% to $1.1119, the weakest in more than two years.The British pound dipped 0.4% to $1.234, the weakest in more than two years.The Japanese yen gained less than 0.05% to 108.65 per dollar.BondsThe yield on 10-year Treasuries fell one basis point to 2.06%.Britain’s 10-year yield declined two basis points to 0.665%, the lowest in about three years on the largest fall in a week.Germany’s 10-year yield fell one basis point to -0.39%, the lowest in more than three weeks.CommoditiesGold declined less than 0.05% to $1,418.39 an ounce.West Texas Intermediate crude fell 0.4% to $56.00 a barrel.Iron ore decreased 0.6% to $114.27 per metric ton.To contact the reporters on this story: Andreea Papuc in Sydney at apapuc1@bloomberg.net;Laura Curtis in London at lcurtis7@bloomberg.netTo contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net;Christopher Anstey at canstey@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
https://finance.yahoo.com/news/stocks-look-mixed-trade-talks-215220437.html?.tsrc=rss