Stocks Drift as Traders Mull Fed; U.S. Yields Dip: Markets Wrap

(Bloomberg) -- Futures in the U.S. and Europe dipped and stocks in Asia drifted Thursday as investors found little in minutes from the Federal Reserve’s latest meeting to alter expectations for more aggressive interest-rate cuts. Treasury yields edged lower and the yuan weakened.Hong Kong saw the biggest losses, and China fluctuated. Japan closed flat. Trading activity has been reduced this week ahead of Fed Chairman Jerome Powell’s address on Friday and volume was again subdued in Treasury futures. The benchmark 10-year yield continued to fluctuate and dipped Thursday to 1.57%. The dollar were little changed.The diverse set of views from U.S. policymakers shown in the minutes highlights the difficulties facing the Fed ahead of next month’s policy decision when investors expect another rate cut. President Donald Trump kept up his relentless attack on the central bank, claiming that “the only problem we have is Jay Powell and the Fed.” On trade, he predicted the U.S. will “probably” make a deal.“What I think we are going to get out of Jackson Hole is a shift towards the Fed getting more flexibility and optionality,” Jack McIntyre, fixed-income portfolio manager at Brandywine Global Investment Management LLC, told Bloomberg TV. “What I mean by that is maybe sending a message to the market that they’re open to, hey, this might be a more prolonged rate-cutting cycle.”Elsewhere, the British pound steadied after slipping amid the possibility of a so-called no-deal Brexit.Here are some notable events coming up:Thursday brings the Bank Indonesia rate decision and press conference with Governor Perry Warjiyo.Flash PMIs are due for the euro area on Thursday.Kansas City Federal Reserve Bank hosts its annual central banking symposium in Jackson Hole, Wyoming, starting Thursday.Here are the main moves in markets:StocksJapan’s Topix index was little changed at the 3 p.m. close in Tokyo.Hong Kong’s Hang Seng slid 1%.The Shanghai Composite Index fell 0.2%.Australia’s S&P/ASX 200 Index gained 0.4%.Futures on the S&P 500 slid 0.1%. The underlying gauge rose 0.8% on Wednesday.Euro Stoxx 50 futures fell 0.1%.CurrenciesThe yen was at 106.43 per dollar, up 0.2%.The offshore yuan slipped 0.2% to 7.0827 per dollar.The Bloomberg Dollar Spot Index was little changed.The euro bought $1.1081.The British pound was at $1.2125 after slipping 0.3%.BondsThe yield on 10-year Treasuries dipped two basis points to 1.57%.Australia’s 10-year bond yield held at 0.93%.CommoditiesWest Texas Intermediate crude was little changed at $55.52 a barrel.Gold dipped 0.1% to $1,500.58 an ounce.\--With assistance from David Wilson and Paul Allen.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Andreea Papuc, Ravil ShirodkarFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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