(Bloomberg) – Will the decline in European markets be? In the inbox before open, every day. Register here.
U.S. Index futures increased with equities in Europe as investors digested developments in trade talks and comments from a Federal Reserve official about the strength of the largest economy. Tax capacities climbed and a dollar measure stayed close to the high of the year.
The Stoxx Europe 600 Index advanced after swinging earlier. Contracts on three major US equity indices all struggled for traction after the underlying benchmark portfolios rose Monday, when the US Secretary of Commerce said the nation would delay restrictions on some operations in China's Huawei Technologies. Stocks advanced throughout Asia, except for markets in Hong Kong and Shanghai.
Government bonds climbed in Europe except Italy, where leaders can force an early election. The pound slipped after the prime minister announced a proposal to break the deadlock in the Brexit deal with the EU. Tax capital recovered after the slump on Monday as Fed Bank in Boston President Eric Rosengren pushed back against further interest rate cuts. A Bloomberg dollar index was steady, near its record in 2019.
The recent headlines on global trade and interest rates may provide some exposure to investors induced by tumbling bond yields. The US decision on Huawei was seen as encouraging the long-awaited trade pact between the world's two largest economies. Still, the Chinese company said that the temporary relief does not change the fact that it has been treated "unfairly."
Meanwhile, Trump's top economic adviser, Larry Kudlow, will talk to business leaders this week amid concerns about rising odds of a recession, the trade war and the whipsawing markets. This comes before Fed Chairman Jerome Powell's comments on the monetary policy challenges at the Jackson Hole symposium on Friday.
"Our dissertation argues that over the next six months, stock markets should do better, mainly supported by lower interest rates around the world," Jun Bei Liu, Portfolio Manager at Tribeca Investment Partners in Sydney, told Bloomberg TV. " Of course, there are a few problems that arise. One is that the valuations seem incredibly high. And the trade conflict is another uncertainty at this time. ”
Elsewhere, there was subdued response after China made borrowing costs cheaper for companies with the introduction of a renewed benchmark index. Oil futures were steady.
Here are some notable events coming up:
The minutes of the Fed's July meeting will provide details of the discussions leading to the first reduction in interest rates in ten years when they are released on Wednesday. On Thursday, the bank will bring Indonesia's interest rate decision and press conference with Governor Perry Warjiyo. Bottle PMIs should be for the euro area on Thursday. The Kansas City Federal Reserve Bank is hosting its annual central bank symposium in Jackson Hole, Wyoming, starting Thursday. Fed chairman Jerome Powell will comment on Friday.
Here are the key moves in the markets:
Futures on the S&P 500 index gained 0.1% from 6:23 PM in New York time. Stoxx Europe 600 indexes advanced 0.2%. The MSCI Asia Pacific Index rose 0.6%. Hong Kong's Hang Seng index fell 0.2%.
Bloomberg Dollar Spot Index dipped 0.1%. The British pound fell 0.2%. Euro advanced less than 0.05% to $ 1,1081. The Japanese yen strengthened 0.3% to 106.36 per dollar.
The return on 10-year government bonds reduced four basis points to 1.56%. Britain's 10-year return fell three basis points to 0.443%. Germany's 10-year return fell four basis points to -0.69%. Italy's 10-year return increased five basis points to 1.484%.
Gold advanced 0.5% to $ 1,503.59 per ounce.LME copper decreased 0.7% to $ 5,733.50 per tonne. Western intermediate crude oil gained 0.1% to $ 56.29 a barrel.  – With assistance from Sybilla Gross and Andreea Papuc.
To contact the reporter about this story: Todd White in Madrid at firstname.lastname@example.org
To contact the editors responsible for this story: Samuel Potter at spotter33 @ bloomberg.net, Laura Curtis
< p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = "For more articles like this, visit us at bloomberg.com "data-reactid =" 38 "> For more articles like this, please visit us at bloomberg.com
© 2019 Bloomberg LP