U.S. Futures Drop, Yuan Dips as Trade Talks Loom: Markets Wrap

(Bloomberg) – US stock futures fell, the yen went up and the yuan slid Monday after a report that China may be more and more reluctant to agree on a broad trade deal with the Trump administration. Tax capacity climbed.

Bloomberg's report also saw Japanese stocks with modest losses, and failed to take advantage of any transfer from a solid rally in the S&P 500 index on Friday. That Wall Street progress came after solid US employment data fueled fears of recession without breaking the odds of further relief in the Federal Reserve. Businesses are now in the swing of this week's negotiations between the US and China. Senior Chinese officials have suggested that the range of topics they are willing to discuss has been significantly reduced, said people familiar with the matter.

Hong Kong markets are closed for a holiday, so traders have limited opportunities to respond – or not – to escalating violence in the city, with protesters setting fire to and vandalizing train stations and banks over the weekend. Protesters pushed back against the government's efforts to cancel demonstrations when it called for a colonial emergency. China is also closed, and Sydney has a holiday Monday, which also limits trade.

Following a series of disappointing economic data across the globe last week, investor focus returns to the US-China spit trade seen as the main obstacle. to global growth. With a note from the last Federal Reserve meeting this week, traders will also look for clues as the next step from central bankers comes to support the economy.

Elsewhere, oil held its biggest weekly decline since July ahead of trade talks, as a string of disappointing data sparked fears of an economic downturn.

Here are some important events that emerge this week:

Chinese Vice Prime Minister Liu Han visits Washington for trade talks with his American counterparts. Brexit influence continues while UK Prime Minister Boris Johnson looks set to secure an agreement with time to expire. Chairman Jerome Powell speaks Tuesday on the final day of NABE's Denver annual conference. FOMC references released Wednesday from the police meeting September 17-18. Chinese President Xi Jinping and Indian Prime Minister Narendra Modi meet at an unofficial summit. Nobel prizes are awarded in medicine, physics, literature, chemistry and peace. The US publishes inflation data for September.

Here are the key moves in the markets:

Shares

Futures on the S&P 500 index were down 0.5% from 10:30 in Tokyo. The underlying meter climbed 1.4% Friday. Japan's Topix dipped 0.1%. The Kospi index was little changed. & P / ASX 200 rose 0.4%.

Currencies

The Yen was at 106.77 per dollar, up 0.2%. The offshore yuan fell 0.3% to $ 7,309 per dollar. The euro bought $ 1,0987, little changed.

Bonds

The return on 10-year Treasuries fell more than two basis points, to 1.50%. Japanese 10-year interest rates fell one basis point, to -0.222%.

Commodities

Mid-Texas crude was $ 52.65 a barrel, down 0.3%. Gold was at $ 1,509 ounces, up 0.3%.

– With assistance from David Wilson. [19659018] To contact the reporter about this story: Cormac Mullen in Tokyo at cmullen9@bloomberg.net

To contact the editor responsible for this story: Christopher Anstey at canstey@bloomberg.net

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