(Bloomberg) – US stock futures reversed an advance on Monday along with European stocks as the rising unrest in Hong Kong weighed on investor sentiment. Taxes and yen increased profits, while gold and dollars were both higher.
The Yen extended its rally for a fourth day, while the yuan at sea sneezed as China's central bank fixation continued to signal its willingness to deal with an orderly write-off. Italian bonds led to gains in European debt after Fitch confirmed the country's credit rating on Friday. The pound strengthened after three sessions of decline.
Monday's feedbacks provided another reminder of the fragile mood across markets, which has endured a violent start to August. Gains for the most secure government bonds point to lingering caution. Traders have been stepping up efforts to ease the central bank in recent weeks as the US and China escalate the trade war, and a number of global data have pointed to slowing growth.
"We are cautious as we believe that a number of challenges remain," said Andrew Sheets, chief strategist at Morgan Stanley, London. "Among them, the risk is that high political expectations make disappointment more likely, and that even if aggressive expectations are met, relief is not expected to significantly improve growth or inflation."
Elsewhere, the South Korean won extended fall data-signaled exports are set to decline as the impact of the US-China trade spat spreads. Argentina's euro denominated bonds after President Mauricio Macris's poor performance in Sunday's primary election. The Mexican peso fell.
Here are some key events coming up:
Companies that provide results include China's Tencent, JD.com and Alibaba, Cisco, the Brazilian utility Eletrobras, the UK's Prudential, Australia's Telstra, giant retailer Walmart, Nvidia, Swisscom and the Danish brewer Carlsberg. The US consumer price index probably rose to 1.7% annual pace in July, according to economic estimates. Core prices, which exclude food and energy, are up 2.1%. Wednesday brings data on Chinese retail, industrial production and unemployment. On Thursday we see the release of US demands on unemployment, industrial production and retail data.
These are the most important movements in the markets:
Futures on the S&P 500 index dipped 0.7% from 19:16 in New York time. The Stoxx Europe 600 index fell 0.2%. The MSCI Asia Pacific Index fell below 0.05%. The Shanghai Composite Index jumped 1.5%.
The Bloomberg Dollar Spot Index rose 0.1%. The yuan at sea fell less than 0.05%. The euro fell 0.1% to $ 1.1193. The Japanese yen strengthened 0.6% to $ 105.10 per dollar. The British pound rose 0.5% to $ 1 2097.
The yield on 10-year government bonds fell by six basis points to 1.68%. Britain's 10-year return rose one basis point to 0.495%. spreading Italy's 10-year bonds over Germany dipped four basis points to 2.345 percentage points. Germany's 10-year return reduced one basis point to -0.59%.
Gold rose 0.5% to $ 1,550.02 ounces. West Texas intermediate crude dipped 1.2% to $ 53.87 a barrel. LME aluminum climbed 0.7%.
– With help from Luke Kawa and Adam Haigh.
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